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The IRS’s Bank Secrecy Act Program Has Minimal Impact on Compliance

In Bank Secrecy Act by Jason Freeman and Katie ManworrenLeave a Comment

The Treasury Inspector General for Tax Administration (TIGTA) published a report in September 2018 entitled The Internal Revenue Service’s Bank Secrecy Act Program Has Minimal Impact on Compliance. The report’s findings are based on an audit TIGTA performed to “evaluate the impact of the IRS’s compliance efforts related to its delegated authority under the Bank Secrecy Act (BSA).” This authority …

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Tax Evasion: Attempting to Evade the Assessment of Taxes

In Criminal, Fraud, Tax Evasion, Tax Fraud by Jason FreemanLeave a Comment

“Tax evasion” is a shorthand phrase often used to describe a wide variety of tax-related fraud.   The crime under the federal tax laws, however, is a rather specific one, and requires that the government establish specific elements in order to sustain a conviction.   This resource focuses on a particular strand of tax evasion: Attempting to evade the assessment …

The Crime of Tax Evasion

In Criminal, Tax Evasion, Tax Fraud by Jason FreemanLeave a Comment

The Crime of Tax Evasion   Section 7201 of the tax code creates the federal crime of tax evasion. The crime of tax evasion  has historically served as the principal tax revenue offense. There are two potential offenses under section 7201: (A) the willful attempt to evade or defeat the assessment of a tax, and (B) the willful attempt to evade …

IRS Use of Big Data Leads to 400% Increase in Detection of Tax Fraud by Criminal Investigation Division

In Criminal, Tax Fraud by Jason FreemanLeave a Comment

IRS Use of Big Data Leads to 400% Increase in Detection of Tax Fraud by Criminal Investigation Division IRS detection of tax fraud is up nearly 400%, largely from its use of data analytics.  According to its recent report, the IRS Criminal Investigation Division identified nearly $10 billion in tax fraud in 2018—an increase from the $2.5 billion it identified …

A Collection Due Process Hearing

In CDP, Collection Due Process, Tax Levies, Tax Liens by Larry JonesLeave a Comment

Collection Due Process Hearings      Prior to the IRS issuing a levy it must give the taxpayer a final notice of intent to levy.  If the IRS files a tax lien, the IRS must give the taxpayer a notice after the tax lien has been filed.  The notices give the taxpayer 30-days to request a collection due process (CDP) hearing.  If …

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The Attorney-Client and Work Product Privileges in the Tax Context

In Attorney-Client Privilege, Privilege, Tax Litigation, Work Product Privilege by Jason Freeman and Katie ManworrenLeave a Comment

A recent case reveals the perils of maintaining the attorney-client and work product privileges. As it demonstrates, additional precautions may be necessary in the context of privileged documents that are utilized in the tax context, particularly where those documents are used to support a reporting position.   United States v. Sanmina Corporation & Subsidiariesinvolved a dispute between the IRS and …

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TIPS FOR NEGOTIATING WITH THE IRS

In Installment Agreement, IRS Collection by Larry JonesLeave a Comment

Common Sense–Always use common sense when dealing with the IRS. Communication–Communicate with the taxpayer and the IRS. Ask the taxpayer and the IRS many questions.  If you do not understand something, then continue asking questions. Ask many questions.  Use why, what, when, etc. Prepare for the IRS–Fully develop the facts and law. Before negotiating with the IRS, make sure you …