IRS Recalculation Doesn’t Justify Abating Interest
Taxpayers may sometimes request the IRS to recalculate their tax liability, and the IRS may grant such a request, but this does not necessarily mean that the IRS accepts all the tax positions set out...
View ArticleInterest Abatement: What is a Ministerial Act?
Imagine that the IRS did not act quickly. Okay, that isn’t hard to imagine. The IRS never acts quickly. I’ll rephrase that. When the IRS goes slow in processing even the most basic request or inquiry,...
View ArticleIRS Cannot Abate Interest on Employment Taxes
The IRS has a track record of not acting timely. Its failures in this regard are frequent and, sadly, they are expected. The bar has been set so low that we actually expect the IRS to go slow. This can...
View ArticleGetting Interest Abated: Challenges & Solutions
The Internal Revenue Service is notorious for being slow in doing its work, and its delay often results in taxpayers being charged with interest on their tax liabilities. While the IRS has the...
View ArticleBusiness Should Review Interest Netting in Light of Wells Fargo Case
In Wells Fargo & Company v. United States, No. 2015-5059, the United States Court of Appeals for the Federal Circuit considered whether a business that has merged with another business can obtain...
View ArticleTransferee Liable for $13 Million in Pre-Judgment Interest
There are times when our tax laws draw distinctions that can seem unfair. The Tricarichi v. Commissioner, T.C. Memo. 2016-132, highlights one of these situations. Tricarichi is a transferee liability...
View ArticleUnmarried Taxpayers Can Claim Mortgage Interest Deduction
Mortgage Interest Deductions for Unmarried Couples In Voss v. Commissioner, 796 F.3d 1051 (9th Cir. 2015), the court addressed the rule that limits the deductibility of interest on home mortgages and...
View ArticleWholly Owned Corp and Parent Not the “Same Corporation” for Interest Netting
In Ford Motor Co. v. United States, No. 14-458T (Ct. Cl. 2017), the court addressed whether a wholly owned corporation and its parent were the “same corporation” when computing the amount of interest...
View ArticleRevocation of Nonprofit Status Triggers Retroactive Interest
There are some areas of law where principles of equity and good faith play a big role. By and large, tax law does not adopt these principles. The CreditGUARD v. Commissioner, 149 T.C. 17 (2017) case...
View ArticleIs a Taxpayer Liable for Interest if the IRS Delays an Audit?
Can the IRS fail to audit a taxpayer for several years and then, once it actually opens the audit, drag its feet for years and then charge the taxpayer interest retroactively back to the date the tax...
View ArticleUsing Contract Law to Avoid IRS Interest
Interest that accrues on taxes can be abated due to IRS errors or delays. The law that implements this general rule often fails to provide a meaningful remedy in most interest abatement cases. But what...
View ArticleAvoid IRS Interest With Credit Elects
A tax attorney might say that you should never go into an iffy transaction naked. This refers to a tax position that covers a real or perceived tax liability from a transaction. This is a corporate tax...
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