IRS Warns of Resurgence of W-2 Email Scams

By | Tax Controversy Sentinel | August 18, 2017
The Internal Revenue Service has issued a renewed warning for tax professionals and businesses to beware of a recent increase in email scams targeting employee Forms W-2. According to the IRS, the W-2 scam – called business email compromise or “BEC” – is one of the most dangerous phishing email schemes trending nationwide from a tax administration perspective. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

MTC Marketplace Seller Voluntary Disclosure Initiative Underway

Yesterday, the application period opened for the limited-time MTC Marketplace Seller Voluntary Disclosure Initiative opened and it will close October 17, 2017. Since our last blog post on the topic detailing the initiatives terms, benefits and application procedure, six additional states (listed below) have signed on to participate in varying capacities. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

It Might Be Time to Party Like It is 2012 with the Spousal Lifetime Access Trust

In my last blog post I noted that it might be a good time to reconsider discount planning with family limited partnerships (FLP).  That thought has only increased over the last few weeks as the chances for tax reform dwindle.  Indeed, while political predictions are a fools game, we now have to seriously consider a move left in 2020 and, at best, a stalemate until then.   View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

Justice Department’s Latest Offshore Bank Resolution Confirms Value of Self-Disclosure and Voluntary Remediation by at-Risk Foreign Institutions

By | Tax Controversy Sentinel | August 17, 2017
The Justice Department revealed its latest offshore bank resolution by announcing that it had entered into a non-prosecution agreement with a Swiss asset management firm called Prime Partners. This means that Prime Partners will not be criminally prosecuted for participating in what the DOJ characterized as a conspiracy to defraud the Internal Revenue Service and evade federal income taxes in connection with services that it provided to U.S. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

Sovereign Immunity Principles Bar Taxpayers from Challenging John Doe Summonses

We recently wrote here about “John Doe” summonses and a case where an anonymous “John Doe” was allowed to intervene in a summons enforcement action. To refresh, under Internal Revenue Code (IRC) Section 7602 the Internal Revenue Service (IRS) has broad authority to issue administrative summonses to taxpayers and third parties to gather information to ascertain the correctness of any return. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

Massachusetts Appellate Tax Board Denies Multiple Points of Use Sales Tax Refund Claims

The Massachusetts Appellate Tax Board (“ATB”) has issued an order denying three sales tax refund claims involving multiple points of use (“MPU”) sourcing.  In each case, vendors had filed refund claims arguing that their customers were eligible for refunds of sales tax charged on the full sales price of software delivered to Massachusetts to the extent the software was actually used by the customer’s employees outside of Massachusetts. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

Treasury Clarifies Effective Date of Revised Definition of ‘Available Amount’

On July 18, 2016, the Treasury Department published final regulations on non-issue price arbitrage restrictions (the “Final Regulations”).  A copy of the Final Regulations is available here.  Since that time, the mid-afternoon naps of issuers, tax lawyers, and possibly Sean from Portlandia have been improved by reading my “comprehensive” blog post on the Final Regulations. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

Grecian Magnesite Mining V. Commissioner: Foreign Investor Not Subject to US Tax On Sale of Partnership Interest

In a long-awaited decision, the US Tax Court recently held that gain realized by a foreign taxpayer on the sale of a partnership engaged in a US trade or business was a sale of a capital asset not subject to US tax, declining to follow Revenue Ruling 91-32. View Full Post
Tweet Like LinkedIn LinkedIn Google Plus

Delaware (Re)Proposes Unclaimed Property Reporting and Examination Manual Regulation

On August 1, the Delaware Department of Finance (DOF) published a revised version of its proposed reporting and examination manual regulation addressing audit procedures and method of estimation.  See 21 DE Reg 123 (Aug. 1, 2017). The revised proposed regulation is substantially similar to the first draft proposed earlier this year, but contains a dozen or so notable differences (described in more detail below). View Full Post
Tweet Like LinkedIn LinkedIn Google Plus