IRS Insights - January 2009 |
Publish date:
Welcome to the bimonthly publication, IRS Insights, produced by the Deloitte Tax Controversy Services Group to keep our clients abreast of current issues related to the Internal Revenue Service.
In this month's issue:
- Jurisdiction, once invoked, remains unimpaired – In a recent decision, the Tax Court held that, once the court has jurisdiction under I.R.C. Section 6512(b) over a claim for an overpayment, the court does not lose that jurisdiction if the commissioner subsequently concedes the fraud penalty and agrees that the normal three-year limitation period bars assessment of a deficiency.
- Failure to make an administrative claim for refund results in dismissal of refund action – The U.S. Court of Appeals for the 7th Circuit recently held that the taxpayer's failure to file a formal claim with the IRS, as required by Section 7422(a), barred the District Court from exercising any jurisdiction over the claim.
- Accuracy-related penalty upheld for disregard of return preparer’s warnings – The Tax Court partially upheld accuracy-related penalties under I.R.C. Section 6662(a) because the taxpayer failed to reasonably rely in good faith on bonus depreciation deductions claimed on its return prepared by its tax return preparer.
- Tax Controversy Updates: IRS extends fast track settlement for SB/SE taxpayers pilot program – IRS announced a two-year extension of the Fast Track Settlement for Small Business/Self Employed division Taxpayers Pilot Program.
- Tax Controversy Updates: IRS offers new test program for mediation and arbitration for offer in compromise and trust fund recovery penalty cases in appeals – IRS announced a two-year test of the mediation and arbitration procedures for Offer in Compromise and Trust Fund Recovery Penalty cases that are under the jurisdiction of the Office of Appeals. This is one of IRS' many initiatives to expedite issue resolution and should be considered by taxpayers who have eligible cases in appeals.
- Recent Guidance: U.S. and Liechtenstein sign tax information exchange agreement – Liechtenstein has been at the center of investigations into alleged tax evasion where residents of numerous countries, including the United States, are believed to have hidden assets in secret bank accounts in order to avoid paying taxes to their home jurisdictions.
- Recent Guidance: IRS designates withholding taxes as a Tier I issue – IRS announced that withholding taxes have been designated a Tier I issue, and are thus required audit items (contingent on an applicable threshold, if any).
- Recent Guidance: Proposed regulations on material advisor penalty for failing to disclose reportable transactions – The IRS has issued proposed regulations on the penalty assessed against material advisors under Section 6707 for failing to disclose a reportable transaction. The regulations would be effective for returns the due date of which is after final regulations are published in the Federal Register.
- Recent Guidance: Subpart F income partnership blocker identified as transaction of interest – IRS identified as a "transaction of interest" a transaction in which U.S. taxpayers take the position that a domestic partnership blocks the inclusion of subpart F income. This creates disclosure obligations for taxpayer that participate in, and material advisors who make tax statement with respect to this type of transaction.
- Tax Controversy Dbriefs Webcast Series – Keeping up with all the latest tax issues and strategies is a challenge. Dbriefs are live Webcasts to help you gain insight on critical tax issues affecting your business. Take a look at the upcoming Webcasts and begin gaining practical knowledge from leading Deloitte tax professionals that you can apply immediately.
See attached file for details.
Visit the IRS Insights Archive for issues from the past year.
IRS Insights - January 2009
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