The Tax Court in VisionMonitor Software, LLC, found common sense way to waive accuracy related penalties based on a reasonable reliance in a partnership context

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In VisionMonitor Software, LLC v. CIR, T.C. Memo 2014-182, the Tax Court faced another taxpayer’s attempt to create basis in a partnership interest through the contribution of a promissory note.  Unfortunately for the taxpayer, VisionMonitor follows pretty well established law that a partner’s contribution of his own promissory note to his partnership does not createRead More

IRS considering reduced OVDP penalties for non-willful foreign account holders

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On June 3, 2014, IRS Commissioner Koskinen, speaking at an OECD conference, stated that the IRS is considering revising the current Offshore Voluntary Disclosure Program (OVDP) to reduce penalties on U.S. resident foreign account holders who were not willfully hiding their investments overseas.  A copy of his statement can be found here.  This is greatRead More

Failure to disclose foreign account nets tax penalty

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A Florida federal court jury found an 87-year old U.S. citizen guilty of failing to file required Reports of Foreign Bank and Financial Accounts (FBARs) for a Swiss bank account that he controlled.  (Click HERE for a copy of the Department of Justice press release.)  The fate of the defendant is now in the handsRead More

Will passive activity loss cases be the IRS’s next favorite area to attack?

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I love going to work every day.  Our tax controversy practice gives us, as tax lawyers, a taste of a myriad of issues that most tax lawyers do not get to sample.  A tax controversy lawyer’s practice often reflects the government’s current, most popular areas to attack.  Most recently, that has included conservation easements. ButRead More

IRS continues to go after foreign account holders

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Congress, the IRS, and the Department of Justice are scrutinizing foreign account holders now more than ever. On February 19, 2014, the Senate Permanent Subcommittee on Investigations announced that it will be holding a hearing to crackdown on foreign tax evasion and to hold U.S. taxpayers accountable for unpaid taxes on accounts overseas. In theRead More