Under the new Bipartisan Budget Act of 2015 (the “BBA”), there are significant changes to the partnership audit rules, including changes to the procedures for assessment and collection of tax, and for judicial review.This column focuses on one specific procedural change, the elimination of...

This article discusses Callister Nebeker & McCullough v. United States, as well as other areas in which a law firm or accounting firm, or the partners of a firm, can be liable for the non-compliance of partners and employees. Specifically, this article discusses firm liability for list...

The Bipartisan Budget Act of 2015 (the “BBA”) made substantial changes to the audit procedures for passthrough entities. This column discusses how partnerships and individual partners will be able to challenge penalties under the BBA procedures. The BBA repealed the prior rules for...

Practitioners who are “material advisors” with respect to “reportable transactions,” are required to report to the IRS, and to maintain information about, those transactions, and are subject to onerous penalties if they fail to comply. The definition of a “material advisor” is...

If you are preparing, or advising on, the filing of amended returns or other claims for refund, one of the most important things to consider is the variance doctrine, and how it could impact your client's ability to bring a refund action in court if the IRS denies the claim. This column focuses...

Under the injunction statutes in the Internal Revenue Code, the U.S. government has broad discretion to seek—and the federal courts to order—the injunction of the preparation of false or fraudulent returns, as well as the aiding and abetting of false tax returns, and the promotion of abusive...

Adequate disclosure is a defense to the application of the extended six-year statute of limitations for assessment of tax based on a substantial understatement of gross income under Internal Revenue Code (“IRC”) § 6501(e), a defense to substantial understatement penalties under IRC §...

This article discusses Interim Guidance for Report of Foreign Bank and Financial Accounts (FBAR) Penalties,” SBSE-04-0515-0025 (May 13, 2015), issued by the Internal Revenue Service (“IRS”). The Interim Guidance contains guidance for assessing willful and non-willful FBAR penalties as well...

Four states, California, Maryland, New York, and Oregon, have regimes for regulating otherwise unlicensed paid income tax return preparers. Each state program includes compulsory education and some standards of practice. The most rigorous programs are those of Oregon and New York, which also...

Internal Revenue Code § 7430 permits an award of reasonable litigation and administrative costs incurred by the “prevailing party” in an administrative or court proceeding brought by or against the United States in connection with the determination, collection, or refund of any tax,...