irs: Speedy Trial Rights and the Coronavirus - 03/27/20 01:10 PM
The U.S. Supreme Court announced that it is postponing upcoming oral arguments.  The last time that it did that was more than a hundred years ago in 1918 as a response to the Spanish flu.[1]  Case in point that our judicial system is undergoing strains that, while not entirely unprecedented, are rarely seen.  And that strain will test constitutional values in the months to come.
The Sixth Amendment to the U.S. Constitution guarantees American defendants the right to a speedy trial.  This right has a noble lineage.  It was memorialized in the Magna Carta, and our founding fathers recognized it as a fundamental stalwart … (0 comments)

irs: Latest IRS Coronavirus Guidance on Deadlines - 03/27/20 06:59 AM
The IRS recently issued Notice 2020-18, announcing special Federal return filing and payment relief in response to the Coronavirus epidemic.  In addition, the IRS issued a series of Frequently Asked Questions to provide taxpayers with timely information addressing some of the most common questions about the impact of COVID-19.
Taxpayers and professionals can also find information about the Families First Coronavirus Response Act, which provides sweeping changes for certain small businesses which have employees who are affected by the COVID-19 outbreak.  A copy of the Families First Coronavirus Act can be found here.
Residents of the Dallas/Fort Worth area have been ordered to shelter-in-place.  … (0 comments)

irs: Section 7403 Tax Enforcement Actions - 03/27/20 06:54 AM
The United States has the power to place a lien on a taxpayers’ property and rights to property when that taxpayer has unpaid federal taxes.[1] The government is statutorily authorized to bring a civil action to enforce this lien under Internal Revenue Code (IRC) § 7403.[2] While § 7403 generally provides that courts are to adjudicate lien enforcement actions on the merits, Federal Rules of Civil Procedure Rule 55 allows for parties seeking relief to obtain a default judgment against parties that fail to defend against the claims being brought against them. Thus, when the United States seeks enforcement of a … (0 comments)

irs: Additional IRS Guidance on Coronavirus Tax Relief: New People First Initiative - 03/27/20 06:37 AM
The IRS has been busy issuing guidance regarding the coronavirus and its effects on the federal income tax system.  In addition, the IRS has specifically recognized the detrimental effects the coronavirus (COVID-19) outbreak has had on taxpayers.  On March 25, 2020, the IRS announced a “sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.”  The IRS has labeled this new initiative the People First Initiative, and a quick summary of some of its details follow.
Existing Installment Agreements and Offers-in-Compromise.Generally, taxpayers can avoid levies by submitting … (0 comments)

irs: Additional IRS Guidance on Coronavirus Tax Relief: New People First Initiative - 03/27/20 05:55 AM
The following post is from Freeman Law, PLLC, and is available at www.freemanlaw.com.  
 
The IRS has been busy issuing guidance regarding the coronavirusand its effects on the federal income tax system.  In addition, the IRS has specifically recognized the detrimental effects the coronavirus (COVID-19) outbreak has had on taxpayers.  On March 25, 2020, the IRS announced a “sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.”  The IRS has labeled this new initiative the People First Initiative, and a quick summary of some of its details follow.
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irs: “Hot Assets” and the Sale or Exchange of Partnership Interests - 02/19/20 04:55 PM
When a partner enters into a sale or exchange of their partnership interest, there are often lurking tax surprises—such as unexpected phantom income triggers.  Sales of partnership interests are notoriously fraught with potential tax traps for the unwary.  It is, in fact, even possible to trigger more tax on a sale than one receives in exchange for the interest in the partnership.
 
​One of the more common lurking issues involves triggering income from so-called “hot assets,” often in the form of “unrealized receivables” held by the partnership.  The scope of “unrealized receivables” is deceptively wide, and can include partnership attributes such as … (0 comments)

irs: International Reporting Penalties - 02/18/20 11:18 AM
Taxpayers with interests in foreign financial assets, financial accounts, and/or foreign trusts may have certain tax reporting obligations with the IRS.  For example, taxpayers with a financial interest in or signature authority over foreign financial accounts with an aggregate value of over $10,000 at any time during the calendar year must file a Report of Foreign Bank and Financial Account (“FBAR”).  31 U.S.C. § 5314.  The IRS has the authority to impose serious penalties on taxpayers for failing to meet their international reporting obligations.  The most common international reporting penalties are discussed below.
 
Taxpayers who have an aggregate value of over $10,000 … (0 comments)

irs: WHAT YOU NEED TO KNOW ABOUT FEDERAL TAX LIENS AND LEVIES - 12/22/18 04:41 PM
For more on What you Need to Know About Federal Tax Liens and Levies, visit Freeman Law for our Insights and in-depth resources on the topic.   A. Introduction In order to protect the revenue, Congress has provided an administrative means of collection on IRS assessments by attaching a lien to the taxpayer’s property. To expand further, this lien (often referred to as the “general” or “statutory” lien) not only attaches to all of the taxpayer’s property, but to all of the taxpayer’s rights to property, whether real or personal, tangible or intangible, as of the date of the assessment, as well as … (3 comments)

irs: Tax-Related Passport Restrictions and IRS Notices of Seriously Delinquent Federal Tax Debts - 12/22/18 04:33 PM
For the past year, the IRS has been issuing taxpayers Notices of Certification of Seriously Delinquent Federal Tax Debt.  These notices inform taxpayers of serious consequences related to outstanding tax debts that are classified as "seriously delinquent," which can include the denial of passport rights and limitations on foreign travel.
Congress enacted section 7345 of the Internal Revenue Code as part of the Fixing America's Surface Transportation (FAST) Act on December 4, 2015. Section 7345 requires that the Internal Revenue Service notify the State Department of taxpayers that are certified as owing a seriously delinquent tax debt. The FAST Act generally prohibits … (1 comments)

irs: Tax Reform: A Brief Primer on the Key Business Provisions - 05/27/18 07:05 AM
Just before the turn of the new year, Congress passed—and the president signed—the Tax Cuts and Jobs Act of 2017 (“TCJA”).  The TCJA represents the most extensive rewrite of the U.S. tax code in over 30 years.  The new act contains a number of important provisions that will impact business tax planning for years to come.  Below are some highlights from the business-related provisions that practitioners need to know.
21% Corporate Rate. The new act eliminates the progressive corporate tax rate system, which imposed a 35-percent maximum tax rate.  In its place, it provides a flat 21-percent corporate rate.  This change, which is … (1 comments)

irs: The IRS Will Soon Close the Offshore Voluntary Disclosure Program - 05/09/18 03:18 PM
The IRS recently announced that it will officially close the Offshore Voluntary Disclosure Program (“OVDP”) in September of 2018.  Its announcement serves as a “last call” for taxpayers who have willfully failed to report foreign assets or income—a last opportunity to come forward under the terms of the OVDP, which provides for criminal amnesty and other protections.  After September 2018, the door to the OVDP will officially close.
The IRS is ending the program for two reasons: It believes that taxpayers should now be sufficiently aware of their reporting obligations with respect to foreign assets andit believes that it now has more than enough access … (1 comments)

irs: The Taxation of Hard Forks - 05/06/18 11:55 AM
What are the tax implications of a cryptocurrency Hard Fork?  Does the holder of a cryptocurrency that undergoes a Hard Fork realize taxable income? If so, how does one determine the amount of the income and when, exactly, it is received?  These are not easy questions to answer.
What is a Hard Fork? 
A Hard Fork—sometimes referred to as a “Chain Split” or “Coin Split”—occurs when a new branch of a cryptocurrency splits off from the original cryptocurrency.  The new branch shares a common history on the cryptocurrency’s blockchain (its ledger) up until the point of the split, and is thereafter maintained separately on … (1 comments)

irs: Representing Taxpayers in Eggshell Audits - 05/03/18 03:00 PM
Sensitive audits present the tax practitioner with unique challenges.  They require the exercise of judgment and discretion, as well as an understanding of administrative procedure and even a command of constitutional and evidentiary rules.  At times, they may also require that the practitioner carefully balance duties to a client with their own ethical and legal obligations.  (For a link to the author's blog, see here.)
Sensitive audits come in several forms.  An “eggshell” audit, for instance, is a civil audit that has the potential to turn criminal.  There are lurking issues—potential tax fraud or evidence of other legal violations such as money … (0 comments)

 
Jason B. Freeman, J.D., CPA, IRS Tax Defense, Attorney-CPA (Freeman Law, PLLC) Rainmaker large

Jason B. Freeman, J.D., CPA

IRS Tax Defense, Attorney-CPA

Frisco, TX

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Freeman Law, PLLC

Address: 2595 Dallas Parkway, Suite 420, Frisco, Texas, 75034

Office: (214) 984-3410

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