To encourage payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for authority for the IRS to assess the Trust Fund Recovery Penalty (TFRP). These taxes are called trust fund taxes because the business holds the employee’s money in trust... Read More

Many taxpayers ask their tax attorney whether various deadlines by which to take actions are fixed or can be extended. The general rule is that judicial filing deadlines in tax are jurisdictional and are not subject to equitable tolling under recent Supreme Court case law. For example, pertaining CDP Tax Court jurisdiction, Internal Revenue Code... Read More

Chief Judge Maurice B. Foley announced today that the United States Tax Court has adopted final amendments to its Rules of Practice and Procedure, including new Title XXIV.A (Partnership Actions Under BBA Section 1101), and certain conforming and miscellaneous amendments. The Court has also adopted revisions to Form 1 (Petition), Form 7 (Entry of Appearance),... Read More

You may appeal many IRS collection actions to the IRS Independent Office of Appeals (Appeals). Appeals is separate from and independent of the IRS Collection office that initiated the collection action. Appeals ensures and protects its independence by adhering to a strict policy of prohibiting certain ex parte communications with the IRS Collection office or... Read More

The Internal Revenue Service has issued Revenue Procedure 2019-38 (PDF) that outlines a safe harbor allowing particular interests in rental real estate to be treated as a trade or business for purposes of the qualified business income deduction under I.R.C section 199A of the Internal Revenue Code. What is the Qualified Business Income Deduction? I.R.C section 199A... Read More

People often ask their tax lawyer how to respond to the CDTFA when they receive an audit letter. A CDTFA audit can present may issues for the taxpayer to consider and address. One issue that comes up in a CDTFA audit is what is called a bundled sale. The CDTFA began focusing its audit efforts... Read More

Taxpayers frequently ask their tax attorney what they need to do if they receive an IRS summons. Internal Revenue Code (IRC) § 7602 provides the Internal Revenue Service with summons authority. IRC § 7601 authorizes the IRS to inquire about any person or taxpayer who may be liable to pay any internal revenue tax. Moreover,... Read More

Taxpayers often ask their tax attorney what they can do to dispute a tax liability or collection action when they receive an IRS Final Notice of intent to levy or Notice of Federal Tax Lien. Additionally, taxpayers ask what options they have in an IRS CDP hearing. Internal Revenue Code (IRC) section 6320 provides a... Read More

On April 25, 2019, California passed Assembly Bill No. (AB) 147. AB 147 amended Revenue and Taxation Code (RTC) section 6203 to require retailers located outside of California to register with the California Department of Tax and Fee Administration (CDTFA) and collect California use tax in certain circumstances. Therefore, the CDTFA has made significant changes... Read More