Recently, the written supervisory approval requirement of Section 6751(b) has been one of the primary issues in Tax Court litigation concerning penalties that the IRS has asserted against taxpayers. The focus of this litigation is the effect of Section 6751(b) and its interplay with the Commissioner’s burden of production as to penalties in court proceedings
District Court Holds Tax Liens Stay with Property after Conveyance
United States v. Gerard, a recent case from the Northern District of Indiana, demonstrates how a tax lien, once attached, can stay with property even after the property is conveyed to someone other than the taxpayer. In 1990, a husband and wife named Robert and Cynthia Gerard bought a residence as tenants by the
Law Firm Shareholders Liable for Trust Fund Recovery Penalties
The Internal Revenue Code requires employers to withhold certain taxes in “a special fund in trust for the United States” (sec. 7501(a)). IRS regulations require employers to pay these trust fund taxes to the IRS quarterly. Employers who fail to pay withheld taxes to the government are personally liable for the taxes under section 6672
New Tax Bill Means Changes for Employers: What You Need To Know
Our colleague Tiana R. Seymore has authored a client alert addressing several provisions in the Tax Cuts and Jobs Act which directly impact the workplace, including one that gives some employers a credit for providing paid family and medical leave if they meet specific requirements and another that eliminates certain tax deductions in sexual harassment
Changes to Estate and Gift Taxes in the New Tax Law
Our colleague Debra T. Hirsch has authored a client alert addressing estate and gift tax planning issues impacted by the Tax Cuts and Jobs Act, which took effect yesterday. You can read Debra’s alert here.
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IRS Issues Guidance Regarding Deductibility of Prepaid Real Property Taxes
The Internal Revenue Service advised tax professionals and taxpayers today that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances.
The IRS has received a number of questions from the tax community concerning the deductibility of prepaid real property taxes. In general, whether a taxpayer is allowed
The Tax Cuts and Jobs Act’s Impact on Domestic M&A Transactions
Our colleagues Stanley Barsky, Michael S. Bookbinder, and Eric J. Michaels have published an article about several provisions in the Tax Cuts and Jobs Act — signed into law by the president today — that significantly affect the federal income tax consequences of structures often used in domestic M&A transactions. While some are
Take Heed: Tax Planning Too Good To Be True? It Might Be…And Taxpayers Can Be Penalized
We have all heard the old proverb “if it’s too good to be true, then it probably is.” In the tax world, this proverb might as well be referred to as the economic substance doctrine. Generally, taxpayers are free to structure their business transactions in a manner of their choosing. However, the economic substance doctrine
An Overview of the Proposed Tax Reform Bill
On Thursday, November 2, the House Ways and Means Committee released the proposed Tax Cuts and Jobs Act, which proposes significant revisions to the Internal Revenue Code. According to Fox Rothschild tax partner Jennifer Benda, “my sense after reading the Bill is that most taxpayers’ tax liabilities will roughly remain the same.” The Tax
Facts on Tax: The Executive Summary on Corporate Tax Reform
On October 16, 2017, the White House released the Council of Economic Advisers’ Report, entitled Corporate Tax Reform and Wages: Theory and Evidence. The Report comes in the wake of the current administration’s push for major tax reform. With $299 billion in corporate profits abroad in 2016, the focus of the Report is to