Tax Controversy and Financial Crimes Report

With its special agent ranks significantly depleted after years of budget cuts, the Criminal Investigation Division of the Internal Revenue Service announced this week that it is hiring new special agents. IRS-CI is responsible for investigating potential criminal violations of the tax laws and related financial crimes, and it currently has barely 2,000 special agents to carry out this critically-important mission, not just in the U.S. but across the globe. The job posting for IRS…
As part of its continuing guidance to taxpayers and practitioners about how its resumption of activities following the government shutdown is impacting pending matters, the Internal Revenue Service has published Frequently Asked Questions (entitled “Appeals Resumption FAQs“) regarding cases pending in IRS Appeals.  These FAQs provide information regarding the shutdown’s effect on Appeals hearings, Appeals correspondence, and communications with Appeals Officers.  The text of those FAQs follows: 1. How soon will Appeals hearings resume?…
As part of its continuing guidance to taxpayers and practitioners about how its resumption of activities following the government shutdown is impacting pending matters, the Internal Revenue Service has published Frequently Asked Questions (entitled “IRS Update on Shutdown Impact on Tax Court Cases; Important Information for Taxpayers, Tax Professionals with Pending Cases“) regarding Tax Court activities.  These FAQs provide information regarding the shutdown’s effect on Tax Court proceedings, including mail being returned and issues…
As part of its guidance to taxpayers and practitioners about how its resumption of activities this week following the government shutdown is impacting pending matters, the Internal Revenue Service has published Frequently Asked Questions (entitled “Collection Resumption FAQs“) regarding collection activities.  These FAQs provide information regarding the shutdown’s effect on liens, levies, notices of deficiency, penalties, passports, and private debt collection.  The text of those FAQs follows: IRS employees returned to work on January…
We wrote yesterday that the Internal Revenue Service has issued guidance to taxpayers and practitioners about how the agency’s resumption of activities this week following the government shutdown is impacting pending matters, such as audits, collection cases, and Tax Court cases.  With respect to pending audits, the IRS has published helpful Frequently Asked Questions (entitled “Exam Resumption FAQs“) about a variety of issues impacted by the shutdown.  The text of those FAQs follows:…
The Internal Revenue Service reopened for business on Monday, January 28, 2019, after having been closed for over one month as a result of the federal government shutdown.  On the same day, the IRS opened the 2019 tax filing season.  Anticipating an avalanche of questions and inquiries from taxpayers about how the shutdown affected pending audits, collection activities, Tax Court cases, and the nascent filing season, the IRS has published helpful information, including Frequently Asked Questions…
January 28, 2019 – Alerts By Matthew D. Lee and Marissa Koblitz Kingman Following the termination last fall of its immensely successful Offshore Voluntary Disclosure Program (OVDP), the Internal Revenue Service (IRS) has announced a new regime to govern all voluntary disclosures regarding tax noncompliance. These new procedures apply to both domestic and offshore voluntary disclosures, and in many ways they replicate the procedures under the now-shuttered OVDP. In other ways, the new procedures are…
According to a notice posted on its website over the weekend, the United States Tax Court will reopen for business and resume full operations tomorrow morning, January 28, 2019.  The Tax Court has been closed for nearly one full month due to the federal government shutdown.  The website further notes that trial sessions scheduled for the weeks of January 28, February 4, and February 11 have been cancelled.  The February 25 trial sessions will proceed…
On December 28, 2018, at 11:59 p.m., the United States Tax Court closed its doors in light of the federal government shutdown, and has not reopened for business since then. The closure of Tax Court has caused significant concern to many taxpayers and professionals regarding the filing of petitions, the status of scheduled trials, and collection activity, among other issues. Today, as the president was announcing a deal to temporarily reopen the government, the IRS published
In January, the New York Department of Taxation and Finance issued a notice regarding sales tax registration requirements for businesses with no physical presence in New York.  The notice responds to the U.S. Supreme Court’s ruling in South Dakota v. Wayfair, 138 S.Ct. 2080 (2018), which overruled prior precedent prohibiting states from imposing sales tax collection requirements on businesses with no physical presence in the state. The notice requires a business (1) that made more…