News & Analysis as of

Tax Penalties Penalties

McDermott Will & Emery

Tax Court Tells IRS It Cannot Assess or Collect Certain Tax Penalties

McDermott Will & Emery on

On April 3, 2023, the US Tax Court issued its opinion in Farhy v. Commissioner, holding that the Internal Revenue Service (IRS) lacked the statutory authority to both assess tax penalties under Internal Revenue Code (Code)...more

BakerHostetler

Supreme Court Rules in Favor of Taxpayer in FBAR Case Penalty for Non-Willful Violations Apply on a Per-Report Basis

BakerHostetler on

On Feb. 28, the U.S. Supreme Court ruled that non-willful penalties related to FBARs apply to each report filed, not on a per-account basis. The 5-4 decision resolved a split between the Fifth and Ninth circuits that focused...more

Latham & Watkins LLP

US Tax Court Voids Penalties Affecting Syndicated Conservation Easements; Treasury Reacts With Proposed Regulations

Latham & Watkins LLP on

The Tax Court’s decision setting aside IRS Notice 2017-10 for ignoring the APA’s notice and comment requirements has serious implications for other notices identifying listed transactions. Key Points: ..Notice 2017-10...more

Holland & Knight LLP

Willful or Non-Willful? That Is the Question: IRS Rejects Non-Willful Certification

Holland & Knight LLP on

In Flint v. United States, 2022 WL 3593826 (Fed. Cl. 2022), the court held that the executors of an estate could not recover a six-figure "Title 26 miscellaneous offshore penalty" (MOP) the decedent paid to the Internal...more

Groom Law Group, Chartered

Texas, et. al., v. U.S. – The Fifth Circuit Rules

As you may recall, in late September, we expected a decision from the Fifth Circuit in Texas v. United States—the case challenging the constitutionality of the Patient Protection and Affordable Care Act (ACA)—in the fall of...more

Foster Garvey PC

Oregon Lawmakers Amend the Understatement of Taxable Income Penalty Regime (House Bill 2488)

Foster Garvey PC on

CURRENT LAW In accordance with ORS § 314.402, the Oregon Department of Revenue (“DOR”) shall impose a penalty on a taxpayer when it determines the taxpayer “substantially” understated taxable income for any taxable year....more

Patterson Belknap Webb & Tyler LLP

IRS Announces Changes to the Offshore Voluntary Disclosure Program

As you may have read, the Internal Revenue Service (“IRS”) recently announced changes to its offshore voluntary disclosure programs and announced new options for taxpayers to come into compliance with their U.S. tax...more

Pillsbury Winthrop Shaw Pittman LLP

Lingering Questions About the San Francisco Gross Receipts Tax

The first installment payment for the new San Francisco Gross Receipts Tax was due April 30, 2014. Many questions about the new tax remain. While the City has provided some relief from installment underpayment penalties,...more

Cranfill Sumner LLP

What the Obamacare Delay Means Right Now

Cranfill Sumner LLP on

On July 2, 2013, the Department of the Treasury and the White House announced via social media that the employer reporting requirements and employer shared responsibility/play-or-pay penalty are being delayed until 2015. ...more

Shumaker, Loop & Kendrick, LLP

Benefits and Compensation Alert - January 2013: IRS Issues Proposed Regulations On The “Employer Shared Responsibility” Penalties...

To make certain that 2013 will be as exciting as 2012, on January 2 the US Treasury issued proposed regulations under section 4980H of the Internal Revenue Code (“Code”), which was added to the Code by the Patient Protection...more

BakerHostetler

New Jersey Businessman With NRI Account Pleads Guilty to Using Offshore Bank Accounts to Defraud the U.S. and Pays $2.37 Million...

BakerHostetler on

Sanjay Sethi, a New Jersey businessman, pleaded guilty on January 7, 2013 to using hidden offshore bank accounts to defraud the U.S. in a so-called “Klein conspiracy.”...more

Ervin Cohen & Jessup LLP

Incorrect Advice To Executor Results In Expensive Education

Ervin Cohen & Jessup LLP on

In the recent opinion of Estate of John R.H. Thouron v. U.S. (DC PA 11/7/2012), the district court reminded fiduciaries that they remain responsible for filing returns and paying taxes despite getting bad advice from legal...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

IRS Penalty Relief For Severance Pay Expires On December 31

The IRS has given employers until December 31, 2012 to correct a problem frequently found in severance agreements and other similar arrangements. If not corrected by that date, it could be much more expensive to correct the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Regulatory Storm Cloud Brewing On Full-Time Employee Status

Beginning on January 1, 2014, it will be crucial for an employer to know the full-time or part-time status of every employee. That is when the employer mandate becomes effective under Internal Revenue Code § 4980H. Section...more

FordHarrison

Legal Alert: Employee Misclassification Relief?

FordHarrison on

The IRS recently announced a new "Voluntary Classification Settlement Program" (VCSP), which allows employers to correct worker classification errors and pay significantly reduced penalties, without having to go through...more

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