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Tax Audits Internal Revenue Service

Fox Rothschild LLP

Group of U.S. Senators Sound Alarm About State of Federal Tax Enforcement

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In the midst of Congressional consideration of the administration’s FY2026 budget request for the Internal Revenue Service (which was ultimately approved on February 3, 2026), a group of U.S. Senators is raising questions...more

Offit Kurman

So, The IRS Has Selected Your Return for Audit

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The Internal Revenue Service (“IRS”) audits 1% to 2% of small business income tax returns annually for one of two reasons: (1) something about the return (or information reported on the return) flagged the return for a closer...more

Rivkin Radler LLP

Applying the Federal Priority Statute to The Attorney as Client’s “Corporate Executive”

Rivkin Radler LLP on

Over their career, every tax practitioner has had many client-taxpayers against whom a government’s taxing authority – be it federal, state, or local – has asserted and then assessed a tax deficiency. There are many...more

FBT Gibbons LLP

Avoiding IRS Accuracy Penalties for a Substantial Underpayment of Tax

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There are over 150 types of penalties in the Internal Revenue Code (IRC). One frequent penalty that the Internal Revenue Service (IRS) asserts is the accuracy penalty under IRC Section 6662....more

Allen Barron, Inc.

Why the IRS Requests Information During an Audit — and Why the “Why” Matters More Than the Request Itself

Allen Barron, Inc. on

If you have received an IRS Letter of Notification advising you that your return has been selected for audit, the most important thing to understand is this: the audit has already begun. The first communications with the IRS...more

Skadden, Arps, Slate, Meagher & Flom LLP

A Depleted IRS May Turn to Expedited Processes to Work Off Dispute Backlog

By any measure, 2025 was a tumultuous year for the Internal Revenue Service (IRS), leaving a slimmed-down organization struggling to implement new priorities and a workforce trying to catch its breath in the face of dizzying...more

Opportune LLP

IRS Tax Controversy Guide: Navigating the Process from Notice to Resolution

Opportune LLP on

Tax controversy is a term that describes disputes between taxpayers and taxing authorities, most commonly the Internal Revenue Service (IRS), regarding the amount of tax owed or the application of tax laws. These...more

Offit Kurman

USPS Postmark Changes Could Impact Tax Filing Deadlines

Offit Kurman on

A couple of years ago, I wrote a blog about the importance of sending any correspondence to the Internal Revenue Service via Registered or Certified Mail or by an approved overnight courier, rather than relying solely on the...more

Procopio, Cory, Hargreaves & Savitch LLP

GAO Report Signals Intensified IRS Scrutiny of Puerto Rico Act 60 Residents

The U.S. Internal Revenue Service (IRS) appears to be entering a new and far more aggressive phase of enforcement focused on taxpayers claiming Puerto Rico residency and Act 60 (formerly Act 22) incentives or benefits. The...more

Vinson & Elkins LLP

Whose Fraud Is It Anyway? The Expanding Reach of the Fraud Exception to the Statute of Limitations on Tax Assessment

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Earlier this year, we unpacked the elements of tax fraud, how the Internal Revenue Service (IRS) approaches fraud in civil and criminal settings, and the penalties and consequences that can follow. That discussion focused on...more

Allen Barron, Inc.

How Might Marrying a Non-US Citizen Affect Your Taxes

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How might marrying a non-US citizen affect your taxes? What are some of the hidden issues that the IRS, California, and other state tax agencies may raise in an audit?...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

When the IRS Comes Knocking — And You Tossed the Evidence

Working on an IRS audit is hard enough. But what’s even harder? When you discover the plan sponsor disposed of—or claims to have disposed of, the very records the IRS is demanding....more

Allen Barron, Inc.

Is the Burden of Proof on the IRS During an Audit?

Allen Barron, Inc. on

Is the burden of proof on the IRS during an Audit? It might shock you to learn that the burden of proof in an IRS audit, and in most dealings with the IRS, lies with the U.S. taxpayer, not the IRS....more

Epstein Becker & Green

The 409A Horror Show: Don’t Let Year-End Turn Into a Tax Nightmare

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As year-end approaches, it is an opportune time for companies to run an internal audit of their nonqualified deferred compensation plans to flag any potential violations of IRC Section 409A (“Section 409A”)....more

White & Case LLP

Courts and Congress Say IRS Must Approve Civil Tax Penalties in Writing Before They Are Asserted

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For the last decade, the IRS has proactively asserted discretionary civil tax penalties that can be as high as 40 percent of the proposed tax liability. Oftentimes, the IRS has used penalties as bargaining chips to get...more

Davidoff Hutcher & Citron LLP

How Non-Reporting Income Affects Restaurant Divorce Settlements

For restaurant owners going through a divorce, one of the most contentious financial issues can be non-reporting income, particularly cash earnings. Courts require full financial disclosure, and failure to accurately report...more

Rivkin Radler LLP

Visiting the Sins of the Tax Preparer Upon the Taxpayer? The Fraud Exception to the Limitations Period on Assessment

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As we discussed a few weeks ago, the IRS is charged with enforcing the U.S. federal tax laws; i.e., it is responsible for processing tax returns and for collecting taxes. As part of its collection function, the agency may...more

Holland & Knight LLP

Trouble in Paradise? The IRS Is Taking a Hard Look at Puerto Rican Tax Breaks

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A decade ago, the IRS audited and brought cases against numerous taxpayers who claimed residency in the U.S. Virgin Islands to take advantage of a highly touted benefit whereby bona fide Virgin Islands residents could claim a...more

Skadden, Arps, Slate, Meagher & Flom LLP

IRS Procedural Reforms Aim To Allow Early Resolution of Controversies With Businesses

Over the past few months, interest and attention in the world of U.S. tax has been focused on the OBBBA — the One Big Beautiful Bill Act. However, significant administrative and procedural changes have also occurred at the...more

Allen Barron, Inc.

An Experienced Tax Lawyer for a California Business Tax Audit

Allen Barron, Inc. on

Why do you need an experienced tax lawyer for a California business tax audit? What are some of the genuine risks during an audit of your business or professional practice?...more

Vinson & Elkins LLP

Planning for IRS Audits in an Era of Uncertainty

Vinson & Elkins LLP on

In its ongoing crusade against so-called “basis-shifting” transactions, the Internal Revenue Service has created widespread uncertainty regarding the tax treatment of routine transactions. For example, last year, the IRS...more

Allen Barron, Inc.

Omissions, Fraud, or False Information on a Tax Return

Allen Barron, Inc. on

What happens if you are accused by the IRS, the FTB, or another California tax agency regarding omissions, fraud, or false information on a tax return? The short answer is simple: failure to make a full, transparent, and...more

Snell & Wilmer

IRS Issues Interim Guidance Eliminating the Acknowledgement of Facts and Expanding Access To Dispute Resolution Programs

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The IRS Large Business & International (LB&I) Division published an Interim Guidance Memorandum (IGM) on July 23, 2025, implementing three changes to current LB&I audit procedures. Specifically, the IGM (1) removes the...more

Vinson & Elkins LLP

Civil Tax Fraud: Should 75 Percent Appear Too Small, Be Thankful the IRS Doesn’t Take It All

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Mistakes happen, including when it comes to reporting and paying taxes. And for taxpayers and their advisors, those mistakes can lead to costly consequences, as the Internal Revenue Code (“Code”) allows the Internal Revenue...more

Eversheds Sutherland (US) LLP

Tax Bytes: Week of July 28, 2025

Tax developments - IRS issues interim guidance to streamline LB&I audit procedures and promote alternative settlement programs - Significant updates from the IRS Large Business & International (LB&I) Division will take...more

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