News & Analysis as of

Tax Penalties

McDermott Will & Schulte

IRS roundup: December 15 – December 22, 2025

Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for December 15, 2025 – December 22, 2025....more

Proskauer - Tax Talks

How Relevant Is It? The Economic Substance Doctrine According to Liberty Global and Patel

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Should courts respect a transaction for tax purposes, when it otherwise complies with the technical requirements of the Internal Revenue Code and regulations? When should a court take the next step and consider the economic...more

Husch Blackwell LLP

New Hampshire Establishes Amnesty Program for Taxpayers

Husch Blackwell LLP on

New Hampshire passed legislation this year to establish a one-time opportunity for taxpayers to pay all outstanding taxes and receive amnesty from penalties and one-half of the interest that has accrued since the tax was due....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

Phelps Dunbar

The Billion-Dollar Question: Are Deferred Compensation Contracts in the MLB Legal, or Have the Dodgers Broken Baseball?

Phelps Dunbar on

The Los Angeles Dodgers leveraged deferred compensation contracts to gain $241.44 million in player value for 2026 while paying half that amount. With two World Series in the last four years and another bid this year, this...more

Blake, Cassels & Graydon LLP

Canada Revenue Agency Overhauls the Voluntary Disclosures Program: Key Highlights

To make its voluntary disclosure program (VDP) more attractive, the Canada Revenue Agency (CRA) has implemented significant changes to the program effective October 1, 2025. At a high level, the new VDP...more

Allen Barron, Inc.

Managing an IRS Correspondence Audit

Allen Barron, Inc. on

One of the new realities for U.S. taxpayers includes the responsibility for managing an IRS correspondence audit. What should you do if you are contacted regarding any form of IRS audit? Did you know the present majority of...more

Blake, Cassels & Graydon LLP

Élargissement proposé des pouvoirs de vérification de l’ARC : que peuvent faire les contribuables?

Le ministère des Finances a publié récemment des projets de propositions législatives visant à mettre en œuvre des mesures élargissant les pouvoirs de vérification de l’Agence du revenu du Canada (l’« ARC »)....more

McDermott Will & Schulte

Potential Refund Opportunity for Interest and Penalty Amounts Accrued During COVID-19 Federally Declared Disaster

Taxpayers who made payments to the Internal Revenue Service (IRS) that included underpayment interest and/or failure-to-file/pay penalties that accrued during all or part of the period between January 20, 2020, through July...more

Offit Kurman

Unexpected Tax Penalties in Talent Contracts: Could Your Motion Picture, Recording, or Sports Contract be Subject to IRC Section...

Offit Kurman on

Could your motion picture agreement, recording agreement, or sports contract be a non-qualified deferred compensation arrangement? You may think it unlikely, but a non-qualified deferred compensation arrangement refers to any...more

Womble Bond Dickinson

Micro-Captive Reportable Transaction Deadline Effectively Extended

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On Friday, April 11, 2025, the Internal Revenue Service issued Notice 2025-24 (the “Notice”), which waives applicable penalties under the Internal Revenue Code to participants in, and material advisors to, reportable...more

Freeman Law

Willful FBAR Penalties and the Excessive Fines Clause: District Court Says Context is Key

Freeman Law on

In its recent decision in United States v. Leeds, the United States District Court for the District of Idaho upheld the application of willful penalties against a deceased husband for failing to report certain foreign bank...more

Mayer Brown

Relieved Taxpayers: US Tax Court Reaffirms that IRS Cannot Assess Failure-to-file Penalties

Mayer Brown on

Every parent remembers when their child learns the meaning of the word “no.” That moment often comes as a shock because, up until that moment, most children are models of obedience and unconditional trust. When children learn...more

Foodman CPAs & Advisors

Forms 3520 and 3520-A Late Filing get IRS Relief

On 10/24/24, the National Taxpayer Advocate shared on its NTA Blog that the IRS has discontinued its policy of automatically imposing penalties for late submissions of Form 3520, which pertains to foreign gifts and...more

Farrell Fritz, P.C.

International Tax Changes on the Horizon

Farrell Fritz, P.C. on

There are two recent taxpayer-friendly updates of note in the international tax filing arena. First, Internal Revenue Service (“IRS”) Commissioner Danny Werfel recently announced that the IRS is ending its automatic...more

Allen Barron, Inc.

What is Willful Blindness According to the IRS?

Allen Barron, Inc. on

What is willful blindness according to the IRS? How is this important in tax cases involving unreported or under-reported income, disclosure of offshore assets and income, FinCEN Form 114 (more commonly referred to as an...more

Foodman CPAs & Advisors

OIC Mills Take Advantage of Taxpayers

Foodman CPAs & Advisors on

On 9/19/24, the IRS issued a warning to taxpayers regarding OIC (Offer in Compromise) Mills that are taking advantage of taxpayers. OIC Mills promoters claim that their services are necessary to resolve taxpayer unpaid taxes...more

Farrell Fritz, P.C.

New Savings Opportunity – Converting a 529 Plan to Roth IRA

Farrell Fritz, P.C. on

Recent changes implemented by Secure Act 2.0 provide a powerful retirement opportunity. Starting in 2024, Congress changed the way that 529 accounts work....more

Fleurinord Law PLLC

Beyoncé vs. the IRS: The Surprising Details About Queen Bey’s $2.9 Million Tax Dispute

Fleurinord Law PLLC on

Even global icons like Beyoncé, among the wealthiest entertainers on the planet, are not immune to IRS scrutiny. Recently, Queen Bey found herself entangled in a dispute with the Internal Revenue Service (IRS) over an alleged...more

Bowditch & Dewey

Massachusetts Tax Amnesty Announced

Bowditch & Dewey on

The Massachusetts Department of Revenue (DOR) recently announced a tax amnesty program for non-filers and those with outstanding tax liabilities. From November 1 to December 30, 2024, most penalties for eligible taxpayers who...more

Allen Barron, Inc.

The Statute of Limitations for an IRS Audit

Allen Barron, Inc. on

What is the statute of limitations for an IRS audit? What rules extend the window for an IRS audit? How long does the IRS usually have to complete an audit of your taxes? Everyone may have a little fear in the back of...more

Miles & Stockbridge P.C.

Massachusetts Announces Limited Tax Amnesty

The Commonwealth of Massachusetts will offer a limited tax amnesty for certain “eligible taxpayers” from Nov. 1 through Dec. 30. “Eligible taxpayers” can forward and bring their tax liabilities up to date and receive a...more

Rivkin Radler LLP

Unconstitutionally Excessive FBAR Penalties? It Depends

Rivkin Radler LLP on

You may recall that earlier this year the IRS launched an initiative to pursue 125,000 “high-income, high-wealth” taxpayers who have not filed taxes since 2017. These were cases where the IRS received third party information...more

Mayer Brown

Normative Instruction RFB No. 2,205/2024: Regulation of the Effects Applicable to Cases Decided by CARF by Casting Vote

Mayer Brown on

On July 24, 2024, Normative Instruction No. 2,205/ of the Brazilian Federal Revenue Service (the "Instruction”) was published, that regulates Article 25, paragraph 9-A, and Article 25-A of Decree No. 70,235/1972, establishing...more

Foodman CPAs & Advisors

Ofrecimiento De Transacción: Oportunidad Para Resolver La Deuda Tributaria

El IRS emitió el Consejo Fiscal 2024-37, el 24 de abril de 2024, para informar a los contribuyentes que no pueden pagar su deuda tributaria completa o si pagar les causaría dificultades financieras, que deberían considerar...more

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