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International Tax Enforcement: The Joint Chiefs of Global Tax Enforcement

In International Tax by Jason FreemanLeave a Comment

Leaders from the Joint Chiefs of Global Tax Enforcement recently issued a notice, available here, commemorating the one-year anniversary of the formation of the so-called J5 Group.  The Joint Chiefs of Global Tax Enforcement have combined forces across the globe in an effort to target international tax evasion, hidden bank accounts, and money laundering.  The J5 intends to usher in …

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Innocent Spouse Relief: A Primer

In Innocent Spouse Relief by Jason FreemanLeave a Comment

The Internal Revenue Code provides that only “spouses” are eligible to file a joint tax return. I.R.C. § 6013(a).  Spouses who file a joint tax return are jointly and severally liable for the taxes related to a joint tax return.  That means that one spouse can be held liable for the entire amount owed—all of it.  Thus, joint tax returns can present …

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The IRS Office Audit

In Audit by Larry JonesLeave a Comment

Our last Insight article on IRS audits covered correspondence audits.  Here we will discuss the office audit.  When a tax return has been selected for office examination, generally the examination of the return will be conducted at the office of the IRS.  Normally a taxpayer will find an office examination has begun when the taxpayer receives a letter or telephone …

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Tax Preparers and Criminal Exposure: Be Careful Out There!

In Criminal by Jason FreemanLeave a Comment

The recent case of United States v. Berger demonstrates the criminal exposure that accountants face when advising clients about taxes and preparing tax returns.  In that case, Berger, a CPA, was found guilty of aiding and abetting the preparation of false tax returns.  A copy of the Indictment is available here.  The charges, which were brought under IRC section 7206(2), are …

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Advising International Business Ventures: “Tested Income” under GILTI

In International Tax, Tax Reform by Jason FreemanLeave a Comment

Freeman Law frequently advises international business ventures.  International operations often give rise to unique (and sometimes unanticipated) compliance obligations and complex reporting requirements. Recent tax reform rules and regulations have imposed a number of new requirements.  The IRS and Treasury Department have elaborated on these new rules through proposed regulations and other guidance.  This post provides a short introduction to the …

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7206(2): The Crime of Aiding or Assisting the Preparation of a False or Fraudulent Document

In Criminal, Evasion, Fraud by Jason FreemanLeave a Comment

  Section 7206 establishes, among other crimes, the federal tax crime of making false or fraudulent statements to the IRS, and aiding or assisting a taxpayer in making such statements.  This post focuses on the crime of aiding or assisting the preparation of a false or fraudulent document that is presented to the IRS.   The relevant statute provides as …

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Types of IRS Audits – The Correspondence Audit

In Audit by Larry JonesLeave a Comment

Dealing with the IRS can be confusing and complicated. The IRS has a lot of power. Taxpayers have certain rights in dealing with the IRS. If you are audited, you may want to seek professional help. There are several types of audits, but the most common are the correspondence audit, the office audit, and the field examination. We will discuss …

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Section 7206(1): False Tax Returns and Statements

In Criminal, Evasion, Fraud by Jason FreemanLeave a Comment

Section 7206 establishes, among other crimes, the federal tax crime of making false or fraudulent statements to the IRS, and aiding or assisting a taxpayer in making such statements.  Common violations of section 7206 include falsely inflating deductions or underreporting income. However, unlike a number of other federal tax crimes, section 7206 does not technically require that the government prove …