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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 …

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U.S. Shareholder: Changes Under the TCJA

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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The IRS and Big Data: The Future of Fighting Tax Fraud

In Data Analytics by Jason FreemanLeave a Comment

Welcome to the world of Big Data.  A world where an estimated 2.5 quintillion bytes of data are being produced every day.  A world where ninety percent of the world’s data has been created in the last two years. A world that creates enormous challenges—and opportunities—for regulators.   The IRS receives and processes more than 250 million tax returns a year—data …

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A Son Bears the Sins of His Father: Bontrager v. Commissioner

In Restitution by Zach MontgomeryLeave a Comment

In the Greek dramatist Euripides’ tragedy, Phrixus, there is the following line: “The gods visit the sins of the fathers upon the children.” Such words are no more applicable than in the case of Bontrager v. Commissioner. According to the Tax Court, the Internal Revenue Service (“IRS”) was authorized (under I.R.C. § 6201(a)(4)) to assess restitution against Mr. Bontrager, the …

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Advising International Business Ventures: Tax Reform’s Section 245A Participation Exemption Regime

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 focuses on, and provides a short …

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The Basics of the Trust Fund Recovery Penalty

In Trust Fund Penalty by Jason Freeman and Katie ManworrenLeave a Comment

Section 6672(a) of the Internal Revenue Code, known as the trust fund recovery penalty, allows the IRS to collect unpaid payroll taxes from individuals who are found (1) to be responsible for collecting or paying withheld income and employment taxes on behalf of an employer, and (2) to have willfully failed to pay the taxes. The IRS generally only collects …

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Innocent Spouse Relief

In Innocent Spouse Relief by Ryan DeanLeave a Comment

Most married couples file their taxes jointly due to its advantages over filing separately.  But most couples do not realize that when they file a joint return they are actually jointly and severally liable for the tax owed.  This means that the IRS can hold either spouse fully liable for the tax owed, regardless of who incurred the tax or …

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Second Installment: Advising International Business Ventures: Tax Reform’s “Transition” Tax

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 focuses on, and provides a second …