Supreme Court Asked To Overturn Quill's Physical Presence Standard With South Dakota's Economic Nexus Tests For Imposing Sales Tax On Out-Of-State State Retailers
State of South Dakota v. Wayfair, Inc. et al
In what portends to be the next landmark Supreme Court decision on a state’s constitutional power to impose state sales tax on interstate commerce the Court recently heard oral arguments in South Dakota v. Wayfair, Inc., et al, cert granted, 138 S.Ct. 735 (1/12/2018). The issue before the Court is whether South Dakota sales tax scheme can satisfy the requirement under the Commerce Clause by imposing sales and use tax collection on a remote seller without such seller’s having a physical presence in South Dakota.
The U.S. Tax Court and the First Circuit recently reached opposite conclusions in two similar cases on the taxability of individual retirement account contributions, but the Tax Court may be hard-pressed to follow the appellate court’s more taxpayer-friendly decision if it means weakening an important tool for the Internal Revenue Service to enforce tax laws.
Caroline Rule quoted in "Headlines - IRS, DOJ Must Rethink Strategy On Felony Tax Obstruction Charges Post-Marinello", LexisNexis
The Supreme Court's March 21 decision in Marinello v. United States put substantial limits on the government's ability to pursue felony tax obstruction charges, but it left an opening for the Internal Revenue Service and the Justice Department's Tax Division to potentially bring such charges. The agencies must show they gave a taxpayer fair warning that engaging in certain behavior is unlawful and could result in a tax proceeding.
By Henry Stow Lovejoy
April 2018 Edition
The Internal Revenue Code (IRC) imposes penalties on understatements of tax as a way to encourage voluntary compliance and deter noncompliant behavior.Generally, the revenue agent examining a return will be one who proposes a penalty. Revenue agents are instructed to consider penalties as part of the examination of any return, and they must determine whether and which penalties apply only after the facts and circumstances of the taxpayer’s return have been developed.
- Mr. Sardar secured a favorable non-jail sentence for a client facing federal criminal charges relating to undeclared foreign bank accounts.
- Mr. Sardar convinced the New York County District Attorney's Office to abandon a criminal investigation of his client and successfully resolved the case in a civil manner.
- Mr. Sardar Successfully represented alleged "responsible officer" taxpayer assessed large penalties for unpaid withholding tax, entire assessment was canceled despite the fact that all of taxpayer's statutory and regulatory remedies were time-barred.
- Mr. Sardar represented a wife in innocent spouse proceedings before the IRS and NYS, she was deemed an innocent spouse as to all taxes previously assessed.
Jerald David August presented "The Partnership Centralized Audit Rules" at the UVA School of Law 2018 Annual Tax Institute
Megan L. Brackney participated in the panel "Now That’s Aggressive: Reportable Transaction Penalties" at the 2018 Practising Law Institute (PLI)
The number of accuracy-related penalties assessed against individual taxpayers increased from 58,366 in 2005 to 499,190 in 2016. That is nearly a 900% increase over the past decade! Are there more bad taxpayers? Or, is the IRS just getting more aggressive about asserting penalties?
Bryan C. Skarlatos chaired the program "Nuts And Bolts Of Tax Penalties 2018: A Primer On The Standards, Procedures & Defenses Relating To Civil & Criminal Tax Penalties" at the 2018 Practising Law Institute (PLI)
This one-day seminar was a unique opportunity to review the various tax penalties that can be imposed, the standards and transactions that can trigger penalties and sanctions, the procedures the Internal Revenue Service must follow to assess penalties and the defenses that can be asserted.
Twenty years ago, we put forward what was then a novel concept — that the IRS and the U.S. Department of Justice were misusing the tax code to make their jobs easier. Our topic was the misuse of a statute that, we contended, was reserved for prosecuting the deliberate obstruction of a specific IRS investigation, audit or collection proceeding, and not for punishing any tax-related misconduct.
By Megan L. Brackney
In this article, Brackney discusses the John Doe summons procedures and the decision partially enforcing a John Doe summons in Coinbase. She also identifies some practical considerations for taxpayers whose information may be turned over to the IRS in accordance with the summons.