Publications

The Trust Fund Recovery Penalty

By Kevin M. Flynn
The CPA Journal
November 2017 Edition

Under Internal Revenue Code (IRC) section 6672(a), an individual can be held personally liable for a penalty for the willful failure to collect, account for, and pay to the IRS the employment taxes of a business.

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Acquisitions, Dispositions & Structuring Techniques Corner

By Jerald David August
Journal of Passthrough Entities
September - October 2017 Edition

In McKelvey, the executor of the taxpayer's estate petitioned for a redetermination of the $41.26M deficiency in income tax for 2008, processed by the IRS, attributable to his entering into various variable prepaid forward contracts ("VPFCs") with respect to shares of stock in Monster.com. Andrew McKelvey was the founder of the Company.

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Using Bitcoin To Buy A Sandwich Could Trigger A Tax Bill

Op-Ed By Bryan C. Skarlatos
Featured on CNBC

Crypto currencies may have been around for less than a decade, but they are proliferating so quickly that our established tax and regulatory systems can't keep up. And that could create serious tax problems for those who would join the digital currency revolution.

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Executor And Beneficiary Liability For Unpaid Income, Gift, And Estate Taxes Of A Decedent

By Jerald David August
The CPA Journal
October 2017 Edition

Tax advisors of estates are generally aware that the executor or personal representative of the estate is personally liable for the payment of federal estate taxes not only with respect to the probate estate, but also for estate taxes attributable to other assets includible in the taxable estate [Internal Revenue Code (IRC) section 2202;

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Digital Currency: Taxation, Enforcement, And The John Doe Summons

By Michael Sardar
The CPA Journal
September 2017 Edition

Several years ago, the IRS started its successful takedown of secret Swiss banking with the use of a John Doe summons.

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The Variance Doctrine: An Important Variable To Consider When Drafting Refund Claims

By Megan L. Brackney
Journal of Passthrough Entities
September - October 2017 Edition

If you are preparing, or advising on, the filing of amended returns or other claims for refund, one of the most important things to consider is the variance doctrine, and how it could impact your client’s ability to bring a refund action in court if the IRS denies the claim.

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A Crash Course On Reportable Transaction Penalties For Material Advisors

By Megan L. Brackney
Journal of Taxation
October 2017 Edition

After a long period of inactivity, the IRS has recently released four notices identifying new reportable transactions.

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Partnership Audit Rules - Drafting Partnership Agreements: The New Partnership Representative And The Outgoing Tax Matters Partner

By Jerald David August
Corporate Taxation
September 2017 Edition

Although new partnership audit rules have been enacted, the TEFRA entity-level audit rules, particularly the tax manger partner rules, continue to be relevant.

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The Many Faces Of Form 3520

By Ian Weinstock
The CPA Journal
August 2017 Edition

Form 3520 is an information return for a U.S. person to report certain transactions with foreign trusts [as defined in Internal Revenue Code (IRC) section 7701(a)(31)] or to report the receipt of certain foreign gifts or bequests.

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When Should A Taxpayer Know That A Tax Shelter Is Too Good To Be True?

By Bryan C. Skarlatos & Henry Stow Lovejoy
Journal of Tax Practice & Procedure
June - July 2017 Edition

Taxpayers who have underpaid their taxes can avoid accuracy-related penalties under Code Sec. 6662 by demonstrating that they acted with reasonable cause and in good faith. In general, the most important factor in determining whether a taxpayer acted with reasonable cause and good faith is the taxpayer’s effort to assess the proper tax liability.

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