Kevin Spencer
Subscribe to Kevin Spencer's PostsKevin Spencer focuses his practice on tax controversy issues. Kevin represents clients in complicated tax disputes in court and before the Internal Revenue Service (IRS) at the IRS Appeals and Examination divisions. In addition to his tax controversy practice, Kevin has broad experience advising clients on various tax issues, including tax accounting, employment and reasonable compensation, civil and criminal tax penalties, IRS procedures, reportable transactions and tax shelters, renewable energy, state and local tax, and private client matters. After earning his Master of Tax degree, Kevin had the privilege to clerk for the Honorable Robert P. Ruwe on the US Tax Court. Read Kevin Spencer's full bio.
IRC 45Q Credit Under IRS Scrutiny: Government Finds Majority of Carbon Oxide Credits Improperly Claimed
By Brian Moore and Kevin Spencer on May 6, 2020
Posted In IRS Guidance, Uncategorized
In response to a series of questions posed in a November 2019 letter from Senator Menendez (D-NJ), the Treasury Inspector General for Tax Administration (TIGTA) issued a letter on April 15, 2020, analyzing carbon oxide credits under Internal Revenue Code (IRC) section 45Q. For tax years between 2010 and 2019, TIGTA found that up to...
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IRS Appeals Large Case Pilot Program Ends
By Kevin Spencer and McDermott Will & Emery on May 6, 2020
Posted In IRS Appeals, IRS Guidance, Uncategorized
More than three years ago, the Internal Revenue Service (IRS) revised the Internal Revenue Manual to provide IRS Appeals Division (Appeals) with discretion to invite representatives from the IRS Examination Division (Exam) and IRS Office of Chief Counsel (Counsel) to the Appeals conference. The IRS also started a three-year initiative for taxpayers under the Large...
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Eighth Circuit Applies Subjective Standard to Reasonable Basis Penalty Defense
By Alex Cheng-Yi Lee and Kevin Spencer on May 4, 2020
Posted In Appellate Courts, Trial Courts, Uncategorized
On April 24, 2020, the US Court of Appeals for the Eighth Circuit published its opinion in Wells Fargo & Co. v. United States, No. 17-3578, affirming a district court’s holdings that the taxpayer was not entitled to certain foreign tax credits and was liable for the negligence penalty for claiming the credits. Much has...
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You Can Now Submit Your Letter Rulings and Determinations to the IRS Electronically
By Brian Moore and Kevin Spencer on May 1, 2020
Posted In IRS Guidance, Uncategorized
Rev. Proc. 2020-29 temporarily allows taxpayers to submit certain requests for letter rulings and determinations to the Internal Revenue Service (IRS) electronically. Electronic submissions will be permitted until the revenue procedure is superseded or modified, but taxpayers may still make paper submissions. Electronic submissions are permitted for requests for letter rulings, closing agreements, determination letters,...
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Fifth Circuit Rules that Law Firm Clients’ Identities Are Not Privileged
By Kevin Spencer and Le Chen on Apr 28, 2020
Posted In Appellate Courts, IRS Appeals, Trial Courts, Uncategorized
In Taylor Lohmeyer Law Firm P.L.L.C. v. United States, No. 19-50506, the United States Court of Appeals for the Fifth Circuit held that a Texas-based estate and tax-planning law firm (Firm) could not invoke the attorney-client privilege against an Internal Revenue Service (IRS) summons seeking the identity of its clients. According to an IRS revenue...
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New Revenue Ruling 2020-8 Helps Taxpayers Seek COVID-19 Tax Refund Claims
By Kevin Spencer and Le Chen on Apr 23, 2020
Posted In IRS Guidance, Tax Refunds, Uncategorized
Recently, in Revenue Ruling 2020-8, the Internal Revenue Service (IRS) announced that it was suspending Revenue Ruling 71-533, which had addressed the interaction of two Internal Revenue Code (IRC) provisions regarding limitations periods on refund claims, pending reconsideration of the holding of the earlier Revenue Ruling. Under IRC section 6511(d)(2)(A), a taxpayer generally must make...
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IRS Flexes Its Administrative Summons Power in Recent Tax Case
By Kevin Spencer and Macdonald Norman on Apr 22, 2020
Posted In Appellate Courts, Tax Refunds, Trial Courts, Uncategorized
The United States Court of Appeals for the Tenth Circuit’s recent opinion in Standing Akimbo, LLC v. United States, No. 19-1049 (10th Cir. April 7, 2020), reminds us of the Internal Revenue Service’s (IRS) ability to obtain the information it needs to examine taxpayers’ returns using its powerful summons tool. In May 2017, the IRS...
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IRS Guidance Signals More Stringent Scrutiny on Transfer Pricing Documentation
By Alex Cheng-Yi Lee and Kevin Spencer on Apr 17, 2020
Posted In IRS Audits, IRS Guidance, Transfer Pricing Resource, Uncategorized
On April 14, 2020, the Internal Revenue Service (IRS) issued informal guidance in the form of frequently asked questions (the “FAQs”), urging taxpayers to strengthen their transfer pricing documentation required under Internal Revenue Code (IRC) section 6662(e) and Treasury Regulations § 1.6662-6. IRC section 6662 provides several types of accuracy-related penalties on underpayments of taxes....
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More Guidance on CARES Act Refund Claims
By Kevin Spencer and McDermott Will & Emery on Apr 14, 2020
Posted In IRS Guidance, Tax Refunds, Uncategorized
On April 8, 2020, the Internal Revenue Service (IRS) released a statement telling taxpayers that guidance would be forthcoming on refund claims related to the Coronavirus Aid, Relief and Economic Security Act, or the CARES Act. Consistent with that promise, on April 13, 2020, the IRS issued guidance describing temporary procedures permitting the submission via...
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CARES Act Update: IRS Provides Guidance to Partnerships to Take Advantage of Liquidity Benefits
By David Sherwood, Kevin J. Feeley and Kevin Spencer on Apr 13, 2020
Posted In IRS Guidance, Tax Refunds, Uncategorized
On April 8, 2020, the Internal Revenue Service (IRS) issued Rev. Proc. 2020-23 in response to the Coronavirus Aid, Relief and Economic Security (CARES) Act. Rev. Proc. 2020-23 eases restrictions on partnerships’ ability to file amended tax returns and issue amended Schedules K-1 in order for their partners to avail themselves of the retroactive tax relief provided...
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