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.
Government Questions the Benefits of IRS Audit Campaigns
By Kevin Spencer and McDermott Will & Emery on Oct 25, 2019
Posted In IRS Audits, IRS Guidance, Transfer Pricing Resource, Uncategorized
On September 28, 2019, the Treasury Inspector General for Tax Administration (TIGTA) issued a report titled Initial Compliance Results Warrant a More Data-Driven Approach to Campaign Issue Selection. As the name of the report describes, the TIGTA analyzed whether the Internal Revenue Service (IRS) audit campaigns were effective and efficiently administered. We have written at...
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Finally the IRS Clarifies Its Position on Cryptocurrency
By Kevin Spencer and McDermott Will & Emery on Oct 10, 2019
Posted In Court Procedure Matters, IRS Appeals, IRS Audits, IRS Guidance, Uncategorized
It took five years, but the Internal Revenue Service (IRS) has finally released some guidance on the taxation of cryptocurrencies! On October 9, 2019, the IRS released Revenue Ruling 2019-24 and several “frequently asked questions” (and answers) which deal with some (but not all) of the federal income tax issues involved with cryptocurrencies. Over the...
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The Internal Revenue Service Is Expanding the 2020 Compliance Assurance Process
By Kevin Spencer and Macdonald Norman on Sep 17, 2019
Posted In IRS Audits, IRS Guidance, Transfer Pricing Resource, Uncategorized
The Large Business and International Division of the Internal Revenue Service (IRS) developed the Compliance Assurance Process (CAP) program to improve large corporate taxpayer compliance with US federal tax obligations through the use of real-time issue resolution tools and techniques. On September 12, 2019, the IRS announced that it was accepting applications—for the first time...
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IRS Resumes Examinations of Stock Based Compensation in Cost Sharing Agreements
By McDermott Will & Emery, Kevin Spencer and McDermott Will & Emery on Aug 8, 2019
Posted In IRS Audits, IRS Guidance, Transfer Pricing Resource, Uncategorized
On July 31, 2019, the Internal Revenue Service (IRS) Large Business and International (LB&I) division formally withdrew its Directive (LB&I-04-0118-005) instructing examiners on transfer pricing selection related to stock based compensation (SBC) in Cost Sharing Arrangements (CSAS). See here for IRS Notice of Withdrawal. The Directive was issued January 12, 2018, after the Tax Court’s...
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More IRS “Campaigns?! IRS Announces Six More Examination Campaigns
By Kevin Spencer and McDermott Will & Emery on Jul 23, 2019
Posted In IRS Audits, IRS Guidance, Transfer Pricing Resource, Uncategorized
On July 19, 2019, the Internal Revenue Service (IRS) Large Business & International (LB&I) division announced the approval of six new campaigns. As in the past, the IRS stated that “LB&I’s goal is to improve return selection, identify issues representing a risk of non-compliance, and make the greatest use of limited resources.” This brings the...
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Taxpayer First Act: Changes to the IRS Appeals Process
By Kevin Spencer and McDermott Will & Emery on Jul 2, 2019
Posted In IRS Appeals, Uncategorized
The enactment of the Taxpayer First Act, H.R. 3151 (116th Cong.) (TFA) brings with it several changes to the procedures and operations of the Internal Revenue Service (IRS). The TFA touches on the following subjects: Establishing the IRS Independent Office of Appeals Improving customer service Changes to enforcement Modernization of the Office of the National...
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Court Rules That Wind Farm Did Not Provide Proof of Development Fee to Receive 1603 Cash Grant
By Heather Cooper, Kevin Spencer and Philip Tingle on Jul 2, 2019
Posted In Court Procedure Matters, Tax Refunds, Trial Courts, Uncategorized
On June 20, 2019, the United States Court of Federal Claims published its long-awaited opinion in California Ridge Wind Energy, LLC v. United States, No. 14-250 C. The opinion addressed how taxpayers engaging in related party transactions may appropriately determine the cost basis with respect to a wind energy project under the Internal Revenue Code (IRC). Central...
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Taxpayers Should Prepare for the Next Penalty Battleground
By Evan Walters, Kevin Spencer and McDermott Will & Emery on May 31, 2019
Posted In IRS Audits, IRS Guidance, Tax Refunds, Uncategorized
The IRS is using a new tool from its arsenal to enforce compliance for tax refund and credit claims: the Internal Revenue Code Section 6676 penalty. Taxpayers and their advisers need to be aware of the mechanics of this penalty and how best to avoid it being sustained. Andrew R. Roberson, Kevin Spencer and Evan...
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Tax Court Announces Limited Entries of Appearance
By Kevin Spencer, McDermott Will & Emery and McDermott Will & Emery on May 29, 2019
Posted In Court Procedure Matters, Uncategorized
The concept of limited scope representation is not a new one in the legal arena. Rule 1.2(c) of the ABA Model Rules of Professional Conduct provides that “A lawyer may limit the scope of the representation if the limitation is reasonable under the circumstances and the client gives informed consent.” This rule has been broadly...
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A Notice of Deficiency Is Not Set in Stone
By Kevin Spencer and Le Chen on May 28, 2019
Posted In Appellate Courts, IRS Guidance, Trial Courts, Uncategorized
A recent case decided by the United States Court of Appeals of the Tenth Circuit reminds taxpayers to be aware that the Internal Revenue Service (IRS) is not necessarily locked in to the positions and arguments stated in the Notice of Deficiency. In particular, the IRS is allowed to revise penalty determinations, or to make...
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