McDermott Will & Emery
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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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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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Tax Blog: New Questions and Answers for Section 965
By McDermott Will & Emery on Jul 19, 2019
Posted In IRS Guidance, Tax Reform, Tax Refunds, Uncategorized
The IRS has released new informal guidance (“Questions and Answers”) regarding section 965, containing information on making successive installment payments, filing transfer agreements as a result of certain acceleration or triggering events, and other matters related to S corporation shareholders making the section 965(i) election. Consistent with prior advice issued by the IRS (see coverage...
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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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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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Ninth Circuit Allows IRS to Overrule Common-Law Mailbox Rule
By Kevin Spencer and McDermott Will & Emery on Apr 19, 2019
Posted In Appellate Courts, IRS Guidance, Tax Refunds, Trial Courts, Uncategorized
Most tax professionals are aware of the common-law “mailbox rule,” which provides that proof of proper mailing creates a rebuttable presumption that the document was physically delivered to the addressee. Internal Revenue Code (Code) section 7502 was enacted to codify the mailbox rule for tax purposes. Thus, for documents received after the applicable deadline, the...
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IRS Announces More LB&I Campaigns!
By K. Christy Vouri-Misso, Kevin Spencer and McDermott Will & Emery on Apr 18, 2019
Posted In IRS Audits, IRS Guidance, Uncategorized
The Internal Revenue Service (IRS) Large Business and International (LB&I) Division continues to churn out new audit “campaigns.” For our prior coverage, please click here. The most recent set of campaigns were announced on April 16, 2019, bringing the grand total to 53 campaigns since the program’s initial release on January 13, 2017. The IRS...
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