Colorado Tax Law Blog

The IRS’s LB&I Division will be increasing its audit focus on partnerships, division Acting Commissioner Holly Paz said.  “Over the last several years, our audit efforts have not kept pace as that partnership population has grown, our coverage rates have not kept up in that space,” Paz told attendees at the American Bar Association’s 33rd…

In Notice 2022-36 issued August 24, 2022, the IRS publicized that a broad range of tax and information returns for the 2019 and 2020 tax years will receive automatic relief from failure-to-file penalties.  Tax returns eligible for the relief include specified returns in the Form 1040, 1041, 1065, and 1120 series.  Penalties for fraudulent failure…

There is so much misinformation floating around.  Yesterday, August 14, 2022, a Congressman from South Dakota said on Meet the Press that his constituents questioned “why we want to have 87,000 new bureaucrats in the IRS out chasing down and trying to audit them.”  That’s simply not the case.  In an August 10, 2022, letter…

Pursuant to IRC 7623(b), the IRS can award payments to whistleblowers.  The ten most common allegations submitted on Form 211, Application for Award for Original Information, for fiscal year 2021 were:

Every little bit helps.  Colorado property tax assessment rates and taxable valuations for the 2023 tax year have been reduced. When determining the 2023 assessed values, assessors must apply assessment rates to the actual value of the residential property, less $15,000, and to the actual value of improved commercial property, less $30,000. However, these subtractions…

As reported by VitalLaw, Federal Tax Day: “The Treasury Department announced on May 8, 2022, that the exportation, re-exportation, sale or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of accounting, trust and corporate formation and management consulting services to any person located in the Russian Federation…

The Department of the Treasury reminded Congress yesterday that the IRS is severely underfunded to the point of providing inadequate service to the American taxpayers.  “Today’s deadline is an inflection point in what has been the agency’s most challenging filing season in recent history,” Natasha Sarin, counselor for tax policy implementation at the Treasury Department,…

J.C. Morreale, TC Memo. 2021-90, Dec. 61,902(M) I wanted to wait until my client received his check before reporting this.  It is possible to recover “reasonable litigation costs” pursuant to 26 U.S.C. 7430.  As VitalLaw puts it: “An individual was entitled to reasonable litigation costs. The taxpayer was tied up in litigation relating to his…

The Department of the Treasury estimates that the net tax gap currently stands at $381.5 billion.  This amount is determined by taking the gross tax gap of $441.5 Billion and lowering it by the amount anticipated to be paid through voluntary payments and IRS enforcement activities, $60 Billion.  According to the agency’s fiscal year 2021…

On January 26th a bipartisan group of senators and representatives called on the Internal Revenue Service to make temporary changes to its collection policies while it clears the backlog of 6 million unprocessed income tax returns, 2.3 million unprocessed amended returns, and 2 million quarterly employer tax returns.  The letter states: “When our constituents cannot…