Welcome to the Regan Tax Law Blog
IRS Summons – Defending Against the Summons
The United States Supreme Court is considering an investor's objection to summonses issued by the IRS. United States v. Clarke, No. 13-301. Mr. Clarke, the investor, is arguing the IRS improperly issued summonses as retribution against him and his business partners...
Awards of Attorneys Fees to the Plaintiff – When Are They Taxable as Wages?
Settlements in legal disputes between employers and employees can vary significantly depending on whether the amounts to be received are taxable. For example, two parties in separate lawsuits can each agree to a settlement of $500,000. But, because one settlement is...
Who Qualifies as a Resident of Minnesota? The Definition of “Abode” in Minnesota
This is the fifth article in a series dedicated to the rules regarding who qualifies as a “resident” of the State of Minnesota for tax purposes. Status as a resident of Minnesota is important as all Minnesota residents are subject to Minnesota individual income tax,...
Relying On the Advice of an Accountant – When Does It Constitute Reasonable Cause to Abate a Late Filing Penalty?
The U.S. Supreme Court recently refused to hear an appeal from the Ninth Circuit Court of Appeals in Knappe v. United States of America, 713 F.3d 1164 (9th Cir., 2013), cert denied, 134 S. Ct. 422 (2013). The issue was whether an estate could rely on the advice of a...
I Owe the IRS Money – What Can I Do?
We often receive telephone calls and e-mails from individuals and businesses who have been contacted by the IRS for a tax obligation owing and they don't know what to do. There are many options for dealing with these obligations. The correct option depends on the...
Claim for Refund of the Trust Fund Recovery Penalty
An individual assessed the Trust Fund Recovery Penalty (TFRP) has the option to pay just a portion of the assessment to gain access to a court. This is different from the requirement for income taxes, which calls for payment, in full, of the tax, penalty, and...
Section 530 – Substantive Consistency
This is the third article in a series dedicated to using Section 530 of the Revenue Act of 1978 as protection for businesses that have been using independent contractors, in good faith, but are now facing an IRS or State of Minnesota audit of that practice. Section...
Section 530 – Reasonable Basis
This is the fourth article in a series dedicated to using Section 530 of the Revenue Act of 1978 as protection for businesses that have been using independent contractors, in good faith, but are now facing an IRS or State of Minnesota audit of that practice. Section...
Section 530 – Reporting Consistency
This is the second article in a series dedicated to using Section 530 of the Revenue Act of 1978 as protection for businesses that have been using independent contractors, in good faith, but are now facing an IRS or State of Minnesota audit of that practice. Section...
Effective Tax Administration (ETA) Offer – An Underutilized Option.
In her annual Report to Congress, Nina Olson , the Taxpayer Advocate, pointed out that the IRS is under-utilizing the Effective Tax Administration (ETA) Offer in Compromise (OIC) program. The IRS accepted an average of only 27 ETA OICs per year. The ETA program is...