Prose by Tax Pros

  Taxpayers always give heaps of confidential data to the IRS when they file their mandatory tax returns and information returns, and the IRS always has a legal duty to safeguard such data. Taxpayers sometimes become victims of improper disclosures, and the IRS sometimes gets punished for its transgressions. This article introduces key legal concepts, data-protection duties of the IRS, manners by which taxpayers can sue the IRS for breaches, and the potential for taxpayers to recover not only damages, but also costs incurred in fighting the IRS. This article then analyzes the most recent case, Castillo v. United States, which holds that taxpayers might be able to obtain punitive damages from the IRS, even when they do not suffer actual damages because of the IRS’s improper disclosure of confidential data.  Read the full article here. About Hale E. Sheppard HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a Shareholder in the Tax Controversy Section of Chamberlain H...

The IRS sometimes utilizes aggressive tactics to convince taxpayers to concede cases without significant resistance. Unbeknownst to many taxpayers, they have a powerful tool for evening the proverbial playing field with the IRS: Making a so-called “Qualified Offer.” The basic notion is that if the IRS ignores or rejects a Qualified Offer, the case goes to trial, and the court ultimately rules that the taxpayer’s liability is the same as or less than the amount in the earlier Qualified Offer, then the taxpayer may recoup reasonable fees and costs from the IRS. This article describes the general rules for seeking fee recoupment with the IRS under Section 7430, explains the unique standards applicable to Qualified Offers, and analyzes a recent Tax Court case, Lewis v. Commissioner, which establishes new parameters for Qualified Offers.  Read the full article here. About Hale E. Sheppard HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a Shareholder in the Tax Controversy S...