Prose by Tax Pros

There is a method the IRS often uses to combat transactions it opposes. The precise steps vary, but it generally entails warning the public, labeling items “abusive,” conducting lots of audits, forcing weak cases to trial quickly to obtain favorable court decisions, introducing settlement programs with terms designed to tempt risk-averse taxpayers, and encouraging Congress to make legislative changes. Does this sound familiar? It sure does to those involved with conservation easements, with one exception. When it comes to easements, the IRS has been launching settlement programs for years, which, for different reasons, have made resolving matters before trial unappealing and/or impractical for many partnerships. This article, which expands on earlier ones, examines challenges with three IRS settlement programs. 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 partner at Eversheds Sutherland.  He defends clients ...

Enforcement actions by the IRS against alleged promoters of abusive transactions and the taxpayers who participate in them are firmly linked. Therefore, defending effectively against IRS challenges requires an understanding of the overlapping rules, standards, and procedures. This article explains unique aspects of so-called promoter penalties, various actions the IRS takes in connection with promoters, effects of such IRS measures on taxpayers who engaged in the transactions under scrutiny, recent events suggesting that promoter investigations might surge, and thoughts about the best path forward in the current environment. 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 partner at Eversheds Sutherland.  He defends clients in tax audits, tax appeals, and Tax Court litigation, covering both domestic and international issues.