Offer in Compromise

A recent Tax Court decision was reported dealing with Offer in Compromise. J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in Raleigh and Wilmington, NC  & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for clients.

Procedure

IRS’s Rejection of Offer in Compromise of 4 Percent of Tax Liability Was Not an Abuse of Discretion: In Snipes v. Comm’r, T.C. Memo. 2018-184, the Tax Court held that, in view of actor Wesley Snipes failure to provide bona fide documentation to prove his assets and financial condition, as well as the disparity in an offer in compromise (OIC) he made to the IRS versus his reasonable collection potential as determined by IRS, an IRS settlement officer did not abuse her discretion by rejecting the actor’s OIC, refusing to conduct an expedited transferee investigation, or sustaining the filing of a notice of federal tax lien. The actor had made a cash OIC of $842,000, which was less than 4 percent of his total underlying liability.

Top 5 Tax Controversy CPA Profiles

J. Frank Best, Certified Public Accountant
Admitted to Practice before the
United States Tax Court

Practice Areas & Locations

TAX LITIGATION
TAX AUDITS
APPEALS & HEARINGS
COLLECTION
PENALTY ABATEMENT
NON-FILERS & DELINQUENT
CIVIL FRAUD
CRIMINAL FRAUD – KOVEL
IRS ABUSE OF DISCRETION
DIVORCE AND IRS

RALEIGH, NC
WILMINGTON, NC
NORTH MYRTLE BEACH, SC
MYRTLE BEACH, SC

IRS controversies are truly complicated. There is no magic to a resolution. Experience and qualifications dictate. Many advertisements and promises are intentionally false and misleading. By all means, avoid meeting with and having telephone contact with marketing/salespersons that will not be representing you. These people are highly trained to take your money. Choosing a local representative just makes good business sense.

Telephone: 800.230.7090 | Email: bestcpa@bestirscpa.com
Copyright © 2018, J.Frank Best, Certified Public Accountant

Top 5 Tax Controversy CPA Profiles

J. Frank Best a Tax Controversy CPA with locations in Raleigh & Wilmington, NC  and North Myrtle Beach & Myrtle Beach, SC is rated in the Top 5 Tax Controversy CPA Profiles/Linkedin and as a United States Tax Court Litigator licensed in all States works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

PRACTICE AREAS-ALL STATES

TAX LITIGATION
AUDITS
APPEALS & HEARINGS
COLLECTION
NON-FILERS AND DELINQUENT
CIVIL FRAUD
CRIMINAL FRAUD-KOVEL

800.230.7090
email: bestcpa@bestirscpa.com
web: bestirscpa.com

LICENSED CPA: NC (14839) & SC (2505)
U.S. TAX COURT LITIGATOR: ALL STATES (BJ2034)
PRACTICE BEFORE THE IRS: ALL STATES

Tax Controversy CPA

J. Frank Best a Tax Controversy CPA with locations in Raleigh & Wilmington, NC  and North Myrtle Beach & Myrtle Beach, SC is rated in the Top 5 Tax Controversy CPA Profiles/Linkedin and as a United States Tax Court Litigator licensed in all States works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

Telephone 800.230.7090   Email: bestcpa@bestirscpa.com  Web: bestirscpa.com

U.S.TAX COURT LITIGATOR

J. Frank Best a U.S. Tax Court Litigator with locations in North Myrtle Beach & Myrtle Beach, SC and Wilmington & Raleigh, NC and licensed in all States is rated in the Top 5 Tax Controversy CPA Profiles/Linkedin and as a U.S.Tax Court Litigator works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

Telephone 800.230.7090   Email: bestcpa@bestirscpa.com  Web: bestirscpa.com

Tax Controversy CPA

J. Frank Best a Tax Controversy CPA with locations in North Myrtle Beach & Myrtle Beach, SC and Wilmington & Raleigh, NC is rated in the Top 5 Tax Controversy CPA Profiles/Linkedin and as a United States Tax Court Litigator licensed in all States works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

Telephone 800.230.7090   Email: bestcpa@bestirscpa.com  Web: bestirscpa.com

Tax Return Preparer Penalties

A recent District Court decision was reported dealing with Tax Return Preparer Penalties.  J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in North Myrtle Beach and Myrtle Beach, SC & Raleigh and Wilmington, NC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for clients. J. Frank Best is rated in the Top 5 Tax Controversy CPA Profiles/Linkedin.

Tax Return Preparer Penalties

In Taylor v. Comm’r, 2018 PTC 236 (9th Cir. 2018), the Ninth Circuit affirmed a district court’s dismissal for lack of jurisdiction of an action by a tax return preparer seeking an abatement of Tax Return Preparer Penalties after rejecting the taxpayer’s argument that an exception in Code Sec. 6694(c) relieved him of his obligation to pay the penalties in full before bringing a refund suit in the district court. The court noted that, while Code Sec. 6694(c) confers district court jurisdiction when a tax return preparer has paid at least 15 percent of a penalty if the refund action is begun within 30 days after the earlier of the IRS’s denial of the refund claim or the expiration of six months after the day on which the refund claim is filed, the taxpayer did not file within those time limits and thus was not eligible to bring suit in the district court for Tax Return Preparer Penalties.

North Myrtle Beach, SC Tax Controversy CPA

J. Frank Best a North Myrtle Beach, SC Tax Controversy CPA  with locations in North Myrtle Beach & Myrtle Beach, SC and Wilmington & Raleigh, NC is rated in the Top 5 Tax Controversy CPA Profiles/Linkedin and as a United States Tax Court Litigator licensed in all States works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

Telephone 800.230.7090   Email: bestcpa@bestirscpa.com  Web: bestirscpa.com

No Tax Court Jurisdiction Over Employment Tax Liability

A recent Tax Court decision was reported dealing with Tax Court Jurisdiction. J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in Raleigh and Wilmington, NC  & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for clients

No jurisdiction was determined by the Eighth Circuit and the Eight Circuit affirmed the dismissal of an S corporation’s Tax Court petition challenging an IRS determination that the compensation paid to the sole owner and officer of the S corporation was unreasonable. The Eighth Circuit found that there was no actual controversy under Code Sec. 7436 as to the determination of the S corporation shareholder’s employment status for Federal Insurance Contribution Act (FICA) tax purposes and thus Code Sec. 7436 did not come into play. Azarian v. Comm’r, 2018 PTC 229 (8th Cir. 2018).

Under Code Sec. 7436(a)(1), the Tax Court has jurisdiction over a petition if there is an actual controversy involving a determination that an individual performing services is an employee for FICA tax purposes. Thus, the issue was whether there was an actual controversy involving a determination that Azarian was an employee for FICA tax purposes.

The Eighth Circuit affirmed the Tax Court’s dismissal for lack of jurisdiction. The Eighth Circuit found that even if there was an actual controversy, it did not involve a determination that Azarian was an employee for FICA tax purposes as required under Code Sec. 7436(a)(1). The court determined that by reporting wages to Azarian each year, the S corporation claimed Azarian was an employee, so the IRS did not make a determination on that issue. Instead, the IRS relied on the S corporation’s classification.

Improvements to Rental Home/Contact Best Tax Controversy CPA/U.S. Tax Court Litigator

A recent Tax Court decision was reported dealing with Improvement to Rental Home.   J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in Raleigh and Wilmington, NC  & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for clients

Couple Can’t Deduct Cost of Improvements to Home Allegedly Rented to Relatives: In Perry v. Comm’r, T.C. Memo. 2018-90, the Tax Court held that a couple did not establish that they rented their second home to relatives and that, even if the court were to find that the couple did in fact rent the house to their relatives, the couple failed to carry their burden of establishing improvements to rental that they rented such home at fair rental value. Thus, the court denied the couple’s deduction for improvements made to that home.