Insights

Blog

What Happens if I am Contacted by the California Franchise Tax Board?

Steven Walker 20th July 2024
When the California Franchise Tax Board (“FTB”) contacts you, it’s often the start of a complex process that may lead to an audit, protest, settlement discussions, or an administrative appeal with the California Office of Tax Appeals. Understanding each step

Blog

Am I at Risk of Losing My Passport Because of IRS Tax Debts?

Steven Walker 4th July 2024
The federal government can revoke or deny your U.S. passport if you owe a seriously delinquent tax debt. Afterwards, having your passport reinstated can become difficult. This article discusses the basics of when and how the federal government can revoke

Blog

IRS Launches New Effort Aimed At High-Income Nonfilers

Steven Walker 24th June 2024
Are you someone who has unfiled tax returns with the Internal Revenue Service? On February 29, 2024, the IRS launched a new effort aimed at high-income nonfilers, including millionaires, who failed to file tax returns with financial activity topping $100

Blog

Can the IRS Do That? The Statutory (or Secret) Tax Lien

Steven Walker 28th April 2024
In re Rios, 649 B.R. 30 (Bkrtcy. E.D. Wis. 2023) involves the IRS “secret” or “statutory lien” under Internal Revenue Code section 6321, which attaches to “all property and rights to property” of the debtors. IRS does not need a
Bankruptcy Tax

Blog

Federal District Court Rules Corporate Transparency Act Unconstitutional

Steven Walker 5th March 2024
On March 1, 2024, the United States District Court for the Northern District of Alabama issued a Memorandum Opinion striking down the Corporate Transparency Act (as applied to plaintiffs) and ruling that the law “exceeds the Constitution's limits on the

Blog

How Innocent Mistakes in E-filing Can Trigger Penalties

Steven Walker 29th February 2024
How Innocent Mistakes in E-filing Can Trigger Penalties By Philip Wolf and Steven L. Walker Sometimes good is just not good enough.  Relying on a return preparer to e-file your return is not enough to escape IRS penalties. In the

Blog

Corporate Transparency Act – New Civil Penalties

Steven Walker 29th January 2024
FinCEN Civil Penalties for Failing to Comply with New Beneficial Ownership Information Reporting Requirements Rise to $591 Per Day. By Steven Walker and Philip Wolf The new Corporate Transparency Act does not just impact the big guys. Smaller clients who

Blog

Women in Tax: The Group Supporting Female Tax Practitioners

Steven Walker 18th January 2024
Walk-Law attorney Philip Wolf recently published an article in the International, Federal, State, and Local sections of the prestigious journal Tax Notes, titled Women in Tax: The Group Supporting Female Tax Practitioners.[1] In the article, Wolf (who was selected to

Blog

The California Franchise Tax Board Extends Deadline to Participate in Resolution Program Targeting Certain Microcaptive Insurance Arrangements and Syndicated Conservation Easements

Steven Walker 16th November 2023
The FTB just extended the deadline to participate in its resolution program until January 31, 2024.[1] Previously, the FTB sent letters to taxpayers whom it suspects participated in “Eligible Transactions” involving certain micro captive insurance arrangements or syndicated conservation easements.

Blog

Employee Retention Credit -IRS Stops Processing New Claims – Fraud

Steven Walker 26th September 2023
The IRS is cracking down on promoters and others who are filing questionable claims for Employee Retention Credit.  For those individuals who have filed potentially false or fraudulent claims or are subject to an IRS examination or investigation, you should

Blog

Reduction of Tax Attributes under I.R.C. § 108(b)

Steven Walker 4th March 2022
A taxpayer does not always get to eat cake and keep it too. When discharge of indebtedness (other than real property business debt) is excluded from gross income, corresponding reductions must be made to the taxpayer's tax attributes. See Checkpoint
Bankruptcy Tax

Blog

Taxation of the Bankruptcy Estate

Steven Walker 4th March 2022
The taxation of the bankruptcy state is not always obvious, and below are the key highlights for debtors to keep in mind.  The IRS is well versed with these rules, and running afoul can lead to tax controversy issues, such
Bankruptcy Tax

Blog

IRS and Virtual Currency

Steven Walker 18th August 2019
IRS Has Begun Sending Letters to Virtual Currency Owners Advising Them to Pay Back Taxes, Files Amended Returns; Part of IRS' Larger Efforts The Internal Revenue Service has begun sending letters to taxpayers with virtual currency transactions that potentially failed
Tax Controversy and Litigation

News Featured

IRS Announces New Compliance Campaigns

Steven Walker 14th May 2019
On April 16, 2019 the IRS Large Business and International division (LB&I) announced the approval of three additional compliance campaigns. Two of these campaigns, the Captive Services Provider Campaign and the Loose Filed Forms 5471 Campaign, are of importance to
Tax Controversy and Litigation

Blog

IRS Updated Voluntary Disclosure Practice

Steven Walker 26th March 2019
On November 20, 2018, the IRS issued a Memorandum addressing the process for all voluntary disclosures (both domestic and foreign) following the close of the Offshore Voluntary Disclosure Program on September 28, 2018.  In March 2019, the IRS released new
Tax Controversy and Litigation

Publication

Income Taxation of Trusts in California

Steven Walker July 26, 2018
Recently, in a closely watched case, the California Superior Court in San Francisco rejected the Franchise Tax Board’s long-standing approach to the taxation of trusts.  The court determined that all income, including California-source income, is subject to the apportionment formula
Tax and Estate Planning

Blog

Can the IRS Take My Passport?

Steven Walker 1st October 2017
Are you about to embark on a business trip to Latin America or a well-needed family vacation to Italy or Paris?  Do you work for a technology company and frequently travel overseas to Singapore or other Asian countries for work? 
Tax Controversy and Litigation

Blog

Offshore Tax Compliance

Steven Walker 18th January 2017
Have you received a letter from the Internal Revenue Service (IRS) asking you to come in for an interview? Are you the subject of an IRS examination or target of an IRS criminal case? We are likely to see more
Tax Controversy and Litigation

Blog

Employment Tax Enforcement

Steven Walker 5th May 2016
The Department of Justice has stepped up is prosecutions on the criminal and civil enforcement side against employers who pyramid (business withholds taxes from employees but intentionally fails to remit them to the IRS over several quarters), pay employees in
Tax Controversy and Litigation

Publication

IRS Provides Guidance on FBAR Penalties

Steven Walker November 5, 2015
Tax professionals who advise clients on issues with FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), should become familiar with IRS Memorandum SBSE-04-0515-0025, “Interim Guidance for Report of Foreign Bank and Financial Accounts (FBAR) Penalties” (5/13/15). The
Tax Controversy and Litigation

Publication

Credit Suisse’s Impact on Its U.S. Clients

Steven Walker August 11, 2014
In the government’s criminal investigation and charging of Credit Suisse AG with helping U.S. taxpayers evade taxes, the IRS used a new and little-known provision of the code, section 6201(a)(4), to ensure that the Swiss bank paid $666.5 million in
Tax Controversy and Litigation

Publication

Can a Taxpayer Refuse an IRS Summons?

Steven Walker April 24, 2014
During the course of an IRS investigation, the IRS has the authority to issue an administrative summons seeking records and testimony (Sec. 7602).  The IRS may summons records, whether they are in the taxpayer’s or a third party’s possession, including
Tax Controversy and Litigation

Publication

A Simplified Procedure to Allow Late Filed Forms 8891 for Individuals With Canadian Retirement Plans and Relief From FBAR Penalties for Foreign Retirement Accounts

Steven Walker January 2, 2013
An individual living in the United States may own a retirement plan from another country. The Internal Revenue Service ("IRS") takes the position that certain foreign retirement accounts are foreign trusts and subject to the onerous reporting requirements of section
Tax Controversy and Litigation