This article, written by Philip Wolf, examines problems and potential opportunities for individuals and businesses subject to the San Francisco gross receipts tax (GRT), which is imposed on those who have business activity in the city. Since voters approved it in 2012, the tax has been subject to intense scrutiny and discussion within the local tax community. It has undergone multiple changes and expansions, and a proposition to modify it further is on the upcoming election ballot. Therefore, an examination of the GRT is warranted. 2024tns41-4 Read More

Walker-Law is pleased to announce that attorney Philip Wolf (who is also a regular columnist for the prestigious international magazine Tax Notes) was recently invited to Chile to co-teach a class on the U.S.-Chile Tax Treaty in front of members of the Chilean-American Chamber of Commerce and the professional group Women in Tax Chile. The class was taught entirely in Spanish in Santiago, Chile. Among other topics, the class focused on the complexities of international tax audits and litigation, and how the U.S.-Chile Tax Treaty may impact these areas. Wolf also emphasized the challenges faced by taxpayers during tax audits... Read More

Walk-Law.com gives insights about the California Franchise Tax Board in a well-known Mexican publication, Fiscalía. See the link below.  Qué sucede si soy contactado por el California Franchise Tax Board Read More

The IRS has announced a limited-time reopening of the Employee Retention Credit (ERC) Voluntary Disclosure Program (VDP), allowing businesses that incorrectly claimed the ERC to rectify their mistakes. The program runs through November 22, 2024, and it offers businesses a 15% “discount” on repayments and the chance to avoid future audits, penalties, and interest. The IRS emphasized that the VDP allows businesses to correct improper claims before the agency intensifies its compliance actions. IRS plans to send up to 30,000 “clawback” notices to businesses with the goal of recapturing more than $1 billion in improper ERC claims. Those who receive... Read More

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 can help you navigate this process more effectively. Here’s a guide to what you might expect. Step 1: Audit If you’re contacted by the FTB, the first step typically involves an audit. Unlike the IRS (which generally has three years[1]), the FTB generally has four years from the later of the date the return was due or the date the... Read More

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 your passport and possible remedies. If the government revoked your passport due to a seriously delinquent tax debt and are worried about having your passport revoked, consider contacting competent tax counsel to assist. When can the IRS Recommend that the State Department Revoke Deny, or Limit your Passport? When an individual taxpayer owes an unpaid federal tax debt (including assessed... Read More

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 billion. IR-2024-56. The effort includes sending letters on more than 125,000 cases where tax returns have not been filed since 2017. Id. Although many individuals fail to file tax returns for innocent reasons such as a family tragedy or mental health issues, the consequences can be devastating if the federal Government sets its sights on you. How does the Government... Read More

California Revenue and Taxation Code § 19714 gives the Franchise Tax Board the authority to impose a civil penalty (not in excess of $5,000) if a proceeding has been instituted or maintained by a taxpayer primarily for delay or the taxpayer’s position in the proceedings is frivolous or groundless, or that the taxpayer unreasonably failed to pursue available administrative remedies. The recent California Office of Tax Appeals (“OTA”) decision, In the Matter of the Appeal of: T. Flores, 2024-OTA-226, demonstrates that California taxing authorities do not look kindly upon those taxpayers they believe are wasting time by advancing frivolous arguments.... Read More

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 Notice of Federal Tax Lien to have right to receive an interest in debtor’s property. Issue: Whether the Internal Revenue Service is entitled to relief from the automatic stay based on a lack of adequate protection of its alleged interest in the Debtors' Social Security benefits. Facts: The Debtors Chapter 13 case owe federal taxes dating back to 2005. According... Read More

In re Anderson, 650 B.R. 510 (Bkrtcy. W.D. Tenn. 2023), is an interesting case because the court concluded that the debtor's taxes were dischargeable in bankruptcy, and then several years later, the IRS came back and said that the taxes were not dischargeable. The debtors argued estoppel, an equitable doctrine, to say that the IRS cannot come back years later and that the taxes are non-dischargeable when the IRS had previously taken the opposite position. The court ruled in the debtor's favor. While it is difficult to estop the government (argue that the IRS is bound by its oral or... Read More