Publications

Publications

Publications

Walk-Law Attorney Philip Wolf Selected to Write Annual 2023 Tax Wrap-Up Column for Prestigious International Publication, Tax Notes

By: Steven Walker

Walk-Law Attorney Philip Wolf Selected to Write Annual 2023 Tax Wrap-Up Column for Prestigious International Publication, Tax Notes This year, leading tax practitioner journal Tax Notes invited Walker-Law attorney Philip Wolf to write a capstone summary of annual federal tax developments for 2023. Philip wrote the summary in a less traditional form, as a quiz. The thirteen questions that he included dealt with a variety of tax topics in which Philip and Walker-Law have experience. These topics include the following: Criminal tax (Philip has extensive experience in internal and government investigations, forensic accounting and white-collar criminal defense). Syndicated conservation easements.[1]...
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Corporate Transparency Act – New Civil Penalties

By: Steven Walker

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 have formed entities may be subject to the reporting obligations.  And now, effective January 25, 2024, FinCEN announced that whoever fails to file Beneficial Ownership Information Reports (“BOI Reports”) could owe $591 per day of non-compliance (up from $500 per day).[1] The cap on this penalty remains $10,000, and failure to file BOI Reports can still also result in criminal...
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Women in Tax: The Group Supporting Female Tax Practitioners

By: Steven Walker

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 be a regular columnist for Tax Notes) interviews tax practitioners from a series of international professional groups called Women in Tax. These Women in Tax groups aim to provide a space for women to join forces with other like-minded female tax practitioners and share strategies for how to be successful in the tax field. Walk-Law’s interview with professionals from these...
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The California Franchise Tax Board Extends Deadline to Participate in Resolution Program Targeting Certain Microcaptive Insurance Arrangements and Syndicated Conservation Easements

By: Steven Walker

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. These letters stated that the FTB believes that these Eligible Transactions are “potentially abusive in nature and subject to significant penalties ranging from 20% to 75%.” The letter then explains that taxpayers who enter a resolution program can come into compliance and reduce their exposure to potential penalties. The main benefit of the resolution program is that FTB will permanently...
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Employee Retention Credit -IRS Stops Processing New Claims – Fraud

By: Steven Walker

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 seek the advice of competent tax counsel. On September 14, 2023, the IRS announced that it will no longer process new claims for the Employment Retention Credit (“ERC”) until at least the end of the year.[1] Although the IRS will continue to process existing ERC claims, the Service has stated that it will increase the expected processing time of each...
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Consequences of Failing to Report Federal Changes to the California FTB or Filing State Returns

By: Steven L. Walker

American Bankruptcy Institute Journal

April 1, 2022

On Oct. 14, 2021, the Ninth Circuit Court of Appeals in Berkovich affirmed the decision from the Bankruptcy Appellate Panel (BAP) that because a debtor failed to report Internal Revenue Service (IRS) tax assessments to the California Franchise Tax Board (FTB), the debtor's state tax liability was nondischargeable under § 523(a)(1)(B)(i).
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Staying IRS Enforced Collection Action Through Bankruptcy

By: Steven Walker

An advantage of filing bankruptcy is that it can stop certain collection actions by the IRS.  For example, suppose that a taxpayer has been under heavy fire from the IRS revenue officer for the past several years.  The IRS recently discovered a bank account that Max owns in Reno, Nevada, served a Notice of Levy, and levied $25,000 from the account.  Max plans to file a petition under title 11 to prevent further collection action.  The IRS has indicated that it may audit the taxpayer's Form 1040.  Which of the following actions will the filing of the petition operate as...
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Reduction of Tax Attributes under I.R.C. § 108(b)

By: Steven Walker

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 EXP ¶1084.02 Reduction of tax attributes; Code Sec. 108(b)(1). Net operating loss General business credit Minimum tax credit Capital loss carryover Basis reduction (see below) Passive activity loss and credit carryovers Foreign tax credit carryovers  See Code Sec. 108(b)(2); Reg §1.108-7(a)(1). There are ordering rules that come into play.  I.R.C. § 108(b)(4). The debtor can elect to alter the sequence...
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Taxation of the Bankruptcy Estate

By: Steven Walker

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 as an audit. Property of the Bankruptcy Estate All legal or equitable interests of the debtor in property as of the commencement of the case. 11 U.S.C. Sec. 541. Ask who is the debtor (single individual, married couple, or married individual). Ask what type of property (exempt property, community property, after-acquired property, abandoned property). Taxation of the Bankruptcy Estate Separate...
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