Tax Procedure: Tenth Circuit Upholds Limits on the Scope of Collection Due Process Hearings

IRS, Collection due processAs part of the 1998 IRS Restructuring and Reform Act, Congress provided every taxpayer with an opportunity for an administrative hearing before the IRS files a tax lien or levies against the taxpayer’s property. I.R.C. §§ 6320; 6330. The hearing, which is known as a collection due process hearing, is conducted by an IRS appeals officer who is required to determine whether the IRS has complied with all procedural requirements for the lien filing or levy. I.R.C. § 6330(c)(1). In addition, the appeals officer should consider any innocent spouse issue, any specific challenge that the taxpayer raises to the collection action, and any collection alternative that the taxpayer offers, such as an installment agreement.… Read More

A Look at Listed Transactions and the Assessment Statute of Limitations.

Section 6501(a) of the Internal Revenue Code generally provides the IRS with three years to issue an assessment to a taxpayer for additional taxes or for penalties after a return is filed. Congress created an exception, however, for “listed transactions,” providing that if a taxpayer does not disclose a listed transaction on its return, the IRS has one year to issue an assessment of additional tax or penalties beginning either when the IRS is furnished with the required disclosure or when a material advisor provides sufficient information concerning a listed transaction in response to a request by the Secretary of the Treasury.Read More