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Sacramento Tax Law Blog

IRS Delays Update to E-Services Accounts

The Internal Revenue Service (IRS) announced today that it will delay the date on which e-Services users will be required to re-register and validate their identities (previously discussed here). There is no new implementation date set. The IRS will need more time to discuss security protocols with "key stakeholders" in order to ensure a smooth transition. For more information on this change, click here:

Corporations with Federal Tax Liabilities Barred from Contracting with Government Agencies

If your company contracts with the Department of Defense, General Services Administration, or the National Aeronautics and Space Administration (NASA), you have one more reason to be compliant with your federal tax obligations: Effective September 30, 2016, these agencies will no longer award contracts to corporations having delinquent Federal tax liabilities or a felony conviction under any law. This includes any assessed liabilities such as unpaid income tax, employment tax, payroll withholdings, and social security and Medicare taxes that are not contested or paid on time.

Tax Court Finds that California Chiropractor Fraudulently Failed to File Tax Returns

A self-employed chiropractor based in Hayward, California, was found liable for penalties for failure to file tax returns for eight years with the intent to conceal, mislead, or otherwise prevent the collection of tax. The original IRS investigation of Dr. Ramon Reynoso began in 2003. In April 2008, he pleaded guilty to criminal income tax evasion for only one tax year. Subsequently, the Commissioner issued notices of deficiency for tax years 1997 through 2004. Dr. Reynoso filed a Tax Court petition to dispute the penalties assessed for fraudulent failure to file, failure to timely pay, and failure to pay estimated taxes.

Federal Tax Relief for Farmers and Ranchers Affected by California Drought

Taxpayers with farms or ranches in certain California counties, cities, or districts that suffered from "exceptional, extreme or severe drought conditions" between September 1, 2015, and August 31, 2016, are being provided tax relief by the Internal Revenue Service in the form of deferred taxes on the gains from forced sales of livestock. Many will have an extra year to replace any livestock held for specific purposes, such a draft or dairy, and sold during the drought outside of their normal sales cycle. For details, including a list of specific designated counties, click here.

Sales and Use Tax Rates to Change in Certain California Cities

The California Board of Equalization (BOE) will update sales and use tax rates effective October 1, 2016, in the following cities:

Germany's "James Bond" on Trial for Tax Evasion

Former intelligence agent Werner Mauss is the latest celebrity under scrutiny for allegedly evading taxes from profits on offshore accounts. Mr. Mauss says the accounts were opened by intelligence agencies to fund covert operations worldwide, including averting a mafia poisoning attempt against a Pope, and operations involving hostage releases. Mr. Mauss is a mystery. He has several aliases and is a self-proclaimed master spy. He is believed to have worked extensively under cover for Germany's BND intelligence service as well as for other governments. Mr. Mauss' lawyers identify the client confidences Mr. Mauss must maintain and other problems with standard litigation given the secret nature of Mr. Mauss' work and identity. For more information, click here.

Streamlined Processing for IRS Installment Agreements

The Internal Revenue Service (IRS) is piloting an expanded program for streamlined processing of taxpayer requests for installment agreements through the end of September 2017. For the next year, the IRS expects more taxpayers to qualify for faster processing of their requests. The expanded criteria do no apply, however, to requests submitted to W&I Accounts Management, SB/SE Field Collection, or through the Online Payment Agreement application form. For details, click here.

IRS To Begin New Private Debt Collection Program in Spring 2017

The Internal Revenue Service (IRS) announced that it will begin private collection of overdue federal tax debts starting in Spring 2017. The IRS will contract with four private agencies to attempt to collect on federal debts owed that the IRS is no longer actively pursuing or for which the IRS does not have sufficient resources to pursue.

Important Update for IRS e-Services Users

Beginning October 24, 2016, the IRS will be strengthening the identity authentication process of its e-services platform. If you currently use any IRS e-services, you must re-register and validate your identity to continue having access to any e-services products. This will involve a Secure Access process to validate your identity, which includes identity proofing, financial verification and mobile phone verification. For details, click here: Important Update for Your e-services Account.

Beware! Scammers Send Fake IRS E-Mail Messages to Taxpayers

Taxpayers and tax professionals across the U.S. are being targeted by yet another scam.  The Internal Revenue Service and its Security Summit partners recently issued a warning regarding fake e-mails purporting to contain an IRS tax bill related to the Affordable Care Act.  The scam has already been reported to the Treasury Inspector General for Tax Administration for investigation.

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