We are pleased to announce that Steven Toscher and Michel Stein will be speaking at the upcoming CSTC San Francisco Bay Chapter webinar, “Cryptocurrency Tax Compliance: Tax Filing Requirements; Managing IRS Examinations” Wednesday, June 1, 2022, 6:00 p.m. – 8:00 p.m. (PST).

This course will provide tax counsel, accountants, and other advisers with a critical first look at recent IRS enforcement actions on taxpayer compliance and reporting obligations for cryptocurrency transactions. The panel will discuss the IRS position on the tax treatment of cryptocurrency, analyze IRS monitoring to increase compliance, consider criminal investigations and prosecutions for failing to report crypto transactions accurately. The panel will define proper reporting and tax treatment for “mining” and exchanging cryptocurrency along with tactics in managing IRS examinations and audits.

Click Here for more information.

We are pleased to announce that Dennis Perez, Sandra Brown, and Cory Stigile will be speaking at the upcoming Strafford webinar, “Navigating IRS Scrutiny of R&D Tax Credits: Qualified Research Activity, Expenses, Research Credit Claims Audits” on Wednesday, June 1, 2022, 10:00 a.m. – 11:30 a.m. (PST).

This CLE/CPE webinar will guide tax professionals and advisers on navigating IRS scrutiny and challenges to the R&D tax credit for small and large businesses and international taxpayers. The panel will discuss the recent IRS crackdown on documentation of research credit claims, managing IRS audits, qualified research activities (QRAs) and qualified research expenses (QREs), safe harbor for certain taxpayers, and techniques to assist in documenting and claiming R&D credits.

For many businesses, the R&D tax credit is one of its most significant tax benefits. When claiming the R&D credit, determining what constitutes a QRA and calculating QREs can be challenging.

The IRS has strict standards in examining R&D tax credit claims and has announced changes in documentation requirements for claims made concerning the credit for increasing research activities. In addition, the IRS recently issued procedural guidance now requiring taxpayers to submit specific pieces of information with any amended returns or administrative adjustment requests that claim an R&D credit.

Generally, Sec. 41 allows a credit for a percentage of a QRE that a taxpayer incurs engaging in research activities. The Code provides a four-part test to determine whether an activity can be considered a QRA. Expenditures, including wage expenses with sufficient nexus to the QRA, can be included in calculating the expenditure base. However, substantiating that an activity qualifies as a QRA can be complex, and tax professionals must know the standards and limits in utilizing this important and often overlooked credit.

Listen as our experienced panel discusses the recent IRS crackdown on documentation of research credit claims, managing IRS audits, QRAs and QREs, and techniques to assist in documenting and claiming R&D credits.

We are also pleased to announce that we will be able to offer a limited number of complimentary and reduced cost tickets for this program on a first come first serve basis. If you are interested in attending, please contact Sharon Tanaka at sht@taxlitigator.com. 

Click Here for more information.

Posted by: evanjdavis | May 20, 2022

EVAN DAVIS Quoted in Tax Notes on Cryptocurrency

Tax Lawyers Find New Obstacles Defending Client Crypto Positions

The same things that some cryptocurrency buyers like about the instrument could pose trouble
when it comes to trying to defend taxpayers in audits or court proceedings.

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Cryptocurrency Holds More Curveballs for Tax Trials

Blockchain technology presents an evolving area of trial practice law for Justice Department Tax
Division lawyers preparing to present their cases.

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We are very pleased to announce that Sandra Brown, Evan Davis and Steven Toscher are featured in this month’s Los Angeles Lawyer discussing the research and development credit as applied in the entertainment industry. And you can get MCLE. 

Many businesses perform some type of research and development (R&D)—the lifeblood of a growing and prosperous economy. A primary example is the entertainment industry in which many companies over the years have partly become technology companies. A telltale sign of such growth in R&D is the number of companies taking advantage of these federal tax credits under Internal Revenue Code Section 41. This can be seen, for example, in the public Securities and Exchange Commission filings of major entertainment companies. However, many smaller businesses may not realize that some of their activities also may qualify for R&D tax credits.  Whether a business is large or small, the ability to claim, and withstand the IRS’s scrutiny of, R&D tax credits is something worth learning about.

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We are pleased to announce that Steven Toscher will be speaking at the upcoming NYU 14th Annual Tax Controversy Forum on “The Future of Voluntary Disclosures” on Friday, June 24, 2022, 2:30 p.m. – 3:30 p.m. (EST).

The annual NYU School of Professional Studies Tax Controversy Forum features interactive presentations delivered by expert practitioners who cover a broad range of issues regarding tax audits and tax litigation at all levels.

Content encompasses the timeline of controversy work—from planning for the examination of a return and audit and administrative appeals processes, to litigation techniques and strategies. Panelists representing both taxpayers and the government share views on the latest issues and perspectives on tax controversies. Attendees learn practical solutions and valuable insights from leading authorities from across the profession.

This year’s NYU Tax Controversy Forum will feature updates on what the IRS is doing to enhance compliance through communication and enforcement. Panels will highlight the new IRS focus on intra-agency collaboration, new initiatives with respect to penalties and fraud referrals, and IRS’ handling of tax collection challenges.  

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We are pleased to announce that Steven Toscher, Michel Stein and Robert Horwitz will be speaking at the upcoming Strafford webinar, “International Tax Disputes: FBAR Violations, Penalty Stacking, Form 3520, Accidental Americans, Passport Denials” on Tuesday, May 24, 2022, 10:00 a.m. – 11:30 a.m. (PST).

This webinar will analyze the most recent and relevant court cases affecting international taxpayers. Our panel of foreign tax veterans will detail the status of recent and notable cases and offer insights for handling common international tax and compliance problems.

International tax practitioners and advisers need to stay abreast of the continually increasing number of cases and matters brought against multinational taxpayers by the U.S. government. Most familiar are the challenges brought against taxpayers for failure to file an FBAR to report aggregate foreign holdings over $10,000 as required under the Bank Secrecy Act. Although advisers are clear that there is a $10,000 penalty for noncompliance, determining how it is applied is not clear. U.S. v. Solomon, No. 20-82236 (11th Circuit 2021) is under appeal in the Eleventh Circuit Court. Here the U.S. government asserts a “violation” (and penalty) is calculated for each account on the FBAR, resulting in a substantially greater penalty than assessed, for example, in U.S. v. Boyd, 991 F.3d 1077 (9th Cir. Mar. 24, 2021) a Ninth Circuit case. The Ninth Circuit agreed with the taxpayer that the penalty was per FBAR rather than per account.

Adding to the staggering penalties and worries that FBAR filings present during a taxpayer’s lifetime are the number of cases where the U.S. pursues collecting these penalties after death (U.S. v. Schoenfeld, U.S. v. Park, U.S. v. Moser …). Astounding FBAR penalties are not the only worry of international tax advisers. Challenging international taxpayers can be a lucrative pursuit. Penalties for failing to report foreign distributions by timely filing Form 3520 are the greater of $10,000 or 35 percent of the distribution. The IRS continues to aggressively pursue Accidental Americans and deny passports for unpaid taxes as well. International tax practitioners need to stay abreast of the status of the most recent international tax cases to properly advise multinational clients.

Listen as our astute panel of international tax experts reviews the most current and pertinent international tax cases so that practitioners understand how these cases affect taxpayers with foreign ties.

We are also pleased to announce that we will be able to offer a limited number of complimentary and reduced cost tickets for this program on a first come first serve basis. If you are interested in attending, please contact Sharon Tanaka at sht@taxlitigator.com. 

Click Here for more information.

An unnamed law firm that focuses on international tax law asked the U.S. Supreme Court to review a Ninth Circuit ruling holding that the firm must comply with a subpoena for attorney-client communications about tax advice for an unnamed, criminally-charged client, according to a petition for certiorari unsealed Monday.

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We are pleased to announce that Dennis Perez, Michel Stein and Robert Horwitz will be speaking at the upcoming Strafford webinar, “Federal and State Tax Residency Issues: Navigating IRS Examination Guidance, State Regulations, Remote Workers” on Thursday, May 12, 2022, 10:00 a.m. – 11:30 a.m. (PST).

This CLE/CPE webinar will provide tax professionals guidance on key federal and state tax residency rules and planning considerations for taxpayers. The panel will discuss the importance of both citizenship and residence in determining tax liabilities of individuals, challenges for remote workers, the applicability of income tax treaties, allocating income between jurisdictions, dual-residency issues, principal items targeted by regulatory authorities, and other key items.

Advising taxpayers on issues relating to residency has become even more cumbersome with increased IRS examinations focused on taxpayer residency and the application of U.S. income tax treaties. Tax professionals must navigate various federal and state tax residency rules, IRS examination guidance, and state regulations in the post-COVID-19 world to implement effective tax planning strategies for taxpayers.

Federal tax residency rules applicable to individuals or businesses are relatively straightforward but can be burdensome to evaluate depending on the facts and circumstances. Tax treaties seek to eliminate or reduce double income taxation, and benefits are available to nonresident aliens and U.S. citizens living abroad under some conditions. Due to the critical nature of residency for tax purposes, taxpayers must understand residency rules and applicable tax treaties that will determine if they are subject to taxation, the necessary forms to file, and if they qualify for any exemptions.

Also, state regulatory challenges to taxpayer residency and overcoming them is an obstacle faced by many individuals with dual-residency between states or by companies operating in multiple jurisdictions. State residency determination is based on more than declarations or physical presence in the state, and the burden of proof falls on the taxpayer in such cases. This fact is typically learned the hard way by taxpayers, resulting in the endangering of assets and being subject to tax liability that could have been limited or avoided with careful planning.

Listen as our panel discusses key components of federal and state residency rules, determining tax liabilities of individuals and businesses, challenges for remote workers, the applicability of income tax treaties, allocating income between jurisdictions, dual-residency issues, and principal items targeted by regulatory authorities.

We are also pleased to announce that we will be able to offer a limited number of complimentary and reduced cost tickets for this program on a first come first serve basis. If you are interested in attending, please contact Sharon Tanaka at sht@taxlitigator.com. 

Click Here for more information.

We are pleased to announce that Dennis Perez, Sandra Brown and Evan Davis will be speaking at the upcoming CalCPA webinar, “Research and Development Tax Credits: IRS Scrutiny of Qualified Research Activity and Related Expenses” on Tuesday, May 10, 2022, 9:00 a.m. – 10:00 a.m. (PST).

Research and development (R&D) is the lifeblood of a growing and prosperous economy, and many businesses perform some type of research and development. IRC §41 creates incentives for increased R&D activities in the form of tax credits for companies involved in qualified research activities. Businesses that consider R&D tax credits soon learn, however, that the potential benefits may come at a price. This program’s learning objectives include understanding how to navigate IRC §41’s abundant and changing requirements and challenges as well as the Internal Revenue Service’s increased focus on potential abuses of the R&D tax credit. Taxpayers and their tax advisors need to be prepared even when they are merely taking advantage of a tax benefit to which they are entitled. More easily identify key strategies to minimize exposure from IRS examinations of R&D credits.

Click Here for more information.

We are pleased to announce that Steven Toscher, Michel Stein and Evan Davis will be speaking at the upcoming Strafford webinar, “Cryptocurrency Tax Compliance: Tax Filing Requirements, Managing IRS Examinations” on Wednesday, May 4, 2022, 10:00 a.m. – 11:30 a.m. (PST).

This CLE/CPE course will provide tax counsel, accountants, and other advisers with a critical first look at recent IRS enforcement actions on taxpayer compliance and reporting obligations for cryptocurrency transactions. The panel will discuss the IRS position on the tax treatment of cryptocurrency, analyze IRS monitoring to increase compliance, consider criminal investigations and prosecutions for failing to report cryptocurrency transactions accurately, and define proper reporting and tax treatment for “mining” and exchanging cryptocurrency. The panel will also discuss tactics in managing IRS examinations and audits.

The IRS continues to press its concern over “massive under-reporting” of income from cryptocurrency transactions. Tax advisers for clients with cryptocurrency holdings must understand the reporting requirements for exchange transactions and the IRS scrutiny cryptocurrency investors are likely to face in the future.

Cryptocurrency is a digital currency using encryption techniques–rather than a central bank–to generate, exchange, and transfer currency units. Uniquely, no bank or government authority verifies the transfer of funds.

The value of Bitcoin has prompted a massive compliance initiative aimed at taxpayers holding and trading cryptocurrency. The IRS treats all virtual currency as property rather than currency for U.S. tax purposes. The IRS requires reporting any transaction involving cryptocurrency as a sale or exchange of property, with the taxpayer bearing responsibility for calculating and maintaining basis in their virtual currency holdings.

Listen as our expert panel discusses recent IRS enforcement actions focused on cryptocurrency and provides practical guidance on the U.S. tax reporting and payment duties arising from cryptocurrency transactions.

We are also pleased to announce that we will be able to offer a limited number of complimentary and reduced cost tickets for this program on a first come first serve basis. If you are interested in attending, please contact Sharon Tanaka at sht@taxlitigator.com. 

Click Here for more information.

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