TAXLITIGATOR – Tax Controversy (Civil & Criminal) Report

Sandra Brown was recently quoted in Forbes on the recent decision in Green Valley Investors, LLC v. Commissioner, 159 T.C. No. 5 (November 9, 2022), where the United  States Tax Court invalidated IRS Notice 2017-10, pertaining to the listing and reporting requirements for syndicated  conservation easements.  

Check out the great article–“IRS Loses Battle in War on Conservation Easements” authored by Guinevere Moore in Forbes at the following link: https://www.forbes.com/sites/irswatch/2022/11/10/irs-loses-battle-in-war-on-conservation-easements/amp/

We are very pleased to announce that our friend and partner Robert Horwitz has been recognized for his outstanding contributions in the field of taxation by the California Lawyers Association 2022 Annual Meeting of the Tax Bar and Tax Policy Conference, November 2-4, 2022.

Robert has over 40 years of experience as a tax attorney specializing in the representation of clients in civil and criminal tax cases, including civil audits and appeals, tax collection matters, criminal investigations, administrative hearings and in civil and criminal trials and appeals in federal and state courts. He has served as a member of the Executive Committee of the Taxation Section of the State Bar of California and was Chair of the Taxation Section for 2015-2016 year. He was previously Chair of the Tax Procedure and Litigation Committee of the State Bar Taxation Section.

We are very pleased to report that the 38th Annual UCLA Extension Tax Controversy Institute which took place on October 27 at the Beverly Hills Hotel was a resounding success. After two years of video conferences, the annual gathering of top Government representatives and private practitioners was back in person and in full force. 

We want to thank the great staff of UCLA Extension, our sponsors, our special out of town guests and all the panel participants for making this the best Institute ever. 

A special shout out to our friends at the IRS for their assistance in putting together the program. The panel programs this year were outstanding. With Keynote presentations from the Taxpayer Advocate- Erin Collins, the Chief of Criminal Investigation- Jim Lee and Deputy Commissioner, SBSE Collection & Operations Support- Darren Guillot, and the IRS Commissioner Charles “Chuck” P. Rettig, the program had to be a success. The program can be found at the following link:

Click Here for the Program

There is so much more to say about the program and the great panels, but for this post let us conclude with another congratulations to both Paula M. Junghans, this year’s recipient of the Bruce I. Hochman Award, and to Charles P. Rettig, our retiring IRS Commissioner, who received the Chillin and Grillin Award which is given each year to a retiring IRS employee. For those who were in attendance, you know how deserving and special the recognition was for both honorees

Thank you all for making this year’s Institute the best ever. 

Steven Toscher and Sandra Brown, Co-Chairs
UCLA Extension Tax Controversy Institute

We are pleased to announce that Steven Toscher, Michel Stein and Evan Davis will be speaking at the upcoming Spidell webinar “Cryptocurrency Tax Compliance in the Rollercoaster Bitcoin World,” Tuesday, November 15, 2022, 10:00 a.m. – 12:00 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 very pleased to announce that our friend and partner Robert Horwitz has been recognized for his outstanding contributions in the field of taxation by the California Lawyers Association 2022 Annual Meeting of the Tax Bar and Tax Policy Conference, November 2-4, 2022.

Robert has over 40 years of experience as a tax attorney specializing in the representation of clients in civil and criminal tax cases, including civil audits and appeals, tax collection matters, criminal investigations, administrative hearings and in civil and criminal trials and appeals in federal and state courts. He has served as a member of the Executive Committee of the Taxation Section of the State Bar of California and was Chair of the Taxation Section for 2015-2016 year. He was previously Chair of the Tax Procedure and Litigation Committee of the State Bar Taxation Section.

Sandra Brown, Evan Davis and Jonathan Kalinski will also be speaking on the following topics:

Criminal Tax Bootcamp – How to Represent

Clients in Criminal Tax Matters

In re Grand Jury and the Impact on Dual-Purpose

Attorney Client Privilege

Responsible Persons Liability

Click Here for more information.

We are pleased to announce that Steven Toscher, Sandra Brown and Michel Stein will be speaking at the upcoming NBI webinar “IRS Enforcement Priorities Update (Under the Inflation Reduction Act),” Thursday, November 17, 2022, 9:00 a.m. – 10:00 a.m. (PST).

The Inflation Reduction Act of 2022 (IRA) increased the IRS’s budget by almost $80 billion over the next 10 years, and with half of that money earmarked for tax enforcement, tax practitioners can expect that IRS examinations of high-income clients will ramp up. This legal tax guide offers clear guidance we have so far on the current IRS priorities and on the way individuals, businesses, trusts, and estates can shore up compliance and become better prepared for more likely audits.

• Stay informed of recent guidance from the IRS.
• Get up to speed on emerging case law developments.
• Help clients prepare for the coming audit trends.

Click Here for more information..

We are pleased to announce that Steven Toscher, Robert Horwitz and Lacey Strachan will be speaking at the upcoming Spidell webinar “Estate and Gift Tax Audits,” Monday, November 7, 2022, 10:00 a.m. – 12:00 p.m. (PST).

Practical advice for preparing for and resolving estate and gift tax issues with the IRS. Topics covered include:

• Preparing an estate or gift tax return with an eye toward litigation
• Handling an IRS examination
• Settling estate and gift tax cases with the IRS Appeals Office
• Litigating estate tax and gift cases in Tax Court

Click Here for more information.

We are pleased to announce that Edward Robbins, Jr. and Evan Davis will be speaking on the following topics at the upcoming Hawaii Tax Institute 59th Annual In-Person Conference being held at the Sheraton Waikiki, November 6-10, 2022.

Edward Robbins, Jr.
November 9, 2022
“FBAR Reporting: Trends, Pitfalls, and Enforcement. What You Need to Discuss With Your Clients”

Evan Davis
November 10, 2022
“When Aggressive Tax Planning Becomes Criminal Conduct and Ethical Considerations”

Click Here for more information

We are pleased to announce that Michel Stein, Edward Robbins, Jr. and Sandra Brown will be speaking at the upcoming Spidell webinar “Form 8300 Reporting/Cash Intensive Business Audits,” Friday, October 21, 2022, 10:00 a.m. – 12:00 p.m. (PST).

The law requires that trades and businesses report cash payments of more than $10,000 to the federal government by filing Form 8300. This course will explain the Form 8300 filing obligations of those accepting cash payments in their businesses, best practices surrounding the filing of Form 8300, the current civil and criminal enforcement environment surrounding Form 8300 non-compliance, and the voluntary disclosure and mitigation practices surrounding the non-compliant. Do not be caught unprepared! 

Click Here for more information.

It was a long-held belief that the Anti-Injunction Act barred taxpayers from maintaining any lawsuit that had the effect of interfering with the assessment or collection of any tax. However, the recent Supreme Court decision in CIC Services created a crack in the Government’s use of the Anti-Injunction Act to dismiss cases for lack of subject matter jurisdiction. The First Circuit, relying on the holding in CIC Services, LLC v. IRS, has now, in its ruling in Harper v. Rettig, further widened that crack.

Click Here for full article.

Sandra R. Brown is a Principal at Hochman Salkin Toscher Perez P.C., and former Acting United States Attorney, First Assistant United States Attorney, and the Chief of the Tax Division of the Office of the U.S. Attorney (C.D. Cal). Ms. Brown specializes in representing individuals and organizations who are involved in criminal tax investigations, including related grand jury matters, court litigation and appeals, as well as representing and advising taxpayers involved in complex and sophisticated civil tax controversies, including representing and advising taxpayers in sensitive-issue audits and administrative appeals, as well as civil litigation in federal, state and tax court. 

Gary Markarian is an Associate Attorney at Hochman Salkin Toscher Perez P.C., and a graduate of the joint JD/LL.M. Taxation program at Loyola Law School, Los Angeles. While in law school, Mr. Markarian served as an intern at the Tax Division of the U.S. Attorney’s Office (C.D. Cal) and Internal Revenue Service Office of Chief Counsel’s Large Business and International Division.