100+ Years of Combined Tax Resolution Experience.
On April 25, the IRS received a message from the Supreme Court that the department isn’t used to hearing: “no, you can’t do that!”
Specifically, the Supreme Court ruled that the IRS could not extend the statute of limitations related to a certain “tax shelter” that many businesses and individuals pursued.
The statute of limitations is three years for most tax returns. This means that, once three years have passed, the IRS can no longer audit and penalize a given return. But the IRS saw fit to extend this statute of limitations to six years in order to collect more money from taxpayers. As Reuters reports:
Ruling in favor of Home Concrete & Supply LLC, the business the IRS had been pursuing in a crackdown on “Son of Boss” tax shelters, the high court said the agency could not use an extended, six-year statute of limitations period.
The IRS had said the extended period, an exception from the normal three-year limit, was justified in the case.
But the court disagreed with the tax-collecting agency in a 5-4 decision in United States v. Home Concrete & Supply LLC.
The ruling puts in question up to $1 billion in tax revenues that the IRS was hoping to collect from about 30 related cases involving “Son of Boss” tax shelters.
Some would argue that many of the “tax shelters” that exist in our complicated tax code are unfair. But whether you agree with this idea or not, we can all agree that seeing the IRS’ powers checked is very rare indeed.
And unfortunately, most taxpayers cannot spend the time or the resources necessary to challenge the IRS and their brutal collection efforts through the court system. We speak to taxpayers every day who feel helpless in the face of IRS penalties and collections efforts. But we have good news for them, and for you: you don’t have to fight the IRS alone!
Polston Tax can help. If you’d like to explore your options regarding IRS disputes, call us confidentially or fill out our confidential contact form to schedule your FREE initial consultation. Don’t let the IRS make your life miserable—call us today and take the first steps towards freedom from your IRS dispute!
We’re in an era in which more small businesses are launching like wildfire. Many people find starting a small business of their own as easy as a piece of cake. However, most of the time, what they fail to prioritize are some of the major players involved in smoothly operating their small business. A...
Do you know why most married taxpayers go for filing joint tax returns? It’s actually because of the benefits that it offers. But with joint tax returns, both the filers hold the responsibility for the tax bill or any penalties and interest that arise from it. Both are legally responsible for the entire liability, even...
What if you owe so much in taxes that you can’t see your way out of it? If you owe back taxes, you might not think there is a way you can ever pay things off. And the more those back taxes have accumulated, the deeper the hole. But that doesn’t mean you can’t dig...
Tax Audits are one of the most terrifying things a taxpayer can endure. Most taxpayers don’t know what being audited by the IRS entails and usually don’t know what to do if they are audited. IRS audits can be confusing to most taxpayers as most don’t know what the IRS is looking for when they...
Receiving a letter from the IRS can be intimidating, especially if you’re unsure what the notice is for or what to do next. Fortunately, many notices are nothing to worry about and are purely informative. Below, we look at everything you need to do — and what not to do — after getting a notice from the...
The Internal Revenue Service (IRS) is increasing audits on cannabis businesses — the agency is on a mission to ensure that cannabis businesses adhere to the tax code. Unfortunately, cannabis companies must comply with more strict tax laws than other businesses and can claim fewer deductions. Most business owners don’t realize this or aren’t able to meet the reporting responsibilities on their own. If you own a business in...