As a general rule, the Internal Revenue Service (IRS) expects U.S. taxpayers to pay the full amount they owe. However, the IRS also recognizes that some taxpayers – both individuals and businesses – will find themselves in circumstances in which fully paying their outstanding tax liability is not tenable. In these circumstances, the IRS allows qualifying taxpayers to submit an offer in compromise (OIC). The IRS recently published new guidance regarding the OIC program, which Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, discusses below:

The Internal Revenue Service’s Criminal Investigation Division (IRS CI) recently released its FY 2021 Annual Report. While the Annual Report contains some notable statistics and other information about IRS CI’s enforcement efforts over the prior year, one figure stands out in particular. Virginia tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains:

The Internal Revenue Service (IRS) published a Tax Tip on November 1, 2021 explaining “the right to retain representation” for U.S. taxpayers. The IRS’ message is simple: As a U.S. taxpayer, you have the right to retain a Virginia tax lawyer for any federal tax matter. This is true whether you are seeking to proactively resolve a past filing mistake or you have been contacted by an IRS agent.

Every year around this time, we start to see articles pop up online about steps individuals and businesses can take to reduce their income tax liability. Many of these articles focus on end-of-year tax deductions. But, is taking these end-of-year tax deductions really a good idea? Or, could doing so get you into trouble with the Internal Revenue Service (IRS)? Virginia tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains:

The IRS is unforgiving when it comes to delinquent FBARs. However, there is one significant exception: The IRS does not penalize taxpayers who can show that their failure to file was due to “reasonable cause.” In this article, Virginia FBAR attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains how the IRS evaluates claims of “reasonable cause.”