Tax Litigation Law Office of Scott Kauffman
(949) 474-1820

Hackney Literary Award
Mighty River Short Story Contest Winner

Tax Controversy Archives

Tax considerations during the divorce process

We haven’t discussed the effect of divorce or separation on your taxes since last summer. In our June 1 post last year, we discussed the increase in IRS scrutiny on alimony (also called spousal support) payments. The reported gap between deductions claimed by payers and income reported by recipients had surpassed $2 billion in 2010.

3 options for paying off tax debt

If an employer failed to withhold enough tax from your pay or your estimated tax payments did not account for an increase business, a large tax bill can come as an unpleasant surprise. Even when you cannot pay the balance, filing a return will avoid a late filing penalty. But penalties and interest accrue until you pay the balance.

FBAR filing deadline moves to April 15

In a common sense move, Congress has moved the filing due date for the Report of Foreign Bank and Financial Accounts (FBAR) from June 30 to the better known April 15 U.S. tax filing deadline. The change, tacked onto a bill to extend the Highway Trust Fund, went into effect when President Obama signed the legislation on July 31.

Automated notices about underreported income: the IRS isn't always right

If IRS computers spit out a notice saying that you underreported income or overstated your credits or deductions, that doesn’t mean those computers are right. But it is important to know how to respond if you receive such a notice.

IRS boosting security: How can you also protect your data?

The Wall Street Journal reported that as early as next week, the Internal Revenue Service will announce an agreement with tax preparation companies designed to strengthen the tax system. It will likely involve improved authentication of those who file tax returns and strengthen the industry’s ability to identify broad fraud and communicate concerns to the agency.

IRS budget cuts and outdated technology

Last week, the IRS admitted that hackers gained access to the tax documents of 104,000 Americans. Five years of budget cuts may explain the failure in part. Staff reductions, delayed technology projects and the difficulty of creating programs that stop fraud are others.