Resolution of Unfiled Federal Income Tax Returns Resulting in Substitute Tax Returns
Taxpayer failed to file federal income tax returns for several years despite earning substantial self-employment income. The IRS filed substitutes for return (“SFR”) and a Notice of Deficiency, assessing tax. DeWitt Law represented the Taxpayer and challenged the tax assessment in U.S. Tax Court. The SFR returns were set aside and the IRS accepted reconstructed tax return filings. The SFR assessment was reversed and the Taxpayer paid the balance due…
25 Felony Tax Evasion Charges Dismissed
Dickson, Tennessee – DeWitt Law represented taxpayer facing 27 felony (and 1 misdemeanor) tax crimes. 25 felony charges and 1 misdemeanor charge dismissed. Plea agreement and pre-trial diversion granted to Taxpayer resulting in no jail time, supervised probation for 2 years, and no criminal record upon completion of diversion.
IRS Due Diligence Audit – No Penalties Assessed
Represented tax preparer and owner of tax preparation franchise who was audited by the IRS for compliance with tax preparation due diligence rules. The IRS proposed penalties against Client in the amount of $60,840 for alleged violations. DeWitt Law appealed and the IRS reversed the assessment to $0.
$350,000 Tax Assessment Reversed to $0
United States Tax Court – Taxpayer was audited by the IRS for tax year 2016. The IRS issued a Notice of Deficiency and assessed over $350,000 in taxes, penalties, and interest. DeWitt Law represented the Taxpayer and challenged the tax assessment in U.S. Tax Court. The assessment was reversed and the Taxpayer owed $0 in additional tax.
IRS Audit Involving Re-Constructed Expenses – No Additional Tax Assessed
Represented self-employed contractor in field audit covering a 3-year period. Client had limited records so business mileage, supplies, and contract labor expenses had to be re-constructed. The IRS proposed a six-figure tax assessment in its original audit report. Case was appealed and the IRS reversed virtually all of the proposed assessment, allowing the re-constructed expenses.