Understand Your Role and Your Client’s Appeal Rights in Defending Against IRS Civil Fraud Penalties
The IRS can pursue taxpayers both criminally and civilly for non-payment of taxes. While criminal penalties sound worse and get more attention in the press, civil fraud penalties can be just as damaging and resource-draining. The Internal Revenue Code provides for a multitude of civil penalties when a return is found to be inaccurate. The highest of those penalties is the civil fraud penalty asserted pursuant to IRC Section 6663. And the stakes are high: The IRS may assert a 75% penalty on the amount of the underreported tax. Do you know how to most effectively assist your clients when the IRS comes knocking in a civil suit? Do you know how to stop interest from accumulating?
Join this session with tax attorney Robert McKenzie who will help you understand how to defend against the civil tax fraud penalty. Calling on his decades of experience representing clients before the IRS and state tax agencies, Robert will lead a webinar that will take practitioners through all the steps they need to understand the difference between civil and criminal penalties, and what you must do to preserve your clients’ appeal rights if penalties are assessed.
The IRS’s duty to show intent
Why the IRS must present “clear and convincing evidence to prove that some part of the underpayment of tax was due to fraud”
IRS bears the burden of proof of the tax payer’s intent to evade taxes
Your role in defending IRS assertion of civil fraud penalties
Your client’s appeal rights when the penalty is asserted
Robert E. McKenzie is a Partner of the law firm of Arnstein & Lehr LLP of Chicago, Illinois, concentrating his practice in representation before the Internal Revenue Service and state tax agencies. He has lectured extensively on the subject of tax representation and has presented courses be...