Money Matters: LWC on the Radio!

Listen to LWC's latest radio show which aired September 11th below. You can catch LWC's show Saturday mornings on News Radio FM 94.3.

Tax Update: U.S. Supreme Court to Review Statute of Limitations Circuit Court Split

In two previous blog posts, we discussed the hot issue of whether an overstatement of basis triggers an extension of the three year statute of limitations for assessing tax.  The U.S. Court of Appeals for the Fourth Circuit, where our humble state resides, previously ruled in Home Concrete & Supply, LLC v. U.S. that a partnership’s overstatement of its basis did not constitute an “omission” subject to the six year statute of limitations for tax assessment.  The Fourth Circuit, along with the Federal and Ninth Circuits and the U.S. Tax Court all held that an overstatement of basis does not trigger the extended period of time to assess tax.  However, both the Fifth and Seventh Circuits found differently, providing that the six year statute of limitation does apply, resulting in a confusing circuit court split.  The circuit disparity primed the issue for arguments in front of the Supreme Court.

While petitions for certiorari were filed in connection with opinions of the Fourth, Seventh and Federal Circuits, the Supreme Court granted the petition relating to Home Concrete & Supply.  The government’s brief is due November 14, and the case will likely be heard early next year with an opinion issued by July.  We will keep you updated with the latest.

LWC on the U.S. Peace Corps

LWC discussed his two-year service in the Peace Corps in today's issue of The Post & Courier.

To read the article, check out the link below:

Post & Courier: Peace Corps turns 50

LWC on President Obama's Tax Proposal

"I was quoted in the Washington Post on September 16th in Karen Hube's article about the President's new tax proposal.  This proposal is very important from a tax perspective to many people whom I consider to be the upper middle class in America and doesn't really tax the truly wealthy."

Click Here for The Washington Post 

If you'd like to read the proposal, see the link below. 

Click Here for a Section by Section Analysis of the American Jobs Act of 2011


Additional articles quoting LWC on Obama's tax plan:

Obama Fires Up the Debate Over Who Is Wealthy-- The Fiscal Times

Couples Earning $250K/Yr Aren't "Millionaires and Billionaires Abusing Tax Loopholes"-- Business Insider

Money Matters: LWC on the Radio!

Listen to Lindsey's August show below:

Money Matters: LWC on the Radio!

Check out Lindsey's latest radio show below:

Freedom for the Innocent: IRS Relaxes Innocent Spouse Relief Qualifications

The IRS, in a dramatic announcement yesterday, finally repealed the regulations prohibiting the consideration of an application for innocent spouse relief made more than two years after the IRS’ initial attempt at collection. The new rule permits taxpayers to apply for innocent spouse relief at any time during the statute of limitation for the collection of a tax liability, which usually lasts 10 years.

Pursuant to Section 6015 of the Internal Revenue Code, a taxpayer may seek relief from joint and several liability associated with filing joint returns in certain circumstances. Under subsection (f), a taxpayer could seek equitable relief from understatements and underpayments when relief is not otherwise available. This section allows the IRS broad power to reduce or eliminate certain penalties when an appropriate case presents itself. However, this relief was dramatically limited by the Treasury Regulations, which placed a two-year window in which a taxpayer may seek such relief.

As part of the announcement, the IRS also stated that previously rejected applications for innocent spouse relief would be reconsidered, as long as the taxpayer re-files the IRS Form 8857 and the collection statute of limitations for the tax years involved has not expired. Taxpayers with cases currently in suspense will automatically fall under the new rule and do not need to reapply. Further, the IRS will not apply the two year limitation in pending litigation, and may suspend collection on certain judgments.

If you believe you may qualify for relief pursuant to the innocent spouse rules, download and file IRS Form 8857 found at http://www.irs.gov/pub/irs-pdf/f8857.pdf.