What’s James “Buster” Douglas v. Mike Tyson got to do with You v. The IRS?

July 2nd, 2013 by Lapekas Law Staff

Many people (and unfortunately, some attorneys) will concede or settle a dispute with the IRS because they fear the courtroom. Other than the costs or stresses associated with litigation, I have heard, on more than one occasion, that an attorney or a taxpayer “gave in” because “the IRS never loses a case, and thus, the fact that the IRS is willing to go to trial is a harbinger of almost certain defeat.” While it may certainly seem like this is the truth, it’s not. Without first independently evaluating the facts and law at issue, it’s merely an excuse. Read the rest of this entry »

Another day, another scandal. Today’s is revealed in the Staff Report for the U.S. House of Representatives Committee on Government Oversight and Reform.

June 25th, 2013 by Lapekas Law Staff

News Flash!

Today Darrell Issa, Chairman of the U.S. House of Representatives Committee on Government Oversight and Reform released a 157-page Staff Report finding that Braulio Castillo, President and CEO of Strong Castle, Inc., an information technology company, thanks to a “cozy relationship” with IRS Deputy Director for IT Acquisition, Greg Roseman, obtained government contracts potentially worth over $500 million. The Report cited that “Castillo and Roseman had a long-term friendship that extended well beyond a professional relationship . . .” which was evidenced, in part, by numerous text messages, many of which contained vulgar material.

This may be today’s news, but it’s the same old story. Read the rest of this entry »

Notice CP05A: “We completed our initial review and need more information.”

June 18th, 2013 by Lapekas Law Staff

A Notice CP05A may follow a Notice CP05. A Notice CP05A indicates that the IRS wasn’t satisfied with its initial review of your tax return. In short, a Notice CP05A means that the IRS is continuing to audit your return, the IRS continues to hold your refund pending a final decision, and you need to provide certain documentation to support the items listed in the prior notice, most likely, the Notice CP05. The Notice CP05A—unlike the Notice CP05—requests that you respond to the IRS so that the IRS can determine whether you:

  • Incorrectly reported income
  • Incorrectly reported income tax withholding
  • Incorrectly claimed tax credits
  • Incorrectly claimed withholding on your Social Security benefits
  • Incorrectly claimed “Household help” and/or
  • Incorrectly claimed Schedule C income

The Notice CP05A should never be put in the “to do when I get around to it” pile. The consequences of failing to respond can be costly and time consuming. Read the rest of this entry »

Notice CP05: “We’re reviewing your tax return.”

June 18th, 2013 by Lapekas Law Staff

The dreaded audit often starts with a letter from the IRS stating, “We’re reviewing your tax return.” There are generally two types of “audit letters”: ones that ask you respond to the IRS, and ones that don’t. Regardless of which type of letter you receive, you need to act. How you respond to the letter and the actions you take (or don’t take) will largely determine how long and how complicated the audit may last. Read the rest of this entry »

To claim (or not to claim) the child on your tax return.

June 18th, 2013 by Lapekas Law Staff

I received numerous phone calls during March and April of this year from people with the same question:

If my ex-wife or ex-husband or father or mother of our child claimed our child as a dependent on their tax return (and they should not have), can I still claim the child on my return? If I do, will I get audited?”

Like most answers to questions posed to an attorney, the answer is, “maybe.” Read the rest of this entry »