Crowley Fleck PLLP is pleased to announce that the IRS Independent Office of Appeals has ruled completely in the favor of taxpayers represented by Crowley Fleck tax attorneys Jared M. Le Fevre and Lucas Forcella.
The taxpayers had received an audit adjustment from the IRS when a Form 1099 was not included as taxable income on the taxpayers’ return. The IRS maintained that a 1099 from the taxpayers’ retirement account must be included in taxable income. The additional taxable income exceeded $100,000, and the IRS determined that tax on that income was due, together with fees and penalties.
Mr. Le Fevre and Mr. Forcella, on behalf of taxpayers, appealed the deficiency determination to the U.S. Tax Court, which then referred the matter to the IRS Independent Office of Appeals (“IRS Appeals”) for settlement discussions. The firm’s attorneys successfully advocated before IRS Appeals on behalf of the taxpayers and demonstrated that the Form 1099 consisted of a valueless negotiable instrument that should have not been included in taxable income. The taxpayer demonstrated, and IRS Appeals agreed, that the promissory note, held in a self-directed retirement account, was without value since the maker had gone out of business with no assets when the business owner unexpectedly died. Thus, IRS Appeals determined that no tax would be assessed.
Taxpayers with federal audit tax issues are invited to contact Jared Le Fevre and Lucas Forcella to discuss representation on their tax issues at (406) 252-3441.
About the Author. Jared M. Le Fevre is a tax attorney in Crowley Fleck PLLLP’s Tax, Trusts and Estates Practice Group. Mr. Le Fevre represents taxpayers before the IRS, IRS Independent Office of Appeals, Tax Court, Federal District Court and state tax agencies throughout Montana, Wyoming, North Dakota, Idaho, and Utah. Mr. Le Fevre is involved in federal, state and local tax audits, appeals, and tax resolution throughout these western states. Mr. Le Fevre also advises clients on the tax effects of business and real estate transactions. Mr. Le Fevre and received a Tax LLM degree from the University of Alabama College of Law and a Juris Doctorate from the University of Utah College of Law.
Lucas H. Forcella is an Associate in the firm’s Billings office whose practice includes commercial transactions (including mergers and acquisitions and commercial real estate acquisitions, sales, and leases), trust and estate planning, and tax controversies (including audits and appeals of federal and state taxes). When not considering the intricacies of tax issues, Lucas serves as a counterintelligence and intelligence officer in the United States Marine Corps and spends time with his wife and kids in Montana’s great outdoors.
Date of information: July 27, 2023.
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