Appeals division gets tough.The IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. will not settle with taxpayers who participated in certain abusive Tending to deceive; practicing abuse; prone to ill-treat by coarse, insulting words or harmful acts. Using ill treatment; injurious, improper, hurtful, offensive, reproachful. transactions unless the taxpayers concede 100 percent of the claimed losses or deductions, reduced by only the amount of transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). up to 10 percent of the claimed losses or deductions. Further, taxpayers must concede 50 percent of the accuracy-related penalty at issue. If both the 40 percent gross valuation misstatement mis·state tr.v. mis·stat·ed, mis·stat·ing, mis·states To state wrongly or falsely. mis·state  ment n. penalty and the 20 percent substantial understatement penalty were
asserted, then the settlement will apply to the gross valuation
misstatement penalty.
For more, visit www.irs.gov/newsroom/article/0,,id=130347,00.html. |
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