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Divorce law, tax audits and commercial property

Please cite all code sections, cases and regulations relevant:

1. Your client, Jane, is being audited for tax years 2009, 2010 and 2011. During these tax years Jane was married to Bart. Jane believed that Bart committed "suspicious" decisions regarding their tax returns. She says these were just one of those problems that led to their divorce. The divorce was granted in 2012. Two months after the divorce, Bart was diagnosed with cancer and is currently undergoing chemotherapy. His daughter Beatrice became responsible for all his health and financial concerns. Two weeks after your meeting with Jane, Beatrice called your office. She asked if you could provide her copies of Jane and Bart's joint tax returns since Bart is also being audited. She explains: "Between caring for my father and my job, I barely have any time left to do anything else! This entire process is overwhelming. The last thing I need is to deal with an audit. I have a special power of attorney from my father that allows me to handle all legal and financial matters on his behalf." How should you response to this request?

2. A client retained you to assist him in the audit of his 2010 tax return. During your first meeting, the IRS agent informed you of that he will contact all third parties that issued 1099s to your client. You explained to the IRS agent that there is no need to do that because your client is willing to cooperate and provide any document necessary for the audit. Should the IRS agent ignore your objection?

3. Your client discovered a tax lien on a commercial property that he made an offer to purchase. Suspecting that the seller would not be forthright about this information, he decides to call the IRS and inquire about the tax lien. What would you advice be to your client?

4. Gil is an infamous drug lord in the community. Joe, an IRS personnel and Gil's neighbor believes that it is time to put a stop to Gil's illegal activities. Joe pulled Gil's tax returns for the last five years and sends it to a DOJ attorney with the following note: "This guy is guilty of tax fraud! His assets are over ten times his reported income! I think you should file a case against him." Comment on Joe's actions.

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Basic Tax Law

Please cite all code sections, cases and regulations relevant:

1. Your client, Jane, is being audited for tax years 2009, 2010 and 2011. During these tax years Jane was married to Bart. Jane believed that Bart committed "suspicious" decisions regarding their tax returns. She says these were just one of those problems that led to their divorce. The divorce was granted in 2012. Two months after the divorce, Bart was diagnosed with cancer and is currently undergoing chemotherapy. His daughter Beatrice became responsible for all his health and financial concerns. Two weeks after your meeting with Jane, Beatrice called your office. She asked if you could provide her copies of Jane and Bart's joint tax returns since Bart is also being audited. She explains: "Between caring for my father and my job, I barely have any time left to do anything else! This entire process is overwhelming. The last thing I need is to deal with an audit. I have a special power of attorney from my father that allows me to handle all legal and financial matters on his behalf." How should you response to this request?

I would represent the request by ...

Solution Summary

The solution describes basic American Federal Tax laws. The expert determines if IRS agents should ignore the objections.

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