Page 5 - Meet John Doe Summonses

29 See www.irs.gov/uac/how-to-make-a-domes- tic-voluntary-disclosure and IRM, pt. 9.5.11.9 (Dec. 2, 2009). The practitioner should be aware that a taxpayer whose information is the subject of a John Doe summons is not eligible to le a Quali ed Amended Return (QAR). A QAR is an amended return that corrects an error in a previously led return before the IRS contacts the taxpayer about that return, or before the IRS contacts a passthrough entity in which the taxpayer is a partner or a member about the entity’s return. Reg. §1.6664-2(c)(3). Another disquali cation for a QAR is if the IRS has issued a third-party summons, including a John Doe summons, to any person, group or class to which the taxpayer belongs regard- ing any activity for which he or she reported
a tax bene t. Reg. §1.6664-2(c)(3)(i) & (c)(5)
(Examples 4–6).
30 A disclosure is timely if it is received before:
“1. The IRS has initiated a civil examination or criminal investigation of the taxpayer, or has noti ed the taxpayer that it intends to com- mence such an examination or investigation; 2. The IRS has received information from a third party (e.g., informant, other governmental agency, or the media) alerting the IRS to the speci c taxpayer’s noncompliance; 3. The IRS has initiated a civil examination or criminal investigation which is directly related to the speci c liability of the taxpayer; or 4. The IRS has acquired information directly related to the speci c liability of the taxpayer from a criminal enforcement action (e.g., search war-
rant, grand jury subpoena).” IRM, pt. 9.5.11.9(4)
(Dec. 2, 2009).
31 See www.irs.gov/individuals/international-
taxpayers/offshore-voluntary-disclosure- program-frequently-asked-questions-and-an- swers-2012-revised (FAQ 12); IRM, pt. 9.5.11.9(4) (Dec. 2, 2009).
32 See www.irs.gov/individuals/international- taxpayers/offshore-voluntary-disclosure- program-frequently-asked-questions-and- answers-2012-revised (FAQ 21).
33 Id. For the Streamlined Compliance Proce- dures, the taxpayer is not eligible if the IRS has already initiated a civil audit or criminal investigation. See www.irs.gov/individuals/ international-taxpayers/streamlined-filing- compliance-procedures.
This article is reprinted with the publisher’s permission from the Journal of Passthrough Entities, a bi-monthly journal published by Wolters Kluwer. Copying or distribution without the publisher’s permission is prohibited.
To subscribe to the Journal of Passthrough Entities or other Wolters Kluwer Journals please call 800-449-8114 or visit CCHGroup.com. All views expressed in the articles and columns are those of the author and not necessarily those of Wolters Kluwer or any other person. © CCH Incorporated. All Rights Reserved.
MAY–JUNE 2017
© 2017 CCH INCORPORATED AND ITS AFFILIATES. ALL RIGHTS RESERVED. 43
CCH Draft