I. Audit Statistics: What Are Your Chances of Being Audited?
The 2022 Internal Revenue Service Data Book contains audit statistics for years 2012 through 2020, as of the fiscal year ended September 30, 2022 (FY 2022). For tax years 2018 and earlier, the statute of limitations for audits had generally expired as of September 30, 2022. However, for 2019 and 2020 returns, the statute of limitations has yet to expire, so additional returns of those years may be audited.
For 2012 through 2018, audit rates dropped significantly. For example, individual tax returns had an audit rate of 0.8% for 2012 returns versus 0.3% for 2018. In addition, for individuals with income between $1 million and $5 million, the audit rate dropped from 4.9% for 2012 returns to 1.2% for 2018 returns.
The overall audit rate for C corporations dropped from 1.3% for 2012 returns to 0.5% for 2018 returns. For partnerships and S corporations, the audit rate for 2012 returns was 0.3% and 0.4%, respectively, compared to 0.1% and 0.1% for 2018 returns.
In FY 2022, 21.4% of audits were field audits. The others were correspondence audits.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00TAXhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngTAX2023-06-28 15:46:312023-09-14 09:53:23Federal Income Tax Update: Part 2
Jennings Law opened in Raleigh on April 1, 2023. Barry Jennings, owner of Jennings Law, is a Board Certified Specialist in North Carolina workers’ compensation law and a North Carolina Dispute Resolution Commission Certified Mediator. Jennings has practiced law since 2003. He has represented insurance carriers and employers at Hedrick Gardner Kincheloe & Garafaloe, LLP and individuals at The Law Offices of James Scott Farrin, where he was a partner. Jennings focuses his practice on mediation and believes that mediation is one of the most powerful tools available to parties in civil disputes and North Carolina workers’ compensation claims. He served as chair of the NCBA Workers’ Compensation Section from 2020-2021. Jennings graduated with honors from the University of North Carolina School of Law. He holds a bachelor’s degree from North Carolina State University.
In Part 1, you were introduced to the past Chairs of the Government & Public Sector Section. I had the privilege of interviewing seventeen past chairs of the section. In addition to telling us what they remember most about their time as chair, they also responded to these three questions:
What impact has the GPS Section had on your career in public service?
What do you tell law students about careers in public service?
What could the GPS Section do that it has not done already?
We celebrate the 20th anniversary of the Government & Public Sector as a section of the North Carolina Bar Association! Many talented and dedicated attorneys have chaired this section over the years. The section was the brainchild of Jeff Gray, who also served as the 2005-2006 Chair. In 1998, Jeff originally pitched the idea to NCBA Leadership, and an exploratory committee was created. At the time, Jeff had been in the Attorney General’s Office for 11 years and saw the benefit of NCBA membership, but there were very few active government attorney members. Jeff reports that Dan McLawhorn was one of the few active members, and so Dan became a member of that exploratory committee. Dan recalls that at the time, there was a 100-member threshold. Dan went on to be the first chair of the section.
The winners of the 2023 North Carolina Legal Feeding Frenzy were recognized on Monday, May 1, by Attorney General Josh Stein.
The Legal Feeding Frenzy is an annual collaborative effort of the North Carolina Bar Association Young Lawyers Division, the North Carolina Foundation Endowment, Feeding the Carolinas, and the North Carolina Attorney General.
Meredith Brewer and Spencer Fritts, co-chairs of the YLD Legal Feeding Frenzy Committee, along with Mike Darrow, Executive Director of Feeding the Carolinas, participated in the remote award ceremony.
Section 6501 provides the statute of limitations for the IRS to assess additional tax. Equally important is Section 6502, which provides the statute of collections (sometimes referred to as the collection statute expiration date or “CSED”). The statute of collections generally provides the IRS must collect a tax within 10 years of assessment.
The CSED permits a tax to be collected by levy or a court proceeding only if the levy is made or the proceeding had begun before the CSED. Section 6502(b) provides the date on which a levy is made is the date the notice of seizure is provided to the taxpayer as required by Section 6335(a). As to a seizure that is made by court order, the proceeding begins upon the filing of the IRS’s suit against the taxpayer. The statute of collections does not expire after the proceeding is concluded until the tax is satisfied or the judgment becomes unenforceable. Thus, the CSED cannot be used to defeat the IRS’s right to collect a judgment entered by a court.
The 2023 Pro Bono Award winners have been selected and will be recognized during the NCBA Annual Meeting on Friday, June 23 in Wilmington. The recipients are:
Greenblatt Outstanding Lawyer Award: Carlene McNulty – NC Justice Center
Thorp Pro Bono Service Award: Erik Zimmerman – Robinson Bradshaw & Hinson PA
YLD Pro Bono Award: Troy Shelton – Fox Rothschild LLP
Outstanding Paralegal Pro Bono Service Award: S.M. Kernodle-Hodges – Tolliver, Richardson & Kernodle LLC
Outstanding Collaborative Pro Bono Award: Afghan Asylum Project – Parker Poe Adams & Bernstein and Pisgah Legal Services
The Filling the Justice Gap Award: Charlotte Initiative to Mobilize Business
Law Firm Pro Bono Award: Parker Poe Adams & Bernstein
Law School Pro Bono Service Award: North Carolina Central University School of Law Elder Law Project
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The Appellate Pro Bono Program is available to pro bono lawyers in North Carolina, in collaboration with the North Carolina Court of Appeals, the North Carolina Bar Association Appellate Practice Section, and the North Carolina Pro Bono Resource Center. This program matches pro bono attorneys to pro se litigants in cases before the North Carolina Court of Appeals or the North Carolina Supreme Court.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00Pro Bonohttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngPro Bono2023-05-26 10:58:312023-05-26 13:24:31Appellate Pro Bono Program Spotlight
Fox Rothschild Adds New Partner, Selects New Partner
Robin Tatum has joined the firm’s Raleigh office as a partner. Tatum is a land use, zoning, and municipal attorney. She served as the city attorney of Raleigh from 2018 to 2023 and as the city attorney of Asheville from 2014 to 2020. During her role as city attorney, she was the municipal representative on a drafting committee of four people. Tatum and fellow committee members revised the General Statues relating to land use and zoning, and their revisions have been enacted as N.C. Gen. Stat. § 160-D. Tatum received a J.D., summa cum laude, from North Carolina Central University School of Law. She holds a master’s and B.S. from North Carolina State University.
Brian Bernhardt has been named as a partner with the firm. Bernhardt practices in the firm’s Charlotte office. He is a taxation and wealth planning attorney. Bernhardt has represented clients on tax matters and has appeared before the IRS, the Department of Justice Tax Division, the U.S. Tax Court, the U.S. Court of Federal Claims and multiple U.S. District Courts. He has extensive experience in appellate law and has argued cases before the Supreme Court of North Carolina and the North Carolina Court of Appeals. He holds a J.D., cum laude, from the University of Michigan Law School and an A.B. from Brown University.
The Law Offices of James Scott Farrin Welcome New Associate
Nichad Davis has joined the firm’s personal injury department. He is a personal injury and civil rights attorney. Davis received a J.D. from Campbell Law School. He was the recipient of the Janette Soles Nelson Public Service Scholarship. Before attending law school, Davis was an instructor with Teach for America for three years. He obtained a B.A. in psychology at the University of North Carolina at Charlotte and graduated with honors. As an undergraduate, he was the recipient of the Martin Luther King Service Award and the University Transition Opportunities Program Mentor of the Year Award.
The Juvenile Justice & Children’s Rights Section annual CLE will be by Live Webcast on the afternoon of June 1, 2023 (starting at 12:15 p.m.). The CLE will consist of 3.0 MCLE hours, which qualify for NC State Bar Criminal Law (Juvenile Delinquency Law) Specialization and NC State Bar Child Welfare Law Specialization. The JJCR Council has supplemented the registration fee so that the first ten registrants that are members of the JJCR Section will qualify for the special rate of $70. JJCR regular rate is $125. The rate for NCBA members is $135; the rate for non-members is $160.
The CLE’s three 1.0 hr presentations/speakers are:
(1) Juvenile Interrogation – Jacqui Green of the UNC School of Government;
(2) Ethical Considerations When Representing a Juvenile – Judge Stacey Bawtinhimer, NC Office of Administrative Hearings;
(3) Building Trauma Informed Juvenile Courts in North Carolina – Chief Judge J. H. Corpening II, NC District Court – Judicial District 5, New Hanover County.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00JuvenileJusticehttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngJuvenileJustice2023-05-22 16:01:542023-05-22 16:21:04Juvenile Justice and Children’s Rights Annual CLE (Live Webcast): June 1, 2023
Federal Income Tax Update: Part 2
Tax SectionI. Audit Statistics: What Are Your Chances of Being Audited?
The 2022 Internal Revenue Service Data Book contains audit statistics for years 2012 through 2020, as of the fiscal year ended September 30, 2022 (FY 2022). For tax years 2018 and earlier, the statute of limitations for audits had generally expired as of September 30, 2022. However, for 2019 and 2020 returns, the statute of limitations has yet to expire, so additional returns of those years may be audited.
For 2012 through 2018, audit rates dropped significantly. For example, individual tax returns had an audit rate of 0.8% for 2012 returns versus 0.3% for 2018. In addition, for individuals with income between $1 million and $5 million, the audit rate dropped from 4.9% for 2012 returns to 1.2% for 2018 returns.
The overall audit rate for C corporations dropped from 1.3% for 2012 returns to 0.5% for 2018 returns. For partnerships and S corporations, the audit rate for 2012 returns was 0.3% and 0.4%, respectively, compared to 0.1% and 0.1% for 2018 returns.
In FY 2022, 21.4% of audits were field audits. The others were correspondence audits.
Read more
Checking In: June 27, 2023
Checking InNew Firm Announcement: Jennings Law
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Government & Public Sector Section 20th Anniversary: Part 2
Government & Public SectorIn Part 1, you were introduced to the past Chairs of the Government & Public Sector Section. I had the privilege of interviewing seventeen past chairs of the section. In addition to telling us what they remember most about their time as chair, they also responded to these three questions:
What impact has the GPS Section had on your career in public service?
What do you tell law students about careers in public service?
What could the GPS Section do that it has not done already?
Read more
Government & Public Sector Section 20th Anniversary: Part 1
Government & Public SectorWe celebrate the 20th anniversary of the Government & Public Sector as a section of the North Carolina Bar Association! Many talented and dedicated attorneys have chaired this section over the years. The section was the brainchild of Jeff Gray, who also served as the 2005-2006 Chair. In 1998, Jeff originally pitched the idea to NCBA Leadership, and an exploratory committee was created. At the time, Jeff had been in the Attorney General’s Office for 11 years and saw the benefit of NCBA membership, but there were very few active government attorney members. Jeff reports that Dan McLawhorn was one of the few active members, and so Dan became a member of that exploratory committee. Dan recalls that at the time, there was a 100-member threshold. Dan went on to be the first chair of the section.
Read more
2023 Legal Feeding Frenzy Award Winners Announced
Young Lawyers DivisionSpencer Fritts
Meredith Brewer
By Spencer Fritts and Meredith Brewer
The winners of the 2023 North Carolina Legal Feeding Frenzy were recognized on Monday, May 1, by Attorney General Josh Stein.
The Legal Feeding Frenzy is an annual collaborative effort of the North Carolina Bar Association Young Lawyers Division, the North Carolina Foundation Endowment, Feeding the Carolinas, and the North Carolina Attorney General.
Meredith Brewer and Spencer Fritts, co-chairs of the YLD Legal Feeding Frenzy Committee, along with Mike Darrow, Executive Director of Feeding the Carolinas, participated in the remote award ceremony.
Read more
The Statute of Collections
Tax SectionSection 6501 provides the statute of limitations for the IRS to assess additional tax. Equally important is Section 6502, which provides the statute of collections (sometimes referred to as the collection statute expiration date or “CSED”). The statute of collections generally provides the IRS must collect a tax within 10 years of assessment.
The CSED permits a tax to be collected by levy or a court proceeding only if the levy is made or the proceeding had begun before the CSED. Section 6502(b) provides the date on which a levy is made is the date the notice of seizure is provided to the taxpayer as required by Section 6335(a). As to a seizure that is made by court order, the proceeding begins upon the filing of the IRS’s suit against the taxpayer. The statute of collections does not expire after the proceeding is concluded until the tax is satisfied or the judgment becomes unenforceable. Thus, the CSED cannot be used to defeat the IRS’s right to collect a judgment entered by a court.
Read more
2023 Pro Bono Award Winners Announced
Pro Bono CommitteeThe 2023 Pro Bono Award winners have been selected and will be recognized during the NCBA Annual Meeting on Friday, June 23 in Wilmington. The recipients are:
Read more
Appellate Pro Bono Program Spotlight
Pro Bono CommitteeThe Appellate Pro Bono Program is available to pro bono lawyers in North Carolina, in collaboration with the North Carolina Court of Appeals, the North Carolina Bar Association Appellate Practice Section, and the North Carolina Pro Bono Resource Center. This program matches pro bono attorneys to pro se litigants in cases before the North Carolina Court of Appeals or the North Carolina Supreme Court.
Read more
Checking In: May 23, 2023
Checking InCompiled by Jessica Junqueira
Fox Rothschild Adds New Partner, Selects New Partner
The Law Offices of James Scott Farrin Welcome New Associate
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Juvenile Justice and Children’s Rights Annual CLE (Live Webcast): June 1, 2023
Juvenile Justice & Children's RightsThe Juvenile Justice & Children’s Rights Section annual CLE will be by Live Webcast on the afternoon of June 1, 2023 (starting at 12:15 p.m.). The CLE will consist of 3.0 MCLE hours, which qualify for NC State Bar Criminal Law (Juvenile Delinquency Law) Specialization and NC State Bar Child Welfare Law Specialization. The JJCR Council has supplemented the registration fee so that the first ten registrants that are members of the JJCR Section will qualify for the special rate of $70. JJCR regular rate is $125. The rate for NCBA members is $135; the rate for non-members is $160.
The CLE’s three 1.0 hr presentations/speakers are:
(1) Juvenile Interrogation – Jacqui Green of the UNC School of Government;
(2) Ethical Considerations When Representing a Juvenile – Judge Stacey Bawtinhimer, NC Office of Administrative Hearings;
(3) Building Trauma Informed Juvenile Courts in North Carolina – Chief Judge J. H. Corpening II, NC District Court – Judicial District 5, New Hanover County.
Find more information on the program on the NCBA website and register today.