Jim Smith embezzled money from his employer, got caught, and died in jail.1 Before he died, Smith used the embezzled money to make his estimated tax payments. Hill Corporation, the victim employer, asked the IRS to return the stolen money.2

In Chief Counsel Advice, the IRS stated that the law prevents the IRS from returning Smith’s estimated tax payments to Hill Corporation.3 The IRS noted that these are sympathetic facts, but the law contains no sympathy when it comes to the ... Log in to view full article.