Good News for Rental Property Owners; Qualified Business Deduction
Business Income Deduction for Taxpayer
On September 24, 2019, the IRS issued Revenue Procedure 2019-38 now permitting certain taxpayers who hold an interest or interests in rental real estate to be treated as a trade or business for purposes…
Trust Fund Recovery Penalty; Consequences of Fraudulent Conveyances
Fraudulent Conveyances in Employment Taxes
Employers who willfully fail to remit an employee’s withholding to the IRS are liable to the IRS for the “trust fund recovery penalty” (TFRP). Generally, the IRS will assess the Penalty against…
Tax Relief for Expats who Renounce U.S. Citizenship
Relief Procedures for former U.S. Citizens
The new procedures attempt to address problems faced by some U.S. citizens, whose only connection with the United States is that they were born in America. Many of these individuals have been living…
Employment Tax Consequences with Workers Misclassification
Employee versus Independent Contractor
Deciding whether to classify an individual as an employee or independent contractor is a decision which requires a careful evaluation of many factors and the assistance of a tax attorney. A…
IRS Detection of Tax Fraud Proliferates
Data Analytics is the Key
During the last decade, the Internal Revenue Service has been limited in its ability to ferret out tax cheats, due, in large part, to a 17% cut in its budget in 2010 as well as a 14% reduction in its labor force. Despite…
Residency Based Taxation Legislation Provides False Hope for U.S. Expats
Citizen Based Taxation
The origins of citizen based taxation can be traced back to the Civil War and the government’s struggle to raise revenue for the war effort. The predicate for imposing such a system was based upon the notion that…
Substance trumps Name Recognition in Estate Appraisals
Valuation of two old world paintings in Kollsman v. Commissioner
The United States Court of Appeals for the Ninth Circuit recently affirmed a 2017 Tax Court decision in Estate of Eva Franzen Kollsman v. Commissioner (T.C. Memo. 2017-40) in…
Personal Expenses paid by a Corporation are Constructive Dividends
Combs v. Commissioner Case
Taxpayers who operate small closely held businesses using a corporate entity need to be mindful that personal expenses, paid from a corporate bank account or the use of a corporate credit card for personal reasons…