Our tax laws usually look to various foundational definitions, such as units of property, activities, or even roles. When it comes to workers who receive compensation for their work, it is often the role that matters the most. We see this in disputes over whether a contractor is really an employee for payroll tax purposes.……
TX-LW Blogs
Can Jury Trial for IRS Penalty be Conditioned on Paying the Penalty First?
There have been a number of court cases that have considered whether various administrative agency determinations violate constitutional jury trial rights. These are often premised on the fundamental promise of American justice that courts should remain open to all. The issue is presented when government agencies require substantial upfront payments before allowing judicial review. One……
Is a Brokerage Account Form that is Altered to add a “Survivorship” Designation Valid?
Married couples often rely on bank or brokerage representatives to handle the paperwork when they set up their accounts. The spouses may sign forms and then discuss the types of accounts or authorizations after they have already signed the forms. This begs the question as sto what happens when there is evidence that boxes on…
Business Owner Liable for Tax Incurred by a Buyer After the Sale of the Business?
If you own a business and you sell it to a third party, should you be liable to the IRS for taxes triggered by the buyer after the business you sold? What if the tax was triggered by the buyer’s wrongdoing? What if there was no evidence that you even knew that the buyer would……
Can a Criminal Prosecution Delay a Civil Tax Case?
Imagine that you earned significant income and failed to file tax returns. You later file the tax returns once the IRS caught on to you, but you omitted a large part of your income. The government indicts you on criminal tax evasion charges, and starts an IRS audit. Before the criminal trial, the IRS audit……
Is a Signature on Page Attached to a Will Valid?
When a loved one passes away in Texas, their will typically undergoes routine probate proceedings. Most wills follow a predictable format—several pages of bequests and instructions, concluding with a signature line where the testator signs above their printed name, followed by witness signatures. But what happens when the testator’s signature appears somewhere unexpected, perhaps on…
How Wrong Does the IRS Have to be to Be Liable for Attorneys Fees?
In most civil litigation cases, the parties are not entitled to an award of attorneys fees. The exceptions are generally when there is a contract that provides for attorneys fees or there is a statute. This can be problematic in litigation cases–particularly where one party brings or defends a friviolous suit just to drive up……
Do You Report Stock an Employer Mistakenly Gave You to the IRS?
When your employer deposits 100,000 shares of stock into your brokerage account after you’ve left the company, and you believe it was done in error, do you have taxable income? And what do you do in this case? If the amount is taxable to you as compensation, then when do you report it? Should you……
Is a Taxpayer Accountable for their Tax Preparer’s Fraud?
Most taxpayers opt to hire professionals to prepare their tax returns. Tax professionals understand the complexities of deductions, credits, and reporting requirements that can overwhelm even sophisticated business owners and investors. Once the tax returns are filed and a few years pass without incident, most taxpayers reasonably assume those tax years are closed forever. But……