When You Can’t Deduct Annual Business Expenses

Many businesses have significant recurring expenses that occur like clockwork each year. Think of annual maintenance shutdowns for manufacturing plants, seasonal refurbishments for hotels, or equipment rebuilds for industrial operations. While these expenses are predictable and virtually certain to occur, the timing of when they can be deducted for tax purposes isn’t always straightforward. The……

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Can a Medical Marijuana Business Owner Deduct Expenses on Their Tax Return?

Imagine a successful medical marijuana dispensary generating millions in revenue and incurring significant business expenses. When tax season arrives, the owner naturally wants to claim deductions to reduce their taxable income. But is this allowed under federal tax law, even if the business is legal under state law? The answer, according to the recent case……

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IRS Cannot Assess Foreign Information Return Penalties

Many businesses today have some international transactions. Many U.S. businesses even have operations in foreign countries–which may include ownership of entities, operations, or just sales. Our tax laws include several provisions that require U.S. taxpayers to report most of these foreign business interests and activities. These filings are mostly made by filing various information returns.……

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