There are a number of legal principles that apply when it comes to civil litigation. Some of these rules apply in tax disputes and others do not. And tax disputes add other legal principles that are unique to tax. For example, our Federal tax system is premised on a concept of sovereign immunity where the……
TX-LW Blogs
Charitable Tax Deductions & Bargain Sales
Our tax administration operates within the framework of a zero-sum game, leaving little flexibility for taxpayers who encounter technical foot faults or minor errors. Even when taxpayers have complied with most of the tax law requirements, a single misstep can potentially result in the disallowance of a tax benefit or deduction. This zero-sum approach, while……
The Evolution of Foreign Account Tax Reporting
The IRS and Treasury face a number of challenges in administering our tax and financial systems. This includes challenges presented by foreign transactions by U.S. citizens and residents. In recent years, high-profile cases involving Americans using offshore accounts to evade taxes have prompted the U.S. government to crack down on tax evasion and make it……
Using the Texas Probate Laws to Avoid a Foreclosure
What happens if someone owns real estate that is subject to a mortgage and the mortgage goes unpaid because they died? Can the bank foreclose on the property? If so, what steps should the surviving family members take to protect the property? The recent Midfirst Bank v. Robbinson, No. 3:22-CV-0333-M-BH (N.D. Tex. 2023) case provides…
What Happens to a Personal Guarantee When a Business Owner Dies?
The banks invariably require the owner of small businesses to sign a personal guarantee to secure a loan. But what happens to the personal guarantee when the owner dies and the business defaults on the loan? If the business defaults on the loan, the decedent’s estate can be on the hook to repay the loan.…
When a Fictitious Business is Reported on Your Tax Return
So you reported a fictitious business on your income tax return. The fictitious business resulted in a tax loss and, maybe, you got a large tax refund from the IRS as a result of it. It’s a fraudulent tax return. The IRS sends you an IRS audit notice. What do you do? The answer varies,……
Taxpayer Loses for Tax Court Petition Filed 11 Seconds Late
The voluntary nature of income tax returns in the United States means that taxpayers are responsible for reporting their income and paying the appropriate taxes. Taxpayers do this largely as it is the right thing to do. This is premised on a perception that the tax system has some elements of being fair and uniform……
Recovering Legal Expenses for Mistaken IRS Audit of Non-Resident
The U.S. has significant and complex reporting and filing and notice requirements. This includes a myriad of state and local requirements and federal requirements, including income tax return filing requirements. As odd as it sounds, it is part of what makes America great. We often don’t think about it, but these filing requirements are part……
How Does Probate Work in Texas
Probate in Texas should be viewed as a process. It is a process that has several steps that have to be completed. The end goal of these steps is to resolve family and other disputes and identify, manage, and distribute the decedent’s property. With these goals in mind, here is a very general explanation of…