The Section 1031 exchange rules can help real estate investors defer paying tax on the transfer of property. Many real estate investors use these rules to upgrade their real estate portfolio over time. This tax deferral can be helpful as monies that would have been paid to the IRS in taxes can be rolled into……
TX-LW Blogs
Corporate By-Laws & the Forum Selection Clause
It is important for shareholders to carefully review and understand the terms of their corporate By-laws, including any forum selection clauses that may be included in the corporate By-laws. These clauses can have significant implications in the event of a dispute, as they determine where any legal proceedings will take place. A broadly worded forum……
IRS to Pay Attorneys Fees: The Qualified “Qualified Offer”
There are times when the IRS pursues cases that it should not. If this happens to you and you prevail in your case, you should know that the court may order the IRS to pay your attorneys fees and costs. You usually have to make a “qualified offer” to get this type of award. The……
Bookkeeper Liable for Trust Fund Recovery Penalty
IRS employees are tasked with making decisions. These decisions dictate who owes taxes and penalties and who does not. These decisions are usually made in the context of well trodden areas and by employees who make the same type of decisions over and over. This is due to the volume of disputes that are created……
When is Real Estate Placed in Service?
Several tax laws are triggered by when property is purchased. Other tax laws are triggered when property is placed in service. Depreciation on real estate is a good example. It is triggered when property is purchased and placed in service. These dates raise questions about whether property is placed in service and sits idle or……
Reporting Illegal Income to the IRS (It’s All About Choices)
Assume you commit a crime and receive a financial windfall. Then you get caught and have to repay the windfall in the form of restitution. Further assume that you have three options when it comes to reporting and paying tax on the illegal income: (1) you file tax returns to report the income and you……
Divorce Planning for Those With IRS Back Taxes
The IRS often audits tax years where there is some change. This includes mergers, significant asset transfers, deaths or even divorces. The reason why it does this is that these transitions create opportunities for savvy taxpayers or pitfalls for the unwary. These transitions also create motives and introduce new parties to income or assets that……
Saving Taxes: The Cooperative But Innocent Spouse
Innocent spouse relief can provide an excellent remedy to allocate taxes between spouses. While the innocent spouse rules are not all that complex, the application of the rules can be. Part of the complexity comes from the varying motives of the parties. Spouses and former spouses can have a number of different motives for requesting……
IRS Refunds in Collection Due Process Cases
The refrain from the Rolling Stones song, Satisfaction, says “I can’t get no satisfaction.” That is a common refrain when it comes to the IRS and owing back taxes. Congress has provided a myriad of rules and remedies for taxpayers when it comes to taxes. If the taxpayer is lucky enough to have a remedy,……