If you have a right to receive $1 in the future, is that right an asset? Our tax laws would generally say that it is. What if you cannot assign the right to receive the $1 and you cannot accelerate the payment? At what point is the right to receive the $1 not an asset……
TX-LW Blogs
The IRS’s Ability to Recoup Refund Checks
If you receive a tax refund and the IRS later asks you to repay the refund, what do you do? Do you keep the refund or repay it? This can be a very difficult question to answer. This is particularly true if you believe that you have a legitimate basis for and entitlement to the……
Unpacking the Moving Expense Deduction
There are several issues that the IRS frequently challenges on audit. For individual taxpayers, this includes moving expenses. Taxpayers are entitled to deduct moving expenses. Our tax laws impose several limitations on what expenses can be deducted and when. The recent Doyle v. Commissioner, Docket No. 6532-20S (2021) case provides an opportunity to consider these……
Are Funds Advanced to Third Party Subject to Tax?
With a cash basis taxpayer, the general rule is that the taxpayer recognizes gross income when money is received. But what if the taxpayer holds money on account for others? This is a common practice. These transfers may include deposits, advances, etc. It can even include funds held in trust for the benefit of a……
Failure to Review Tax Return Voids Penalty Defense
The IRS is quick to impose penalties. Many penalties are automatically imposed by the IRS’s computers. Even on audit, the IRS’s leadsheets direct IRS auditors to consider penalties before closing the audits. Most penalties can be abated if the taxpayer can establish reasonable cause. This is a facts and circumstances analysis. The courts have accepted……
Using an Old NOL Carryforward
The things we take for granted these days. If you are younger than me, you may not realize it but there was a significant change that happened in the 1990s. Personal computers were just starting to actually be useful in the workplace. The ability to type and use a 10-day calculator were sought after job……
Tax Debts & the Dreaded Dissipated Asset
It is very difficult to run a business and to do so in full compliance with all of our laws. Having worked with thousands of business owners, the message is the same. Something always seems to give. If the business focuses on the operational side of the business to comply with industry regulations or to……
Probate After a Muniment of Title
Muniment of title is an alternative to the probate process in Texas. It is cost-efficient. It is fast–relatively speaking. A Will is required. Instead of appointing you as the executor, the probate court enters an order distributing property according to the Will. And walla! But what if the story does not end there? What if…
Avoiding Tax Penalties for Bookkeeper’s Mistakes
Taxes are computed based on accounting records. Accounting records are often complied by bookkeepers who have no tax training or experience. The bookkeepers may not intend to provide tax advice. Their work product may be used to prepare tax returns, however. The tax return preparer may move the numbers from the bookkeeper’s profit and loss……