Will the IRS penalize you if you are unable to file your tax return on time due to the burden of caring for a loved one with COVID? The IRS has not provided penalty relief for taxpayers impacted by COVID-19. The existing penalty relief rules may provide a remedy for some taxpayers. These rules do……
TX-LW Blogs
Adult Child’s Rights to Parent’s House
Living arrangements can pose a number of problems when an older family member is placed in a home or they die. The family members have to decide what to do with the property. These issues often result in probate litigation after the parent dies. But what about when the parent is alive, but incapacitated? If…
What is a Rental Activity?
The ability to generate current year tax losses is a strong incentive for high-income taxpayers to own real estate. Real estate often produces tax losses, but not economic losses. This happens because the current operating expenses plus tax depreciation result in a current year loss. At the same time, the property likely increased in value……
Divorce Payments & Tax Basis in Business
Our Federal income tax laws often build upon the presumption that seemingly adverse parties are actually adverse. Our tax laws do not always account for instances where the parties are actively working in concert to reduce the IRS’s cut. Transfers and payments made in relation to divorce are an example. With our tax laws, it……
Does an IRS Audit Waive a Defect in Tax Return?
When it comes to technicalities in the tax law, the failure to comply with some technicalities can be overcome. Others cannot. As a general rule, the courts evaluate tax disputes involving technicalities based on the policy underlying the technicality versus fairness for requiring strict compliance. If the policy for the technicality is important, the court……
Is Homeless a Requirement for an IRS Payment Agreement?
Indifference. It is generally defined as “lack of interest, concern, or sympathy.” Those who are unfortunate enough to work with the government employees to resolve a case or matter often have a profound understanding of this term. This is true of just about every government function–be it local, state, or federal. When it comes to……
The Measure of Damages in Probate Litigation
An executor has a fiduciary duty as to the beneficiaries of a probate estate. If they breach this duty, the beneficiaries still have to establish the amount of any damages. If the damage is the loss of property, the measure of damages is the fair market value of the property that was lost. This raises…
The IRS & the Covid-19 Slowdown
The IRS has a track record of halting collection actions when there is a disaster or other major event. As tax attorneys in Austin we saw this in the aftermath of the Hurricane Harvey storms. While a temporary stop to collections can be helpful, it can also cause other problems. If you owe back taxes……
Time Limits for Texas Probate Disputes
There are a number of deadlines that apply in probate disputes. These deadlines are strict given the policy for having finality with probate matters. The recent Watson v. Schrader, No. 11-18-00064-CV (Tex. App. [11th Dist.]–2020) case provides an example. Facts & Procedural History The dispute involved wills executed in 1995 and a family trust created…