In most civil litigation cases, the parties are not entitled to an award of attorneys fees. The exceptions are generally when there is a contract that provides for attorneys fees or there is a statute. This can be problematic in litigation cases–particularly where one party brings or defends a friviolous suit just to drive up……
Category: Tax Law
Do You Report Stock an Employer Mistakenly Gave You to the IRS?
When your employer deposits 100,000 shares of stock into your brokerage account after you’ve left the company, and you believe it was done in error, do you have taxable income? And what do you do in this case? If the amount is taxable to you as compensation, then when do you report it? Should you……
Is a Taxpayer Accountable for their Tax Preparer’s Fraud?
Most taxpayers opt to hire professionals to prepare their tax returns. Tax professionals understand the complexities of deductions, credits, and reporting requirements that can overwhelm even sophisticated business owners and investors. Once the tax returns are filed and a few years pass without incident, most taxpayers reasonably assume those tax years are closed forever. But……
What Makes a Partnership Transaction a Disguised Sale?
You own a depreciated asset or an asset that has gone down in value. It happens. But say you cannot take advantage of the tax loss for some reason. Maybe it is because you don’t have other Income triggering a tax that year or maybe there is a limitation on the use of the loss……
Do Assets Disqualify You from Currently Not Collectible Status?
Let’s say you have some assets, but you are not rich. What you have is a smattering of things that are, well, honestly, not worth that much. Maybe it is a house with a mortgage that needs a lot of repairs. Maybe it is a small retirement account that was left over from a prior……
Can the IRS Disclosure Your Tax Info in Cases Agains Other Taxpayers?
You cooperate with an IRS audit. You provide detailed financial records. You answer questions about your business. Years later, you discover the IRS is using your information in cases against other taxpayers. The IRS is sharing details about your business location, your EIN, even the fact you’re under investigation for a tax promoter penalty. Is……
When Are Attorney’s Fees From a Settlement Deductible?
The employer-employee relationship can often lead to disputes. These disputes are often settled out of court. Whether it’s a wrongful termination claim, a defamation lawsuit, or other employment-related litigation, these settlements often involve significant attorney’s fees. The taxpayer receives a settlement check, but a substantial portion goes directly to their legal counsel under a contingency……
Does DOJ Referral Strip IRS of Power to Process Refund Claim?
You think the IRS owes you a refund. You file a refund claim. The IRS eventually processes your refund, but does not issue checks to refund the money to you. You later find out that the IRS had referred the matter to the Department of Justice–maybe you find out years later even. Can the simple……
Does IRS Guidance Have an Expiration Date?
Food goes bad. Medications, skincare products, and batteries all expire. But what about IRS’s written guidance? Can IRS guidance go bad? What if it is guidance for a particular taxpayer and about a specific transaction or seires of transactions? What happens when tax laws change after the IRS has issued its determination? Can businesses continue……