Investors who engage in successful ventures often also invest in less successful ones. In some cases, one venture ends up funding another. When a taxpayer operates through multiple legal entities, this can lead to numerous complexities. For example, “due to” and “due from” intercompany transactions raise questions, even if they do not involve international transfers.……
Category: Tax Law
Recovering Taxes Paid for Another Party
If you pay tax for another party, can you recover the payment if the tax is not owed? The answer is generally “no,” as you cannot sue the Federal government unless it consents and it only consents in limited circumstances. One such consent is the ability to sue for a refund. The rules that allow……
Using Accounting Records in Tax Court
Whether one likes it or not, the federal government is their business partner. The tax code is often compared to a partnership agreement that sets out the share of the income that belongs to the federal government. Continuing the analogy, the records the business keeps are the support for making the allocation between the taxpayer……
If a Foreign Entity is a Foreign Trust
United States persons who have foreign transactions present a number of compliance problems for the IRS. It is difficult for the IRS to know whether taxpayers are simply not paying U.S. taxes on foreign transactions. The IRS officially recognized the significance of its international tax limitations in 2010 when it renamed its large business division……
Can a Tax Attorney Sign a Form 843?
Taxpayers may find it challenging to obtain a refund from the government, as the courts and Congress have imposed stringent requirements on the refund claims filed by taxpayers. Even minor procedural errors can be detrimental to the claim, resulting in the government gaining an unwarranted windfall. The recent case of Vensure HR, Inc. v. United……
The Fine Print in the IRS Refund Payment Rules
Our tax laws have a number of arbitrary deadlines which often result in problems for taxpayers, rather than the IRS. Late submissions usually mean that the taxpayer ends up paying more tax than they actually owe. However, there are a few timing rules that apply to the IRS, one of which involves the time frame……
IRS Guidance on Structuring Attorneys Fees
It should not be a surprise to learn that attorneys often hire tax attorneys to help them minimize their taxes. One popular tax savings strategy for attorneys is to structure their contingent fees. A contingent fee is a payment arrangement in which a lawyer provides services on the condition that payment will only be made……
Loss on the Decline in Value of Cryptocurrency
Cryptocurrencies, a type of digital asset, can be a valuable source of tax losses. In fact, harvesting tax losses at or near the end of the year is a well-recognized tax planning strategy. This entails selling crypto positions that have sustained losses and immediately buying them back. This is not available for other assets, such……
Tax Court Review of IRS SS-8 Employment Determination
The IRS has the power to make a number of important determinations, including determining the employment status of workers for purposes of employment taxes. This type of determination can have a significant impact on a worker’s ability to receive unemployment benefits, participate in retirement plans, and more. The IRS often determines that workers are employees,……