News

Who are the IRS's favorite superheroes?  The X-Men. The IRS loves to hear from ex-spouses, ex-business partners and ex-employees about taxpayers who may not have fully met their federal tax obligations.  The IRS even has official “Whistleblower” programs that reward people for dropping a dime on ...

When a plaintiff wins a judgment or reaches a settlement, the tax man will be lurking to get his share.  There are two main issues in the taxation of litigation.  This blog will focus on a plaintiff in a non-business litigation situation, such as personal injury or discrimination.  The first issu...

The IRS announced that it will make it easier for some taxpayers who were not aware of their spouse's misreporting of taxes to seek innocent-spouse relief. The innocent spouse rule can relieve taxpayers of their tax liabilities, interest and penalties as a result of filing a joint tax return with...

Taxpayers seeking the tax benefits of a transaction that the IRS deems to have no economic purpose, aside from reduction of tax liability, will face stiff penalties under the new 2010 Revenue Reconciliation Act. Under the auspices of attempting to “codify” the economic substance doctrine, the act...

With the current state of the world, charities are needed now more than ever.  If you are contemplating creating a charity you should consult with a qualified tax attorney or advisor as the world of charities is more complicated than you would think. In general, organizations described in IRC 501...

The IRS has finished its audit and has issued a “30-day letter” with proposed adjustments. What now? The IRS provides a forum for appealing a proposed income tax deficiency known as IRS Appeals. The Appeals Office is separate from – and independent of – the IRS office that issued the 30-day lette...