Tax Deduction Available for Ponzi Scheme Related Theft
The current tax season brings some small consolation to victims of Ponzi schemes and certain other financial fraud, with the Internal Revenue Service (“IRS”) allowing duped investors to obtain partial...
View ArticleGovernment Typo Will Require Certain Taxpayers to Delay Filing
Recently the government sent out Form 1095-A to Obamacare participants. However it appears that an error reported in the forms mailed out will need to be corrected. As a result, affected taxpayers are...
View ArticleIRS Workers Found to Have Evaded Tax Payment
A recent report indicated that over a 10 year period approximately 1,600 Internal Revenue Service (“IRS”) employees willfully evaded their tax obligations. The wrongful activity included: failing to...
View ArticleThe IRS Wants More Of Your Gambling Winnings
The taxation of gambling winnings is widely misunderstood (or at least widely not followed). Gambling gains are included in gross income, reported on “other income” on form 1040. Losses from gambling...
View ArticleAppeals Court Provides Tax Benefit to Unmarried Couples with High Mortgage Debt
A federal appeals court has agreed with an unmarried California couple that they should not be treated as married with regard to mortgage interest deductions limits. Bruce Voss and Charles Sophy are...
View ArticleIRS Confirms Continued Deductibility of Business Meals (When Separable from...
For months, the American Institute of CPAs (AICPA) and American businesses have been requesting guidance from the U.S. Treasury Department and Internal Revenue Service (“IRS”) regarding changes made by...
View ArticleCannabis Company Valuations Present Unique Challenges
There has been a flurry of activity in the emerging legalized cannabis industry, as regulations and restrictions continue to decrease. Given that the U.S. cannabis market is estimated to be...
View ArticleWhen Litigation Proceeds Are Taxable
Economic damages should return a plaintiff to the position they would have been in “but for” the underlying improper act[s] by the defendant. They should not provide a windfall to plaintiff. In a...
View ArticleIRS Whistleblowers Set New Record
A concerted effort by the IRS to improve its whistleblower reporting program is showing benefits to both sides. IRS whistleblowers collected $312 million in fiscal 2018, a huge increase over the...
View ArticleLegal Fees in Divorce Disallowed as a Business Expense
A recent case in the Tax Court decision, Lucas, T.C. Memo. 2018-80 held that legal and professional fees related to an investment advisory firm partner’s divorce do not qualify as business expenses....
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