It’s the fight of the century! The Internal Revenue Service is taking on undefeated fighting champion Floyd Mayweather. The arena: tax court. The odds: heavily in favor of the IRS. Unfortunately, this fight is looking like one that the IRS may win without even having to throw a figurative punch. The federal agency has accusedcontinue reading…
Am I accountable if my tax preparer does something wrong?
There is an old adage – ignorance of the law is no defense. The same might be said about ignorance of what others do on your behalf. There is no denying that the responsibility of meeting possible tax obligations can be an onerous thing. And it is also true that as one’s assets and businessescontinue reading…
Claiming nonprofit charity status: Are you ready for an audit?
How important is the nonprofit sector to the economy? Pretty important, if you gauge things by data compiled by a variety of organizations. In Minnesota alone, nonprofits are estimated to be responsible for the employment of more than 14 percent of the workforce. Nationally, estimates are the sector contributes close to $890 billion to the overallcontinue reading…
Tax court clarifies conflict in tax code clauses
Business expenses are deductible. That’s the general rule in the U.S. tax code. However, not every expense is always 100 percent deductible, and where exceptions exist there can be room for disagreement. Differences of opinion can trigger audits by the IRS, which can lead to taxpayers receiving notices of deficiency. Negotiation and compromise often resolvescontinue reading…
Should the goodwill of a business be a taxable interest?
When you think about the sale of a business, you typically think about the assets of the business being sold to another party in exchange for a sum of money. Of course, the sale would be a taxable event for the seller, as he or she could realize a windfall in the transaction. In thecontinue reading…