Audits

We write about income tax audits fairly often, but most of those posts are about federal tax audits conducted by the Internal Revenue Service. Today, we are shifting our focus to the other audit, the audit conducted by the Minnesota Department of Revenue. The department may act on information it has gathered on its own.continue reading…

The taxpayer’s argument was clever, in that if all of their transactions were viewed as shams, and where nothing of any real  economic substance happened, then there would be no event triggering of tax recognition, as no property would have changed hands. The Tax Court, however, disagreed with their assertion. The court noted that thecontinue reading…

OK, the so-called Millennial demographic follows the Generation X crowd, which is on the heels of the baby boomers, which was preceded by … There is a reason for such references in a tax blog, and it connects to money. Namely, the older a generation is, the more members that generation has that command considerablecontinue reading…

It’s flatly unquestionable that a statistic can be adjudged a number of ways. Consider a figure from the world of tax audits, for example. On the one hand, the 0.57 percentage cited by the Internal Revenue Service as the audit rate for American businesses during fiscal year 2014 is highlighted as being the lowest amountcontinue reading…

Most of our readers in Minnesota and elsewhere in the Midwest likely understand intuitively and immediately why it is probably not the best idea to sit down with one or more government representatives to negotiate the details of a tax audit. After all, they know everything about the subject matter, while you are, after all,continue reading…