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- Can the IRS Ignore Your Request for an Estate Tax Valuation Explanation?When a family member dies and leaves behind interests in a closely held business, the estate has to figure out what those interests are worth. This is rarely straightforward. There is no ticker symbol, no public market, no closing price to look up. The estate hires an appraiser, applies valuation methodologies, and reports a number…… Continue reading Can the IRS Ignore Your Request for an Estate Tax Valuation Explanation?
- If You Never Received a Form 1099, Do You Still Have to Report the Income?The U.S. tax system reports income through Form 1099s and similar information returns. The payer fills out the form, sends one copy to the IRS, and mails another to the recipient. The recipient has no economic stake in whether that second copy ever arrives. He needs nothing from it. He takes no deduction that depends…… Continue reading If You Never Received a Form 1099, Do You Still Have to Report the Income?
- Can the IRS’s Automated System Issue a Valid Notice of Deficiency?Every year, millions of taxpayers receive letters from the IRS proposing adjustments to their tax returns. Most people assume those letters came from a human being who reviewed the file, weighed the facts, and made a considered decision to send the notice. That assumption is increasingly wrong. The IRS relies heavily on automated systems to…… Continue reading Can the IRS’s Automated System Issue a Valid Notice of Deficiency?
- Who Gets the Tax Credit When You Outsource Payroll to a PEO?Many businesses outsource their payroll, human resources, and employment tax responsibilities to professional employer organizations. These arrangements make sense. The PEO handles the administrative burden of onboarding workers, processing wages, withholding taxes, and managing benefits. The business owner focuses on running the business and directing the workers. But when it comes time to claim employment-related…… Continue reading Who Gets the Tax Credit When You Outsource Payroll to a PEO?
- Selling a Furnished Vacation Home: Allocating Between Real & Personal PropertyA vacation home is nice to have. Many vacation homes are owned for years–if not decades. The capital gains tax can be substantial when the owner goes to sell the property. And unlike a primary residence, the $250,000 or $500,000 gain exclusion under Section 121 is not available for a property that was never the…… Continue reading Selling a Furnished Vacation Home: Allocating Between Real & Personal Property
- Can Corporate Suspension Foreclose U.S. Tax Court ReviewThere are a number of administrative rules that businesses have to comply with. This can create administrative headaches for businesses–particularly small businesses. The requirement for annual maintenace of state corporate status is an example. Businesses, particularly small businesses, often fail to meet annual state filing requirements. The result is that their corporate powers are limited.…… Continue reading Can Corporate Suspension Foreclose U.S. Tax Court Review
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