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The tax consequence of a transaction often depends on how one characterizes or describes the transaction. Business synergies are often cited as the rationale for merger and acquisition deals. In a M&A deal, are “business synergies” a separate asset for tax purposes? Can you list “business synergies” as a separate asset and then take a……
Category: Houston
Juror in Tax Crime Case Removed for Religious Belief
What do you do if you are being tried for a criminal tax charge and the court removes one of the jurors for saying that you should be found not guilty? What if the juror is removed by the court because the Holy Spirit told him that you were not guilty given the evidence presented? …Continue…
IRS Can Avoid Bankruptcy Collection Hold
One of the benefits of filing bankruptcy is that creditors are precluded from taking collection actions. When a taxpayer who owes unpaid taxes to the IRS files bankruptcy, this collection hold applies to the IRS. But what if the IRS could simply file a motion and avoid the collection hold? This is exactly what happened…Continue…
Settling Unpaid Taxes With Sporadic or Seasonal Income
Sporadic or seasonal income can make it difficult to settle back taxes with the IRS. For example, if you have a large one time payment that is not likely to continue, can the IRS consider this in evaluating how much you can pay the IRS? The court addresses this in Margolis-Sellers v. Commissioner, T.C. Memo.…Continue…
Can a Tax Crime Sentence Impact the Sentence for a Related Crime?
If someone commits a financial crime and, at the same time, commits a tax crime, can the tax crime sentence be used to enhance the sentence for the financial crime? The court addresses this in United States v. Smith, No. 18-3222 (8th Cir. 2019). The answer may surprise you. Facts & Procedural History The defendant…Continue…
Does a Letter Sent to IRS Count as a Refund Claim?
Taxpayers have a limited time to file refund claims to recoup money from the IRS. The IRS provides tax forms to be used for making these requests. But what happens if the If the taxpayer does not use the forms the IRS provided and, instead, writes letters to the IRS? Can the letters count as…Continue…
Sale of Trailers Doesn’t Qualify for Installment Sale Treatment
If you buy, subdivide and sell real estate, can you seller-finance the sales and report the gain over a long period of time? The answer is generally yes, but advance planning is needed. The court addresses this in Joyner Family Limited Partnership v. Commissioner, T.C. Memo. 2019-159. Facts & Procedural History The taxpayers purchased land……
The Start of an IRS Audit: To Disclose or Not?
If a taxpayer submits an amended return at the start of an IRS audit, can they avoid penalties for doing so? The rules allow large case taxpayers to make post-audit disclosures and avoid penalties. But what about smaller taxpayers? Should they make disclosures to IRS auditors at the start of the audit process? The Beigalski…Continue…
The IRS Recent Focus on S Corp Owners
The IRS has announced several new compliance campaigns focusing on S corporations. This is needed as the audit rate for S corporation is extremely low. The most recent IRS compliance campaign focuses on shareholder stock basis issues for S corporation… Read More The post The IRS Recent Focus on S Corp Owners appeared first on Houston…
Records Needed for Partial Asset Dispositions
Taxpayers often overlook “partial asset dispositions.” Their tax advisers do too. This may be due to it being a depreciation issue that seems unimportant. It may also be that the partial asset disposition is a relatively new concept. Regardless, partial… Read More The post Records Needed for Partial Asset Dispositions appeared first on Houston Tax Attorneys:…