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The attorney-client privilege projects confidential communications with attorneys. It allows the attorney to avoid disclosing protected communications. But what if the attorney voluntarily discloses information and the disclosure is to the IRS about a tax matter? The court addresses this… Read More The post Voluntary Disclosure to IRS of Privileged Communication appeared first on Houston Tax…
Category: Houston
Can the IRS Ignore the Legal Existence of a Corporation?
If a taxpayer forms a legal entity and it is taxed as a C corporation, can the IRS disregard the legal existence of the corporation and assess the corporation’s tax to the owner? The court addresses this in Russell v.… Read More The post Can the IRS Ignore the Legal Existence of a Corporation? appeared first…
The Timing Trap: Failed Installment Sales
What happens if you sell an asset and are to receive payments in the future, but your accountant fails to elect the installment method? Do you have to report the full amount of the gain in the year of sale?… Read More The post The Timing Trap: Failed Installment Sales appeared first on Houston Tax Attorneys:…
Can IRS Rely on Third Party Reports to Identify Taxable Income?
If a third party collects monies for you and send you a report reflecting the monies but the reports show too much income, should you be taxed on the higher income or what you actually received? The Ghadiri-Asli v. Commissioner,… Read More The post Can IRS Rely on Third Party Reports to Identify Taxable Income? appeared…
Whistleblower’s Claim Limited by IRS’s Discretion Not to Collect Tax
If you turn in a tax cheat by filing a whistleblower claim with the IRS, what happens if the IRS does not realize the importance of the information received? Put another way, what if the IRS leaves money on the table by failing to assess the full amount for the taxpayer? Is the whistleblower entitled…Continue…
IRS Levy Does Not Attach to Future Payments
The IRS levy is one of the IRS’s primary methods for collecting unpaid taxes. But the levy power is not unlimited. The IRS levy can attach to some amounts held by third parties that are owed to the taxpayer. But… Read More The post IRS Levy Does Not Attach to Future Payments appeared first on Houston…
M&A Finders Fee Not Deductible for Acquirer
If a company acquires another company and pays a finders fee to the party who connected the two for the sale, is the finders fee deductible by the acquirer? This question touches on whether an expense is deductible if the… Read More The post M&A Finders Fee Not Deductible for Acquirer appeared first on Houston Tax…
Can the IRS Collect Gift Tax From Recipient After 14 Years?
If someone gives you property and then dies and more than ten years has passed since the gift, can the IRS sue you to collect the amount of the gift from you? Most would think the answer is a resounding… Read More The post Can the IRS Collect Gift Tax From Recipient After 14 Years? appeared…
Avoiding State Income Tax on Part-Time Residents
Sometimes you can’t avoid paying state income taxes. This is true for those who have no ties to any state other than a state that has an income tax. But for those who have ties to multiple states, they can… Read More The post Avoiding State Income Tax on Part-Time Residents appeared first on Houston Tax…
S Corp Conversions: Watch out for Disappearing AAA
Small and medium-sized business can save quite a bit in taxes by using S corporations. But with this tax savings comes complexity. This complexity comes from how S corporations flow through profit and have the profit taxed on the individual… Read More The post S Corp Conversions: Watch out for Disappearing AAA appeared first on Houston…