Tax Articles

A record number of taxpayers have moved from California to other states, such as Texas. With advance tax planning, this type of move can produce significant tax savings. The savings can be had year after year. This type of move can also help avoid the audit and appeals process in California. This alone is worth……

Our laws have long said that taxpayers are free to structure their legal affairs to minimize their taxes. Congress has even provided very specific provisions to accomplish this. Section 1202 stock is an example. This provision is intended to encourage start-ups to take business risks by rewarding those who are successful by allowing them to……

Since tax returns are a central part of our system of tax administration, one would think that the IRS is an expert at handling tax returns. It isn’t. The IRS often loses tax returns. It often checks returns into its systems and then fails to process the tax returns and cannot locate the actual tax……

The government often has a myriad of remedies available to it. There are common situations in which the government does not have a consistent and thoughtful process for organizing how and when it will pursue the various remedies. This ad hoc method often results in outcomes that are not tailored to achieve the government’s aims……

Successful businesses change over time. We often see this when a business gets ready for the founder or owner to exit the business. The business is often reorganized and maybe even divided up. Various tax strategies come into play to help facilitate the transfer, like the F Reorganization for S corporations. Other plans to minimize……

There are those who make things happen. They are usually the ones doing what it takes even when doing so is difficult, tiring, and draining. They are the ones that often make personal sacrifices and take risks to succeed. They are the ones that had the luck or grit to stick with something to see……

There are a number of tax breaks afforded to those in the military. This includes collection holds on unpaid taxes owed by members of the military to laws that exempt certain income from tax altogether. The exemption from paying tax on military pay for injuries is an example. The recent Valentine v. Commissioner, T.C. Memo.……

In legal disputes, there are times when parties make representations that are not true. That includes the IRS and its auditors and attorneys. If the taxpayer is lucky, they will have direct evidence that shows that the representation is false. There are situations where the law does not allow that evidence to be considered. There……

A fringe benefit is a perk provided to an employee. These benefits can make many forms. It may include a company car, company meals, or even insurance. These benefits may or may not be taxable for the employee. The Mihalik v. Commissioner, T.C. Memo. 2022-36, case provides an opportunity to consider these rules. The Mihalik……

A researcher gets a grant award direct from an institution or university. The grant is not paid as wages, but is paid as a stipend or maybe as a scholarship. The payment might not be subject to income tax. Compare that to a grant is awarded to an institution and the institution pays a researcher……