MITCHELL TAX LAW
Tax Articles & Insights
Practical analysis of IRS audits, appeals, U.S. Tax Court litigation, collections, and tax planning from our Dallas tax attorneys. Browse our latest articles below.
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When Can the IRS Impose a Tax Penalty You Cannot Defend?
Taxpayers who get into a dispute with the IRS often assume that good faith will protect them. They relied on professionals. They read the materials. They believed the deduction was allowed at the time. So even if the deduction is…
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Do Assets Disqualify You from Currently Not Collectible Status?
Let’s say you have some assets, but you are not rich. What you have is a smattering of things that are, well, honestly, not worth that much. Maybe it is a house with a mortgage that needs a lot of…
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When Are Attorney’s Fees From a Settlement Deductible?
The employer-employee relationship can often lead to disputes. These disputes are often settled out of court. Whether it’s a wrongful termination claim, a defamation lawsuit, or other employment-related litigation, these settlements often involve significant attorney’s fees. The taxpayer receives a…
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Does IRS Guidance Have an Expiration Date?
Food goes bad. Medications, skincare products, and batteries all expire. But what about IRS’s written guidance? Can IRS guidance go bad? What if it is guidance for a particular taxpayer and about a specific transaction or seires of transactions? What…
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Short State Law Statutes Can Limit IRS Collections
Taxpayers may think that as long as the IRS has valid tax liens, the government can reach any property the taxpayer once owned, regardless of when it was transferred or how much time has passed. This assumption is not always…
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How to Identify Physical Injury from Vague Settlement Agreements
Business owners and independent contractors sometimes receive legal settlements to resolve disputes. While most settlement proceeds must be reported as taxable income, payments for physical injuries or physical sickness can be excluded under specific sections of the tax code. This…
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Are Energy Investment Tax Credits Subject to Passive Activity Rules?
There are a number of benefits for investing in renewable energy projects. The energy investment tax credits is one such benefit. Given the specialized nature of energy projects, these tax credits are often sold to taxpayers as investments by firms…
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Can Self-Employed Taxpayers Deduct the Value of Their Own Time?
Small business owners and self-employed professionals often spend countless hours developing products, services, or processes that enhance their business operations. A construction contractor might spend weekends designing custom software to track job costs. An engineer might devote evenings to developing…
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When Can You Challenge Your Tax Liability in a CDP Hearing?
The Collection Due Process (“CDP”) hearing is often viewed as a last resort for taxpayers facing IRS Tax Collections. While these hearings provide important taxpayer protections, one of the most misunderstood aspects is when a taxpayer can challenge their underlying…
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Can a Medical Marijuana Business Owner Deduct Expenses on Their Tax Return?
Imagine a successful medical marijuana dispensary generating millions in revenue and incurring significant business expenses. When tax season arrives, the owner naturally wants to claim deductions to reduce their taxable income. But is this allowed under federal tax law, even…
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