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 tax liability. Many taxpayers assume they can always dispute how much they owe during a…
Author: kreig.mitchell
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 if the business is legal under state law? The answer, according to the recent case…
Can Small Businesses Challenge Unfair Tax Regulations in Court?
Small business owners often struggle to keep up with the ever-changing labyrinth of IRS regulations. Deciphering these complex rules can be time-consuming and costly, diverting resources from core business operations. This leads to the question of what happens when the IRS fails to properly consider the unique burdens its rules place on small entities? The…
The Fine Print in the IRS Refund Payment Rules
Our tax laws have a number of arbitrary deadlines which often result in problems for taxpayers, rather than the IRS. Late submissions usually mean that the taxpayer ends up paying more tax than they actually owe. However, there are a few timing rules that apply to the IRS, one of which involves the time frame…
Tax Court Review of IRS SS-8 Employment Determination
The IRS has the power to make a number of important determinations, including determining the employment status of workers for purposes of employment taxes. This type of determination can have a significant impact on a worker’s ability to receive unemployment benefits, participate in retirement plans, and more. The IRS often determines that workers are employees,…
IRS Records in the Digital Age
Small business taxpayers often pay more to the IRS because of one thing. Paper. The IRS still relies on paper records. It wants you to e-file your tax return, but what is the first thing the IRS agent will ask you for at the start of the audit? You guessed it. A paper copy of…
Avoiding Penalties: Choosing a Reliable Tax Return Preparer
With the tax season around the corner, a significant number of taxpayers are seeking the services of tax return preparers. This often involves choosing a preparer who has been recommended by friends and family members. Tax return preparers may be referred based not on their qualifications, but on their reputation for generating large refunds for…
The IRS OIC: How Lifestyle Choices Impact Your Offer
Owing back taxes to the IRS can be a stressful and overwhelming experience for many individuals. The financial burden of paying back a large tax debt can seem insurmountable, leaving taxpayers feeling hopeless and unsure of where to turn for help. One option that may provide relief for those struggling to pay their tax debt…
Tax on Employer-Provided Lodging
Did you know that as an employee, you may be able to exclude the value of lodging provided by your employer from your income taxes? According to Sec. 119 of the Internal Revenue Code, there are certain conditions that must be met in order for an employee to exclude employer-provided housing costs from their income.…
Producing Tax Records on the Day of Trial
If you are litigating a case with the IRS in the U.S. Tax Court, can you fail to produce records and then show up with them for the first time on the day of trial? The answer to this question is a clear “no” in most courts as this type of conduct is unfair to…