ARTICLES

Sometimes the IRS gives you a second chance. That was the case in a private letter ruling the IRS issued to an unnamed partnership. But remember that private letter rulings cannot be cited as authority for anyone other than the taxpayer to whom it...

Shareholders or employees of a corporation often lend it funds - expecting to be repaid. If the loan does not get repaid, a bad debt deduction can be claimed. However, the tax treatment is different for "business" bad debts and "nonbusiness" bad...

As demonstrated in several recent court cases, the IRS is taking an aggressive position in issues involving valuations of noncash charitable contributions. Rather than challenging the value placed on the asset, the IRS is challenging whether the...

An obscure provision of the income tax law denies all business deductions to anyone whose business involves trafficking in a controlled substance.  Few people agree that it would be good public policy to allow drug dealers a tax deduction for...

Recent headlines have highlighted the names of wealthy individuals who have given up their U.S. citizenship, ostensibly to save taxes. Remember Eduardo Saverin, the Facebook founder who renounced his U.S. citizenship on the eve of Facebook's now...

A recent ruling by the IRS Chief Counsel serves to remind businesses about the factors that figure into determining the length of a depreciation period. The specific case involved a floating riverboat casino securely moored to the land. The IRS...

Unless you've found a way to live without the news media, you've already heard that the U.S. Supreme Court upheld most of the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010...

The IRS Chief Counsel has denied the domestic production activities deduction to a company that sells online software. The domestic production activities deduction (DPAD) is available for domestic production gross receipts from the lease, license,...

If you care for an aging relative, you may be able to claim certain expenses related to the relative's care on your tax return.  Here are some tips that could save you some tax dollars this year: Claim older adults as dependents - If you...

An Oregon woman has been charged with tax fraud. How did she allegedly do it? She bought herself a home-use tax preparation program. She prepared and electronically filed an Oregon state income tax return erroneously showing $3 million of income...

The IRS has updated its rules concerning businesses whose employees receive tips from customers as part of their compensation - primarily affecting restaurants and certain other businesses. As a general rule, employees who receive tips must pay...

A recent decision of the Second Circuit Court of Appeals has allowed deductions for a charitable contribution of a façade easement and a related cash contribution, which previously had been disallowed by the Tax Court. In 2003, Huda Scheidelman...