IRS Interest Tax Procedure

Revocation of Nonprofit Status Triggers Retroactive Interest

There are some areas of law where principles of equity and good faith play a big role. By and large, tax law does not adopt these principles. The CreditGUARD v. Commissioner, 149 T.C. 17 (2017) case provides an example. The case addresses whether the IRS is entitled to interest on a corporate tax liability when […]

Federal Income Tax

Non-Profit No More

The IRS Can Sometimes Take A Hardline With Taxpayers For example, the IRS often takes a hard line with taxpayers in instances where the taxpayer is a non-profit and it fails to timely file a tax return. In these cases the IRS will has the power to revoke the taxpayer’s non-profit status, but in many […]

Federal Income Tax Tax Tax Loss

The Hobby Loss Rules: Planning for Unprofitable Businesses

Ordinary and necessary expenses incurred in operating a business are deductible against Federal income tax.  This is even true for side gigs or moonlighting work.  The IRS frequently challenges these deductions if the activity does not produce a profit.  The recent Jones v. Commissioner, T.C. Summary Opinion 2007-21, court case provides an opportunity to consider these rules. […]