Police Can Turn Over Records to the IRS

The IRS has a number of tools at its disposal to gather information. This includes the IRS summons, for example. These tools only allow the IRS to get records that the taxpayer voluntarily identifies or that the IRS discovers. The IRS cannot obtain any records that it cannot identify. This leads to the question of…

Can the IRS Collect Additional Taxes After Tax Restitution Is Paid?

In the case of Creel v. Commissioner, 419 F.3d 1135 (11th Cir. 2005), the IRS attempted to collect additional taxes, penalties, and interest from a taxpayer even after his criminal restitution obligation for the very same tax had been paid and satisfied. The district court had ordered the taxpayer to make restitution to the IRS…

Referrals/Leads Group is Not a Tax Exempt Entity

The tax laws in the United States provide for several types of tax-exempt organizations, including charities, social welfare organizations, and business leagues. In Private Letter Ruling 200709070 the IRS has brought attention to the requirements for organizations to qualify as a tax-exempt “business league.” The ruling denied tax-exempt status to a referral/leads group on the…

Video Poker Cannot Qualify as Professional Gambling

As technology and computers advance, there are more and more activities that put us, as humans, against computers. We, as humans, are in the position of having to game or strategize how to manipulate or beat computers to produce desired results. While it is not pointed out generally, whole industries are focused on doing just…

How HRAs Can Help Your Business

As a business owner, it’s always important to keep costs down while looking for opportunities to grow your business. One potential way to do this is through a Health Reimbursement Arrangement (HRA). An HRA is a tax-advantaged benefit that allows employers to reimburse employees for medical expenses on a tax-free basis. The employer contributes a…

Is Tournament Poker the Same as Live-Action Poker?

Are tournament poker losses subject to the same tax rules as live-action poker losses? This question turns on whether tournament poker is a “wagering activity.” Despite the amount of money at stake and the importance to taxpayers who gamble, the term wagering activity is not defined. This is where the recent Today, in Tschetschot v.…

Car Dealerships and Cash Reporting Requirements

Cash-based businesses can pose a challenge for the IRS, as they may be susceptible to tax fraud. To address this issue, Section 6050I(a) requires businesses to report any cash payments exceeding $10,000. This provision enables the IRS to track substantial cash payments made to cash-based businesses, and Form 8300 is the designated form for reporting…

Money Limit for “Small Case” Election for Collection Cases

Navigating tax disputes can be a daunting task for taxpayers, especially when it comes to the technical litigation rules that they may not be familiar with. The U.S. Tax Court‘s small tax case procedures provide a way to simplify the process. Taxpayers need to be aware that the amount of money involved in the dispute…

The Hobby Loss Rules: Planning for Unprofitable Businesses

American culture still has a hint of the protestant work ethic. There are people in the United States who still work hard and are willing to take risks to make things happen. The country benefits if they are successful–particularly if it ends up in a viable commercial venture. Not all ventures end up being successful.…