Small businesses often struggle to get credit. Banks want collateral, financial history, and revenue figures that newer or smaller operations cannot always produce. When the business itself cannot qualify for a loan or a credit card, the owners step in. They open credit cards in their own names, charge business expenses to those cards, and…
Category: Tax Procedure
Tax Procedure
From IRS audits and appeals to tax litigation and penalties, our tax attorneys can help you navigate the tax procedure landscape with confidence. Give us a call to see how we can help, (713) 909-4906.
Can the IRS Ignore Your Request for an Estate Tax Valuation Explanation?
When a family member dies and leaves behind interests in a closely held business, the estate has to figure out what those interests are worth. This is rarely straightforward. There is no ticker symbol, no public market, no closing price to look up. The estate hires an appraiser, applies valuation methodologies, and reports a number…
If You Never Received a Form 1099, Do You Still Have to Report the Income?
The U.S. tax system reports income through Form 1099s and similar information returns. The payer fills out the form, sends one copy to the IRS, and mails another to the recipient. The recipient has no economic stake in whether that second copy ever arrives. He needs nothing from it. He takes no deduction that depends…
Can the IRS’s Automated System Issue a Valid Notice of Deficiency?
Every year, millions of taxpayers receive letters from the IRS proposing adjustments to their tax returns. Most people assume those letters came from a human being who reviewed the file, weighed the facts, and made a considered decision to send the notice. That assumption is increasingly wrong. The IRS relies heavily on automated systems to…
Who Gets the Tax Credit When You Outsource Payroll to a PEO?
Many businesses outsource their payroll, human resources, and employment tax responsibilities to professional employer organizations. These arrangements make sense. The PEO handles the administrative burden of onboarding workers, processing wages, withholding taxes, and managing benefits. The business owner focuses on running the business and directing the workers. But when it comes time to claim employment-related…
Can Corporate Suspension Foreclose U.S. Tax Court Review
There are a number of administrative rules that businesses have to comply with. This can create administrative headaches for businesses–particularly small businesses. The requirement for annual maintenace of state corporate status is an example. Businesses, particularly small businesses, often fail to meet annual state filing requirements. The result is that their corporate powers are limited.…
Can the IRS Walk Away from an Installment Agreement?
Taxpayers who owe the IRS back taxes often try to work out terms with the IRS for the balance. This often involves an installment agreement. Once established, the IRS often terminates the agreements and it often does so without any notice or explanation as to why it did so. This can be extremely frustrating for…
An Offer of IRS Appeals Review Can Preclude Judicial Review
The IRS assesses a tax penalty against you or your business. The audit closes and the IRS assesses the penalty. So how do you get a judge to look at it? For most tax disputes, the answer is the U.S. Tax Court. You can go there without first pre-paying the tax. But for certain types…
When the IRS Levies Estate Property, Whose Fight is it?
When a taxpayer dies with unresolved IRS issues—unpaid taxes, disputed levies, or unrefunded overpayments—the family often assumes that whoever inherits the estate can pick up where the decedent left off. That assumption might not be the correct. The tax code gives specific rights to specific parties. When the wrong person shows up in federal court…
The IRS Audit Credit-Card-to-Cash Estimation Method for Cash Businesses
When it comes to income taxes, cash businesses have always been a challenge for the IRS. Cash is hard to track. Businesses, whether large or small, often fail to keep records of cash transactions. In other cases, businesses keep the records lose the records by the time the IRS audits the business years later. And…