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The Freeman Law International Tax Symposium

The Freeman Law International Tax Symposium

Join leading tax experts from across the globe, as we discuss tax trends that are reshaping international taxation.

We have assembled leading experts from across the world, along with key government officials and other industry leaders, setting the stage for unparalleled thought leadership—all delivered in a format made for 2021 and beyond. Learn from recognized leaders, as we discuss:

  • Global Tax Reform
  • International Civil Penalty Enforcement
  • International Criminal Tax Enforcement
  • The Untold Story of Swiss Bank Secrecy and a
    revolutionary Era of International Tax Enforcement
  • Transfer Pricing Developments
  • A Closer Look at GILTI and FDII
  • Cryptocurrency – Global Enforcement Trends
  • The Tax Information Age—Global Information Exchange
  • Cross-Border Tax Planning Opportunities

For more information and to register, see our International Tax Symposium page.

TaxConnections Virtual Tax Summit Helps Small/Medium Businesses Facing 80 Billion Dollar Tax Hike Proposals

TaxConnections Virtual Tax Summit Helps Small/Medium Businesses Facing 80 Billion Dollar Tax Hike Proposals

On Friday, November 12, 2021 TaxConnections is hosting along with Sponsors a Virtual Tax Summit. Business owners, entrepreneurs and tax professionals serving small to medium sized businesses will benefit from attending this one day highly informative Virtual Tax Summit. Our Sponsors have made it possible for all attendees to receive a complimentary ticket. The Virtual Tax Summit will provide valuable ideas and information on how to keep more of your hard earned revenue and grow your business.

REGISTER FOR COMPLIMENTARY TICKET TO VIRTUAL TAX SUMMIT

TaxConnections is a non-partisan site with members representing all parties. As a result we provide views from everyone. Senator Rob Portman (R-OH) provided insightful information on small business owners on the senate floor recently and you should read it. What is confusing is that Senator Portman is one of the 17 Republicans who voted in favor of the Bipartisan Infrastructure Plan yet read below what he states on the Senate Floor. You will then understand it is a great idea to take a day and learn from leading tax advisors ready to protect you and your small, medium business enterprises.

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What Business Expenses Can You Deduct?

IRS On Deducting Business Expenses

Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business operates to make a profit.

Note:  If you do not carry on the activity to make a profit, you must report all of the gross income (without deductions) from the activity on Form 1040 or 1040-SR, line 21. Special limits apply to what expenses for a not-for-profit activity are deductible; for detailed information, refer to Publication 535, Business Expenses.

What Can I Deduct?

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Complimentary Ticket To TaxConnections Virtual Tax Summit

Virtual Tax Summit Free Ticket

On Friday, November 12, 2021 TaxConnections and Sponsors including Siemens Global Business Services, DuCharme, McMillen & Associates, Capstan Tax Strategies, HCVT/Blake Christian will participate in TaxConnections Virtual Tax Summit. What is unique about this one day event is the we are engaging leading tax experts with tax colleagues and small, medium, enterprise business owners and executives. Our focus is educating tax professionals and helping entrepreneurs thrive and grow in the current business environment.

Big companies grew from small to medium to large business enterprises. How did they scale and grow? How do you stay compliant when you have revenue authorities in multiple tax jurisdictions wanting tax revenue from you? How do you access tax initiatives that help you; how do you protect yourself on audits; how do you take advantage of opportunities that improve your cash flow? How do you get advice from leading tax experts for free for a day? Register to come to TaxConnections Virtual Tax Summit on Friday, November 12, 2021.

Register For Virtual Tax Summit

 

Americans Should Loudly Reject Intrusive IRS Reporting Regime

Intrusive IRS Reporting Regime

U.S. Senator Mike Crapo (R-Idaho), Ranking Member of the Senate Finance Committee, delivered remarks on the Senate Floor outlining concerns with the Internal Revenue Service (IRS) financial account reporting dragnet and rumored changes.  Watch Crapo’s remarks here.

Excerpts:  

“Under the guise of ‘closing the tax gap,’ Democrats have proposed to drastically expand the powers of the IRS and turn banks and credit unions into private investigators for law abiding Americans. We have been pointing this out to people across America for several weeks and the uproar is loud.

“The IRS today–because of the pressure we’ve been putting on them–said ‘we already have data from everybody’s account from their paychecks, and we already have data on the interest they get on their various accounts, which has to be reported to us, and we already have data on federal benefits like the COVID payments that have been made to people. So we don’t need those data points collected in this new massive privacy violation, we can leave those out. But we need to have access to the other sources of income that people have.’

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Breach Of Contract In Texas

Breach Of Contract In Texas

Contracts play an important role in day-to-day business operations and drive economic activity across the globe.  And when one party to a contract fails to live up to its obligations, the other party or parties may be damaged.  Texas law provides a cause of action for a breach of contract.  Aggrieved parties may be entitled to recover not only damages, but attorneys’ fees and costs as well.

Breach of Contract

Texas law requires the following elements to establish a breach of contract: (1) a valid contract exists; (2) the plaintiff performed or tendered performance as contractually required; (3) the defendant breached the contract by failing to perform or tender performance as required; and (4) the plaintiff sustained damages due to the breach.

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Defenses To Section 6038 IRS Penalties

Defenses to Section 6038 IRS Penalties

Administratively, the IRS continues to devote significant resources to catching taxpayers who have failed to properly file international information returns (e.g.Forms 5471Forms 8865Forms 3520, etc.).  Don’t believe me?  Just look at the uptick in federal court cases associated with these information returns and the IRS’ attempts to assess civil penalties against taxpayers who have not timely filed.

For example, the Western District of Texas only months ago issued its decision in Colliot v. U.S., No. 1:19-cv-212-LY (W.D. Tex. Mar. 24, 2021).  In that case, the IRS sought to impose over $400,000 of civil penalties against a taxpayer for his failure to file Forms 5471 and Forms 8865 for 6 years under section 6038 of the Code.  Only months later, the United States Tax Court issued its memorandum opinion in Kelly v. Comm’r, T.C. Memo. 2021-76, which also involved a taxpayer’s non-failure of Forms 5471 under section 6038.  However, in that case, the IRS was not attempting to impose civil penalties against the taxpayer—rather, the IRS was attempting to utilize section 6038(c)(8) and its extension of the general three-year statute of limitations period for assessment indefinitely until a taxpayer files the Form 5471.

Not only do these two decisions provide support that section 6038 issues are here to stay, they also offer some lessons and insights to taxpayers who are attempting to defend against civil penalties under section 6038.  Accordingly, these two decisions are discussed in more detail below.

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Are Popular Treats Affected By Sales Tax?

Are Popular Treats Affected By Sales Tax?

Halloween is just around the corner and while this year’s celebrations are likely to be more subdued than usual, it’s still a fabulous excuse to buy a few bags of candy, put on a scary movie and enjoy the spooky atmosphere. But what you might not know is that the amount you pay in sales tax for your Halloween treats (if you do at all) will depend on where you live.

Because states set their own regulations regarding sales tax, including what it’s applied to and for how much, a bag of candy bought in one state may have a wildly different tax rate than it would in another state.

Keep reading to learn more about how sales tax on candy, and taxes on food in general, vary from state to state.

The Complexity Of Taxes On Food

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Woman Sentenced to Prison On Tax And Drug Charges From Multimillion-Dollar Black Market Marijuana Enterprise

US DEPARTMENT OF JUSTICE

A Massachusetts woman was sentenced today to four years in prison for tax evasion, conspiracy to distribute and to possess with intent to distribute 50 kilograms or more of marijuana, possession with intent to distribute marijuana, and money laundering.

According to court documents, Deana Martin, of Milton, controlled Northern Herb, a black-market marijuana delivery service that operated in Massachusetts from 2015 to 2018. While Northern Herb purported to sell medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, Northern Herb would deliver marijuana to unattended locations, such as a front door or car, where unknown third parties might have access to the package. Northern Herb used locations in Canton, Milton, Foxborough, and Hyde Park to store and distribute marijuana, and employed at least 25 workers.

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What Happens If I Default On An IRS Installment Agreement?

What Happens If I Default On An IRS Installment Agreement?

Installment Agreements Generally

Taxpayers do not always have the financial wherewithal to pay all of their federal tax obligations on time.  In these instances, the Internal Revenue Code (the “Code”)[i] grants taxpayers with a statutory right to request additional time to make full or partial payment through an installment agreement.[ii]  If the IRS accepts the terms of the installment agreement, the taxpayer benefits in that the IRS is precluded from levying against the taxpayer’s assets, provided the taxpayer continues to comply with the terms of the agreement.[iii]  Moreover, the IRS benefits in that it is not required to devote its resources to investigate the taxpayer’s financial situation and also seek levy of the taxpayer’s assets to satisfy the outstanding tax debts.

IRS Form 433-D.[iv]

Generally, a taxpayer enters into an installment agreement with the IRS through execution of an IRS Form 433-D, Installment Agreement.  A standard-form Form 433-D provides the following terms and agreements amongst the parties:

  1. The amount of the monthly payment to the IRS;
  2. Whether the monthly payment will remain static or increase/decrease after a specified period of time;
  3. Recognition by the taxpayer that the agreement is based on the taxpayer’s current financial condition and that the agreement may be modified or terminated if the IRS has information that suggests that the taxpayer’s ability to pay has “significantly changed”;
  4. Recognition by the taxpayer that the taxpayer must remain compliant with other federal tax reporting and payment obligations while the agreement remains in effect;
  5. Recognition that the IRS may terminate the installment agreement in certain instances, including: (1) if the IRS has information that suggests that the taxpayer’s ability to pay has “significantly changed;” (2) the taxpayer has failed to stay compliant with all federal tax reporting and payment obligations; (3) the taxpayer misses a monthly payment; and (4) the taxpayer fails to provide requested financial information to the IRS.

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Crypto And §1031 – Still Relevant In California!

Crypto And §1031 - Still Relevant In California!
In 2019, California only partially conformed to the section 1031 changes made by the Tax Cuts and Jobs Act. For individuals below specified AGI levels in the year an exchange begins, the pre-TCJA version applies. These levels are under $500,000 of AGI for MFJ and HH and under $250,000 for single.
Besides real property, what might individuals exchange? Well today, the most common non-real property exchanged by the roughly 95% of Californians who are still subject to section 1031 is cryptocurrency! Many types of virtual currency can only be acquired with bitcoin or another virtual currency.
Of course, few people are dealing with virtual currency, but the number grows each day.
What are the factors that should be considered to know if one virtual currency held for investment or business is like-kind to another?

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