Tag Archive for Find An Enrolled Agent in Denver

How Professional Athletes Attribute “Rest Days” for State Income Tax Purposes: A Major Controversy Brews

Many young professional athletes and their less than experienced managers are learning for the very first time that the money “earned” PLAYING or competing is subject to income tax both at the federal level AS WELL AS AT THE STATE LEVEL WHERE THEY ARE PERFORMING or rendering service on behalf of their employer.

Basically for example if you earn money in Colorado you pay Colorado income tax as well as federal income tax on those same earnings. Professional athletes compete or perform (aka earn money) in many different states, the majority of which have a state income tax obligation, some higher than others and all pretty nasty.

A few months ago a select group of professional athletes shared concerns about Read More

Written by | Posted in Income Tax • Individual • State Tax • Tax Controversy

Marijuana Dispensary Income Tax Guidance Update: IRS Memo 201504011

As many of you know who follow my tax musings via this blog, I recently led a team of people that shepherded a Marijuana Dispensary through the IRS Examination and Appeals functions. The dispensary in question was owned and operated by a taxpayer who in all regards was a good, honest, hard working, caring person that kept detailed records accounting for every penny.

By engaging a taxpayer with this profile up front I was able to challenge the nuanced understanding of IRC §280E – Expenditures in Connection with the Illegal Sale of Drugs, §263A – Capitalization & Inclusion of Inventory Costs of Certain Expenses & §471 – General Rules for Inventories inside the IRS without having to get bogged down with the drama of the taxpayer’s character and efficacy of intent as in the Olive Tax Court Case. Read More

Written by | Posted in Individual • IRS • Marijuana Taxes

Change Of Accounting Method

Final Tangible Property Regulations Necessitate that Many Businesses Apply for Change Of Accounting Method: IRS Form 3115; Rev Procs 2015-13 & 2015-14

Back in June 2014 I blogged about the new IRS Regulations governing tangible personal property. These regulations prompted a vigorous debate over the last 7 months between the most astute students of the US Tax Code as to what constitutes the need to file IRS Form 3115 – Change in Accounting Method for our business clients as a direct result of these new governing regulations.

Many practitioners make compelling points supporting the position that most ALL Read More

Written by | Posted in IRS • Tax Policy