Impact of 2017 Tax Reform: Sports and Entertainment

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Most reporting about our new tax laws has been on the reduction of business taxes, real estate, and the loss of individual deductions. In this blog post, we will highlight some provisions that will impact the sports and entertainment industries. The new 21% excise tax Tax-exempt organizations are now required...

Criminal Tax Obstruction Case Argued Before the Supreme Court

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This past December, the Supreme Court heard the first criminal tax case to be argued before it in a decade. The Court agreed to hear the case following a petition by Carlo J. Marinello, II, a freight service businesses owner from Buffalo, New York, who had been convicted on charges...

Challenge To Sales Tax “Physical Presence Test” To Be Heard By The Supreme Court

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The Supreme Court has agreed to hear a case that stands to change sales tax collection and remittance laws for out-of-state and online retailers. Rapid growth and an outdated law In 1992, the U.S. Supreme Court ruled in Quill Corp. v. North Dakota that states may not collect sales tax...

Foreign Account Reporting: Time Limit for IRS Action

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To conduct an audit or otherwise take action on a tax return, the IRS must generally act within three years from the later of either the return’s due date or the date it was filed. That time limit may be extended to six years if there has been a “substantial...

Tax Evasion Contributes To Loss Of Professional License

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If you are avoiding your tax obligations, you risk even more than civil and criminal prosecution. A collateral consequence of a tax delinquency may be loss of your driver’s and/or professional license. A number of states mandate that individuals and businesses with unpaid state tax liabilities satisfy those debts before...

Los Angeles Business Owner Charged With Income and Payroll Tax Fraud

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A successful Los Angeles businessman seems to have missed the part about paying his taxes. Following a cooperative investigation by the U.S. Department of Justice, California Franchise Tax Board (FTB), and California Employment Development Department (EDD) – and facilitated by the Tax Recovery and Criminal Enforcement (TRaCE) Task Force –...

Using Software For Your Mileage Logs And Other Business Expenses

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Keeping track of mileage and business expenses for tax purposes can be a hassle for any self-employed person. Fortunately, there are a number of mobile apps that can help you gather and store your business receipts, and can simplify production of records required for tax preparation. Why use an app?...

Court Rules that Coinbase Accounts Must Be Reported to the IRS

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Last year the IRS issued a “John Doe” summons on all U.S. Coinbase customers who had used convertible virtual currency between 2013 and 2015. Coinbase’s challenge to the summons has failed in part and succeeded in part – a federal court judge recently ordered Coinbase to release information about Coinbase...

The Use of Expert Testimony in Tax Court, Part II

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In Part I, we introduced the Feinberg vs. Commissioner of Internal Revenue case, which demonstrates the financial challenges faced by marijuana businesses due to their inability to deduct ordinary and necessary business expenses under 26 U.S. Code §280E. It also provides us with guidance as to the limits of expert...

The Use of Expert Testimony in Tax Court, Part I

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The IRS is very aggressive in its audits of marijuana businesses, doing “random audits” of nearly everyone in the industry – particularly if their operations are large and profitable. A recent case involving the owners of a Colorado medical marijuana dispensary highlights the devastating impact of federal tax law on...