On December 3, 2024, the US District Court for the Eastern District of Texas found that the Corporate Transparency Act (CTA) was likely unconstitutional and issued a preliminary injunction to that effect. See Top Cop Shop, Inc. vs. Garland, No. 4:24-CV-478 (E.D. Texas 12/3/24). The CTA was enacted in 2021, and was meant to combat [...]
Corporate income taxes are generally the responsibility of the corporation and not the individuals that own the corporation. However, there are circumstances where the Internal Revenue Service (IRS) can pursue an assessment of those obligations against the individuals. One of those methods of assessment is an alter ego and it is pursued when the IRS [...]
Yes. If you owe money to the Internal Revenue Service (IRS), the IRS has many tools it may use to collect that money, including foreclosure action against your home. This is usually a tool of last resort for the IRS. The IRS will generally take many other steps to try to collect the outstanding federal [...]
The United States Supreme Court is considering an investor’s objection to summonses issued by the IRS. United States v. Clarke, No. 13-301. Mr. Clarke, the investor, is arguing the IRS improperly issued summonses as retribution against him and his business partners for resisting an audit and that he should have an opportunity, in a court [...]
An individual assessed the Trust Fund Recovery Penalty (TFRP) has the option to pay just a portion of the assessment to gain access to a court. This is different from the requirement for income taxes, which calls for payment, in full, of the tax, penalty, and interest, before a court can hear the case. The [...]