The marijuana industry has experienced a nationwide boom in the last five years. In 2013, the marijuana industry realized approximately $1.5 billion in sales. In 2017, the industry realized approximately $9 billion in sales. Those numbers will, likely, only continue to rise as more and more states continue to legalize recreational marijuana. In spite of [...]
Are Sexual Harassment Settlement Payments and Attorney Fees Tax Deductible? It depends on whether the business requires a nondisclosure agreement as part of the settlement. Previously, under IRC §162, businesses were allowed a deduction for amounts paid in connection with a legal settlement pursuant to employee complaints such as discrimination and sexual harassment. However, Section [...]
Offshore Voluntary Disclosure Program Ends September 28, 2018 The IRS recently announced that it will end its Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. To participate in the OVDP before it ends on September 28, 2018, a taxpayer must submit a complete offshore voluntary disclosure. The disclosure must (1) conform to the requirements [...]
The Minnesota Department of Revenue (MDR) generally has 3.5 years from the date a tax return was due to assess additional tax. If the MDR audits a taxpayer’s return and increases the tax liability, how much time does the taxpayer have to appeal and contest the additional assessment? Below are the general time frames within [...]
New IRS Test Criteria for Streamlined Installment Agreements: Liabilities Up to $100,000 Eligible for Streamlined Installment Agreement The IRS recently extended its test program for streamlined installment agreements to allow individual taxpayers with up to $100,000 in assessed tax, penalties, and interest to apply for streamlined installment agreements. This article addresses some of the benefits [...]
I am often asked how long do I have to maintain records to protect myself against actions by the Internal Revenue Service? Along with that question comes the question about whether the IRS has the burden of proving a taxpayer owes the tax (assuming it met its burden when first assessing the tax) if many [...]
The IRS appears to be more serious about pursuing and prosecuting companies that do not pay their employment taxes. The IRS’s first step to address this problem with unpaid employment taxes is to contact these companies as early as possible, hoping this early intervention will prevent the misuse of withheld taxes from ever occurring. Sixty-nine [...]
This is the first article in the Freedom Of Information Act Requests (FOIAs) and Government Data Practices Act Requests (GDPAs) series. This series is intended to provide taxpayers and practitioners with answers to the most commonly asked questions relating to the use of FOIAs and GDPAs. The use of FOIAs and GDPAs allow taxpayers and [...]
This is the sixth article in a series dedicated to the rules regarding who qualifies as a “resident” of the State of Minnesota for tax purposes. Status as a resident of Minnesota is important as all Minnesota residents are subject to Minnesota individual income tax, estate tax, and sales and use tax. Non-residents are usually [...]
This is the fifth article in a series dedicated to the rules regarding who qualifies as a “resident” of the State of Minnesota for tax purposes. Status as a resident of Minnesota is important as all Minnesota residents are subject to Minnesota individual income tax, estate tax, and sales and use tax. Non-residents are usually [...]