A Sordid Tale of Donkeys and Horses: Tax Court Style – Part One

The following tale is the first in a two part series relating to a couple of recent decisions from the United States Tax Court. Both decisions center around the often-litigated topic of a taxpayer’s profit-motive and whether those taxpayers should have been the allowed the losses stemming from their breeding businesses. On December 21, 2021, [...]

IRS Ratchets Up Efforts To Pursue Noncompliant Taxpayers

The United States Department of Treasury (the Treasury) issued “The American Families Plan Tax Compliance Agenda,” detailing how the current administration intends to tackle the ever-looming noncompliance issue. This report was a follow up to the April of 2021 American Families Plan that included proposals that the administration announced to increase tax compliance. The Treasury [...]

Can Cleaners Be Treated As Independent Contractors?

The proper classification of workers is a decision that is critical to the success or failure of many small businesses. This is especially true in light of the on-going public health crisis, where margins have been squeezed to their absolute limits. For more information relating to the classification of workers, please see these previous blog [...]

IRS Releases People First Initiative FAQs

On March 25, 2020, the Internal Revenue Service (IRS) announced its “People First Initiative,” a program intended to respond to the challenges of Covid-19 by providing a variety of relief related to IRS deadlines and collection actions. For additional information, please see our previous blog article regarding the People First Initiative here and the full [...]

Proving ‘Material Participation’ In Today’s Digital Age

The fight over who meets the definition of a “real estate professional” is not a new one. Fortunately, the taxpayer’s burden for satisfying that definition has only been eased by the expansion of digital tools available for tracking time. That being said, the United States Tax Court’s (Court’s) memorandum opinion in Hairston v. Comm’r of [...]

The IRS Adds Passport Revocation To Its Collections Arsenal

On January 16, 2018, the Internal Revenue Service (IRS) issued a press release emphasizing that taxpayers who are behind on their taxes should pay what they owe or enter into an Installment Agreement. This warning was issued because the IRS intends to implement new procedures that will put the passports of delinquent taxpayers at risk. [...]

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