| Abusive Trusts |
| Most trusts are set up for a legitimate purpose. They can be used properly in estate planning, charitable contributions, and as entitles to hold property for minors and incompetents. In most cases, trusts are separate entities subject to income tax, except for certain charitable, pension, or grantor trusts expressly exempted by the tax laws. Under the Internal Revenue Code, either the trust, the beneficiaries, or the transferors must pay tax on the income generated by the property held in trust.More... |
| Entertainment Expense Deductions |
| A taxpayer is permitted to deduct unreimbursed entertainment expenses only if they are either directly related or associated with a business. In order to meet the directly-related test, the taxpayer must show that the main purpose of the combined business and entertainment was the active conduct of business, that the taxpayer did in engage in business with the person during the entertainment, and that the taxpayer had more than a generalized expectation of a business benefit at some future time. More... |
| Partnership Audits |
| Even though it is the individual partners, not the partnership, that are responsible for reporting and paying taxes on any gains or losses recognized by the partnership, audit proceedings on partnership items are conducted on the partnership, not the individual, level. More... |
| Stock Options |
| Some corporations give their employees options to buy or sell stock or other property as payment for services. The question of when you are required to report income resulting from the receipt of the option depends on whether they are nonstatutory or statutory options. Your employer can tell you what kind of option you are holding.More... |
| Liens |
| Once the Internal Revenue Service has assessed a tax and has sent the taxpayer a bill in the form of a Notice and Demand for Payment, a lien arises in favor of the government on all real, personal, tangible, or intangible property of the delinquent taxpayer until the amount is paid. By filing notice of the lien, the IRS has publicly notified all creditors of the taxpayer that it has a claim against the taxpayer's property, including property acquired after the lien was filed. The notice establishes priority of the government's lien in circumstances such as bankruptcy proceedings or sales of real estate. A federal tax lien may harm a taxpayer's credit rating and impair his or her ability to get a loan, a credit card, or a mortgage.More... |
|
||||
|
||||
|
