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Tax Court Archives |

Deferred Comp

A retired Mary Kay consultant owes self-employment tax on deferred pay that she got after she retired. During her tenure with the company, she was treated as an independent contractor and was compensated with commissions. The payments that she received under the...

Late S-Corp penalties

S corporations that file late returns face a stiff fine $205 for each month late, up to a maximum of 12 months, multiplied by the number of shareholders in the firm. Prior to 2014, the penalty was a mere $195. In this case, in which a nine-owner S corporation lacked...

Payroll Tax Fraud

The IRS remains committed to combatting payroll tax fraud and has it as a high priority The Justice Department is pursuing an increasing number of civil injunctions against businesses, and their officers whom have repeatedly failed to deposit taxes withheld from...

Estate Taxes

Distributing bequests to beneficiaries before paying IRS costs an executor, according to a court ruling. The executor of a big estate knew additional estate taxes would be due after IRS audited the Form 706. He signed an agreement with IRS consenting to have the...

Tax Liens

Ownership by tenancies by the entirety cannot be used as a defense to defeat IRS tax liens, an appeals court confirms, even when only one spouse owes the taxes. This precedent was set by the Supreme Court in a 2002 ruling. In the current case, only the husband owed...

Real Estate

IRS tax liens on real estate can follow the property when it is sold. A buyer learned this lesson the hard way after purchasing realty in a foreclosure sale. Four years earlier, the Service had recorded its notice of tax lien on the property after the former owner...

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