by Leif Jensen | Apr 7, 2020 | Tax Court, Taxes |
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...
by Leif Jensen | Apr 1, 2020 | Tax Court, Taxes |
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...
by Leif Jensen | Mar 11, 2020 | Tax Court, 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...
by Leif Jensen | Mar 10, 2020 | Tax Court, Taxes |
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...
by Leif Jensen | Nov 13, 2019 | Tax Court |
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...
by Leif Jensen | Nov 12, 2019 | Tax Court |
A man who set his own hours and worked unsupervised is determined to be an employee; not an independent contractor, the Tax Court rules. After examining all of the facts, including the following: The man worked for the same company for many years. The company withheld...
