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Tax Litigation Archives

Can the IRS contact me after I get representation in a tax case?

Taxpayers in Southern California who are the subject of an inquiry by the Internal Revenue Service have the right to retain the services of an experienced tax professional to represent them in pending matters with the agency. Once the representative properly informs the IRS that he or she is acting on behalf of the taxpayer under investigation, the IRS must respect that relationship and deal with the representative directly.

Federal court in California invalidates DAD tax shelter

The Internal Revenue Code sets up a system of incentives for taxpayers relating to the payment and minimization of taxes. Payment is encouraged through the threat of penalties, while the Code dangles various carrots in front of taxpayers that can reduce their final tax bill. Examples include popular deductions, such as those for charitable donations and home mortgage interest payments.

California institutes sales tax for certain online purchases

For years, California residents have used online shopping for its ease, convenience and lack of sales taxes. While purchasers can still reap the benefits of having goods shipped directly to their home or office, they can no longer avoid paying sales taxes on items bought from larger retailers.

Medical marijuana dispensary costs not a business expense

There is an unusual interplay between federal and state laws. While states have the ability to enact their own laws, when there is a conflict, federal laws control. For example, medical marijuana dispensaries are a completely legal business in California. However, federal law still considers marijuana a controlled substance regardless of the purpose for which it is used.

How can California residents use tax law to help pay for college?

Labor Day is just around the corner, signaling the unofficial end of summer and the traditional start of the academic year. At colleges and universities around California, students are moving into apartments and dormitories, purchasing supplies at the bookstore and preparing for the first day of classes, if they haven't already begun.

Letters from IRS could lead to full-scale tax investigation

While sorting through their mail this year, a number of Southern California residents have probably had their hearts skip a beat as they discovered a letter from the Internal Revenue Service. Perhaps it was a request for information, or perhaps it was the dreaded notice of deficiency, which is the herald of tax litigation. Whatever the contents, a communication from the IRS rarely fails to induce anxiety.

Keeping organized records can help with tax returns, IRS audits

It is never too early for California taxpayers to begin preparing for next year's tax season. The more that one is able to accomplish today, the less work one will have to do to beat the filing deadline come April 2013. Keeping accurate, detailed and well-organized records is one way to ensure that springtime is not filled with stress.

California FTB sends tax audit letters questioning filing status

Selecting the correct filing status on one's state or federal tax return is important. Certain statuses, such as married or head of household, provide benefits not available to those who file singly. Of course, taxpayers must meet certain criteria in order to qualify for these statuses. But each year, either deliberately or by mistake, tens of thousands of California residents wrongly choose their status.

Installment agreement one option for those with tax debts

When summertime is in full swing in Southern California, taxes may be the furthest thing from many residents' minds. But for those who owe money to the Internal Revenue Service, taxes can become a year-round preoccupation. Since penalties and interest on tax debts can quickly swell the total amount owed, it is important to reduce and eliminate one's debts as quickly as possible.

IRS tax audits of businesses focus on corporations

When people in Southern California think of an Internal Revenue Service audit, they may picture an agent grimly scrutinizing a taxpayer's Form 1040, inquiring perhaps whether the person was eligible to claim certain deductions. While the IRS does perform tax audits of individual tax returns, it also spends a significant percentage of its resources on examining the returns of corporations.