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Tax Litigation Archives

IRS offers tax tip for deducting costs of a job search

It is no secret that the current job market still remains difficult for many professions. Recent jobs reports show that the economy is adding jobs, but not at a level job applicants want to see. Some California residents may have found their way back into the labor market, but are searching for a better or more permanent position.

State: many California businesses failed to file 2010 tax returns

In business speak, companies are often described as having a heartbeat, although this usage is entirely metaphorical. The law too ascribes to them characteristics more properly thought of as human: They can be held liable, have a legal place of residence and must pay taxes, just like the rest of us.

Some states adopting new tax courts to handle appeals

There is a current division among states over whether to create an independent state tax court system. Such courts hear tax disputes exclusively, replacing the administrative review process, which is the method used in California and 20 other states. Twenty-seven states currently have an independent tax court, although nine of those do not require employees to be experts in tax law.

Tax audits rise as states seek additional sources of tax revenue

California residents know our state's budget deficit troubles all too well. While California's deficit is quite large, other states are experiencing problems similar in kind, though much smaller in degree. Under pressure from some constituents not to raise taxes, some state governments are instead relying on increased tax enforcement to gather much needed revenue.

Prostitution-related charge lands former IRS agent in prison

You can't take a California woman across state lines to engage in prostitution. That's the lesson learned by a former agent of the Internal Revenue Service, who was sentenced earlier this year to two years in prison for that very act. He entered a plea agreement last November, voluntarily disclosing his participation in the crime.

Fresh Start program makes changes to offers in compromise

A number of prior posts on this blog have mentioned the changes implemented by the Internal Revenue Service under its "Fresh Start" program, which contains a number of measures aimed at helping people pay their tax bills. This week, the IRS has announced further modifications to Fresh Start, in particular making taxpayer-friendly improvements to the offer in compromise program.

Taxpayer loses legal argument over word in offer in compromise

Some California taxpayers with significant tax debts may have entered into--or contemplated entering into--an offer in compromise with the Internal Revenue Service. An OIC is the exclusive way for taxpayers to satisfy their debts with the IRS for less than the total amount owed. But the amount offered to settle the debt and any additional terms that become part of the agreement are vitally important. Taxpayers must analyze very closely exactly what they agree to, otherwise they could face unintended consequences.

Restricted stock units leave some workers with high tax bills

Investors will soon be able to own a portion of California-based Facebook when the company goes public. While the imminent initial public offering is a source of excitement for some, it may be cause for concern among some Facebook employees. Because of an interesting provision in the Tax Code, Facebook estimates that its workers will owe the Internal Revenue Service and the state of California a total of $4 billion in taxes when the company's shares hit the open market.

IRS constrained in tax shelter case by statute of limitations

Tax controversies reach the courts all the time, but last week the nation's highest court decided a high-profile tax case that has significant consequences for the Internal Revenue Service. The case involved the IRS's investigation into the "Son of BOSS" tax shelters, so called because they appeared similar to earlier shelters that simply bore the acronym "BOSS," which stands for "bond and option sales strategy."

Tax tips to reduce penalties and interest after filing deadline

The income tax deadline passed a couple of weeks ago, and while many in California filed their returns on time, a few taxpayers likely did not do so. A late filing can cause taxpayers to incur additional costs in penalties and interest, but there are things a person can do to mitigate those expenses. The Internal Revenue Service has released a tax tip touching on that very subject.