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Tax Litigation Archives

IRS offers tips on deducting dental and medical expenses

The IRS creates and maintains a list of helpful tax tips that can benefit California taxpayers as they begin to prepare their 2011 returns. Failure to heed these tips may result in paying more tax than is required or may risk an audit by the IRS. An experienced California tax attorney can ensure that your taxes are in order and defend you in the event of an audit.

Court ruling allows bankruptcy trustees to garnish tax refunds

While many people dread the approach of the April 15 deadline for filing their tax returns, many California residents also eagerly anticipate the reward: a federal tax refund. But for taxpayers completing a repayment plan under Chapter 13 of the Bankruptcy Code, the refund has been taken away in one judicial district in Michigan.

The thin line between business expenses and hobby losses

Last week we discussed the fact that sometimes business expenses are characterized as hobby losses by the IRS. The line between business expenses and hobby losses is sometimes thin, especially in the context of new businesses.

Upstart California business expenses may be hobby losses

This is the year that many Orange County residents will follow their passions and start their own businesses. The current economic climate has shown many Californians that being an employee of someone else is not as risk-free as it once was, which is why increasing amounts of Californians are going into business for themselves while still employed. Normally, businesses can deduct expenses but the deduction of business expenses may not be as straightforward for many upstart businesses.

More last-minute tax saving tips

The year is not over and it is not too late to make some shrewd moves to save on your yearly tax bill. In our last post we discussed the importance of proper tax planning for high income individuals and the fact that some deductions may trigger an IRS audit. We also discussed three tax saving tips that the IRS recently issued including donating to charity, installing green-energy appliances, and making changes to an investment portfolio.

IRS releases last-minute tax reduction tips

Orange County residents with high incomes are more likely to itemize their tax deductions and to be targeted by an IRS audit. The IRS is more likely to scrutinize the deductions that a high-income earner takes and the failure to provide supporting documentation for a deduction can get a taxpayer into serious legal trouble.

What to do if you receive a 90-day or 30-day letter from the IRS

In our last post we discussed the importance of calling a California tax law attorney when the IRS sends a notice of deficiency. A notice of deficiency is also called a 90-day letter because it states that a taxpayer has 90 days to either submit a Form 1040 tax return, consent to the IRS' deficiency assessment, or explain why the taxpayer is not required to file taxes.

The consequences of ignoring a notice of deficiency

The IRS' collection procedures can be unfair and complicated. When the IRS decides that an Orange County resident owes money, it can simply take the money it feels entitled to. A California tax law attorney can help those who face levies and other collection actions fight against the harsh collection practices of the IRS.

Rental activity losses and the rule of "material participation"

Last week we discussed the tax court case of one California couple that was audited for deducting losses for their rental properties. Rental activity is typically considered a "passive activity" under the tax code and is therefore subjected to a limit. California taxpayers with rental properties can avoid this limit on losses if they qualify as "real estate professionals" that materially participated in the rental of a given property. We discussed particular requirements of the "real estate professional test" in last week's post.

IRS slaps $500k tax lien on Christie Brinkley's estate

Having a tax lien placed on your property is not only embarrassing but a lien can also ruin real estate deals and compromise lines of credit based on the property. The IRS routinely places levies and liens on taxpayers and the IRS often makes mistakes in doing so. Unfortunately the burden is on the property owner to file a wrongful levy claim to prove that a tax lien or levy is invalid. An experienced Irvine wrongful levy claims attorney can help California taxpayers properly file wrongful levy claims and help repair some of the damage that the IRS has done.