Tax Litigation Law Office of Scott Kauffman
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Tax Controversy Archives

Short sales and debt cancellation income in California: an update

This is a follow up to a story we took note of last month about the availability of a tax exemption for the nominal income taxpayers technically receive from mortgage debt relief following a short sale or foreclosure.

More on worker classification: possible FLSA issues

This is a follow-up to our November 20 post on the difficulty of distinguishing independent contractors from employees. The distinction is of course important not only for payroll tax purposes, but also for other employer expenses, including unemployment taxes and workers' compensation.

California and feds diverge on mortgage forgiveness tax exemption

For decades, the structure of the federal income tax system has exerted considerable sway over state income tax systems. To be sure, there are several states that don't impose personal income taxes. States that do impose such taxes, however, have generally followed the federal lead regarding how tax deductions, exemptions and credits are handled.

Struggling taxpayers, part 1: tax issues related to job loss

“You can’t get blood from a stone,” goes the old phrase. Lawyers who are seeking to collect on judgments in favor of their clients know this phrase, and the reality it points to, very well. So, of course, do debt collectors – though those collectors sometimes try to squeeze even when there is nothing there.

Partnership form and IRS penalties: Supreme Court hears tax case

The U.S. Supreme Court does not accept tax cases very often. But earlier this month, the Court heard oral arguments in United States v. Woods, a case involving a challenge by two businessmen to the severe tax penalty imposed on them by the IRS.

How much is a work of art worth (on a tax return)?

On one level, the question of an art object’s worth is a philosophical one. But the Internal Revenue Service is not generally known for its aesthetic interests. When the IRS takes an interest in the transfer of a painting, it is probably because the agency has a stake in determining its monetary value.