The Tax Court denied equitable relief to a taxpayer seeking Innocent Spouse Relief after his ex-wife improperly claimed deductions on their joint tax return. Despite meeting several conditions, the court ruled that the taxpayer’s lack of involvement in reviewing the return and claiming a refund undermined his claim of innocence.
Tax Deductions and Credits Texans Should Know About,Tax Deductions and Credits
As a business owner, keeping your finances in order is crucial not just for your company’s success but also to stay compliant with tax laws. A recent high-profile case serves as a cautionary tale about the severe consequences of neglecting tax obligations.
Deciding who should own the business car—yourself or your corporation—is a crucial decision for single-owner S corporations. This choice impacts insurance rates, tax deductions, and administrative complexity. Individual ownership may offer better insurance rates, but it complicates reimbursements and tax reporting.
The IRS is set to intensify its audit activities thanks to an $80 billion boost from the Inflation Reduction Act. This funding aims to revitalize the agency, which has faced years of underfunding, resulting in customer service issues and decreased audit rates. Wealthy individuals and large corporations will be the primary focus of these increased audits.
Closing your sole proprietorship involves more than just shutting the doors. Understanding the tax implications is crucial. In our latest blog post, we break down the key considerations when shutting down your business, from asset sales to tax strategies.
You can leverage your home office into a tax benefit for both you and your corporation by following these steps. Remember, careful documentation is key to proving your home office meets the IRS requirements.
Understanding Texas Sales Tax: What Businesses Need to Know,Texas Sales Tax
Suburban Chicago man sentenced to federal prison for tax fraud, overstating business expenses and charitable contributions.
When taxpayers file a joint tax return, both spouses are jointly and severally liable for the entire tax due. However, there’s an exception if fraud is involved, allowing tax liability to be appropriately allocated. In a recent case, a husband sought Innocent Spouse Relief after his ex-wife filed their 2016 tax return without his knowledge, deducting significant unreimbursed employee business expenses. Despite meeting several conditions for relief, the tax court denied his request, emphasizing the importance of reviewing tax returns before filing. This case highlights that ignorance of return contents cannot shield one from liability.
