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Articles Posted in Federal Tax

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Worker Classification Case – A small WIN for Employers (Service Recipients)

What is a worker classification issue?  When the Internal Revenue Service (“IRS”) believes that a taxpayer (i.e. employer or service recipient) is improperly treating workers as independent contractors instead of employees it will pursue the taxpayer by initiating an examination, more commonly known as an audit, where the taxpayer will…

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Simplification: They Must Not Be Talking About Federal Tax Laws

Potential good news for the growing mobile workforce.  Currently, there is a Bill pending in the US Senate to simplify the exposure, withholding, and reporting of state income taxes for both employers and employees traveling across state lines to perform their job functions.  The US House of Representatives already passed…

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Shareholder is Responsible Party for Trust Fund

As Florida tax attorney’s we are often asked the question as to whether the IRS can come after an officer of a company personally for taxes. As a very general rule, the state or the IRS can only come after an officer personally if the taxes are trust fund taxes.…

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Employment Taxes: One Month Remains for Voluntary Classification Settlement Program (VCSP) With IRS

In Announcement 2011-64, the Internal Revenue Service (“IRS” ), which provided taxpayers with a chance to change the status of their workers from independent contractors to employees for future tax periods. If the program was elected by a taxpayer, then the IRS would apply minimal tax liability to the employer…

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TAXES AND MEDICINE: ARE FALSE CLAIM ACT (FCA) SETTLEMENTS DEDUCTIBLE?

Between the years of 1993 and 1997, whistle blowers brought forth ten cases accusing medical groups of conspiring to defraud Medicare. Normally, a case like this doesn’t grab my attention; however, as a Florida tax attorney, this medical case caught my eye. I was not interested in whether the claims…

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IRS ISSUES TAX COURT MEMO DENYING CHALLENGE TO COLLECTION DUE PROCESS HEARING FOR TAX LIEN

Our practice receives many calls dealing with collection due process hearings. The hearing is an opportunity for a Taxpayer to contest a tax assessment by the IRS. Recently, on April 18, 2013, the Tax Court issued a Memo (an opinion) regarding a collection due process hearing sought by two individuals.…

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SICK OF HIGH TAXES? WHY NOT CONVERT TO A REIT

Many individual and corporate taxpayers are becoming annoyed with rising tax rates. For many wealthy Americans, income is taxed federally and by many states at the corporate level and then taxed again when the income is distributed to the shareholders of the corporation. Without even taking into account state and…

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IRS & Massachusetts Department of Revenue Show Compassion Following Boston Marathon Explosions

It is difficult to change the channel without hearing some development this week in the Boston Marathon explosion. This week in April, 2013 has been mostly a dark one. However, as we tend to in the face of crisis, our nation has shown its resolve and unity. While it can…

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Hollingsworth v. Perry: California Same-Sex Marriage Case Will Have Tax Implications As Well

I am sure many people, myself included, have seen the movements on the airwaves and social media discussing the same-sex marriage case out of California. From constant coverage online and on news stations, to many changing their Facebook default picture, the California same-sex marriage case has grabbed the national spotlight…

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FORE! Tax Court Sides with IRS in El Nino’s Royalty Income Allocation

It is no secret that professional golf can be extremely lucrative for its star players. Not only do the tour golfers make substantial income from the golf tournaments in which they do well, but they can also make exponentially more money from endorsement or royalty deals. As all sports, especially…

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