Get A Proven Legal Champion By Your Side
The U.S. Sixth Circuit Court of Appeals released their opinion in U.S. v. Chicorel, No. 17-2321, slip op. (6th Cir. Oct. 25, 2018) and held that the federal government satisfied the ten-year statute of limitations on tax collection when it filed a proof of claim in a...
There is no question that the Internal Revenue Code is complex. Becoming familiar with the thousands of pages it contains, along with accompanying treasury regulations and Tax Court decisions, is a daunting task for even tax professionals to keep up with. However,...
The Internal Revenue Code limits the deductions that a taxpayer can take for activities not engaged in for profit. 26 U.S.C. §183(c) defines "activity not engaged in for profit" as any activity other than those that deductions are allowable under 26 U.S.C....
The generation-skipping transfer (GST) tax, first enacted in 1976 and simplified in 1986, came about as an effort by Congress to close what was perceived as a loophole in the federal estate tax and gift tax system. A popular estate planning technique, prior to the GST...
26 U.S.C. §101(a)(1) provides as a general rule that "gross income does not include amounts received (whether in a single sum or otherwise) under a life insurance, if such amounts are paid by reason of the death of the insured." As a result, those proceeds are...
Winnings from gambling of any kind are fully taxable under federal law. Gambling income includes, but is not limited to, winnings from lotteries, casino, raffles, sweepstakes, horse races and other sports betting. The taxable value is generally the cash winnings...
The Internal Revenue Code imposes a federal gift tax on any transfer by gift of real or personal property, whether tangible or intangible, on the donor of the property, not the recipient. As a result, the donor may have to file Form 709 - Gift Tax Return to report the...
Generally, you must report the amount of money or the fair market value of goods and services earned as a prize or an award. For example, if you won a cash prize at an art show, won free gasoline for a year from a radio contest, or earned an all-inclusive spa day for...
26 U.S.C. §61(a)(12) states "gross income means all income from whatever source derived, including... [i]ncome from discharge of indebtedness." This means that when you have debt that is forgiven or discharged for less than the full amount owed, then you must...
The United States has a voluntary tax reporting system where individuals file annual returns stating their income and declaring taxes owed. This differs from an "involuntary" tax reporting system where the government simply sends you an annual bill for a flat tax or...