In part one of this post, we noted that taxpayers in Texas may be adversely affected by the failure of Congress to continue a long-standing tax break for the payment of state and local sales taxes. As we explained in our January 9 post, Congress has historically allowed a deduction […]
Category: Tax Controversy
Some states have income taxes and some do not. And in states with income taxes, Congress allows taxpayers to deduct their state income tax payments from their federal taxes. But in an effort to have equitable treatment between income-tax states and those with no income tax, Congress has historically allowed […]
In a case that is likely to have a chilling effect among tax professionals, a Kentucky judge has ordered accounting giant Grant Thornton to pay $100,200,000 to a former client, for selling what is being referred to as an “abusive tax shelter.” The scheme, which would purportedly allow the client […]
We write about many nuts-and-bolts tax issues in this blog. From correspondence audits to employment taxes and on and on, there is never a shortage of specific issues to address in our very complicated U.S. tax system. In this post, let’s take a step back and take a wider look […]
The connection between charitable giving and tax write-offs shows the complexity of human motivations. On the one hand, many people are altruistic and enjoy helping others and the wider community by giving gifts to charities that perform various forms of service. On the other hand, though, the ability to take […]
In recent years, layoffs have become a frequent and seemingly permanent part of the national economic landscape. Even with the Great Recession officially over for more than four years, there are still plenty of people losing their jobs. Many of these people get severance pay. And so the tax treatment […]
In a previous post, we discussed how the requirement to make estimated tax payments applies to small businesses. As we mentioned in our July 2 post, self-employed individuals must also make estimated tax payments each quarter. In today’s post, then, let’s focus on the applicability of self-employment tax to individuals. […]
Payroll taxes are not the only taxes that businesses must concern themselves with. There are numerous other tax issues that affect businesses, from estimated tax payments to the need to keep good records in case of tax audits. These are basic issues that affect businesses in Texas and across the […]
Many tax controversies ultimately come down to a very basic question: Does something need to be counted as income? This is not a question that can be answered in the abstract. It depends, rather, on the specific provisions of a very detailed and densely-packed federal tax code and its state […]
For decades, the U.S. tax code has contained key provisions to encourage home ownership. One, of course, is the home mortgage interest deduction. Another is the one-time exclusion from income of gain from the sale of a principal residence. The amount of that exclusion can be up to $500,000 for […]