The IRS, like the rest of society, has faced several challenges as a result of the pandemic. Some of those challenges are still lingering, such as funding, backlog, lack of guidance and inexperienced auditors. Efforts to fix these problems are underway but will take time. As taxpayer advisors, it’s important to recognize the limitations in
Tony Box Quoted by Law360 on Trump Lieutenant’s Plea
Former Trump Organization Finance Chief Allen Weisselberg pled guilty last week to 15 felonies for what he admitted was a tax fraud scheme he committed while an executive for Trump’s company. Law360 covered the story and quoted Gray Reed Partner Tony Box multiple times. Tony is a former Assistant US Attorney and tax coordinator responsible…
A Close Look at the Decentralized Effort to Tax Digital Assets
Cryptocurrency is no longer a new asset — it’s been around since 2009 — and the number of individuals and businesses who own or use cryptocurrency and NFTs, and the underlying blockchain technology, continues to increase with each passing year. Remarkably, the U.S. and most other countries are still only beginning to regulate the taxation…
Renewable Energy Tax Credits: Green Energy Saving Greenbacks
The new Biden administration is clearly signaling that renewable energy will be a key focus of its plan going forward. For example, the Biden administration has set a goal to deploy 30 gigawatts of offshore wind generation capacity by the year 2030. Therefore, it can be expected that tax advisors will be seeing more questions…
Guidelines for Protecting Privilege in Tax Cases
Lawyers, tax or otherwise, understand that privileged information must be protected to encourage a full and frank dialogue between clients and their attorneys. Tax information, in particular, contains some of the most private information for both individuals and businesses. Gray Reed attorneys Joshua D. Smeltzer, David Gair and Larry Jones recently published an article…
Missing Annual Franchise Tax Reports Can Have Big Consequences
Co-author: Tim Fandrey
A corporate client of the firm was recently sued for breach of contract and other violations. However, the company manager found himself facing a personal liability allegation for the company debts. Why? The petition claimed that personal liability was warranted because the company failed to file a timely Texas franchise tax report. This failure meant the company forfeited its corporate privileges from the day after the franchise tax report was due until the date when the report was filed and any associated tax liabilities were paid. However, can this simple failure cause personal liability against the officers and directors for the debts of the corporation?
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Deduct the Dogwoods: Tax Deductions for Winter Storm Uri Landscaping Expenses
When Texas froze in February, I learned a couple of things: i) snow storms have names, and ii) people in my neighborhood aren’t great at covering plants. Those poor sago palms never had a chance.
Compared to the damages to homes and burst pipes throughout the state, clearing out the flower beds after Winter Storm Uri may be just a minor inconvenience, but there was a lot of dead foliage that needed to be replaced and removed all over Texas. Taxpayers should remember that those storm-induced landscaping expenses could qualify for a casualty loss deduction on their income tax returns. Because special tax rules apply to federally declared disaster area losses, potential deductions for property owners include the cost of removing the damaged plants, measures taken to preserve the shrubbery and any replanting costs necessary to restore the property to its approximate value before the casualty.
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Questioning IRS Approval of Penalties Under Code Sec. 6751
Recent decisions have provided taxpayers with new ways to procedurally challenge penalties assessed in their cases. Joshua D. Smeltzer, former Department of Justice Tax Division litigator now at Gray Reed, recently published an article in the Journal of Tax Practice & Procedure (a quarterly scholarly journal published by CCH Inc.) outlining the questions that…