Recent Articles
Federal Court Cracks Down on Texas Tax Fraud Scheme
IRS and Justice Department Victory: Shutting Down Illegal Tax Practices The IRS and the Department of Justice have secured a significant victory in their ongoing battle against tax fraud, with a federal court issuing a permanent injunction against a Texas...
Tax Court Rules S Corporation Owner Liable for Phantom Income
Despite Embezzlement and Unreceived Distributions, S Corporation Shareholder Must Pay Tax The Tax Court has ruled that an S corporation shareholder must pay taxes on income he never received, reinforcing a critical tax principle that affects many business owners. In...
Pennsylvania Supreme Court to Rule on Pittsburgh’s ‘Jock Tax’
The Decision Could Reshape City Finances and Impact Professional Athletes and Performers The Pennsylvania Supreme Court is set to hear a case challenging Pittsburgh’s “jock tax”, a 3% levy imposed on non-resident athletes and entertainers who perform in the city’s...
Supreme Court Ruling Ends Tax-Free Business Transfers
Closely Held Companies Face New Tax Burdens After Connelly v. United States The Supreme Court’s recent ruling in Connelly v. United States has reshaped the way closely held businesses handle ownership transfers after a shareholder’s death. This under-the-radar decision has...
Tax Court Rules on Rental Activity Losses
Why Proving Real Estate Professional Status Can Be Challenging Many investors use rental property losses to offset taxable income. However, qualifying as a real estate professional—which allows full deductions of rental losses—requires meeting strict IRS rules. A new case, Foradis,...
Tax Court Rules Against a Family Limited Partnership (FLP)
Estate Tax Reduction Strategy Fails IRS Scrutiny Family Limited Partnerships (FLPs) can be powerful estate planning tools. They allow business owners to transfer wealth to the next generation while retaining control. However, a new Tax Court case, Estate of Fields...