An accounting firm is liable for its clients’ unpaid employment taxes, a court rules. A business hired the accountants to fully manage its payroll and accounts payable, such as depositing taxes, preparing returns and issuing checks to workers and vendors. When the client had financial problems and fell behind on depositing withheld taxes, it told [...]
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Abandoning to Buy Real Estate is an Ordinary Loss
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Tallahassee Tax Service, TallyTaxMan
A loss on abandoning an option to buy real estate is an ordinary loss, the Tax Court says in the case of a man who was in the business of buying, intending to subdivide and develop it. But after an unsuccessful search for partners, he gave up the option. Since he would of had ordinary [...]
Read More 2013-6, abandoning, Abandoning to Buy Real Estate is an Ordinary Loss, Income Tax Planning, Income Tax Preparation, IRS, real estate, Sutton, Tallahassee Tax Service, TallyTaxMan, Tax Court, TC Summ. OpA Settlement Award for Bad Tax Advice is Taxable
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Tallahassee Tax Service, TallyTaxMan
A settlement award for bad tax advice is taxable, IRS attorneys say. A couple who participated in an abusive tax shelter sued the accounting firm that promoted the transaction to them for malpractice due to improper tax advice. The parties settles the lawsuit, and the couple excluded the payment they received, claiming the amount was [...]
Read More A Settlement Award for Bad Tax Advice is Taxable, abusive tax shelter, accounting firm, AGI, bad tax advice, improper tax advice, Income Tax Planning, Income Tax Preparation, IRS, nontaxable return of capital, Schedule A, Service, Tallahassee Tax Service, TallyTaxMan, Tax