The cost of alternative treatment can qualify as a deductible medical expense, the Tax Court decides in this case involving a woman with a spinal disease who turned to alternative medicine practitioners at her doctor’s recommendation. Although the treatment wasn’t conventional or universally accepted, the approach was taken to help heal her illness. As such […]
If you fled a high-tax state for one with lower or no income taxes, use caution. Your former state may be watching to see if you really qualify as a resident of the low-tax state or are just claiming that you do to avoid paying a higher tax bill. N.Y. is a prime example, as […]
1. Use e-mail or text messages for any reason. 2. Call a person as an initial collection action. 3. Threaten to file a lawsuit if taxes aren’t paid today. 4. Demand that taxes be paid in a certain way. 5. Threaten to arrest you if you don’t pay taxes today.
Paying alimony? Be sure to check the language in your divorce agreement. The instrument can’t say the amount is nondeductible. Two taxpayers who were required to make payments to ex-spouses learned this lesson the hard way. IRS nixed the write-off in a private ruling when a divorce decree clearly stated that a lump sum payment […]
IRS can’t collect back payroll taxes from a business owner’s dad in this case. The father, who informally helped out at a restaurant that was owned by his son, signed four checks to suppliers and others while the younger man was out of town. IRS claimed this made the dad responsible for the firm’s overdue […]