
Houston Tax Attorney Blog
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We provide IRS audit and tax debt solutions for clients nationwide. This includes settling IRS tax debts and resolving unpaid tax liabilities. Our goal is to help reduce the time, confusion, and stress associated with federal and state tax matters.
Houston Tax Attorney Blog
2d ago
When a taxpayer has a capital outlay, they generally want to deduct the expense when the money leaves their bank account or when the liability is incurred. However, the accounting matching principle dictates that expenses should be deducted when the related income is received. The matching principle aligns the income and expense recognition. Our income…
The post Immediate Expensing for Real Estate Costs appeared first on Houston Tax AttorneysMitchell Tax Law ..read more
Houston Tax Attorney Blog
1w ago
The federal tax system provides various procedural safeguards to protect taxpayers while ensuring efficient tax collection. These protections become particularly important when taxpayers face immediate collection actions while simultaneously pursuing tax credits or refunds that could eliminate their tax debt. Many businesses have recently found themselves in this situation after filing amended returns to claim…
The post Can the IRS Collect When the IRS Owes the Taxpayer? appeared first on Houston Tax AttorneysMitchell Tax Law ..read more
Houston Tax Attorney Blog
2w ago
When a taxpayer files a tax return reporting their income, the IRS gains insight into their earnings and can compare this information with similarly situated taxpayers. One might expect that this regular reporting would be sufficient for tax administration purposes. The IRS could simply identify and audit returns showing unusual drops in reported tax. This…
The post IRS Changes Notice Requirement for Listed Transactions appeared first on Houston Tax AttorneysMitchell Tax Law ..read more
Houston Tax Attorney Blog
3w ago
Most tax penalties follow a simple logic. The bigger the tax problem, the bigger the penalty. For example, the civil fraud penalty is one of the most severe penalties in our tax code. This makes sense as fraud is the most severe thing that one can do wrong when it comes to taxes. The civil…
The post FBAR Penalties Are Unconstitutionally Excessive appeared first on Houston Tax AttorneysMitchell Tax Law ..read more
Houston Tax Attorney Blog
1M ago
Many business owners choose to acquire and operate their businesses with partners. This allows them to divide the responsibilities and share the risks and the rewards. But what happens when one business partner falls behind on their federal taxes? Could the tax-compliant partner’s share of the business and business assets be at risk? Can the…
The post IRS Collection From Business Partner’s Property appeared first on Houston Tax AttorneysMitchell Tax Law ..read more
Houston Tax Attorney Blog
1M ago
The courts have taken an expansive view as to what counts as fraud for tax matters. Some courts have even said taxpayers can be held accountable for fraud committed by their tax return preparers. When considering fraud, there is a question as to what activities are considered. Take for example the civil tax fraud penalty.…
The post Conduct During IRS Audit Evidence of Tax Return Fraud appeared first on Houston Tax AttorneysMitchell Tax Law ..read more
Houston Tax Attorney Blog
1M ago
The IRS conducts very few audits. The IRS has recently focused its limited audit resources on higher-income taxpayers who already voluntarily comply with our tax laws. This has made the IRS audit much less effective and even less of a deterrent for most taxpayers. The IRS does have other deterrent measures in its tax enforcement…
The post The IRS’s Challenges With Ghost Tax Preparation appeared first on Houston Tax AttorneysMitchell Tax Law ..read more
Houston Tax Attorney Blog
1M ago
Imagine working for years to resolve your tax problems and finally reaching an agreement with the IRS to settle your tax debt. You make all the required payments, fulfilling your part of the bargain. You think you are in the clear, but say the IRS employees who worked on your case do not like you.…
The post IRS Can Revoke Your Offer in Compromise if it Does Not Like You appeared first on Houston Tax AttorneysMitchell Tax Law ..read more
Houston Tax Attorney Blog
2M ago
Many businesses have significant recurring expenses that occur like clockwork each year. Think of annual maintenance shutdowns for manufacturing plants, seasonal refurbishments for hotels, or equipment rebuilds for industrial operations. While these expenses are predictable and virtually certain to occur, the timing of when they can be deducted for tax purposes isn’t always straightforward. The…
The post When You Can’t Deduct Annual Business Expenses appeared first on Houston Tax AttorneysMitchell Tax Law ..read more
Houston Tax Attorney Blog
2M ago
You should always pay your taxes on time, right? After all, early payment avoids tax penalties and interest, and shows good faith compliance with tax obligations. This is not always the best approach. Why? Taxpayers who pay early or even on time may be precluded from getting money back from the IRS if they overpaid…
The post Tax Refunds Lost to Timing Rules: Lesson, File Early, Pay Late appeared first on Houston Tax AttorneysMitchell Tax Law ..read more