One of the requirements for a document to be a tax return is that it is signed by the taxpayer under penalties of perjury. Most tax forms that are intended to be tax returns include a declaration at the bottom that includes the penalty of perjury language. But most tax returns today are filed electronically.… The post Signature Not Required on Tax Return for Criminal Liability appeared first on Houston Tax AttorneysMitchell Tax Law ..read more

The IRS’s historical abuses led Congress to create specific taxpayer rights, including rights stemming from collection due process (“CDP”) hearings. These administrative hearings are intended to pause IRS collection actions while the IRS Office of Appeals considers whether the collection is both lawful and warranted. One might assume these rights extend to any liability assessed… The post No Collection Rights for IRS-Assessed FBAR Penalties appeared first on Houston Tax AttorneysMitchell Tax Law ..read more

There are quite a few tax court cases involving taxpayers who did not have sufficient records to substantiate their tax positions. This is probably more than half of the cases that end up in the U.S. Tax Court. But what about the opposite situation where there are too many records? How is one to contend… The post Tax Disputes When You Have Too Many Records appeared first on Houston Tax AttorneysMitchell Tax Law ..read more

In the tax world, excise taxes are often the neglected step-child. They take a back seat to income and estate taxes. They do not make the headlines very often. Excise taxes are largely transaction-based taxes that target specific industries or activities. The businesses that are subject to these taxes generally just pay them, and consider… The post Fifth Circuit Expands Tire Import Excise Tax appeared first on Houston Tax AttorneysMitchell Tax Law ..read more

Those who create wealth often accumulate assets to store the value of wealth they create. This includes assets that store value and produce additional income, such as real estate. In many cases, the wealth creator has put considerable time and effort into building their portfolio of investments. But when they die, those who inherit are… The post Can a Co-Inheritor Do a 1031 Exchange? appeared first on Houston Tax AttorneysMitchell Tax Law ..read more

If you do not owe any tax for a year and you are certain of it, can you just file an income tax return that reports all zeros for income and lists the amount you paid to the IRS that you want refunded? I’ll refer to this as a “zero income-tax return.” This is a… The post Can You File a Zero-Income Tax Return if You Do Not Owe Any Tax? appeared first on Houston Tax AttorneysMitchell Tax Law ..read more

It is often said that a taxpayer is free to structure their affairs as they see fit and can even do so in a way to minimize or avoid paying taxes. While this is true, it is equally true that the IRS is not bound by the taxpayer’s characterization of transactions. The IRS has a… The post What is a Bona Fide Loan for Tax Purposes? appeared first on Houston Tax AttorneysMitchell Tax Law ..read more

When someone sets up their estate plan, one would hope that the probate process would result in the terms of the estate plan being carried out. State law often allows beneficiaries and heirs to change the terms of someone’s estate plan after they die. For example, in Texas, beneficiaries can usually agree to override the… The post Gift Tax Triggered for Termination of Trust After Death appeared first on Houston Tax AttorneysMitchell Tax Law ..read more

When a marriage involving owners of a flow-through entity is on the rocks, the intertwining of personal and business finances can create significant tax complications. This is especially true when one spouse is more involved in the business operations than the other. There are more than just tax issues to consider in divorce. But taxes… The post Taxes and Flow-Through Entities in Divorce appeared first on Houston Tax AttorneysMitchell Tax Law ..read more

When taxpayers weave together various tax rules to produce a favorable outcome, the IRS will often cite various judicial doctrines to avoid the result or to unwind the transaction. This can include economic substance, the step transaction doctrine, etc. These doctrines allow the IRS to effectively reverse the tax treatment of transactions when multiple tax… The post A Government Step Transaction Doctrine appeared first on Houston Tax AttorneysMitchell Tax Law ..read more