IRS Furloughs Thousands As the federal government shutdown continues, the Internal Revenue Service (IRS) has furloughed nearly half of its workforce, significantly disrupting tax administration just days before the critical October 15 filing deadline. The shutdown, which stems from a lapse in congressional appropriations, has left approximately 34,000 IRS employees, roughly 46% of the agency’s
Blog
What the Government Shutdown Means for Taxpayers
Government Shutdown As of 12:01AM, October 1, 2025, the federal government has shutdown due to a lapse in appropriations and inability to pass the funding bill. So, what does the government shutdown mean for taxpayers, businesses, and tax professionals navigating ongoing controversies and enforcement matters? 1. What a Shutdown Is (and What it Is Not)
Tax And Vice – Tax Court Limits Cannabis’ Businesses Ability to Claim Pass-Through Deductions
Tax Court Limits Cannabis Pass-Through Deductions The US Tax Court’s Recent Decision in Savage v. Commissioner (165 TC 5) struck a blow to the cannabis industry which already receive unfavorable tax treatment. Section 280E of the Internal Revenue Code already prevents cannabis businesses for taking deductions for items most other businesses can claim deductions for
Faith-Based? Educational? Charitable? How to Structure a Nonprofit
How to Structure a Nonprofit For individuals or organizations launching a mission-driven entity, operating as a tax-exempt nonprofit can be a powerful way to pursue long-term goals while unlocking key benefits such as donor deductibility, grant eligibility, and exemption from federal income tax. However, before the IRS grants 501(c)(3) status, it must be satisfied that
5 Years of AB5 – What Did it Really do to California EDD Employment Tax?
California EDD Employment Tax California’s AB5 legislation has been in effect for 5 years. This legislation changed the legal standard the Employment Development Department (EDD) used in California employment tax audits for determining whether a worker was an employee or independent contractor for most workers. At the time AB5 passed, its critics and proponents claimed
RJS LAW is Proud to Advise Charitable & Non-Profit Organizations
Charitable & Non-Profit Organizations RJS LAW advises charitable & non-profit organizations at every stage of their life cycle. We provide legal and tax guidance on a wide range of matters, including: 1. Formation and Governance – If you are considering starting a tax-exempt organization, we can help you choose the most appropriate exempt status to
CDTFA Finds Cold Food Orders Eaten at Mall Restaurant are Subject to California Sales Tax Because They were Not To-Go
California Sales Tax As a general rule, the state of California charges sales tax on the sale of all tangible personal property. One of the exceptions to the general rule is that sales of food are tax free. However, food sold at restaurants may be subject to sales tax. The CDTFA always charges sales tax
Tax And Vice – CDTFA Audits Cannabis Business: Tax Audit Gone Wrong
CDTFA Audits Cannabis California Department of Tax and Fee Administration (CDTFA) Sales Tax audits are never a walk in the park. The recent California Office of Tax Appeals (OTA) decision in the Halo City Solutions matter, which involved a CDTFA audit of a Cannabis business, highlights just how a tax audit gone wrong can take
Recent Ninth Circuit Case Highlights Key Difference Between Tariffs and Taxes
Tariffs and Taxes Tariffs are all over the news these days. At a 30,000-foot level, tariffs operate much like a sales tax on imports. However, there is a key difference between tariffs and taxes. Namely, a third party can bring suit in federal court to enforce a tariff. As a general disclaimer, this blog will
Key Tax Provisions in the “One Big Beautiful Bill” Just Passed by Congress
Key Tax Provisions in the One Big Beautiful Bill Just Passed by Congress On July 4, 2025, President Trump signed into law the One Big Beautiful Bill fulfilling his promise to enact a major tax reform by Independence Day. Here are some of the highlights: 1. Pass-Through Deduction (Section 199A) Made Permanent The 20% deduction