Excise Taxes The IRS has issued guidance on how taxpayers can begin reporting and paying stock buyback or stock repurchase excise taxes. Announcement 2023-18 states that taxpayers may wait until the IRS issues regulations relating to the stock repurchase excise tax until they have to report any excise tax on stock repurchases. This potentially pushes
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Tax and Vice – Tax on Social Media Influencers
Tax on Social Media Influencers This installment of the Tax and Vice Blog series will focus on social media influencers and the potential tax issues they may face at audit. Social Media influencers have businesses just like everybody else, there is a tax on social medial influencers just like everybody else, and they get audited
How the IRS Calculates Penalties and Interest?
IRS Penalties and Interest The obligation to pay taxes becomes even more burdensome when accompanied by penalties and interest. The Internal Revenue Service (IRS) imposes tax penalties for various reasons, such as failure to file tax returns on time, inaccurate tax returns, or failure to pay owed taxes. If you find yourself facing an IRS
Tax Liens
Tax Liens What are tax liens? A tax lien is a legal claim imposed by the state or federal government on your property when you fail to pay a tax debt. The purpose of the lien is to ensure payment of the outstanding tax debt. If the debt remains unpaid, the government has the authority
Tax and Vice – California Sales Tax and Cannabis Tax Issues before the CDTFA
California Sales Tax and Cannabis This installment of the Tax and Vice Blog will focus on a recent California Sales Tax and Cannabis Tax case heard by the California Office of Tax Appeals (OTA). The OTA sided with the CDTFA and ruled against the Taxpayer in Appeal of Sacramental Native American Church (SNAC). While there
What to Look for When Hiring a Tax Attorney
Hiring a Tax Attorney Are you in need of a tax attorney? If so, it is essential to understand what to look for when hiring a tax attorney. Typically, individuals seek the services of an attorney when they find themselves in an unfortunate legal situation, they are unable to navigate independently. When searching for a
IRS Form 8300 – What Is It and Why Is It Important?
IRS Form 8300 If you engage in a business or trade that receives large cash payments, understanding IRS Form 8300 – what it is and why is it important – is crucial. The IRS mandates “each person engaged in a trade or business who, in the course of that trade or business, receives more than
How Does a Bypass Trust Work?
Bypass Trust A Bypass Trust allows you to provide for your surviving spouse and leave assets to your children, without the burden of estate taxes. Some BackgroundAs of 2023, the federal estate tax exemption is $12,920,000. This means estates valued below that number are exempt from the federal estate tax. The value of an estate
Rethinking IRS Penalty Assessments: A Deep Dive into the Farhy v. Commissioner Ruling
Farhy v. Commissioner In a recent landmark ruling, Farhy v. Commissioner, the Tax Court has significantly changed penalty assessments under I.R.C. Section 6038(b) of the Internal Revenue Code. This ruling, rendered on April 3, 2023, carries significant implications for a broad range of taxpayers, potentially offering a basis to challenge or request refunds for penalties
What You Need to Know About FinCEN Form 105 – Importing Currency into the United States
What You Need to Know About FinCEN Form 105 As a city with a direct border to Mexico, San Diego is a popular destination for our Mexican neighbors who need to know about the FinCen Form 105 in order to bring currency into the United States for business or personal use. Those planning to import