Las Vegas Business Owner Pleads Guilty to Massive Fraudulent Scheme A Nevada woman has pleaded guilty to orchestrating a massive COVID-19 employment tax fraud scheme involving the filing of over 1,200 false tax returns and fraudulently claiming millions in refunds.
Delray Beach Advisor Pleads Guilty to Multi-Million Dollar Scheme A Florida financial advisor, Stephen T. Mellinger III, has pleaded guilty to orchestrating a nearly decade-long conspiracy involving an illegal tax shelter, false tax returns, and the theft of millions from
Freelancers Beware: Misclassifying Income Leads to IRS Penalties A recent Tax Court decision involving a freelance movie critic serves as a stark reminder for freelancers and online sellers: accurate income classification is crucial. The court ruled against the taxpayer, who
IRS and Justice Department Victory: Shutting Down Illegal Tax Practices The IRS and the Department of Justice have secured a significant victory in their ongoing battle against tax fraud, with a federal court issuing a permanent injunction against a Texas
Despite Embezzlement and Unreceived Distributions, S Corporation Shareholder Must Pay Tax The Tax Court has ruled that an S corporation shareholder must pay taxes on income he never received, reinforcing a critical tax principle that affects many business owners. In
The Decision Could Reshape City Finances and Impact Professional Athletes and Performers The Pennsylvania Supreme Court is set to hear a case challenging Pittsburgh’s “jock tax”, a 3% levy imposed on non-resident athletes and entertainers who perform in the city’s
Closely Held Companies Face New Tax Burdens After Connelly v. United States The Supreme Court’s recent ruling in Connelly v. United States has reshaped the way closely held businesses handle ownership transfers after a shareholder’s death. This under-the-radar decision has
Why Proving Real Estate Professional Status Can Be Challenging Many investors use rental property losses to offset taxable income. However, qualifying as a real estate professional—which allows full deductions of rental losses—requires meeting strict IRS rules. A new case, Foradis,
Estate Tax Reduction Strategy Fails IRS Scrutiny Family Limited Partnerships (FLPs) can be powerful estate planning tools. They allow business owners to transfer wealth to the next generation while retaining control. However, a new Tax Court case, Estate of Fields
A Costly Lesson in Valuing Conservation Easements Donating a conservation easement can lead to significant tax deductions for individuals and businesses. However, a new Tax Court case, Savannah Shoals, LLC, Green Creek Resources, LLC (TC Memo 2024-35, 3/26/24), highlights the