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
Lack of Proper Documentation Leads to Denied Tax Deductions Self-employed individuals can deduct “ordinary and necessary” business expenses, just like large corporations. However, they must follow strict substantiation rules to claim these deductions. In a recent case—Kalk, TC Memo 2024-82
IRS Claims He Hid Millions to Avoid Paying Nearly $2M in Taxes Florida Businessman Faces Tax Evasion Charges A Jacksonville businessman is facing serious legal trouble after a federal grand jury indicted him for tax evasion, failure to file tax
Tax Court Allows Partial Deductions Despite Missing Records: Cohan Rule Saves Business Owner from Full IRS Penalty In a recent Tax Court ruling (Pak, TC Memo 2024-86, 9/11/24), a Japanese hibachi and sushi restaurant owner in Alabama successfully invoked the
Tax Preparer Barred for Filing Fraudulent Returns A federal court in the Eastern District of New York has permanently barred a tax preparer and her business, from preparing or filing tax returns for others. She consented to the injunction following
June 2024 Declaration Keeps Marijuana Businesses Under Strict Tax Rules: No Business Deductions for 2025 Tax Season On June 28, 2024, the IRS reaffirmed that marijuana remains a Schedule I controlled substance, reminding cannabis businesses that they cannot claim standard
What Couples Need to Know About Medical Deductions for Surrogacy In a recent private letter ruling (PLR 202505002, 1/31/25), the IRS clarified that in vitro fertilization (IVF) expenses related to a surrogate are not deductible as medical expenses under the
Why Recognition as a Donor Doesn’t Guarantee a Deduction If you’re a frequent donor to charitable organizations, you may enjoy special recognition, such as exclusive membership levels. However, being acknowledged as a donor doesn’t automatically qualify you for a charitable
Learn the Warning Signs and Essential Steps to Protect Yourself Hiring a tax preparer is supposed to make tax filing easier and ensure compliance with complex regulations. However, if your preparer becomes the target of an IRS investigation, it could