Tax Law Blog

What did the IRS Investigate in 2016? Analysis of the Annual Report.

Posted by on behalf of Robert J. Fedor, Esq., L.L.C. on Jun 22, 2017 9:44:00 AM

The United States government takes tax matters very seriously. In addition to having an agency dedicated to handling tax matters, there are also agents that focus specifically on investigating criminal tax matters. The Internal Revenue Service (IRS) recently released a report that covers the matters investigated the previous year, referred to as the Criminal Investigation (CI) 2016 Annual Report.

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Topics: criminal tax fraud,, money laundering

Wife Contests Taxes, Husband gets Hit with $14,540 Tax Bill

Posted by on behalf of Robert J. Fedor, Esq., L.L.C. on Jun 21, 2017 2:42:00 PM

The Internal Revenue Service (IRS) doesn’t often get involved in marital disputes. In this case, the federal agency was caught in the middle of a very difficult situation.

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Topics: Tax Controversy

Gentleman's Club Argues Services as "Therapy" to Avoid Taxes

Posted by on behalf of Robert J. Fedor, Esq., L.L.C. on Jun 15, 2017 9:02:00 AM

Did a business attempt to get out of its tax obligations? That is what the Internal Revenue Service (IRS) recently argued in court. The business, which operates in New York, argues that its actions were within the law when it did not pay taxes on executive dollars purchased by patrons to its club. The business argues that it met its tax obligations by paying the sales tax on the admission fee, but that the additional tax sought by the IRS is not required.

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Topics: Tax Controversy, sales tax

Sharing Economy Poses Tax Fraud Issues

Posted by on behalf of Robert J. Fedor, Esq., L.L.C. on Jun 13, 2017 2:32:40 PM

The sharing economy is big business. From Airbnb to Uber, entrepreneurs are taking advantage of opportunities to make some money by using their own property to benefit others. In some cases, states require a tax on these services. In others, states have remained silent. Needless to say, these inconsistencies can cause concern when it comes to potential tax issues for those who make use of the sharing economy.

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Topics: Tax Fraud

Case Provides Fodder to Challenge IRS Contractor v. Employee Labels

Posted by on behalf of Robert J. Fedor, Esq., L.L.C. on Jun 8, 2017 9:01:00 AM

There are striking differences between a contract worker and an employee. One of the most notable is the fact that an employer is generally not responsible for the tax obligations of the contractor. The contractor, unlike an employee, is expected to pay his or her own taxes to the Internal Revenue Service (IRS).

 

The distinction can be difficult and has resulted in a number of court cases. A failure to properly label and withhold taxes on a worker’s wages can result in allegations of a failure to collect payroll taxes, potentially leading to criminal tax charges.

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Topics: Payroll Tax, criminal tax fraud,

Can You Deduct Your Home Office?

Posted by on behalf of Robert J. Fedor, Esq., L.L.C. on Jun 6, 2017 9:59:00 AM

It seems like common sense: if you work from home then you can deduct your home office from your taxes. Yet, according to a recent news release from the Internal Revenue Services (IRS) this tax deduction is often overlooked by small business owners.

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Topics: Audits, Tax Controversy

Former Director of Cleveland Job Corps Gets Jail Time for Tax Evasion

Posted by on behalf of Robert J. Fedor, Esq., L.L.C. on Jun 1, 2017 9:48:00 AM

A Cleveland business man charged with the task of teaching people job skills has fallen short of expectations. He was the director of Cleveland Job Corps, a no-cost education and career technical training program administered by the U.S. Department of Labor that helps young people ages 16 through 24 improve the quality of their lives through career technical and academic training. He used his position, and the compensation from the government, to fund his personal life and the long arm of the law finally caught up with him.

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Topics: Tax Evasion

Soup Nazi CFO in Hot Water for Tax Evasion

Posted by on behalf of Robert J. Fedor, Esq., L.L.C. on May 30, 2017 9:50:00 AM

We all know the classic Seinfeld character the Soup Nazi for his agressive soup rules and his catch phrase, "No soup for you!" But, did you know he was based on a real person and soup shop in NYC? The owner, Al Yeganeh, became an unwilling star after his likeness was made famous. And while he doesn't like his nickname so much, it allowed him to grow his business and develop a retail product line under the name Soupman. As his business grew, he brought in a management team, including a Chief Financial Officer, who apparently doesn't feel as strongly about rules as his CEO. The CFO is being charged with 20 counts of tax evasion. 

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Topics: employment tax, Failure to File

State Tax Laws Attempt to Keep up with Evolving Transactions

Posted by on behalf of Robert J. Fedor, Esq., L.L.C. on May 25, 2017 9:48:00 AM

Business is changing. The way entrepreneurs structure their businesses and move forward with transactions is evolving at a very fast pace. Some own business interests in various parts of the country, making states struggle to determine when that business is subject to state taxation. Others are taking part in the sharing economy, making a profit off of renting or sharing assets in a manner that makes it difficult for states to track transactions.

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Topics: Tax Controversy

Can the IRS Retroactively Change the Tax Rules and Hold You Responsible?

Posted by on behalf of Robert J. Fedor, Esq., L.L.C. on May 23, 2017 9:50:16 AM

The laws governing the tax process are complex. Adding to this complexity is the fact that the laws often change. One change that has resulted in multiple lawsuits involves whether or not the Internal Revenue Service (IRS) can change the law and impose these changes retroactively.

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Topics: IRS, Tax Controversy