Court Says Relief For Wrongfully Incarcerated Prisoners Doesn’t Apply To Relatives. The son and former wife of a man who spent six years in prison for a murder he didn’t commit cannot benefit from tax relief that Congress granted wrongfully incarcerated individuals, a federal court in Ohio ruled.
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Court Permits Deduction For Executive MBA. Taxpayers can deduct the cost of education that maintains or improves skills required in their current professions, but not those that qualify them for a new trade or business. The Internal Revenue Service disallowed deductions claimed by Alex Kopaigora for the Executive MBA program at Brigham Young University. Kopaigora commuted on weekends to the Provo, Utah, campus from Los Angeles, where he was a hotel accounting manager before losing his job partway through the program. The IRS claimed Kopaigora’s unemployment meant he could not qualify for the deductions, but the Tax Court disagreed.
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An Earlier Deadline For Information Returns. American businesses have been enlisted in the fight against fraudulent tax filings, and it will require them to be on their toes after the year-end holidays. Businesses now are required to send W-2 forms reporting employee earnings and Forms 1099 showing payments to nonemployee contractors to the Internal Revenue Service by January 31.
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A Partnership Is In The Eye Of The Beholder. If the beholder happens to be the Canada Revenue Agency (CRA), and the partnership is a limited liability partnership (LLP) or limited liability limited partnership (LLLP) from Delaware or Florida, the partnership is actually a corporation for Canadian tax purposes.
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After 43 Years, IRS Collects Gift Taxes From Redstone. The gift tax statute of limitations is typically three years — if you file a gift tax return.
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Another IRS Crummey Challenge Fails. The Internal Revenue Service has lived with Crummey trusts for nearly 50 years, but it …
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Flight Attendant’s Argument Doesn’t Fly. A Hong Kong-based flight attendant cannot claim favorable foreign-source tax treatment for income she earns …
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A Connecticut Consumer Tax Break Comes At The Expense Of Business. Companies and trade groups in Connecticut are not happy …
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Tax Court’s ‘Imaginary Scenario’ Reversed On Appeal. A federal appeals court sided with the taxpayer in an estate tax fight …
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Just Keep Doing What You’re Doing. Having lost a landmark case in New York’s highest court, state tax administrators issued …
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