Falling behind on taxes can feel overwhelming, but Illinois is offering taxpayers a second chance. The Illinois Tax Delinquency Amnesty Act of 2025 creates a limited-time opportunity for individuals and businesses to pay off overdue state taxes without having to shoulder the added burden of penalties and interest. By giving taxpayers with outstanding obligations a [...]
On February 21, 2024, the Internal Revenue Service (IRS) announced that it plans to begin dozens of audits on business aircraft involving personal use, contributing to the Inflation Reduction Act’s efforts to improve tax compliance for high-income individuals and businesses. These audits will focus on aircraft usage by large corporations, partnerships, and wealthy taxpayers, and [...]
As discussed in part one of this series on art donations, a taxpayer who wishes to receive a tax deduction for their charitable donation of a work of art should take several steps in anticipation of the Internal Revenue Service’s (IRS’s) refusal to allow the deduction. In recent years, especially, the IRS has undertaken a [...]
On December 16, 2021, the United States Tax Court issued a memorandum opinion in the case of Skolnick v. Commissioner (see Docket Nos. 24649-16, 24650-16, 24980-16), which was related to the deduction of business expenses for an animal breeding operation. This opinion was the second of two recently issued on the matter. You can find [...]
It is not uncommon for small businesses to rely on friends and family for loans to assist the business in meeting operating expenses. This is even more true given the on-going pandemic. Small businesses are scrambling to make sure they can meeting their operating expenses. Unfortunately, many of those small business owners are so focused [...]
For many taxpayers with multiple active business interests, the material participation test can be a significant tax trap. If the elements of that test are not met, the impact could be that the taxpayer is limited in how the income/loss from that business is recognized on their personal tax return. A recent decision in the [...]
The Internal Revenue Service (IRS) Taxpayer Advocate Service (TAS) recently released the above “subway map” to illustrate, at a very high level, the stages of a taxpayer’s journey through the tax system. The map provides a high level overview of the processes for tax return preparation, tax return processing, notices from the IRS, audits, appeals, [...]
[vc_row][vc_column][vc_column_text] Taxpayers often wonder how they might be selected for audit by the Internal Revenue Service (IRS). Often, audit selection is random. However, the IRS also runs certain “compliance campaigns” related to areas in which the IRS detects a significant increase in abuse by taxpayers or their advisors. Changes in bank secrecy laws of foreign [...]
Starting January 1, 2018, through December 31, 2025, job-related moving expenses are no longer tax-free. The newly enacted Tax Cuts and Jobs Act (TCJA) makes many significant changes to employee benefits, including changes to the treatment of job-related moving expenses. Prior to the enactment of TCJA, the cost of moving an employee, their family, and [...]