How Estate Administration Works in Complex Probate Cases Estate administration is the legal process of settling a deceased person’s financial affairs through probate court. This process includes identifying and managing assets, resolving outstanding debts, addressing creditor claims, and distributing property to beneficiaries. When an estate includ...
How Texas Sales Tax Audits Create Additional Tax and Penalty Exposure Businesses operating in Texas must comply with sales and use tax requirements enforced by the Texas Comptroller. When discrepancies are identified during an audit, the state may assess additional tax, interest, and penalties based on its review of the company’s records. Sales tax...
How CARES Act NOL Carryback Rules Created Refund Opportunities The CARES Act introduced temporary changes to net operating loss rules, allowing taxpayers to carry back losses from 2018 through 2020 for up to five years. This provision allowed businesses and individuals to offset prior taxable income and claim refunds for taxes paid in earlier years...
IRS Worker Classification Audits and Payroll Tax Risk for Businesses Businesses that rely on independent contractors may face IRS scrutiny over whether those workers should be classified as employees. Worker classification directly affects payroll tax obligations, including federal income tax withholding, Social Security, and Medicare taxes. If the...
How Trust Structures Can Create California Tax Nexus State tax laws can significantly impact how trust income and investment earnings are taxed. A trust or related entities may create a state tax nexus, which allows a state to impose tax on income even when assets or beneficiaries are located elsewhere. California applies complex rules to the taxat...
How IRS Tax Assessments Arise From Withholding Errors Taxpayers receive credit for federal income taxes withheld from wages as reported on Form W-2. When the IRS cannot verify withholding or believes it was not properly reported, it may issue a notice proposing additional tax based on its internal records. In some cases, discrepancies between emplo...
How a Family Limited Partnership Supports Real Estate and Estate Planning Real estate investors with substantial property holdings often face complex issues involving liability exposure, tax efficiency, and long-term asset management. Without a structured ownership framework, investors may be exposed to unnecessary legal risk and limited flexibilit...
FBAR Reporting Requirements and Risk of Civil and Criminal Penalties U.S. taxpayers with financial interests in foreign bank accounts or offshore entities may be required to file Foreign Bank Account Reports, known as FBARs, with the U.S. Treasury Department. These reporting requirements apply when the total value of foreign accounts exceeds certai...
Fraud Penalties in Sales Tax Audits and How They Are Challenged Sales tax audits conducted by state taxing authorities can result in additional tax assessments, interest, and penalties when discrepancies are identified. In certain cases, the taxing authority may assert fraud penalties, which significantly increase the total liability. Fraud penalti...
How an Offer in Compromise Can Reduce IRS Tax Debt An Offer in Compromise, or OIC, is an IRS program that allows qualifying taxpayers to settle their tax debt for less than the full amount owed. This option is available when paying the full liability would create financial hardship or when the taxpayer’s financial situation limits their ability to ...
What Is a Trust Fund Recovery Penalty and Who Can Be Held Liable A Trust Fund Recovery Penalty, or TFRP, may be assessed by the IRS when employment taxes withheld from employees are not properly remitted to the government. These taxes are considered trust fund taxes because they are collected from employees and held by the employer for payment to t...
How Texas Sales Tax Audits Lead to Penalties and Assessments State tax authorities regularly conduct sales tax audits to verify that businesses are properly collecting, reporting, and remitting sales tax. When discrepancies are identified, the taxing authority may assess additional tax, interest, and penalties. Penalties imposed during a sales tax ...
Strategic Victory: The Wilson Firm's Expert Negotiation Reduces ESRP Penalty from $465,000 to $9,000
Understanding ESRP Penalties Under the Affordable Care Act The Employer Shared Responsibility Payment, or ESRP, is a penalty imposed under the Affordable Care Act on certain employers that fail to meet health coverage requirements for their employees. These penalties are governed by Internal Revenue Code Section 4980H. There are two primary types o...
Offshore Tax Reporting Requirements for Foreign Accounts and Retirement Plans U.S. taxpayers with financial interests in foreign bank accounts or foreign retirement plans are subject to strict reporting requirements under U.S. tax law. These obligations may include disclosing foreign financial accounts and certain retirement plans on annual tax ret...
How Property Tax Appeals Work for Commercial Real Estate Local appraisal districts determine the taxable value of commercial real estate for property tax purposes. When a property owner believes the appraisal district has overvalued their property, they can challenge the valuation through administrative protest procedures and, if necessary, litigat...
How IRS Notices of Deficiency Lead to Tax Court Disputes When the IRS determines that a taxpayer has underreported income, it may issue a Notice of Deficiency proposing additional tax, penalties, and interest. This notice gives the taxpayer the right to challenge the assessment by filing a petition in the United States Tax Court. Tax disputes invol...
What Is a Trust Fund Recovery Penalty and How the IRS Enforces It A Trust Fund Recovery Penalty (TFRP) is one of the most serious payroll tax enforcement actions the IRS can impose. When employment taxes are not properly remitted, the IRS may assess personal liability against individuals deemed responsible for collecting and paying those taxes. Unl...
What Is the Section 121 Principal Residence Gain Exclusion? When a taxpayer sells a principal residence, the Internal Revenue Code allows eligible homeowners to exclude a portion of the gain from taxable income under Section 121. Individuals may exclude up to $250,000 of gain, while married couples filing jointly may exclude up to $500,000 if they ...
