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Missing Annual Franchise Tax Reports Can Have Big Consequences

May 12, 2021

Co-author: Tim Fandrey A corporate client of the firm was recently sued for breach of contract and other violations. However, the company manager found himself facing a personal liability allegation for the company debts. Why? The petition claimed that personal liability was warranted because the company failed to file a timely Texas franchise tax report. This failure meant the company forfeited its corporate privileges from the day after the franchise tax report was due until…

Texas Tax Talk

Deduct the Dogwoods: Tax Deductions for Winter Storm Uri Landscaping Expenses

By Cindy M. Pridgen

May 10, 2021

When Texas froze in February, I learned a couple of things: i) snow storms have names, and ii) people in my neighborhood aren’t great at covering plants. Those poor sago palms never had a chance. Compared to the damages to homes and burst pipes throughout the state, clearing out the flower beds after Winter Storm Uri may be just a minor inconvenience, but there was a lot of dead foliage that needed to be…

Texas Tax Talk

The IRS is Hunting for Cryptocurrency Investors with John Doe Summonses

By Joshua Smeltzer

May 6, 2021

The IRS has several tools in its arsenal to encourage compliance and audit and enforce those it believes are failing to comply. One of the most powerful tools is the John Doe summons. A regular IRS summons seeks information on a specific taxpayer. However, a John Doe summons, as the name implies, involves a group of taxpayers that the IRS cannot identify by name – yet. Judicial approval is required, but the approval is ex…

Texas Tax Talk

IRS Commissioner and President Biden Draw Battle Lines

By Joshua Smeltzer

May 3, 2021

The battle outside ragin’ Will soon shake your windows And rattle your walls For the times they are a-changin’ -Bob Dylan A change in presidential administrations brings with it the uncertainty of what the political, legal and tax landscape will look like in the future. Statements from the Commissioner of the Internal Revenue Service and the President of the United States are starting to provide clarity of what things will look like going forward. Here’s…

Texas Tax Talk

Taxation of Digital Collectibles: Sports, CryptoPunks and CryptoKitties, Oh My!

By Joshua Smeltzer

April 26, 2021

What do professional athletes, punk artwork and digital kittens have in common? They are all part of the expansion of valuable collectible assets using cryptocurrency and blockchain technology. You can collect digital items for your favorite baseball and basketball players and then sell them in online exchanges. You can also collect and “breed” your own designer CryptoKitties or purchase a digitally created punk portrait using blockchain technology. Investing in valuable collectibles can be both fun…

Texas Tax Talk

Going to Appeals – Preparing the Protest

By Larry Jones

April 19, 2021

Overview of the Appeals Process The goal of the Appeals Office is to settle as many cases as possible within the broad guidelines of its Mission Statement: The Appeals mission is to resolve tax controversies, without litigation, on a basis which is fair and impartial to both the Government and the taxpayer and in a manner that will enhance voluntary compliance and public confidence in the integrity and efficiency of the Service. Even though much…

Texas Tax Talk

Is Your Partnership IRS Audit Ready?

By Joshua Smeltzer

April 12, 2021

“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” ― Abraham Lincoln The Bipartisan Budget Act (BBA) was signed into law by President Barack Obama in 2015 and fundamentally changed the way partnerships are audited. Under the BBA, the IRS generally assesses and collects any understatement of tax (called an imputed underpayment) at the partnership level. The new rules were applicable to all entities starting…

Texas Tax Talk

Tips for Working with IRS Revenue Agents During an Audit – Part 2

By Larry Jones

March 29, 2021

If you haven’t read Part 1 of this blogpost, you might appreciate the background in that post. That post dealt primarily with the concepts of communication during the audit. However, the concepts below should be helpful even without the benefit of Part 1. This post focuses on the concepts of preparation and presentation during the audit. …

Texas Tax Talk

Questioning IRS Approval of Penalties Under Code Sec. 6751

By Admin

March 24, 2021

Recent decisions have provided taxpayers with new ways to procedurally challenge penalties assessed in their cases. Joshua D. Smeltzer, former Department of Justice Tax Division litigator now at Gray Reed, recently published an article in the Journal of Tax Practice & Procedure (a quarterly scholarly journal published by CCH Inc.) outlining the questions that taxpayer and their advisors should be asking when they are assessed penalties by the IRS. A reprint of the article…

Texas Tax Talk

Tips for Working with IRS Revenue Agents During an Audit – Part 1

By Larry Jones

March 22, 2021

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Dealing with the Internal Revenue Service (IRS) is sometimes a difficult and complicated process. Even more so now given the pandemic. Interactions with a Revenue Agent may not happen in person, but there will be contact with the IRS in some form. At times the procedure of communicating with the IRS is cumbersome, even for the most experienced tax practitioner. Experience shows that a taxpayer can be successful in dealing with the IRS at all…

Texas Tax Talk

Blog Authors

Missing Annual Franchise Tax Reports Can Have Big Consequences

Deduct the Dogwoods: Tax Deductions for Winter Storm Uri Landscaping Expenses

The IRS is Hunting for Cryptocurrency Investors with John Doe Summonses

IRS Commissioner and President Biden Draw Battle Lines

Taxation of Digital Collectibles: Sports, CryptoPunks and CryptoKitties, Oh My!

Going to Appeals – Preparing the Protest

Is Your Partnership IRS Audit Ready?

Tips for Working with IRS Revenue Agents During an Audit – Part 2

Questioning IRS Approval of Penalties Under Code Sec. 6751

Tips for Working with IRS Revenue Agents During an Audit – Part 1

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