Discount Loyalty Programs are Not Trading Stamp Companies

Discount Loyalty Programs are Not Trading Stamp Companies

Accrual method taxpayers generally must recognize advance payments in taxable income in the year of receipt, because receipt satisfies the all events test. The trading stamp rules are an exception to this all-events test. These rules apply to businesses that …

Planning for Tax Refunds in Bankruptcy

Planning for Tax Refunds in Bankruptcy

Given that it is tax season, the In re Porter, No. 16-11831-BFK (E.D. Vir. 2017) case serves as a timely reminder that taxpayers who have unpaid tax debts and who are expecting sizeable tax refunds may benefit from timing the …

Bankruptcy Court Says Withholding on Wages Converts the Wages to a Tax

Bankruptcy Court Says Withholding on Wages Converts the Wages to a Tax

The U.S. Bankruptcy Court recently considered whether amounts withheld from wages in excess of the amount of the income tax liability owed is a refund of tax or a refund of wages. The case is In re Crutch, No. 15-44523-cec. …

Taxpayer May Deduct Taxes for Defunct S Corp Paid in Current Year

Taxpayer May Deduct Taxes for Defunct S Corp Paid in Current Year

In Brown v. Commissioner, T.C. Memo. 2017-18, the court addresses whether taxpayers can claim a deduction for taxes paid by a defunct S corporation in the current year when the taxes are owed by the corporation for prior tax years. …

Post Office Tracking Data Can Result in Tax Disputes

Post Office Tracking Data Can Result in Tax Disputes

Post Office Tracking Data Can Result in Tax Disputes There have been a number of tax cases involving disputes as to when tax documents are mailed to the government. In Tildon v. Commissioner, No. 15-3838 (7th Cir. 2017), the court …