I recently heard a former celebrity tax lawyer speak. And while much of his talk involved some pretty grim issues of tax fraud, he started his talk by discussing the practice of celebrity tax law.

One interesting question he presented was the issue of whether celebrities should be taxed on the many goodies they receive by virtue of their celebrity status. While many of these items seem gifts, on the surface, a true gift is really characterized by detachment and disinterest.

Can we really say that many of these items given to celebrities are ”gifts”?  Read more... (336 words, 1 image, estimated 1:21 mins reading time)

If you’re a Los Angeles tax lawyer, you might know the names Robert Jason and Matthew Krane.

I mentioned in a previous post that the Office of Professional Responsibility of the IRS was cracking down on bad tax preparers, in a move to raise the overall standard of quality in the industry. But what happens when the issue involves something a little more than bad tax advice and inadequate return preparation?

What happens when a tax attorney is involved in a real tax scam, say, one of the largest tax evasion schemes in U.S. history?  Read more... (523 words, estimated 2:06 mins reading time)

What’s the scoop on the state of the Bush tax cuts?

Word on the street is that the Bush tax cuts, which were infamous for their effect on the pocketbooks of the wealthy, will be coming to an end as of next year.

Yes. The word is that President Barack Obama is hoping to let these tax cuts fade away into oblivion.

Well, before we let the talking heads on CNN, MSNBC and FOX tell us what to believe, we should have some idea of what exactly this means. If things go as the Obama Administration anticipates, the tax cuts for those making $250,000 and more will lapse.  Read more... (390 words, estimated 1:34 mins reading time)

There are many kinds of charitable trusts out there but you won’t hear much about charitable lead trusts, largely for the reason that they are often overlooked by many estate planning lawyers and financial planners.

The charitable remainder trust still remains the charitable giving tool of choice, but the charitable lead trust can still have many benefits for the right people and in the right situations.

In a manner of speaking, the charitable lead trust (CLT) is the inverse of a charitable remainder trust (CRT). But it’s more technical than that, so I’ll do what I can to simplify the concepts in a short blog post.  Read more... (430 words, estimated 1:43 mins reading time)

Watch out for bad tax advisors.  The IRS is certainly keeping an eye out for them.  They are sending undercover clients to catch some of these guys.

“These guys” are tax preparers who know all the ins-and-outs of tax deductions, including the ones you aren’t even entitled to.  They help you navigate through the waters of income tax calculation by adding amounts that you never paid or subtracting amounts that you never made. 

Basically, they’re the guys that tell you that you can take a deduction on certain things, if you skew the numbers a certain way in your income tax calculation.  They’re the ones who tell you to list your dog as a dependent, or to start a phony business.    Read more... (320 words, estimated 1:17 mins reading time)

How do the new healthcare laws affect small businesses? If you’re an entreprenneur, you might want to sit up and listen, although many of these changes to federal income tax law might not take effect until a much later date.

The Obama Administration is tying to make it easier for small businesses to afford healthcare. While I could discuss the new healthcare laws in general, it’s a huge topic and it goes well beyond the scope of this blog, which essentially deals only with issues of personal finance and small business issues.  Read more... (356 words, estimated 1:25 mins reading time)

Here are some links to posts I’ve done in the last few weeks on tax issues:  (Note- these posts are from Reuters’ FindLaw, where I work fulltime as a legal journalist). 

IRS Tax Exempt Nonprofit Recordkeeping: Here, I look at the documents you need to keep handy, if you want to run a 501(c)(3) nonprofit, or any other nonprofit, for that matter.  This list is a list of best practices for nonprofits as well as some rules and regulations. It is very important to keep up to date with your documentation, if you plan on running on a tax exempt nonprofit organization.   Read more... (284 words, estimated 1:08 mins reading time)

What are the business travel federal income tax rules ?

Consider this story (if you’re not a LOST fan, bear with me–don’t worry, there’s no LOST spoiler here!): 

Hurley was the owner of Mr. Cluck’s Fried Chicken.  His business was exploring the possibility of expanding to Australia, so Hurley boarded Oceanic Flight 815 and went to Australia for 3 weeks to meet a potential investor.  While there, Hurley spent 2 weeks sight-seeing and partying.  He spend only one week there meeting with clients. 

 Hurley also brought his employee, Charlie, with him, but paid half of Charlie’s plane ticket, since he couldn’t get any discount travel deals.  Charlie only came for the business meeting and did not spend any personal time in Australia.    Read more... (471 words, 1 image, estimated 1:53 mins reading time)

So, you work from the spare bedroom in your house and you’ve been deducting everything, from the phone bill to the heating bill, in your income tax calculation? 

The home office tax deduction is not that simple.  You can’t deduct everything. 

Although there are many financial writers who claim that the home office tax deduction is a perfectly good way to save on your income tax calculation, I beg to differ.

I have heard very important tax professionals tell me, in person, that the home office tax deduction was essentially sealing the taxpayers fate– to an audit.  Read more... (389 words, 1 image, estimated 1:33 mins reading time)

Owe money to the IRS?  Did you make a mistake in your income tax calculation and now, the IRS wants to collect? Is the IRS threatening a tax lien or levy?

Here is a list of the things you need to know in order to deal with IRS Collections:  Read more... (388 words, 1 image, estimated 1:33 mins reading time)