Entries by Tax Attorney

Are You Effected By The Alabama Tornadoes And Severe Storms? IRS Is Providing You With Tax Relief And Extending Upcoming Tax Deadlines.

Are You Effected By The Alabama Tornadoes And Severe Storms? IRS Is Providing You With Tax Relief And Extending Upcoming Tax Deadlines. The IRS announced on March 7, 2019 that victims of the tornadoes and severe storms that took place March 3, 2019 in Alabama may qualify for tax relief. Individuals who reside or have […]

More Cannabis Legalization Bills Introduced In Congress – If You Can’t Beat Them, Then Join Them!

Under Federal law (Controlled Substances Act 21 U.S.C. 801) marijuana is designated as a Schedule I controlled substance due to the historical belief that it has a high potential for abuse, no currently accepted medical use in treatment, and lack of accepted safety for use under medical supervision. The federal penalties for possession of any […]

Attention Cannabis Businesses – Be Prepared To Prove Your Deductions To The IRS

Generally, businesses can deduct ordinary and necessary business expenses under I.R.C. §162. This includes wages, rent, supplies, etc. However, in 1982 Congress added I.R.C. §280E. Under §280E, taxpayers cannot deduct any amount for a trade or business where the trade or business consists of trafficking in controlled substances…which is prohibited by Federal law. Cannabis, including […]

Beware: Failing To Pay The IRS Could Land You In Jail

Beware: Failing To Pay The IRS Could Land You In Jail The IRS is notorious for taking aggressive collection action including filing tax liens, issuing wage garnishments, seizing assets and levying bank accounts in order to collect outstanding IRS debt. In some cases the IRS is also looking to make an example of what happens […]

Do You Have A Business That Involves Transactions In Cash? Beware Of IRS Required Filings That If Not Followed Could Lead To Penalties And Jail-time.

While there is no law making it illegal to transact business with cash, the IRS has an interest in requiring parties to report cash transactions to deter those who evade taxes, profit from the drug trade and engage in terrorist financing and other criminal activities. The government can often trace money from these illegal activities […]

Federal Cannabis Banking Access Coming? Check Out The Latest Word By Congress.

On February 13, 2019 a hearing was conducted by the Subcommittee on Consumer Protection and Financial Institutions which is under the U.S. House Committee On Financial Services headed by Chairwoman Maxime Waters (D–CA). Testimony was provided at this hearing which could lead to the subcommittee putting forth a bill in Congress that eventually could put […]

How Another Government Shutdown In The Middle Of Tax Season Can Stifle IRS Operations And Increase Tax Problems For Taxpayers.

How Another Government Shutdown In The Middle Of Tax Season Can Stifle IRS Operations And Increase Tax Problems For Taxpayers. As required by law, once a year the Taxpayer Advocate’s Office (an independent Federal government department that monitors the Internal Revenue Service) must send a report to Congress describing challenges the IRS is facing, problems […]