Tax Law Publications
| General Litigation |
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| Under certain circumstances, a taxpayer is entitled to recover the reasonable litigation or administrative costs that he or she paid to defend his or her position to the Internal Revenue Service or to the courts. More... |
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| Deductibility of Legal and Litigation-related Expenses for a Business |
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| If a taxpayer incurs legal expenses in connection with a business transaction or primarily to preserve an existing business, its reputation, or its goodwill, then the legal expenses are generally deductible. The Internal Revenue Service will use the same tests for deductibility as for other business deductions, which precludes a current deduction for a legal expense incurred in the acquisition of goodwill or any other capital asset. In order for legal fees to be deductible, there does not have to be litigation, and the success of the taxpayer does not affect the deductibility of legal expenses. More... |
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| Bartering |
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| The fair market value of the value of the goods and services exchanged must be included in the gross income of both parties. More... |
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| Increase in Tax Enforcement |
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| The federal government has increased its use of criminal prosecutions against tax violators to stop the decline in enforcement actions as seen in prior years. The Justice Department and the Internal Revenue Service, is focusing on high-income individuals and corporations in order to identify, investigate, and punish those who break the tax laws, and it warns that those involved in a fraud scheme can wind up in federal prison along with an obligation to pay taxes, interest, and penalties. More... |
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| Circulation Costs |
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| If you are the publisher of a newspaper, magazine, or other periodical, you can deduct the costs of establishing, maintaining, or increasing circulation as a current business expense. However, this general rule of deductibility is limited. A current deduction is not available for expenditures for the purchase of land or depreciable property or for the acquisition of circulation through the purchase of any part of the business of another publisher. In addition, a deduction is not permitted for the cost of purchasing another publisher's list of subscribers. These expenditures must be capitalized. More... |
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