Joint Returns Were Valid Despite Husband Forging Wife’s Signature
Posted by Kim Chen on August 4th, 2018
Coggin, (DC NC 7/17/2018) 122 AFTR 2d ¶ 2018-5046 A district court has held that, where a husband forged his wife’s signature on their joint federal tax returns, the returns were still valid joint returns. The holding was based on the fact that the wife never objected to his forging and didn’t file separate returns […]
Income Tax—Home Office Deduction Denied for Document Storage in Garage
Posted by Kim Chen on July 31st, 2018
The taxpayer owned a smog inspection station in California. By law, he was required to keep certain invoices and records regarding smog checks for at least three years. Because the station lacked office space, the taxpayer stored the inspection invoices and other business-related items in a shared two-car garage attached to his personal residence. On […]
Four States Sue Federal Government over State and Local Tax Deduction Cap
Posted by Kim Chen on July 26th, 2018
For tax years 2018–2025, a taxpayer’s itemized deduction for State and Local Taxes (SALT) is limited to $10,000 ($5,000 if married filing separately) per year. Recently, New York, Connecticut, Maryland, and New Jersey filed a complaint with the U.S. District Court for the Southern District of New York seeking declaratory and injunctive relief to invalidate […]
Penalty and Filing Relief on Foreign Earnings Transition Tax
Posted by Kim Chen on July 18th, 2018
In a recent News Release, the IRS announced that it will waive certain late payment penalties related to the IRC Sec. 965 transition tax. The announcement also includes information related to the due date for relevant elections. The relief information was explained in three new FAQs posted on the IRS’s tax reform page. The FAQs […]
Deduction Denied for Legal Fees Incurred during Divorce
Posted by Kim Chen on July 13th, 2018
The taxpayer, an investment fund adviser, incurred several million dollars in legal fees during his divorce proceedings. He deducted $1.3 million of the fees for 2010 and $1.6 million for 2011. Legal fees incurred during divorce may be deductible if the spouse is interfering in the taxpayer’s business or the issue relates to taxable alimony […]
