Nexus

The recent debate over the so-called “Amazon tax”, while obviously about what its name would suggest, mainly the power of states to tax online retailers like Amazon, is really a debate about nexus.  Nexus means all the connections between a taxpayer, whether a person or a corporation, and a political jurisdiction–a state in this case.…

Attorney Audits

New guidelines for audits of attorneys have just been released by the IRS.  It focuses on several potential problem areas unique to attorneys and specifies how audits should be conducted in the context of those. Many of the particulars of attorney audits revolve around how attorneys are paid (noncash payments like stock or legal services…

Gang of Six Tax Reform

A new plan has emerged in Washington in the context of debate over raising the debt ceiling, the legal limit of how much the federal government can borrow.  Lawmakers have proposed several plans that, in addition to raising the debt ceiling, try to address the country’s growing deficit.  Many of theses have ended up bogged down in partisan…

Offshore Disclosure

In 2009 the IRS conducted an Offshore Voluntary Disclosure Program, OVDP for short, in which taxpayers could come clean as it were with the IRS about their offshore accounts and other assets, pay back taxes and other penalties, and thus avoid criminal proceedings.  That program ended October 15, 2009, but this year the IRS has…

Civil Unions and Taxes

The Religious Freedom Protection and Civil Union Act, signed by Governor Quinn back in February, went into effect yesterday, June 1st.  Illinois has become the sixth state to offer civil unions.  A civil union offers many of the benefits of a marriage, including many of the tax benefits.  Currently, the federal government does not recognize…