Recent Articles


IRS Revises Passport Certification Process

Did you get a letter from the IRS about your passport? The IRS recently started sending these letters to taxpayers with unpaid tax debts. The letters have generated quite a bit of controversy, which caused the IRS to pause to reconsider how it handles this issue. Here is what you need to know about the IRS passport letters and how to deal with them. About the FAST Act The Fixing America’s Surface Transpiration (FAST) Act was passed in 2015. It was included in Section 7345 of the Code. It requires the IRS to notify the State Department of taxpayers who owe “seriously delinquent tax debts.” This includes amounts: In excess of $52,000,Which has already been assessed (i.e., recorded as a debt on the IRS’s books), andWhich a lien notice or levy has been made and the time to appeal the lien or levy has passed. The Code sets out several ...
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M&A Finders Fee Not Deductible for Acquirer

If a company acquires another company and pays a finders fee to the party who connected the two for the sale, is the finders fee deductible by the acquirer? This question touches on whether an expense is deductible if the… Read More The post M&A Finders Fee Not Deductible for Acquirer appeared first on Houston Tax Attorneys: Kreig Mitchell. Read More ...
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The IRS Summons & When the IRS Fails to Follow the Law

What happens if the law requires the IRS to provide notice to the taxpayer and the taxpayer to provide notice to the IRS and both parties fail to provide the notice? Can the government ignore its failure and enforce consequences for the taxpayer’s failure? The answer is “yes” when it comes to the IRS summons, according to Holcomb v. Internal Revenue Service, No. 19cv1482-LAB (S.D. Cali. 2019). Facts & Procedural History The taxpayer banked at Wells Fargo. The IRS issued a summons to the bank to obtain the taxpayer’s records. It can do this as part of an IRS audit or to collect unpaid tax debts. The court record does not indicate whether the IRS provided the taxpayer with the required notice of the summons. The Code requires the IRS to give the taxpayer notice within 3 to 23 days of the summons. Within this time, the taxpayer responded to ...
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Qualifying for the Foreign Earned Income Exclusion

As tax attorneys in Houston, we see a lot of U.S. citizens whose oil-related jobs require they spend significant time overseas. The wages earned overseas can escape tax in the U.S. This is due to the foreign earned income exclusion. But this exclusion generates quite a few tax disputes with the IRS, which is evidenced by cases like the Bellwood v. Commissioner, T.C. Memo. 2019-135, case. The case shows what facts are necessary to qualify for the foreign earned income exclusion. Facts & Procedural History The taxpayer resided in Georgia with his wife and son. He entered into an employment contract to fly helicopters for a U.S. company in Saudi Arabia. The taxpayer worked a “28 and 28” schedule. This required him to work 28 days in Saudi Arabia and then have 28 days off of work. While in Saudi Arabia, the taxpayer lived in an apartment provided by his ...
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Using Multiple PTINs to File Fraudulent Tax Returns

It can be difficult to be a tax preparer. The rules change just about every year. The IRS has increased its focus on identifying and punishing tax return preparers. This includes criminal sanctions for the tax return preparers. The enforcement… Read More The post Using Multiple PTINs to File Fraudulent Tax Returns appeared first on Houston Tax Relief Attorney, Kreig Mitchell LLC. Read More ...
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Can the IRS Collect Gift Tax From Recipient After 14 Years?

If someone gives you property and then dies and more than ten years has passed since the gift, can the IRS sue you to collect the amount of the gift from you? Most would think the answer is a resounding… Read More The post Can the IRS Collect Gift Tax From Recipient After 14 Years? appeared first on Houston Tax Attorneys: Kreig Mitchell. Read More ...
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Avoiding State Income Tax on Part-Time Residents

Sometimes you can’t avoid paying state income taxes. This is true for those who have no ties to any state other than a state that has an income tax. But for those who have ties to multiple states, they can… Read More The post Avoiding State Income Tax on Part-Time Residents appeared first on Houston Tax Attorneys: Kreig Mitchell. Read More ...
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Disputing Probate Court’s Family Settlement Agreement

Probate disputes are often resolved using family settlement agreements. These agreements can avoid the costs and delays of full will contests. But they can also lead to additional disputes. The Locasico v. Mongrain, No. 07-18-00280-CV (Tex. App.–7th Dist. 2019) case… Read More The post Disputing Probate Court’s Family Settlement Agreement appeared first on Houston Probate Attorneys: Kreig Mitchell LLC. Read More ...
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S Corp Conversions: Watch out for Disappearing AAA

Small and medium-sized business can save quite a bit in taxes by using S corporations. But with this tax savings comes complexity. This complexity comes from how S corporations flow through profit and have the profit taxed on the individual… Read More The post S Corp Conversions: Watch out for Disappearing AAA appeared first on Houston Tax Attorneys: Kreig Mitchell. Read More ...
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Does Late Payment Tax Penalty Run from Extended Due Date?

If you file an extension for an estate tax return and pay the tax before the extended due date, can the IRS impose penalties for late payment? The court addresses this in Estate of Agnes R. Skeba v. United States,… Read More The post Does Late Payment Tax Penalty Run from Extended Due Date? appeared first on Houston Tax Relief Attorney, Kreig Mitchell LLC. Read More ...
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