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California Sales Tax Remote Seller

California requires some remote sellers to register with CDTFA and collect and remit sales tax. Moreover, the new use tax collection requirement for a remote seller will apply to taxable sales of tangible personal property to California consumers on and after April 1, 2019, and is not otherwise retroactive. Retailers that exceed the $500,000 sales...
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Form 8300 IRS Penalties

Generally, if you’re in a trade or business and receive more than $10,000 in cash in a single transaction or in related transactions, you must file Form 8300. The Form 8300, Report of Cash Payments Over $10,000 in a Trade or Business, provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement...
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Does the IRS consider my business a hobby?

Frequently, the IRS audits schedule C sole proprietorships. The IRS has issued hobby rules to help taxpayers determine whether their activities qualify as a trade/business or a hobby. Millions of people enjoy hobbies that are also a source of income. From catering to cupcake baking, crafting homemade jewelry to glass blowing — no matter what...
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Is Mining Crypto Currency Taxable?

The Internal Revenue Service (IRS) is aware that “virtual currency” may be used to pay for goods or services, or held for investment. Moreover, many taxpayers are unaware of the rules of taxation of crypto currency. Virtual currency is defined as a digital representation of value that functions as a medium of exchange, a unit...
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U.S Tax Court Intervenor

The United States Tax Court is established as a court of record under Article I of the Constitution by section 7441 of the Internal Revenue Code. The Tax Court’s jurisdiction is generally prescribed by Internal Revenue Code section 7442, but specific grants of jurisdiction are interspersed throughout the Code. The procedure under which the court...
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CDTFA Mark Up Test

If the CDTFA is auditing your business’s sales tax returns, you may need to become familiar with the CDTFA’s mark up test. Taxpayers often ask how to prepare for an audit. A CDTFA tax auditor is concerned primarily in ascertaining whether the reported sales tax liability is substantially correct. Moreover, when the auditor determines that...
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Can I Deduct my Home Office?

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes. If you use part of your home exclusively and regularly for conducting business, you may be...
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What is CDTFA Successor Liability?

Any purchaser who buys a business or a stock of goods and fails to withhold a sufficient amount of the purchase price to clear the account of the seller, or who fails to obtain a clearance, may be liable for the seller’s CDTFA taxes to the extent of the purchase price. This scenario highlights the...
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