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... Read More

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... Read More

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... Read More

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... Read More

Every year, under the law known as the Bank Secrecy Act, if you have an FBAR filing requirement, you must report certain foreign financial accounts, such as bank accounts, brokerage accounts and mutual funds, to the Treasury Department and keep certain records of those accounts. You must report the accounts by filing a Report of... Read More

In December 2020, the United States Tax Court will be launching DAWSON (Docket Access Within a Secure Online Network), the Court’s new case management system. The Court expects DAWSON to be active no later than December 28, 2020. Beginning at 5:00 PM Eastern Time on November 20, 2020, the current e-filing system will become inaccessible... Read More

If you or your business are doing business in California, you are subject to California tax laws. The CDTFA or FTB may audit your business or issue a demand that the taxpayer file a tax return. The state of California considers you to be “doing business” if you meet any of the following: Year CA... Read More

Many taxpayers wonder if they should file an FTB claim for refund. A claim for refund is a request for reimbursement of amounts that you have previously paid. Generally, if you have paid your balance in full you will file a formal claim. If you have not paid your balance in full, you will file an informal... Read More

The CDTFA has an array of penalties that they can assess against taxpayers in CDTFA audits. There are penalties that can result from CDTFA audits or in other situations. The reasons for interest and penalty charges vary. For example, the CDTFA can assessed interest and penalty charges if you:• File a late return and/or make... Read More

Purpose of Form IRS Form 5471 is used by certain U.S. persons who are officers, directors, orshareholders in certain foreign corporations. Moreover, the form and schedules are used to satisfy the reporting requirements of sections 6038 and 6046, and the related regulations, as well as to report amounts related to section 965. Who Must File... Read More