Tax Controversy News

It’s the holiday season! The next few weeks will be spent in winter festivities, getting together with friends and family, and rushing around to the sound of holiday music. Major Tax Changes Stem from the Tax Cut and Jobs Act But you know what that means. At the end of the holiday season stands the…

Cash businesses generally do not leave the detailed paper trail that would enable a straightforward audit of gross income, expenses, and profits. Nonetheless, businesses that operate on a cash basis develop their own methodologies to track their revenues. The IRS, however, has its own auditing standards and methodologies for cash businesses. Discrepancies between those two…

Now, More than Ever, Taxpayers with Lingering Offshore Tax Non-Compliance Must Seek Professional Assistance November 30, 2018 On November 20, 2018, the Internal Revenue Service (“the Service”) released a memorandum containing important updates regarding its Voluntary Disclosure Practice (“the Memo”).  Although the Memo provides significant guidance as a result of the closing of the Offshore…

Earlier this year, the Supreme Court decided on the much-anticipated case of South Dakota v. Wayfair, 585 U.S. ___, 138 S.Ct. 2080 (2018).  At issue was the validity of a statute applying sales tax to internet retailers that had very limited economic nexus to the state (i.e., without property or employees in the state).  By…

Small business owners make up the bulk of American businesses. According to the Small Business Administration, in 2010, there were nearly 28 million small businesses, making up 99.7% of U.S. employer firms. More than 50% of the small businesses were home-based, and nearly 75% were sole proprietors. The vast majority of Maryland businesses, then, can…

It’s not uncommon for both business owners and individuals to feel anxiety when they file their taxes. The U.S. tax code is complicated, after all.  Not only that, but the changes signed into law late last year will impact your filing for 2018.  So when April 15th rolls around, all filings must follow the new…

At best, a business tax audit will consume only time and personnel resources. At worst, you and your business could face criminal charges and payments of additional taxes, fines, and penalties. Moreover, if the audit uncovers fraudulent activity, substantial underpayments of taxes, or unreported income an audit can be expanded from three to six years,…

For married couples who reside in Maryland, the question of whether to file taxes jointly or separately can be a burdensome task. Many people assume that joint filing is expected or more advantageous, but the interaction of federal and state tax laws can complicate the decision. Baltimore-based tax law firm Rosenberg Martin Greenberg can help…

On May 15, 2018, the United States District Court for the Western District of Texas issued an important ruling concerning the application of willful FBAR penalties under 31 U.S.C. § 5321.  In United States v. Colliot, Case No. AU-16-CA-01281-SS (W.D. Tex. 2018), the court held that the Internal Revenue Service (“the Service”) could not assess…

Small and medium sized businesses (SMBs) were quick to cheer the new 20% deduction on pass through income that Congress included in the new tax law. As with so many tax and legal issues, however, the devil is in the details. The tax attorneys at the Baltimore law firm, Rosenberg Martin Greenberg LLP, note that…