Evaluating the Impact of Bedrosian

On September 20, 2017, the Eastern District of Pennsylvania issued an important taxpayer-friendly opinion regarding the willfulness standard in FBAR penalty matters.  In Bedrosian v. United States, Case No. 2:15-cv-05853-MMB (E.D. Pa., Sept. 20, 2017), the court held that the government had not met its burden in proving that Bedrosian had willfully violated FBAR reporting…

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Acquiring a Business with Employment Tax Issues: Tips for Avoiding Personal Liability for Taxes

In times of financial crisis, many businesses succumb to financial pressures and “borrow” from employees’ tax withholdings to pay other creditors.  To some, this seems like a viable alternative to meet short-term cash needs, keep the lights on, or service existing debt.  Unfortunately, for many struggling businesses, circumstances never significantly improve and tax withholdings are…

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Day Trading: Understanding Common Issues and Pitfalls Can Increase Return on Investment

Technological advances have greatly improved access to financial information and likewise improved the ability for many Americans to trade for their own accounts.  While most casually trade a few securities for pleasure, a growing number engage in high-volume trading.  These traders may perform adequate research on their investments before engaging in these transactions; however, not…

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Marijuana in Maryland: Tax Considerations for Businesses as Legalization of Medical (and Recreational?) Use Become a Reality

With the creation of the Maryland Medical Cannabis Commission and the dispensary permitting process moving forward, Marylanders will soon have access to marijuana for medical use.  Many anticipate that the legalization of the recreational use of marijuana is not far behind.  In the most recent session of the Maryland General Assembly, multiple bills calling for…

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Deductions Up in Smoke?

In 2014, Maryland followed the path of many other states and passed legislation to legalize the sale of marijuana for medical use. Aside from the Maryland Medical Cannabis Program, some speculate that this action may usher in the legalization of marijuana for recreational use in the near future in Maryland. Given that monthly marijuana sales…

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ALERT: New Wave of Maryland Tax Audits Appears to Target Restaurants and Caterers

As Marylanders prepare for warmer weather, the Maryland Comptroller’s Office is targeting caterers and restaurants for what appears to be an industry-wide tax audit initiative. At the start, the audits appear to be a routine examination focused on four different areas of a taxpayer’s business: Assets; Expenses; Sales; Reconciliation of Tax Remittances. Generally, the auditor…

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In the Crosshairs: IRS Stepping Up Enforcement of Employment Taxes

Federal employment taxes amount to over one-third of all revenue collected by the Internal Revenue Service (IRS).  Therefore, it is no surprise that the IRS has recently increased enforcement actions against employers that fail to withhold employment taxes from its employees and remit those taxes to the federal government. Employers with outstanding employment taxes are…

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What is an IRS CP2000 Notice?

Shortly after tax returns are processed by the IRS, many taxpayers unfortunately receive an IRS CP2000 Notice from the IRS.  These are computer-generated notices that are sent automatically when an item or items reported on a tax return either does not match or does not include items received from third parties by the IRS or…

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