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Tax Controversy News

Inspector General: Gaps in IRS Tax Preparer Liability Strategy

Mar 25, 2019

According to a recent report by the U.S. Treasury Inspector General for Tax Administration, the IRS lacks a uniform strategy to hold accountable unregulated tax preparers who commit misconduct. The report was released on July 25, 2018, and it calls on the IRS to better use its resources to identify and respond to tax preparers…

What are some of the monetary penalties and other consequences of failing to properly report my foreign real estate and other foreign financial assets?

Brandon N. Mourges | Mar 20, 2019

Depending upon how foreign real estate is owned and/or controlled, a number of different tax reporting regimes may be implicated.  Each of these has its own corresponding penalties and generally applies to United States persons – U.S. citizens or those residing in the U.S.  A selection of these provisions and the attendant potential penalties are…

Can a Prenuptial Agreement Executed Before January 1, 2019 Preserve Deductibility of Alimony Payments Relating to Divorce Decrees Entered After That Date?

Brandon N. Mourges | Mar 13, 2019

The Tax Cuts and Jobs Act of 2017 (“TCJA”) did away with the long-standing provision allowing for deductions of alimony payments by the payor.  Specifically, the TCJA adopted the prior definition of “alimony and separate maintenance payment” under the Internal Revenue Code but eliminated deductibility for any “divorce or separation instrument” executed after December 31,…

IRS Reminds Taxpayers of Its Ability to Revoke Passports and Deny Passport Applications: What You Need to Do If You Plan to Travel Abroad and Have Unpaid Federal Taxes

Brandon N. Mourges | Mar 6, 2019

Last week, the Internal Revenue Service (“IRS”) published another friendly reminder that it was recently vested with the authority to revoke passports and deny passport applications for those with “seriously delinquent tax debts.”  Within that notice, the IRS reminded taxpayers that they may not be able to obtain or renew passports if they owe federal…

Can Cannabusinesses Qualify for the New Tax Incentives in Opportunity Zones?

Brandon N. Mourges | Mar 5, 2019

One of the key provisions of the Tax Cuts and Jobs Act of 2017 was the creation of additional tax incentives for investment in opportunity zones.  For those with significant unrealized gains, the potential deferral or elimination of gains permitted with the additional of section 1400Z to the Internal Revenue Code can be a windfall. …

Are Owners of Cannabusinesses Eligible for the Qualified Business Income Deduction Under Section 199A?

Brandon N. Mourges | Feb 28, 2019

Section 199A of the Internal Revenue Code, introduced by the Tax Cuts and Jobs Act (“TCJA”), created an opportunity for business owners to substantially lower their income taxes.  Subject to many qualifications, beginning in 2018, business owners were potentially eligible for up to a 20% deduction on “qualified business income” (“QBI”).  For those owning a…

Loughman Case Illustrates Potential Impact of Entity Choice on Income Tax Liability for Cannabusinesses

Brandon N. Mourges | Feb 20, 2019

Recognition of Internal Revenue Code (“I.R.C.”) § 280E and its potential to limit deductions can have a material impact on the ongoing operation of a cannabusiness.  While operational concerns require attention, improper tax classification of an entity can result in unnecessary additional tax being owed.  In Loughman v. Commissioner, T.C. Memo 2018-85, the United States…

Section 280E Remains a Problem for Maryland Cannabusinesses: How to Minimize Taxable Income through Proper Classification of Business Costs

Brandon N. Mourges | Feb 14, 2019

The Maryland Medical Cannabis Commission (“the MMCC”) recently reported to the Maryland legislature on “the deleterious effects of the federal tax code on medical cannabis businesses.[1]”  As stated in its report, I.R.C. § 280E creates significant additional tax costs not faced by other industries and limits the industry’s ability to offer discounted supply to veterans…

Recent Report from Maryland Medical Cannabis Commission on Compassionate Use Fund Highlights Disparate Tax Treatment of Cannabusinesses

Brandon N. Mourges | Feb 12, 2019

In a December 2018 letter to Governor Hogan, the President of the Senate, and the Speaker of the House, the Maryland Medical Cannabis Commission (“MMCC”) discussed plans to fund the Compassionate Use Fund.[1]  As medical cannabis is categorized as a Schedule I drug and is not recognized for medical use by the federal government (more…

The Tax Cuts and Jobs Act: What Everyone Should Know Before Filing Their 2018 Taxes

Michael J. March | Feb 6, 2019

The smell of tax season is in the air. Accountants and tax attorneys alike are sharpening their pencils, replacing the batteries in their calculators, and stocking up on coffee. But something feels different this year. . . The Tax Cuts and Jobs Act (“TCJA”). Everyone has heard about it, but what exactly does it mean…

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Phone: 410-727-6600
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