Law Feed

Nome, Alaska, is one of the cities in The Last Frontier that collects a local sales tax. The state's Gold Rush city is among the municipalities that will be able to unite under a new plan to collect sales taxes on online purchases. (Image: Wikipedia Commons) Alaska is known in the tax world as the only state that has no income or sales tax. The key word here, though, is state. The Last Frontier's local jurisdictions are allowed to levy local sales taxes. These tax-collecting communities now have a plan to work together to collect tax on online sales. Creation... Read more →


Attention, tax preparers. Next week is a big one. The filing extension deadline is Tuesday, Oct. 15. Then the very next day, the renewal season opens for paid Preparer Tax Identification Number (PTIN) applications and renewals. Also note that while there won't be any requirement to pay a user fee to obtain or renew a PTIN, this likely is the last time that the identification number assignments will be free. Last week, as the U.S. Supreme Court began its new term, the justices decided not to hear the case that reinstated the fees for PTINs. That means the ruling affirming... Read more →


via GIPHY The Kansas City Chiefs, with its star quarterback Patrick Mahomes, is among the handful of teams that National Football League watchers say have a shot at winning Super Bowl LIV next February. But the Missouri professional football team could be facing a tougher fight off the field. Last week, the Chiefs' attorneys argued before the Missouri Supreme Court that most of the NFL team's expenditures on items to renovate Arrowhead Stadium almost a decade ago should not be subject to the state's sales tax. This current court tax battle, which started in 2014, is due to an appeal... Read more →


The Trump Administration currently is embroiled in a whistleblower controversy. But another situation where a witness to tax wrongdoing — not any alleged Donald J. Trump activity! — has worked out much more satisfactorily. A $11.5 million award has been presented to a person whose information led to the government collecting over $44.4 million in taxes, penalties and interest, according to the whistleblower attorneys involved in the case. In announcing the award, attorneys Stephen M. Kohn of the Washington, D.C. firm of Kohn, Kohn and Colapinto and Dean Zerbe of the Houston-based firm Zerbe, Miller, Fingeret, Frank & Jadav, lauded... Read more →


Al "Scarface" Capone at his sentencing for tax evasion. Back in the Prohibition Era, federal agents — notably those from the Internal Revenue Service — took down the notorious gangster. The tax agency's Criminal Investigation agents are celebrating their 100th birthday this year. (Photo courtesy All That's Interesting: 25 Al Capone Facts) The United States' tax system is based on the premise that all income is taxable, including illegally earned income. Our tax system also relies on the voluntary reporting of that income, including ill-gotten gains. But human nature being what it is, that doesn't always happen, even with legally... Read more →


When California last year joined the literal growing ranks of states that have legalized marijuana, initial projections were that the state soon would be raking in $1 billion annually from weed-related taxes. That apparently was a pipe dream. The report on Golden State cannabis excise taxes collected between April and June was just $74 million. That disappointing revenue amount is this week's By the Numbers figure. Even more discouraging, California Gov. Gavin Newsom's office sharply scaled back projected tax dollars from the state's legal weed market. That's been the case in other states, too. In pushing through legal marijuana, both... Read more →


This February 2016 photo on Twitter of Donald J. Trump signing a tax return is one of the few, and unrevealing, looks we've gotten of his federal filings. The focus of Donald J. Trump and his White House change quickly. Issues that were boiling over just days ago quickly get pushed to a back burner by something else that's hotter. But some of those old topics are still simmering. And one of them, Trump's tax returns, saw the heat turned up a bit recently. It was, however, a former college student, not Trump, who was put on the hot spot.... Read more →


States as well as shoppers now must deal with remote sales taxes. (Image by Daniela Hartmann via Flickr CC) Just over a year ago, the Supreme Court of the United States (SCOTUS) struck down a previous ruling and expanded the ability of states to collect sales tax on from remote sellers. Many states in the wake of the 5-to-4 SCOTUS decision in South Dakota v. Wayfair have or are working on systems to collect sales tax from sellers who don't have a physical presence in their states. New Hampshire, however, has taken a different approach. The state has no sales... Read more →


North Carolina offers many gorgeous vistas, but the tax view for some trusts wasn't nearly so nice until a recent Supreme Court ruling. Now they can claim refunds of overpayments. (Blue Ridge Mountains viewed from Blue Ridge Parkway's Deep Gap overlook in western North Carolina; photo by Ken Thomas via Wikipedia Commons) You've got to appreciate the audacity of Tar Heel State tax officials. North Carolina decided it was due tax on a trust because a beneficiary was a state resident. That recipient of trust proceeds, Kimberley Rice Kaestner, was North Carolina's only connection to the trust. The person who... Read more →


//Kara's Party Ideas If you don't have to work on this post-July 4th Friday, then you're probably spending the day recovering from your patriotic and fireworks-laden celebrations. Some folks also are resting up from their birthday partying. Yep, I'm talking about those folks born on the Fourth of July. Famous 4th birthday celebrants: Several celebrities share this early July birth date. People magazine published a slide show and those from that presentation that caught my eye include: Eva Marie Saint, the Academy Award winning actress immortalized in On the Waterfront, which was directed by Elia Kazan and also showcased real-life... Read more →


Sometimes justice does prevail. Last week it arrived along with a dose of schadenfreude from all us who've paid, albeit usually grudgingly, our taxes over the years. On Friday, June 21, Virginia tax attorney-turned-lobbyist James F. Miller pleaded guilty to willfully filing a false tax return. And Miller wasn't just any National Capital area tax attorney. He was former employee of the Department of Justice' Tax Division. Again, schadenfreude. Six-digit tax bill on under-reported millions: The amount of money involved in Miller's case also is impressive. Miller, 67, under reported his gross income on his 2010 through 2014 tax returns... Read more →


The Internal Revenue Service wants the money you owe. It prefers you pay your taxes on time and in the conventional manner. But Uncle Sam's tax collector is not averse to working with delinquent taxpayers so that it can get the due taxes without an undue hardship on the debtors, such as via an installment payment plan. There are, however, limits as shown in two recent U.S. Tax Court cases. Within weeks of each other, two companies on opposite sides of the country, found their efforts to pay their very large tax bills over time overruled for basically the same... Read more →


Things that are never good: an unexpected envelope from the Internal Revenue Service. That's the assessment of one of my personal finance writer pals. Today, she's working to clear things up in connection with one of those mailing she got from Uncle Sam's tax man. It's not a fun exercise, but it's definitely one you should undertake if you disagree with an IRS decision. In fact, the IRS own Taxpayer Bill of Rights covers this situation in several of its tenets. Specifically, I'm looking at every taxpayer's right to: Pay no more than the correct amount of tax, Challenge the... Read more →


The Internal Revenue Service has formed a working group to look into allegations that some of its Free File members really didn't (don't?) want taxpayers to file for free. State and city officials have launched official investigations into or taken legal steps in connection with allegations that some tax software companies redirected online searches away from their free options on at the IRS website. Now what is being hailed as the first nationwide class-action lawsuit in the matter has been filed against Intuit, the maker of TurboTax. Tax software giant is legal target: It's no surprise that the tax software... Read more →


Michael Cohen (left) and Tom Arnold run into each other in New York City in June 2018. (Photo via Tom Arnold on Twitter) Michael Cohen, Donald J. Trump's former attorney and previously self-described fixer, is heading to federal prison in a couple weeks. But in a recent conversation with actor Tom Arnold, Cohen said he didn't commit all of the crimes for which he will do time. Specifically, according to the story on the telephone discussion that the Wall Street Journal broke, Cohen says he's not guilty of tax evasion, one of the charges for which he's going to jail.... Read more →


420 Day celebrant photo by GoToVan via Flickr Happy 420 Day, when marijuana smokers commemorate cannabis. It's not surprising that the origins of this unofficial holiday to celebrate weed are fuzzy. Some say it's based on the California police or penal code number 420 that designates marijuana smoking. Not true. Another theory is that there are 420 active chemicals in marijuana. That count must have been made after a few tokes over the line. There are more than 500 active ingredients in marijuana, with only about 70 or so being cannabinoids unique to the plant. A more likely explanation is... Read more →


March Madness is heating up. We're down to the Elite 8. I usually don't pay too much attention to college basketball, or college sports in general. I follow the professional games because I like to yell at the players, and I feel much more comfortable cursing guys who're pocketing beaucoup bucks instead of unpaid college athletes. I am in the minority, even in my house. The hubby has been sneaking some TV time watching the NCAA men's basketball championship tournament, though truth be told that's mainly because our alma matter, Texas Tech, is doing pretty well. Only the ELITE remain!#MarchMadness... Read more →


College and its ever-increasing costs certainly have gotten a lot of attention. There's the group of Democrats seeking their party's 2020 presidential nomination. Obviously spurred by the enthusiastic supporters of Independent-turned-temporary-Democrat Sen. Bernie Sanders and his promise of free college, many other White House wannabes also are talking up educational assistance. Then there's this week's Operation Varsity Blues. You might not have caught the name, but let me drop two others to spur recognition: Felicity Huffman and Lori Loughlin. Yeah, that's the name federal investigators gave to their take down of a far-reaching college admissions scheme. Wealthy parents, elite school... Read more →


Part of today's International Women's Day celebrations are for the continuing employment advances by women. Our 21st century progress is due in large part to the pivotal roles of female employees in traditionally male jobs, like this woman machining parts for transport planes at the Consolidated Aircraft Corporation plant in Fort Worth, Texas, in 1942. (Photo via Wikimedia Commons) Back in 2017 when Congress was formulating the comprehensive tax law changes that would become the Tax Cuts and Jobs Act (TCJA), the #MeToo movement was in full force, shining a light on the prevalence of sexual assault. As the TCJA... Read more →


Michael Cohen makes his opening statement before the House Oversight Committee on Feb. 27, 2019. (C-SPAN video screenshot) We have a complicated relationship with money, particularly when it comes to divulging details about it in our personal lives. Few of us (outside of personal finance bloggers) want to say how much we make. We tend to be vague, saying we're doing fine or perhaps going as far as to say things like "in the high five figures." We're a little more forthcoming when it comes to taxes, especially when we get tax refunds or don't, as recent social media complaints... Read more →