Debtors’ Balance Sheet Not Reliable Indicator of Assets’ Market Value
In re Sunedison, Inc., 2016 Bankr. LEXIS 2959 (Aug. 11, 2016). When a company declares bankruptcy, investors often question the accuracy of post-petition valuations offered by other stakeholders. But, as a recent ruling in a major bankruptcy case shows, investors...
How the IRS Proves Fraud and Why It Can Be Devastating
A tax assessment by the IRS is generally presumed to be correct, but a taxpayer can overcome the presumption with proof. However, that situation is reversed when the IRS asserts fraud. In those instances, the IRS must prove, by clear and convincing evidence that fraud...
Revenue Recognition for Contracts: Changes Coming Soon
The top line of your company's income statement is revenue. So, it tends to receive a lot of attention from investors, lenders and other stakeholders. Why? It’s a telltale sign whether your company is growing or declining based on changes in revenue. Moreover, changes...
Truckers: Highway Use Tax Return Is Generally Due August 31
The next federal highway use tax return is due on August 31, 2017, so the IRS wants to remind truckers and other owners of heavy highway vehicle. Generally, the deadline applies to IRS Form 2290 and the accompanying tax payment for the tax year that begins on July 1,...
Understand Your Social Security Retirement Benefits
In July, the Social Security Board of Trustees released its annual report on the long-term financial status of the Social Security Trust Funds. For years, people have questioned the viability of the Social Security system going forward. The report projects that the...
Spouse’s Unilateral Stock Agreement Sets Value in Divorce Action
Baumbouree v. Baumbouree, 2016 La. App. LEXIS 1388 (July 13, 2016). In a Louisiana divorce case, the trial court applied the value stated in a stock agreement the physician owner-spouse had entered into with his firm in the context of partition. In her appeal, the...
Do You Have a Deductible Business Loss or a Nondeductible Hobby Loss?
Under the federal tax code, there’s a fine line between businesses and hobbies. You may think of that unincorporated sideline activity you engage in an— such as a marketing director by day and an artist on the nights and weekends —as a business and hope to deduct any...
Why Partnership Tax Status May Sometimes Be Unwanted
Although there are legitimate reasons for some Maine business entities to choose a partnership structure, partnership status may be undesirable for certain activities involving more than one co-owner. Here are some tax-related reasons to avoid partnership status for...
5 Recent Supreme Court Decisions that Could Affect Your Business
The U.S. Supreme Court adjourned for its summer recess at the end of June. Here are five recent cases from its 2016 term that may be of interest to business owners and managers. 1. Advocate Health Care Network v. Stapleton (S. Ct. No. 16-74, June 5, 2017) Generally,...
Relying on Audit Techniques Guides
Before meeting with taxpayers and their professional representatives, IRS examiners usually do their homework. This includes reviewing any relevant Audit Techniques Guides (ATGs) that typically focus on a specific industry or audit-prone business transaction. ATGs are...