Decisions – Taxes and the Constitution

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Tax protesters generally seek to support their positions by citing the US constitution, such as stating the Sixteenth Amendment was never ratified. These claims are dismantled in tax court opinions on a regular basis.

But the US constitution does have a bearing on tax cases, particularly in criminal matters.

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Definition — Joint and Several

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Joint and several liability goes along with the election to file a joint federal income tax return, which has been an option in the tax code since 1918.

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Definition — Cost of Goods Sold

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If your business manufactures or buys products for resale, you’re probably familiar with cost of goods sold. You might even know the formula for figuring these direct expenses–

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Case — Group Rates

TL Case Summ

THE QUESTION: What tax rate applies when one member of a consolidated tax return is a personal service corporation?

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Definitions — Being Reasonable

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When it comes to compensation, what’s “reasonable?” The answer varies by entity type and can encompass too much compensation as well as too little.

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Decisions — Rollover Rulemaking

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When is a rollover not a rollover?

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Decisions – A Triangle of Debt

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When your lender cancels all or part of a debt that you owe, you generally have to recognize income, unless you qualify for an exception.

But what if you’re the guarantor of the loan and not the signer? Do you have cancellation of debt income when the original signer fails to pay?

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Decisions – Led Astray

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When you sue your tax preparer and win, are the proceeds taxable?

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Definition — The Fruit of the Slot Machine

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As you have heard repeatedly, gross income includes all income from whatever source derived. In fact, under the anticipatory assignment of income doctrine, you may realize income even though no amount is actually paid to you.

And yet…

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Decisions — The 25% Solution

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There are several exceptions to the general rule that taxes must be “assessed within three years after a return is filed.” (Internal revenue code section 6501(a))

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How well do you know tax law?

Whether you're a professional preparer or you simply enjoy staying on top of a complex, constantly changing topic, there's always more to learn.

Taxing Lessons can help.

We condense selected US Tax Court cases into interesting, informative summaries. You read a synopsis of the facts, review the provided tax code citations–then answer the question:

What would you decide?

Comparing your answer to the court decision gives you the opportunity to update and enhance your knowledge.

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You be the judge.

Taxing Lessons presents US tax court cases in a format that puts you behind the bench.

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Prior Posts

Useful Tax Law Links

US Tax Code- Cornell University Law School Legal Information Institute. Searchable.

http://uscode.house.gov/ - Office of the Law Revision Counsel. Searchable. Downloadable.

US Tax Court - TC Opinions, Memorandum Opinions, Summary Opinions. Searchable. Downloadable.

Treasury Regulations - Government Printing Office provides the Federal Tax Regulations. Searchable. Downloadable.

Other Official US Tax Guidance - US Internal Revenue Service. Searchable. Downloadable.

Useful Downloads by Taxing Lessons

Foreign Earned Income Exclusion - free PDF - Graphic of Internal Revenue Code Section 911

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