Blog

Gambling Losses in Wisconsin

Monday, Aug 29th, 2011

For non-professional gamblers, the Wisconsin Department of Revenue asserts that deductions for gambling losses must be added back into federal taxable income to reach Wisconsin taxable income.  (Gambling losses at the federal level are deductible itemized expenses to the extent they offset gambling gains.)  The position is based on Wis.Stat. §71.07(5)(a)7, which requires an addback… Read more »

Minnesota civil tax fraud

Thursday, Aug 25th, 2011

Interesting that Minnesota law, with respect to civil tax fraud, has traditionally put the burden of persuasion on the taxpayer to show a lack of fraud, in complete contrast to the federal rule.  F-D Oil Co., Inc. v. Commissioner, 560 N.W.2d 701 (Minn. 1997).  It is difficult to show in detail all the fraudulent activities… Read more »

underpayment rates drop dramatically

Friday, Aug 19th, 2011

Federal underpayment rates will drop for Q4 of 2011 to 3%.  Not bad.  If you can manage not to incur the failure-to-file or failure-to-pay penalties, say in an amended return situation, your loan from the United States is now really quite reasonable, considering that rates for a typical mortgage rate are still over 4%.  The… Read more »

innocent spouse deadline expanded

Friday, Aug 5th, 2011

Interesting that the IRS has expanded (will expand) the innocent spouse deadline under the catch-all equitable provision of I.R.C. §6015(f), which several courts had ruled was properly subject to the two-year-from-initial-collection time limitation, e.g. Lantz v. Commissioner, 607 F.3d 479 (7th Cir. 2010).  The IRS (Treasury) of course has the power to do this, because… Read more »

national ‘tax help’ firm closes

Thursday, Jul 21st, 2011

Roni Deutch – the ‘tax lady’ – is done.  A taxpayer seeking competent advice on an offer-in-compromise is well advised to seek a ‘regular’ attorney.

avoiding joint income tax liability – another issue

Monday, May 23rd, 2011

On a largely esoteric note, it should be pointed out that I.R.C. §6015 ‘innocent spouse’ status may not be the only avenue for avoiding joint income tax liability.  The threshold issue with joint liability is the existence of a valid joint return.  An area of the case law that has been somewhat dormant since the… Read more »

collateral estoppel and MN adjustments to federal items

Wednesday, Apr 27th, 2011

Minnesota is perceptibly increasing audits of federal income tax items, e.g. passive activity losses from limited partnerships where the activity of the limited partnership is in a state different from the state residence of the taxpayer.  A question that often arises is the effect of the Minnesota adjustments on federal reporting.  Of course, a fully… Read more »

in defense of embezzlers

Tuesday, Aug 17th, 2010

No one likes to defend embezzlers.  But some of the case law on the tax repercussions of embezzlement and restitution is unduly harsh.  In some cases, the courts have held that restitution of embezzled funds is not an ordinary I.R.C. §162 deduction, but at most a miscellaneous itemized deduction, e.g. in O’Hagan v. Commissioner, T.C…. Read more »