On an issue of first impression, the U.S. Tax Court held that the whistleblower statute does not provide relief to a taxpayer who has been denied an award where the Internal Revenue Service did not initiate an administrative or judicial action and collecting proceeding (Cohen v. Commissioner, T.C., No.26925-11W, 139 T.C. No. 12, 10/9/12). RaymondCohen…
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Lap Dancing Is Taxable … Now That's Revenue!
The State of New York's highest court, the Court of Appeal, has decided, but only by a 4-3 majority, that the admission charges and private lap dance performance fees that Nite Moves, a strip club in Albany, collects from its patrons are not exempt from sales taxes.In their judgment, the Court majority pointed out…
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Procedures for Withdrawals and Releases of Notices of Federal Tax Lien Were Not Always Followed
The Internal Revenue Service agrees that releases and withdrawals of lien notices were not always processed timely or properly and has committed to making changes to procedures, the Treasury Inspector General for Tax Administration said in a report released Aug. 22, 2012. When taxpayers neglect or refuse to pay their taxes, IRS can file notices of…
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Payments to Former Owner Not Disguised Purchase Price Payments
Payments to the former owner of an insurance brokerage business were not disguised purchase price payments, the U.S. Tax Court held Oct. 15 (H&M Inc. v.Commissioner, T.C., No. 16612-09, T.C. Memo. 2012-290, 10/15/12). The owner of H&M Inc., a small corporation, sold its insurance brokerage business to a bank, then went to work for the…
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