Ninth Circuit Denies Deductions For Marijuana Businesses

Oregon has joined the growing list of states that have legalized the sale of marijuana, but that doesn’t mean pot dealers can light up and relax. Marijuana sales may be legal in the state, but it is firmly established that Internal Revenue Code Section 280E prohibits taxpayers from deducting any […]

The Trust Fund Recovery Penalty

The federal government requires that all businesses with employees withhold payroll taxes from each employee’s gross pay. These taxes, which include Social Security, Medicare, and federal income taxes, are deemed to be held by the employer “in trust” for the federal government, until the employer pays the taxes to the government each quarter. Payroll taxes […]

Osteria Francescana, Number Two in the World

Osteria Francescana. in Modena, Italy, the restaurant of highly energetic and inventive Italian chef, Massimo Bottura is rated second in the world by the Diners Club–sponsored 50 Best Restaurants Academy. Chef Bottura the subject of the Chef’s Table TV program first episode, has been referred to as the best chef in the world.  At the present […]

Trouble in Bankruptcy Discharge of Tax Debt

One often used technique for resolving unpaid personal income tax debt is now in doubt.  Practitioners should take care in advising delinquent return filers that bankruptcy may be available, after a two year waiting period, to discharge the tax debt.

Whether or not a tax obligation is dischargeable in bankruptcy is, […]

Judicial Conference Increases Dollar Amounts in Bankruptcy Cases

The Bankruptcy Code is full of specific dollar limitations and allowances. These figures include dollar limits on eligibilty for use of Chapter 13 and many other amounts, such as the value of exemptions permitted to bankruptcy debtors under 11 USC §522. All of these dollar amounts are adjusted by the […]

Major IRS Settlement Changes Announced

The IRS has announced a major change that will affect most people with unpaid tax debt who would like to resolve that debt with the government but can not pay in full. The settlement program used by the IRS to adjust tax debts is called Offer in Compromise. It is […]

Medical Marijuana Is Not Tax Deductible

Congress enacted the Tax Equity and Fiscal Responsibility Tax Act of 1982 and amended the federal tax code to prohibit deduction of ordinary and necessary expenses related to the illegal sale of controlled substances.  A recent Tax Court decision highlights this law as another challenge to the feasibility of marijuana […]

Credit Card Payment of Tax May Not Be A Good Idea

Credit cards are becoming more common for use in payment of taxes.  With the rapid increase in electronic filing of tax returns, online credit card payments have increased as well.  Nearly 70% of 2010 personal income tax returns were filed electronically.  By 2012, the federal government hopes to increase online filing to 80% for all tax returns.  When the electronic filing has been done and there is tax to pay, it is convenient and even encouraged to pay by credit card.

Convenience of credit card tax payment comes at some cost.  The government uses third party companies to process payment in most cases and a “convenience fee” is charged to the taxpayer for the service.  The IRS has a webpage entitled “Pay Taxes by Credit or Debit Card” with information on how to do just that.  The IRS website suggests that fees for the card payment range from a low of 1.9% to a high of 2.35%.   The additional fee is included in the transaction at the taxpayer’s expense.  Most state and local governments will accept payment through such a company. […]

Who Qualifies as an Oregon Resident for Income Tax Purposes?

Oregon imposes a personal income tax on all residents of the state under the authority of ORS § 316.037(1)(a) (2010).  By statute, an individual is a resident of Oregon under two scenarios.

A.  An individual who is domiciled in Oregon, unless he a) does not have a permanent place of abode in Oregon; b) maintains a permanent place of abode in a place other than Oregon, and c) spends less than 31 days of a taxable year in Oregon. ORS § 316.027(A)(i)-(iii). […]

MERS Defeated Again in Oregon

We recently wrote a post describing a MERS defeat in Oregon Bankruptcy Court, and MERS (an acronym for Mortgage Electronic Services, Inc., an electronic registry) is in the news once again. This has not only been a hot topic in Oregon, but people around the nation have been attacking MERS as foreclosures mount and banks turn defaulting homeowners out into the streets. […]

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