Monthly Archives: May 2012

The IRS continues to feast on S firms that pay very low salaries to owners

In many cases, S firm owners take low salaries so they can receive the bulk of the corporation’s profits as dividends, which are not subject to payroll taxes. IRS and the courts balk at this practice. In a recent case, … Continue reading

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Means Test– Expenses– Household Size

In determining “household size” for the purpose of calculating the debtors’ allowable expenses under the means test, two courts adopted the “economic unit” approach, rather than either the “heads on bed” approach or the dependency test of the IRS. See … Continue reading

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Dischargeability of debts–Tax Debt

Taking a position that even the IRS has disavowed, the Fifth Circuit Court of Appeals held that, under the hanging paragraph added to Code §523(a), which states that, “[f]or purposes of this subsection, the term ‘return’ means a return that … Continue reading

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Ineligibility of Chapter 13 debtor for discharge does not preclude a plan that permits stripping off wholly-unsecured junior residential mortgages

“Chapter 20” was curtailed by BAPCPA, but it remains vitality for the purpose of lien stripping. The Bankruptcy Appellate Panel holds that the Bankruptcy Code allows a debtor to follow a Chapter 7 with a Chapter 13 in which he … Continue reading

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Ten Things You Need to Know About the 2012 IRS Nationwide Tax Forums

The 2012 IRS Nationwide Tax Forums are three-day events presented by IRS experts and partner organizations that offer up-to-date information on federal and state tax issues. Tax professionals that take advantage of early registration will receive a significant discount on … Continue reading

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Municipal Red Light Camera Ordinance Was Not Unconstitutional

Mary Nottebrok received a notice of violation of public safety from the City of Creve Coeur with photographs of the vehicle owned by her traveling through and intersection within the city while the electric light signal was red. The notice, … Continue reading

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