menu MENU

Posts Tagged ‘IRS’

IRS Refuses Money from Disgraced Attorney

December 8th, 2017

A Texas attorney, who is facing up to 20 years in a federal prison, tried to pay the IRS $82,400 towards his back taxes.  However, the IRS refused the money because the IRS believes the attorney stole the money from his law office’s trust account, which holds money that belongs to his clients.

If you have been charged with a crime or owe taxes to the IRS, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.

Deductible Muscles

November 15th, 2017

Wheir was a body builder who attempted to deduct some body building expenses because he believed he was in the business of body building. Some of his expenses included bison meat, which he ate at the rate of 3 pounds per day, vitamins, protein shakes, body sprays, massage oils, and body building outfits.

The IRS argued that Wheir’s body building was a personal activity and was not a business of any sort and therefor none of the items were deductible.

The Tax Court ruled party in favor of the IRS, stating that the bison mean and protein shakes were not deductible because both of those items could be consumed by the general public and therefor were considered everyday food items.

However, the Tax Court also ruled partly in favor of Wheir, stating that the cost of the lotions and oils were deductible because those certain products were only available to body builders through a body building magazine and therefore were not generally available to the public. The Tax Court also ruled that the body building outfits were deductible because they were not suitable for normal wear and were an ordinary and necessary expense for body building.

If you are having trouble with the IRS and tax deductions, give us a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Drugs and the Tax Man

November 14th, 2017

Regardless of whether their activities are legal under state law, drug dealers have to deal with special tax laws designed to discourage their activities. IRC 280E states that any deductions from an illegal drug business  are not allowed. The definition of an illegal drug business is defined by the drugs that are deemed illegal by the federal government, not the states. This means that the marijuana dispensaries in Colorado and California must report their marijuana income, but cannot deduct their marijuana expenses.

This rule is all encompassing for expenses related to the illegal drug business, including rent paid for property used in the drug trade, the soil that the drugs are grown in, and even the Ziploc bags the drugs are transported in.

However, there is still hope for all of your druglord clients. The IRS allows drug dealers to take a deduction for the cost of their goods sold. This means the drug dealer can deduct from their income the cost of the drug from their dealer or supplier to reduce some of their taxable income. The IRS even issued guidance, ILM 201504011, to assist drug dealers in trying to determine the cost of their goods sold.

If you are having trouble with the IRS, give our office a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Lawyer Jailed for 18 Months for Defrauding NFL Players

September 27th, 2017

A former Chicago attorney has been sentenced to 18 months for orchestrating a tax fraud scheme that defrauded millions of taxes from the IRS and financially harmed NFL players.

If you have been charged with a crime and need legal help, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.

Things To Do with Your Income Tax Refund

March 21st, 2017

tax refunds

Each year, around this time, you may be getting a tax refund.  Instead of spending it on a big screen TV or a new IPhone, here are a few other things to spend your refund on:

  1. Start a savings account
  2. Pay down or settle some of your debt
  3. Invest the money into a retirement account
  4. Buy life insurance
  5. Take care of some outstanding legal issues.

If you have any tax problems and would like some help, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Unclaimed Tax Refunds Reaches $1 Billion

March 20th, 2017

unclaimed tax refund

The IRS has recently announced that the amount of unclaimed income tax refunds now totals more than $1 billion.  The IRS estimates that 11,100 people in Kansas are due a refund with the average refund being $746.  The IRS estimates that 22,400 people in Missouri are due a refund with the average refund being $705.

If you need tax assistance, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

IRS Relaxes IRA Transfer Rules

November 30th, 2016

401k

The IRS has recently relaxed a long-time rule punishing people who do not correctly transfer money from one retirement account to another within sixty (60) days of pulling out the money.  Now, the IRS offers some exceptions to this sixty (60) day rule, including a lost check or a death in the family.

If the IRS is causing you problems, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

The IRS May Have Lost Your Identity

September 13th, 2016

lost

Last month it was discovered that the IRS realized that illegal immigrants stole more than 1 million Social Security Numbers from Americans.  To make matters worse, the IRS knew about the problem five (5) years ago but never told anyone about the problem, including the people whose identities were stolen.

If you are having tax troubles, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

That’s Insane! Part Two:

August 16th, 2016

crazy cat lady 2

Next up in our series of crazy ways people have legally avoided taxes is Jan Van Dusen, the definition of a crazy cat lady. At one point, Ms. Van Dusen had taken in so many cats that she was caring for 70-plus cats at one time in her home. It’s safe to assume that caring for that many animals is going to come with a rather large price tag. On one tax return, Ms. Van Dusen tried to write off $12,068 for items such as cat food and vet bills. Normally, these would be considered personal taxes but Jan Van Dusen was prepared to take on the IRS herself in order to save her cats. Eventually, she was able to convince the IRS that her operation was more of an animal shelter organization, since her house was so overrun by felines that she was unable to ever have people over, and was able to get deductions for most of her claims. If you have tax trouble, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.

That’s Insane! Part One:

August 15th, 2016

pay your taxes 2

This series will outline some of the most insane ways people have legally avoided paying taxes. Remember, these posts are just to give you a glimpse into the sometimes odd thinking of the US Tax Court, not to give you any ideas on how to get out of your taxes.

First up we have Justin Rohrs, a man who slid his truck off an embankment, totaled his car, and was charged with driving under the influence. After being denied his insurance claim of $33,629, Rohrs attempted to deduct the loss of his vehicle from his taxes. He was originally denied, but somehow the US Tax Court decided that Rohrs’ deserved a casualty loss deduction for his truck. According to tax law, if an accident was not caused by your own willful negligence or actions, the costs from the accident are a valid deduction. Somehow, a judge was convinced that drunk driving was not acting with negligence – moral of the story, don’t think you will be able to convince any other judge of the same. If you have tax trouble, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.