Vitamin World to Close 124 Stores
December 11th, 2017
Vitamin World has hired a company to assist it with shutting down 124 stores in 30 states.
If you have a business that is struggling financially, and you would like to speak to an attorney, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.
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.
Tax Tips for the 2017 Tax Year
December 6th, 2017
Here are a few end of the year tax tips for 2017 before the new year:
- Take steps to accelerate your deductions
- Maximize your retirement contributions
- Bulk up your estimated tax payments
- Meet with your tax adviser
If you are needing tax assistance and would like to speak to a tax attorney, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.
November 21st, 2017
A 2001 tax court case allowed a business man who owned a junkyard to deduct the cost of cat food for stray cats. The junkyard owner was feeding the stray cats to attract then to his junkyard in order to to get rid of his snake and rodent problem.
The Tax Court sided with the junkyard owner, stating that the deduction for the cat items was allowable because controlling the rodent population was an ordinary and necessary expense for a junkyard.
If you need help with your taxes, give our office a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.
November 20th, 2017
For artists who have always wanted to pursue their dreams of being poor in pursuit of their art, but who have worried about how to pay their minuscule tax bill, there is a special deduction to the rescue. This deduction is meant for actors, musicians, and dancers. Unfortunately, the rules required to meet this deduction can be somewhat cumbersome.
First, the artist must have been a W-2 employee for at least two employers during the year and each employer must have paid the artist at least $200.
Second, the expenses that the artist is deduction must be more than 10% of the total income from the artist’s work.
Third, the artist’s total gross income must be less than $16,000. This number was set in 1986 and has never been adjusted.
The problem with this deduction is that if the artist’s income is less than $16,000, they have little to no taxes to pay anyways. But, just in case, there is a special deduction just for starving artists.
If you need help with your taxes, 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.
Upcoming Tax Deadlines
November 13th, 2017
Here are some upcoming tax deadlines to be aware of:
March 15, 2018 – Partnership tax filing deadline
S Corp. tax filing deadline
April 17, 2018 – Individual tax filing deadline
IRA contribution deadline
C Corp. tax filing deadline
If you have tax issues and need assistance, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.
Don’t Hide Illegal Income
November 10th, 2017
Al Capone, one of the most notorious gangsters in American history, wasn’t convicted of murder, extortion, or any number of his other criminal activities. Instead, he was brought down because he didn’t pay his taxes. It was also a powerful reminder to his criminal counterparts; he was convicted in 1931 and that year more than double the amount of unpaid tax filings were submitted to the IRS than the prior year. His conviction was the result of a joint effort between the FBI and the IRS where they were able to follow the paper trail of Capone’s extensive, illegal business activities.
While he only served 7 years of his 10 year sentence, his time in jail was effectively a death sentence because he contracted syphilis in prison, suffered brain damage, went insane from infection, and at the time of his death he was said to have the mental capacity of a 12 year old.
If you need help filing your taxes, give us a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.
Crime Doesn’t Pay
November 8th, 2017
In another attempt to claim a deduction out of the ashes of a fire, a taxpayer attempted to deduct the cost of hiring his arsonist. This enterprising individual decided that insurance wasn’t good enough by itself. he decided to also attempt to cheat the government by deducting the $10,000 that he paid to the arsonist. The deduction was disallowed under the same set of rules that say that you can’t deduct illegal bribes, kickbacks, or other illegal payments.
If you need help with tax deduction give our office a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.
Burn It Down
October 4th, 2017
Growth is usually followed by decay; life is followed by death, and here is another case where fire follows construction. Some Taxpayers have donated their house to the fire department so that the fire department can practice their skills and burn the house down. These taxpayers have then claimed a deduction that is hotly contested by the IRS if all the following haven’t been followed.
Donate the house and the land to the fire department. This is best done by deeding the entire property over to the fire department.
Do not replace the home or have already slated it for demolition. Replacing the house disallows any charitable deduction being taken.
But, if done correctly, you can get a huge tax deduction in the amount of the fair market value of the house and land. Something to think about.
I you have questions about tax deductions, call our office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.