A former partner of an accounting firm in Leawood, Kansas pled guilty to the filing of false personal tax returns in an attempt to hide approximately $202,000. As part of his plea, the CPA will pay over $100,000 to the U.S. government in restitution and could face up to three (3) years in jail and a $250,000 fine.
If you are in tax trouble and need assistance, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.
A bankruptcy judge in Louisiana has stated that an attorney who assisted people filing for bankruptcy by offering a no-money-down arrangement could not seek reimbursement of any filing fees or other costs that the attorney fronted for the clients.
Bankruptcy is a very complicated process and is not taken lightly by experienced bankruptcy attorneys. When choosing a bankruptcy attorney, be careful of discount bankruptcy prices because you may end up with a cheap bankruptcy experience.
If you are thinking of filing for bankruptcy and would like to speak to an attorney, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.
Ronald White Jr. of Lee’s Summit was convicted of owning a street sweeper 12 gauge shotgun that was drum fed. The conviction will land Mr. White ten (10) years in prison.
If you have been charged with a crime and need help, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.
The owner of a Dairy Queen franchise has filed for bankruptcy and has closed 22 stores in Texas, Oklahoma, and New Mexico.
If you have a business that is in financial trouble and need assistance, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.
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.
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.
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.
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.
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.
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.