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Boston Tax Law Blog

Work-related “uniform:” Does this include wardrobe costs?

The general answer is no. How broad in the definition of uniform?

A recent tax court case offers guidance. Forbes summarized the facts of the case. An employee worked for a clothing company. He was required to wear company-branded clothing whenever representing his employer. Clothing costs over the year were substantial, so he claimed then as work-related and deducted them on his taxes.

Prison sentence handed down in tax evasion case

Another tax season has come to an end. Now the IRS begins reviewing returns searching for discrepancies and underreported income.

The Service also works in coordination with other federal agencies to investigate fraudulent schemes. Masslive.com reported on a prison sentence handed down in one of these at the beginning of the month.

What to do if you cannot pay your federal tax bill?

The Boston marathon kicked off this morning in Hopkinton with approximately 30,000 runners traversing the city to finish on Boylston Street. The 26.2 mile event makes it more difficult to get around the metro area. For this reason, it is fortunate that the tax filing due date in Massachusetts is tomorrow, April 19th.

Massachusetts residents and businesses are expected to pay the Federal government more than $100 billion in taxes. That is right – billion with a B. If you are one of the thousands who cannot pay your tax bill, we have three tips for you in this post.

Down to the wire: 4 things to know about the tax filing deadline

If you're still getting your tax return ready to file, you've got plenty of company. Millions of taxpayers around the country wait until the last minute to file. On April 18 alone (the last day to file in 48 states), the IRS expects the number of returns that come in to be more than 5 million.

Here are four things to know about this year's filing deadline.

Not so FAST: Back taxes could put your passport in jeopardy

International travel is a necessity for many. It is often the only way to complete a deal or see loved ones in a home country.

Soon an unpaid tax bill could keep these travelers grounded. The provision was quietly tucked into a piece of legislation passed late last year – the Fixing America’s Surface Transportation (FAST) Act. The new rule allows the Internal Revenue Service to ask the State Department to deny or revoke passports when a taxpayer owes more than $50,000 in back taxes.

Easy steps to avoid one tax penalty

April is right around the corner, which means the tax filing deadline is almost here. If you owe this year, you are probably just starting to think about your options.

The Internal Revenue Service recently released some numbers about collection efforts from fiscal year 2015. The Service assessed approximately $14.5 billion in penalties for returns not filed timely. If you owe a significant tax bill and cannot immediately pay, you can avoid one penalty by filing your return before the deadline.

Business losses: Can you deduct them against other income?

Every so often the tax court rules on a case with interesting facts. The distinction between a business and a hobby is often the topic in these cases. A business loss can be deducted, but a hobby loss cannot. Get this wrong and you could owe a large tax bill.

A couple months ago, we wrote a two-part blog series on hobby losses. You can review our January 17 post on the nine-part test that the Internal Revenue Service uses to decide business versus hobby activities.

Debunking 2 tax myths that could lead to audit exposure

At the height of tax filing season, we wanted to address two common tax myths. Making either of these mistakes could result in an Internal Revenue Service audit and significant back tax bills.

These issues cover Affordable Care Act (ACA), 1099 filing requirements. In this blog post, we will explain how these myths got started and explain the reality. If audited on either of these issues, seek the counsel of an experienced tax attorney.

Tax clarity for entrepreneurs in 2016

At the end of 2015, Congress passed a law that eliminated the need for end-of-the-year brinkmanship over tax extenders. The Protecting Americans From Tax Hikes Act did not contain much that was new, but it did offer clarity and more certainty.

From the research and development credit to writing off business expenses, this post will discuss some of the changes that may affect your business decisions this year.

Bad publicity continues for pharma exec with tax lien

The bad press went viral last September – Turing Pharmaceuticals had increased the price of a drug called Daraprim by 5,000 percent. The drug, used to treat malaria and toxoplasmosis, had cost $13.50 before Turing bought it. After the acquisition, patients who often need to take it daily have had to pay $750 per pill.

Martin Shkreli, the CEO of Turing, resigned and the FBI arrested him for securities fraud. The Internal Revenue Service piled on by filing a tax lien for unpaid taxes along with penalties and interest of more than $4.6 million.

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