On September 1, 2023 the Texas Supreme Court issued its opinion in Duncan House Charitable Corporation v. Harris County Appraisal District (HCAD), reversing the 14th Court of Appeals and ruling against the Harris County Appraisal District on a property tax exemption dispute. The primary issue was whether the property owner (the charity) was required to […]

Each year the IRS publishes a Dirty Dozen list of tax scams that it plans to target in upcomingaudits. This year the IRS spotlighted Employee Retention Credits (ERCs). The public has literallybeen bombarded with radio and internet ads in the last 12 months by promoters attempting to conineligible businesses into claiming the credit. These promotions […]

The IRS has announced that the interest rate it charges for underpayments of tax (including estimated tax payments) has increased from 6% to 7% beginning January 1, 2023. This is the fourth quarter in a row that IRS has raised its interest rate by a full percentage point. (Rev. Rul. 2022-23). One year ago on […]

The Tax Court recently held that a couple of millionaires could deduct the losses incurred in their miniature donkey breeding business because it was entered into for profit. This case can serve as a valuable roadmap to survive an IRS audit for those with a loss-generating activity. Huff and his wife lived on a farm […]

In recognition of recent gasoline price increases, the optional standard mileage rate for the final six months of 2022 has been increased from 58.5 cents to 62.5 cents. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes. For the final six […]

If a taxpayer files a case with a trial court one day late, is he automatically denied his day in court? As is the case with so many tax issues, it depends. If it is a jurisdictional deadline, then the deadline is immutable, and the court will not acquire jurisdiction to hear the case. If, […]

The IRS has received requests from 200 members of Congress and numerous practitioners to stop automated notices. However, in a statement on its website on January 27, 2022, the IRS said it “will be very difficult…due to technology limitations.” “With an outdated technological ecosystem, these are changes that cannot be made as efficiently as they […]

Section 501(c)(3) of the Internal Revenue Code (IRC) sets forth requirements that an organization must meet in order to be exempt from income tax. While the IRS recognizes more than 30 types of nonprofit organizations, only certain organizations qualify as 501(c)(3) organizations to which tax-deductible contributions can be made. In general, organizations that may be […]

H.R. 3684, known as the Infrastructure Investment and Jobs Act, passed the House of Representatives just before midnight Friday, November 5, 2021 and is headed to President Joe Biden’s desk to be signed into law. The new law was approved by the House in a 228–206 vote after passing the Senate by a 69–30 vote […]

The American Rescue Plan Act of 2021 (the “ARP”) offers self-employed individuals and employers with fewer than 500 employees a new tax credit for paid time off to get vaccinated or to accompany another beginning on April 1, 2021 through September 30, 2021. An Eligible Employer may claim a fully refundable tax credit equal to […]