Comprehensive Tax & Legal Solutions

Month: December 2016

Strict compliance with the tax code means just that

One of the more difficult concepts of tax law is that for the most part, it is arbitrary. While there is some narrative that follows from the idea that tax is typically owed on “all income from whatever source derived,” the devil is in the details and if you gaze on...

What’s a John Doe summons

In most cases when a law enforcement agency wants information, it can use a summons, for instance, if it wants additional information from a taxpayer concerning details of their tax returns from specific years. A summons typically is issued by a court for an...

What is reasonable compensation? Pt. 2

Last week, we looked at the factors the Tax Court uses to determine if compensation paid to employee/owners of a company qualify as “reasonable.” In a case involving a concrete contractor, the court found that the five-factor test supported the company’s assertion...

What is reasonable compensation? Pt. 1

When a company pays employees, it is presumed to some degree, that it pays them only enough to prevent them from leaving and going to work elsewhere. This equation changes when the company is controlled by the individual being paid. The IRS often suspects owners are...

Ohio lawmaker planning to push for flat income tax

There’s now little doubt that federal income taxes will change in one way or another under the new administration. But what about state taxes? One possible proposal to watch out for in Ohio is a move to a flat income tax. Ohio State Senator Bill Coley says he plans to...