It took just 90 minutes for retired Marine Stephen Lara to lose his life savings. Years later, however, Lara finally got justice. A Washoe County judge ruled that Nevada law enforcement cannot use an “equitable sharing” civil forfeiture program to bypass state laws that protect property owners. The decision shuts down what the Nevada Highway Patrol (NHP) argued was a legal loophole that allowed officers to seize property under state law and process it federally—while still receiving an up-to-80% kickback from the proceeds. The court rejected that claim, finding no such loophole exists under Nevada law. The case arose after…

Tony Townley, one of the founders of Zaxby’s, has won a substantial conservation easement refund in his suit against the United States for a tax refund related to disallowed deductions. We don’t get to know how big the refund was. He was looking for $43 million. Townley and the government entered into a confidential settlement. We know that the settlement amount was at least $2 million and one would think, given that it was a settlement, less than $43 million. The reason we know that the settlement was at least $2 million is that it was sent to the Joint…

There has been a lot of talk about tax code changes in 2025 between Republicans and President-elect Trump. Currently it looks like retirement plans will not change. Reducing income taxes is something everyone wants to do. If you own real estate or a small business, you have more ways to defer taxes. Most people do not own these types of investments. For those who do not, the simplest way to lower taxes is by contributing the most you can to your retirement accounts. Even if you do own real estate or a business, maxing out retirement contributions is still a…

The IRS is aiming to change the rules for tax professionals. The U.S. Treasury Department and the IRS have released proposed regulations to update the rules for certain tax professionals, including attorneys, certified public accountants (CPAs), and enrolled agents (EAs) who can practice before the IRS. These rules have long been found in Treasury Department Circular 230. Circular 230 Circular 230—technically titled Regulations Governing Practice before the Internal Revenue Service—is often called Circ 230. The rules in Circ 230 aren’t just guidelines—they are codified as Title 31 Code of Federal Regulations, Subtitle A, Part 10 (the cite can be found…

The process for IRS to seize foreign assets to satisfy tax debts is not simple. IRS use of the so-called John Doe summons is often a first step to identify possible tax evasion with offshore assets, as noted in the recent case involving Trident Trust. After resolution of the tax matter, the IRS is faced with collection of tax and penalties that are due and it may come as no surprise in many cases that the taxpayer is abroad and not willing to pay. When the IRS targets taxpayers with assets abroad—whether they are U.S. citizens or not—the collection challenge…

As 2025 begins, both individuals and business owners are focused on the filing of the 2024 tax returns. Although, this is important, January is the best time to think of the filing of the 2025 tax returns. There are certain methodologies to think of in connection to the best savings for 2025. Establishing A Business Bank Account And Credit Card Opening separate bank accounts and credit cards for your business is vital for effective financial management. This separation ensures that your personal and business finances remain distinct, which is crucial for accurate record-keeping. When evaluating financial products, consider factors like…

The holidays – and the Internal Revenue Service (IRS) – brought businesses that claimed the Employee Retention Credit (ERC) some very good news. It was not that long ago that the IRS was claiming that the ERC program was rife with fraud. IRS Commissioner Danny Werfel was quoted as recently as March 2024 as estimating that “19 out of every 20 claims is suspect.” Thankfully, the environment has improved quite a lot over the last several months. In June, the agency reported that 10-20% of the ERC refund claims that it had held up for further review were actually “low…

As President-elect Trump approaches the second half of his discontinuous presidency, Americans seem cool to his signature economic proposal: steep new tariffs on America’s most important trading partners. During the campaign, Trump suggested that his tariffs would be truly universal, levied on all countries and applied to almost every product. More recently, however, his advisers have signaled a more targeted approach. “Rather than apply tariffs to all imports, the current discussions center on imposing them only on certain sectors deemed critical to national or economic security,” The Washington Post reported last week. “The potential change reflects a recognition that Trump’s…

Congress acted swiftly during COVID-19 in enacting legislation aimed at incentivizing employers to retain their workforce during the pandemic. Under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), eligible employers who maintained their payroll could qualify for a refundable credit known as the employee retention credit (ERC). To qualify, employers had to meet either a gross-receipts test or a government-order test. Out of these two tests, the government-order test has proven the most difficult to interpret. The CARES Act provides that an employer meets this test if the company’s business operations were fully or partially suspended due to…

The IRS has announced tax relief for individuals and businesses in southern California affected by the wildfires that began on January 7, 2025. Governor Gavin Newsom announced that California’s Franchise Tax Board is providing similar tax relief. Under the IRS announcement, impacted taxpayers now have until Oct. 15, 2025, to file various individual and business tax returns and make tax payments. The IRS relief applies to any area designated by the Federal Emergency Management Agency (FEMA), so individuals and households that reside or have a business in Los Angeles County qualify for tax relief. The relief will be available to…