Virtual currency is a digital version of “value.” This value functions as a medium of exchange and may be used to purchase goods, services, or stored for investment. Essentially, it’s digital money and is quickly gaining popularity.
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The Differences Between the Federal System and the State of California
As a small business owner, you are used to dealing with the IRS and the state. You file income taxes with the IRS every year and file returns with the state when they are due. Paying tax is paying tax, right? So, why is there such a difference between the way the IRS plays versus the state?
Real Property Tax Strategies: The 1031 Exchanges
Benjamin Franklin once said, “Our new Constitution is now established, everything seems to promise it will be durable; but, in this world, nothing is certain except death and taxes.” Franklin may have been correct regarding the certainty of death, but was he correct about the certainty of taxes?
Why is Tax Compliance so Challenging for Cannabis Businesses?
Washington, Oregon, and California were among the first states in the country to legalize cannabis for recreational use.
How to Work with Brotman Law on Your IRS Collections Case
The biblical tale of David and Goliath is certainly inspiring and does much to instill the belief that you can overcome any opponent, no matter how much they out-size, out-weigh or out-spend you.
Unfortunately, this is not a fair comparison to use for someone going nose-to-nose with the IRS.
IRS Offers in Compromise
The government evaluates offers in compromises (OIC) based on what a taxpayer’s reasonable collection potential (RCP) is. Remember, an offer in compromise is an agreement between the taxpayer and the government to forgive a past tax liability in exchange for future compliance.
CDTFA Sales Tax Audits
The California Department of Tax and Fee Administration auditor will always make sure to distinguish between sales and use tax. Generally, the sales tax is the liability of the seller, whereas the use tax is the liability of the purchaser.
A retailer who consumes merchandise purchased for resale under a valid resale certificate or any person who consumes merchandise purchased from a retailer, the sale of which is exempt from sales tax (in contrast to CDTFA sales tax audits), is liable for the use tax on the cost of the property purchased.
In the case of a use tax, purchaser is liable until he or she paid the tax to the state or to a vendor who is authorized or required to collect the use tax and who must issue a receipt to the purchaser.
If the purchaser certifies in writing to a seller that the property purchased will be used in a manner as to entitle the seller to treat gross receipt form the sale as exempt from the sales tax, but purchaser actually uses the property in some other manner and for some other purpose, then the purchaser will be liable for sales tax as if purchaser was the seller in the original transaction.
Managing Tax Liability During and After a Divorce
Describing the divorce process, a client once said that splitting assets in a divorce was like separating delicate strands of a spider’s web. Coming to terms with a divorce in general may at times feel like an impossible mess to unravel; let alone to later find yourself in further entanglement with the IRS.
With the right guidance however, you can untangle the web of divorce dilemmas for good (at least from a tax perspective). This guide is made to help individuals navigate the issues of tax liability that relate to divorce.