Tax Laws Archives

Reasonable Compensation in an S Corporation: IRS Audit Risks and Tax Court Guidance

13 May, 2026 | Tax Laws

S corporations are often promoted as a smart way for business owners to reduce self-employment tax, but that tax benefit has an important limit. If a shareholder works in the business, the IRS generally expects that shareholder-employee to receive reasonable compensation before the company makes significant non-wage distributions. When an owner takes a very low salary and large distributions, the IRS may argue that part of those distributions should be reclassified as wages and subjected to empl... CONTINUE READING

Home Office Deduction for Tax Purposes: Rules, Limits, and Common Mistakes

2 May, 2026 | Tax Laws

The home office deduction has been a source of confusion for years. Many taxpayers have heard that working from home automatically creates a deduction, while others assume the deduction is too risky to claim at all. The truth is more nuanced. The deduction can be valid and useful, but only when the taxpayer meets the legal requirements and applies the rules correctly. For self-employed individuals and certain small business owners, the deduction may reduce taxable income in a meaningful way. For... CONTINUE READING

Unpaid Tax: How a Divorce Decree Impacts Your Tax Liability

17 January, 2026 | Tax Laws

Can a Divorce Decree Protect You from the IRS? A divorce decree may clearly state who's responsible for unpaid taxes, but unfortunately, it doesn't override the law. When you file a tax return jointly with your spouse, you are both liable for the tax due – regardless of what the divorce decree says.... CONTINUE READING

Tax Reform and How Tax Reform Affects You as An Individual

9 January, 2026 | Tax Laws

Tax reform is a broad term that can describe almost any major change to federal or state tax law. Some reforms lower tax rates. Others eliminate deductions, phase out credits, tighten reporting rules, or change how income is taxed. Because tax laws evolve over time, the real issue for most people is not whether tax reform exists, but how a new law changes the amount of tax they owe, the records they need to keep, and the planning steps they should take before filing their return.For ind... CONTINUE READING

Alter Ego Liens and Levies: How to Protect Your Assets

10 October, 2025 | Tax Laws Tax Levy Tax Liens Tax Relief

What Is an Alter Ego Levy and How to Protect Your Assets? An alter ego levy is when the IRS seizes assets owned by your alter ego to cover your tax debt. If you've received notice of an alter ego lien or levy, you need to take action – this is not routine tax debt collection, and generally, the IRS only pursues this route when they believe you are hiding assets or they have the right to pierce the corporate veil due to co-mingling. ... CONTINUE READING

New York Tax Attorney for Business Tax Problems

28 June, 2025 | Payment Plans Tax Laws

Business Tax Attorney NY — Resolve Your Business Tax Problems If you have a business tax concern, we can help. At the Timothy S. Hart Law Group, we understand the complex range of problems and concerns faced by New York business owners. Whether you're just getting ready to launch or ready to shut down operations, we can help you. Business owners in this state have substantial tax responsibilities and obligations, and fai... CONTINUE READING

Taxes After Death: Who Is Responsible and What to Expect?

15 January, 2025 | Tax Debt Tax Laws

Summary When someone dies, their estate is responsible for paying any outstanding tax debt. The executor of the estate must file a final tax return and pay any taxes owed before distributing assets to heirs. Heirs do not inherit tax debt, but they may be responsible for taxes on inherited income or property. Surviving spouses may be responsible for their deceased spouse's tax debt if they fil... CONTINUE READING

Can You Go to Jail for Not Paying or Filing Taxes?

5 December, 2023 | Tax Laws

Can You Go to Jail for Unfiled or Unpaid Taxes? Tax time is one of the most dreaded times of the year. Even though it’s relatively easy to file your taxes with the help of accountants and online tools, many people put off filing until the last possible moment. In extreme cases, people may choose not to file at all. If this is the situation you find... CONTINUE READING

What Does IRS Notice CP2000 Mean? What to Do?

1 June, 2023 | Tax Issues Tax Laws Tax Notices

Summary IRS Notice CP2000 is sent to taxpayers who have underreported their income, resulting in additional tax liability. This may be due to unreported income, errors, or identity theft. If the notice is correct, taxpayers should pay the tax or contact the IRS for payment arrangements. If incorrect, they should contact the IRS with supporting documents. Ignoring the notice leads to finalized changes and collection processes. Tax professionals can assist with navigating CP2... CONTINUE READING

From a NY Tax Lawyer- How not to spend your tax refund.

27 January, 2019 | Tax Laws

From a NY Tax Lawyer- How not to spend you tax refund Today our NY Tax Lawyers want to share with you the 9 worst ways that you can spend your tax refund this year. Here they are: Using the tax refund as a down payment on a new car. While initially fun and exciting, upgrading your ride will increase your overall monthly expenses (insurance, car payments, maintenan... CONTINUE READING

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