WELCOME TO THE MILIKOWSKY TAX LAW BLOG

Providing actionable insights and valuable information to help you navigate the complexity of tax law for your business.

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How to Apply for New Tax Credit Awards

In the 2014-2015 period, the Governor’s Office of Business and Economic Development (GO-Biz) is authorized to award more than $151 million to taxpayers through the California Competes Tax Credits. Over two separate application periods, nearly…
Stamp IRS audit and accounting documents.

The Process of Appealing an IRS Audit

Finding out that you are facing an IRS tax audit can be overwhelming and frightening, even if you are confident that you have nothing to hide. Knowing the IRS may blow the smallest of mistakes out of proportion can instantly leave your stomach…
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IRS Assesses Penalty 40% Greater than the Account Balance

An 87 year old man who has a secret Swiss bank account with $1.5M faces penalties of $2.2M for failure to disclose his bank account to the IRS. This is the first case made public where an individual's penalties associated with failing to report…
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Can the IRS Give Your Information To Collection Agencies?

The new bill, S. 2260 (Senate Bill), would require IRS to turn over delinquent accounts of taxpayers to private collection agencies. This provision was inserted into the tax extenders bill currently being considered in Congress. The bill, if…
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Are You Liable for Your Employer’s Past Due Payroll Tax?

If an employer fails to collect and pay employment taxes, the owners and executives (generally the CEO, CFO, and Secretary) who are responsible for paying and withholding wages and employment taxes may be personally liable for their company's…
Homeowner excluding capital gains tax after selling their home

IRS May Not Let You Exclude Gains from Selling A Home

Houses are considered a capital asset and therefore subject to capital gains tax; however, most homeowners are exempt and can exclude gains from selling their homes.  The 2014 case of Marvin E. Debough v. Commissioner of Internal Revenue displayed…
Hardworking young adult businessman, checking the company budget in the files.

IRS Says More Returns Are Being Filed Without a Tax Preparer.

As of April 18, 2014, almost 46 million returns were e-filed from home computers (not using a tax professional – but self prepared), which is more than the total from home computers for all of 2013. Based on IRS' statistics, more taxpayers…
Calculate money for TAX with Calculator, wooden tax block, coins and copy space.

What You Need to Know Before Filing Your Tax Return

​Our San Diego tax attorney explains what you need to know before you file your tax return. Simplified home office deduction: Beginning in 2014, taxpayers can use the simplified home office deduction to write off $5 per square foot of…
Busines using a computer to complete Individual income tax return form online for tax payment. Government, state taxes. Data analysis, paperwork, financial research, report. Calculation tax return.

Are You Affected by President Obama’s 2015 Tax Proposals?

President Obama recently released his 2015 budget proposal and included revisions to the tax laws that, in some instances, changes laws that have been on the books for sixty years. Keep in mind these changes are currently only proposals; however,…
Tax Return form 1040 with USA America flag and dollar banknote, U.S. Individual Income.

Nine Tax Tips for Preparing Your Income Tax Return

When it comes to running your business, there are various rules to follow to ensure you accurately report your business income and take proper deductions, determine whether you can pay workers as employees or independent contractors, and whether…
Smiling woman analysing bills filling tax documents while at sitting on sofa at home

Is This The End Of 1031 Like-Kind Exchanges Of Real Estate?

Obama's 2015 budget proposes a $1M cap on section 1031 like-kind exchanges of real estate. Currently, when a capital asset is sold or exchanged, a capital gain or loss is generally recognized. Internal Revenue Code Section 1031 provides an…
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Are Your Losses From Real Estate Limited?

Information the real estate investor should know before filing a 2013 income tax return. Owning investment property can provide many benefits and tax incentives. However, several pitfalls exist for the unwary real estate investor expecting…