ShawnCoulson International Lawyers Newsletter for June 2, 2017.
Business owners can get trapped by numerous state and federal consumer protection laws. Click “Full Article” for a rundown of some of the statutes related to deceptive advertising, pricing and more.
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Some bankrupt businesses deliberately sell off assets so there isn’t anything left to pay off their creditors. These are sometimes referred to as “phoenix” companies. Knowing how to spot these unscrupulous operators can help prevent your company from getting burned. Here is what your business should look for.
Corporations that make payments to shareholders beware: The IRS may challenge deductions claimed for certain business expenses and other related-party transactions. An inquiry could lead to reclassification of certain payments as constructive dividends, which could have unfavorable tax consequences for the company and its shareholders. Here’s a recent Tax Court case that highlights this contentious issue.
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Individuals who agree to attorneys’ fees that are contingent on the outcome of their case may wonder if they can deduct the fees on their personal tax returns. The federal income tax treatment of contingent attorneys’ fees taken out of a taxable non-business judgment or settlement has led to litigation between taxpayers and the IRS. Here, we cover guidance on this issue and provide an overview for taxable and business-related recoveries.
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