Net Operating Losses for Farmers

If you are a farmer who had a loss from the operation of your business, you might be eligible for favorable tax treatment of that loss. Generally, a taxpayer is entitled to carry back a net operating loss to the two tax years before the loss year and to deduct it from the income of those years. In that way, the taxpayer may get a refund of all or part of the income taxes paid in those prior years. If the net operating loss is not used up in the carryback period, the taxpayer is permitted to carry it forward for the next 20 years.

Household Employees

A few years ago, there were a number of scandals involving federal nominees or officials who had failed to pay "nanny" taxes on their employees. Despite the fact that many household employees request "under the table" payments in cash and that many employers do not want to bothered with the paperwork or additional expense, employers who do not make the required withholdings and payments may be subject to interest and penalties assessed by the Internal Revenue Service.

Miscellaneous Itemized Deductions

Although the Internal Revenue Code does not allow taxpayers to deduct certain employee expenses directly from gross income, it does permit the taxpayer to reduce adjusted gross income by treating them as itemized deductions. In deciding whether to itemize deductions, a taxpayer should determine if all of his or her itemized deductions exceed the applicable standard deduction.

Civil Damages for Collection Actions

What if you feel that an Internal Revenue Service employee intentionally disregarded the law in collection procedures against you? Do you have any recourse against the government? Surprisingly, depending on the facts of your case, the answer just might be yes.

Business Leagues and Trade Organizations

In order to qualify for tax-exempt status under Internal Revenue Code Section 501(c)(6), an association must show that it is devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. The organization seeking tax-exempt status as a nonprofit business league, chamber of commerce, real estate board, or professional football league must do more than indicate the name of the organization or the object of the local statute under which it is created.