Tag Archives: Internal Revenue Service


Pot May Be Illegal, but the Feds Are Delighted to Tax It

U.S. companies large and small legally deduct the expenses of doing business from their gross profits before paying income tax, but purveyors of marijuana (in states where possession is legal and where prescription marijuana is dispensed) cannot deduct those expenses and thus wind up paying a much higher federal income tax than other businesses. As NPR reported in April, “Section 280E” of the tax code (enacted in 1982 to trap illegal drug traffickers into tax violations) has not been changed …

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Posted 2 years ago in Bankruptcy Taxation by Michele Bowman  
Dionne Warwick Seeks Bankruptcy to Avoid Old Tax Debt

Legendary songstress Dionne Warwick on Mar. 21 filed for bankruptcy in federal court in New Jersey, where she lives, hoping to end a decades-old battle with the Internal Revenue Service over her tax debt.   No Other Choice Warwick is reportedly blaming a former manager for “negligent and gross financial mismanagement” resulting in the tax mix-up that left her $10.2 million in the hole with the IRS and the State of California. Over the years, the singer was paying off …

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Posted 2 years ago in Editors Picks Taxation by Michele Bowman  
Surprise! Your 2012 Taxes Are Higher Than You Thought

After the close of another year, income taxes of course come to mind. While it’s clear we have to pay tax on our income, there are plenty of provisions in the tax code that require federal taxes to be paid on things you may not normally think of. As you’re gathering your forms and preparing to submit your returns, consider the following checklist of surprises, groaners, and ironies.   Unemployment Benefits It’s ironic but true – you have to pay …

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Posted 3 years ago in by Sylvia Hsieh  
The Misdemeanors of Lauryn Hill: Failure to Pay Taxes is Not Cool

Grammy-winning hip hop artist, former Fugees phenom, and dare we say musical genius Lauryn Hill made a not-so-genius move by failing to file income tax returns for three years. Maybe “L Boogie,” the “rapper-slash-actress/more powerful than two Cleopatras,” singer, songwriter, and social critic, who now prefers the moniker Ms. Hill, forgot to file, or was too busy (she does have a brood of seven kids with Rohan Marley), or the dog ate her 1040. Whatever the excuse, doesn’t matter – …

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Posted 3 years ago in by Jennifer King  
IRS to Tax Payers: Beware of Tax Scams & Tax Fraud

A well-meaning friend suggests you visit her tax preparer, who promises to secure a big refund or help you qualify for a little-known tax credit. Or perhaps someone at church distributed a flyer advertising a company that offers to help you get free money from the IRS. Maybe you just saw posters tacked up around town, all promoting a new tax-prep company and hyping the big refunds they got for other clients. Sometimes we set aside our better judgment when …

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