Blog Archives - Page 18 of 51

Can Internal Revenue Code Section 1202 Benefit You?

July 5, 2026February 26, 2021 by Brotman Law

There is a generous tax benefit that only select taxpayers qualify for. Not well known, it is called ‘‘qualified small business stock,’’ or QSBS for short, and is found in Section 1202 of the Internal Revenue Code. Titled the “Partial Exclusion for Gain from Certain Small Business Stock,” it allows taxpayers to exclude gain from certain stock.

Key Takeaways

There is a generous tax benefit that only select taxpayers qualify for.
The original language of the section allowed taxpayers to not include 50% of any gain from sale or exchange of qualified small business stock held more than five years from gross income.
In the case of qualified small business stock acquired in 2010 and beyond, 100% shall be substituted for 50% in § 1202(a)(1). (§ 1202(a)(4)).

California FTB Knocking Harder on Business Doors

May 25, 2026February 22, 2021 by Brotman Law

We are now more than a year removed from the first reported COVID-19 case in the United States. Since then, government-forced shutdowns have rocked hundreds of thousands of businesses. When the catastrophic news hit, most business owners made the health and safety of themselves and their employees priority one.

Key Takeaways

Business concerns including taxes do not just evaporate with terrible news, however.
To help take some of the burden off of your shoulders I’ve written this article to walk you through the tax collections process for California businesses.
It will also notify the business whether there are outstanding tax issues and if so, allows a reasonable time for the business entity to comply.

Offers in Compromise, The IRS and COVID-19

July 5, 2026February 17, 2021 by Brotman Law

Back taxes can be a sore subject – one that never makes anyone smile – except perhaps in the movies. In the first season of the The Kominsky Method, an American comedy-drama on Netflix, an aging but still debonair Michael Douglas plays a once successful actor now Hollywood acting coach named Sandy Kominsky, who finds himself neck-deep in tax debt.

Key Takeaways

The Offer in Compromise
COVID-19 Pre-July 15, 2020
COVID-19 Post-July 15, 2020
As the Pandemic Continues, so might IRS Relief Initiatives

The State of FTB Tax Collections for Individuals

July 5, 2026February 8, 2021 by Brotman Law

“Whether you agree that raising taxes during an economic recession is bad for the economy or not, state and local governments should be doing everything in their power to bid Congress to provide more direct aid. This would minimize the need for tax increases or spending cuts,” wrote Michael Mazerov in Tax Notes.

Key Takeaways

“Whether you agree that raising taxes during an economic recession is bad for the economy or not, state and local governments should be doing everything in their power to bid Congress to provide more direct aid.
In previous articles, I touched on tax liability issues that predominantly covered taxpayers owing money to the IRS. The citizens of California could also owe taxes to the California Franchise Tax Board (FTB).
What does the FTB collections process look like for individuals in California and how has COVID-19 impacted these policies.

Owning a Business & Owing Taxes in the Present-Day Pandemic

July 5, 2026February 3, 2021 by Brotman Law

“Time and the hour run through the roughest day,” wrote William Shakespeare over four centuries ago. Had he lived during our present-day plague, what might he have written? Indeed, 2020 was a very challenging year for everyone. Outside of individual health risks, most businesses were sorely impacted.

Key Takeaways

Automatic Extensions Have Passed
How COVID-19 is Impacting Taxes
The New and Improved State Nexus
A Tax Debt Vaccination

Now for Some Good News: An Employee Retention Tax Credit

July 5, 2026January 29, 2021 by Brotman Law

Today is one of the most challenging times to be a business owner in recent memory. In order to help business owners and incentivize companies to keep employees on the payroll, the IRS introduced the Employee Retention Credit.

Key Takeaways

Today is one of the most challenging times to be a business owner in recent memory.
To break this down, I will use two companies to illustrate the different rules and applications of the Employee Retention Credit.
The Employee Retention Credit “is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021.

Individual Tax Liability In The Time of COVID-19

July 5, 2026January 22, 2021 by Brotman Law

Few entities are as powerful as the IRS and if you’ve received notification that you owe them, it can be very daunting. Even if you aren’t in debt, you may still be wondering what COVID-19 and the policies put into place last summer might mean to taxpayers this year.

Key Takeaways

How to Resolve Your IRS Collections Issues
IRS Penalties
COVID-19
What’s Ahead?

What Are Criminal Tax Restitution, Fines and Forfeiture?

July 5, 2026January 19, 2021 by Brotman Law

Tax attorney consultation at Brotman Law

For a taxpayer facing a criminal tax sentence the two questions that will resonate in his or her thoughts are: 1) How much will I owe? And, 2) Will I go to jail?

Key Takeaways

What is Restitution?
How is the Amount of Restitution Calculated?
How Goes the Government Collect Restitution?
What is Criminal Forfeiture?
What is the Criminal Forfeiture Process?

Tax Implications of the Paycheck Protection Program

July 5, 2026January 18, 2021 by Brotman Law

COVID-19 has left millions of Americans asking questions – some of them no more or less complicated than “what do I do now?” To help answer this question and ease the minds of Americans, on March 27, 2020, Congress signed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act.

Key Takeaways

COVID-19 has left millions of Americans asking questions – some of them no more or less complicated than “what do I do now.
In this $2.2 trillion economic stimulus bill was the Paycheck Protection Program (“PPP”), an incentive for employers to keep their workers on payroll. Many business owners were left wondering what tax implications this had for their businesses.
Generally, the amount of a loan that is forgiven represents taxable income for income tax purposes in the year it is written off.

Penalties for Non-willful Violations

July 5, 2026January 15, 2021 by Brotman Law

Often, taxpayers may neglect to comply with the tax code for reasons that have nothing to do with efforts to evade taxes. That is understandable. International tax laws, especially those associated with FBAR, are complicated and confusing.

Key Takeaways

How Does the IRS Define “Non-willful?”
Voluntary Disclosure
Conclusion