Tag Archives: taxes

A Spouse May Be Relieved of Federal Tax Liability under Certain Circumstances

April 08, 2019
By Coleman Jackson, Attorney, Certified Public Accountant

 

Innocent Spouse Relief from Federal Tax Liability

 

Texas is a community property state, which means that income earned by either spouse during their marriage is an item of community income.  Under federal tax law, each spouse is liable for federal taxes on community income regardless of which spouse earned the item of community income.

Under Internal Revenue Code Section 66(b), the Internal Revenue Service can modify the federal tax  outcome resultant from application of community property laws and charge only one spouse with respect to an item of community income if that spouse acted as if they were solely entitled to the  item of income; that is, they used it on themselves and not the community or household benefit,  and they did not notify their spouse of the item of community income before the due date for filing the spouse’s federal tax return for the applicable tax period.

 

Relief from Federal Tax Liability

 

 

This is only one of the many situations where an innocent spouse might be relieved of federal tax liability.  There is also, sometimes equitable relief available for innocent spouses even when the couple filed a joint tax return which created joint and severable liability for both spouses for the entire amount of the tax deficiency, penalties and interest due on the joint return.

This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader.  You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

Coleman Jackson, P.C. | Taxation, Litigation, Immigration Law Firm | English (214) 599-0431 | Spanish (214) 599-0432.

ONLINE RETAILERS LOOK OUT FOR TEXAS LIMITED SALES, USE & EXCISE TAX

By:  Coleman Jackson, Attorney, Certified Public Accountant
July 27, 2018

Online retailers have good reason to look out for the Texas Limited Sales, Use & Excise Tax.  Have you ever heard of South Dakota versus Wayfair, Inc.?    South Dakota vs. Wayfair, Inc., 585 U.S. ____ (2018) is a case decided by the U.S. Supreme Court on June 21, 2018.  In that case the Court decided in favor of South Dakota and against Wayfair, Inc.  Wayfair establishes a nationwide rule that basically allows all 50 States to lawfully tax the sales of goods and services performed by online retailers the same as they tax brick and mortar retailers.    Each State is permitted to change its laws governing transactions to realize this new source of revenue.  It is hard to imagine that Texas would not extend its sales, use and excise taxes to reach online retailers selling into Texas from other States or Countries.  The U.S. Supreme Court has given the States a green light to tax online retailers selling goods and services into their States from remote locations.

Online retailers have good reason to look out for Texas to extend the reach of its sales, use & excise tax rules to online retailers selling goods and services to consumers and businesses located in Texas.  In the past as it relates to brick and mortal retailers, Texas law presumed that all retail sales or uses of tangible personal property are taxable transactions.  The burden rested squarely on the shoulders of the brick and mortar retailers to show that sales were somehow exempt from sales, use and excise taxes.  Brick and mortar retailers are required by law to collect the tax and turn it over to the State of Texas pursuant to set rules and regulations.  These rules and burdens are most surely to extend to online retailers in the not so distant future when the Texas Legislature has had a chance to visit the issue after the South Dakota vs. Wayfair, Inc. decision.

Online retailers ought to watch, wait and plan their business activities in anticipation because the days when online retailers selling to consumers in Texas are numbered.    The Texas Comptroller of Public Accounts is the Texas governmental agency responsible for enforcing the sales tax rules in Texas.  Online Retailers need to perform due diligence and comply with Texas Limited Sales, Use & Excise Tax Act through voluntary disclosure and appropriate registrations.  Watch because the tax authorities cometh when you expect not.  Watch our blogs for future updates on this very important topic and other tax, litigation and immigration concerns of interest to our readers.

This law blog is written by the Taxation | Litigation | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader.  You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.

Coleman Jackson, P.C. | Taxation, Litigation, Immigration Law Firm | English (214) 599-0431 | Spanish (214) 599-0432

VENDORS DOING BUSINESS WITH TEXAS AND HIRING UNDOCUMENTED WORKERS – BEWARE YOU MIGHT HAVE TO PAYBACK ALL PUBLIC SUBSIDIES PLUS INTEREST

By: Coleman Jackson, Attorney
August 27, 2015

VENDORS DOING BUSINESS WITH TEXAS AND HIRING UNDOCUMENTED WORKERS MIGHT HAVE TO PAYBACK ALL PUBLIC SUBSIDIES PLUS INTEREST

Texas Government Code §2264.051 stipulates that vendors doing business with any public agency, state or local taxing jurisdiction, or economic development corporation in Texas must certify in writing that the business, or a branch, division, or department of the business, does not and will not knowingly employ an undocumented worker.

The certification statement must also stipulate that if, after receiving a public subsidy, the business or a branch, division, or department of the business, is convicted of a violation under the Immigration and Nationality Laws of the United States, 8 U.S.C.A.  §1324a(f), the business will repay the amount of the public subsidy with interest, at the rate and according to the other terms provided by an agreement under Texas Government Code § 2264.053, not later than the 120th day after the date the public agency, state or local taxing jurisdiction, or economic development corporation notifies the business of the violation.  INA, 8 U.S.C.A. §1324a essentially deals with persons or entities that violate the U.S. immigration laws by hiring, or recruiting or referring for a fee for employment in the United States an undocumented person.  A person or entity charged with violations of 8 U.S. C.A. §1324a may establish that it has compiled in good faith with the requirements with respect to the hiring, recruiting, or referral for employment of an alien (illegal alien is the term used in the INA to refer to an undocumented person or a person who came to the U.S.A. without inspection or overstayed their visa) in the United States.  Anyway, If a person or entity charged with a violation under 8 U.S.C.A. §1324a, establishes an affirmative defense, a conviction could possibly be avoided, and the person or entity doing business with a Texas public agency, state or local taxing jurisdiction, or economic development corporation could probably avoid the penalty of repaying Texas all public subsidies received with interest under Tex. Gov’t Code §§2264.051-2264.101.

A public agency, local taxing jurisdiction, or economic development corporation, or the attorney general on behalf of the state or the state agency, may bring a civil action to recover any amount owed to the public agency, state or local taxing jurisdiction, or economic development corporation against any person or entity convicted of 8 U.S.C.A.  §1324a violations pursuant to Texas Government Code Section 2264.101.

Specifics regarding your company, workers, or government contracts should be discussed with legal counsel of your choice.  This overview is supplied for educational purposes, is only an overview, and do not create an attorney-client relationship with the Immigration & Tax Law Firm of:

COLEMAN JACKSON, PC
6060 North Central Expressway
Suite 443
Dallas, Texas 75206
Phone:  (214) 599-0431 English
Phone:  (214) 599-0432 Spanish
Website:  www.cjacksonlaw.com