Understanding How Estate Planning Can Reduce Future Tax Exposure A family may spend decades building wealth through successful businesses, real estate investments, and careful financial planning, only to see a significant portion lost to unnecessary taxes without proper estate planning. For estates that exceed the federal estate tax exemption, tax ...
Everything to Know about Texas Sales and Use Tax Audits Facing a Texas sales and use tax audit can be daunting, but understanding the process can help your business prepare and navigate it with confidence. At The Wilson Firm, we specialize in guiding businesses through tax audits to ensure compliance and minimize risks. The Texas Comptroller of Pub...
Why Business Owners Need a Strategic Estate Plan Many business owners spend years building successful companies, investment portfolios, and personal wealth, only to leave their business vulnerable to legal disputes, estate taxes, or operational instability. Without proper planning, unexpected death, incapacity, or ownership disputes can ruin years ...
Why Worker Classification Matters in Texas Many Texas businesses use independent contractors to reduce labor costs, increase flexibility, or support short-term projects. However, improperly classifying workers can create serious legal and financial consequences under federal and state employment laws. Employee misclassification occurs when a busine...
How Texas Sales and Use Tax Laws Can Lead to Double Taxation Texas sales and use tax are structured to prevent the same tax from being collected more than once on a taxable transaction. However, under Texas law, the Comptroller may pursue both the seller and purchaser for tax arising from the same transaction.[1] The law limits the Comptroller to c...
Everything to Know About the VDP If you've ever worried about unreported income, offshore accounts, or other tax issues that might lead to serious consequences, the Voluntary Disclosure Program (VDP) could be a lifeline. As a federal tax program administered by the Internal Revenue Service (IRS), the VDP allows taxpayers to come forward voluntarily...
Choosing the Best IRS Payment Plan for Your Tax Debt Two of the most common payment options for delinquent tax debts are installment agreements and offers in compromise. Let’s discuss theses options below, along with the key considerations for choosing which route might be best in a taxpayer’s particular case. If you owe the IRS, and are considerin...
Overview of the Voluntary Disclosure Program The IRS Voluntary Disclosure Program (“VDP”) provides taxpayers who have willfully failed to report income, assets, or other tax-related information an avenue to resolve their noncompliance with the IRS. In order to be eligible, taxpayers must have willfully violated the tax law and must make a disclosur...
IRS Offshore Compliance Options for Foreign Asset Reporting Many tax practitioners and taxpayers have noticed increased enforcement in the international tax space. It’s always better to correct failures in filing foreign information returns or FBARs before receiving a letter from the IRS. Based in The Woodlands and serving the Greater Houston area,...
Why Businesses Face IRS Payroll Tax Audits IRS payroll tax audits often begin long before businesses realize a compliance issue exists. Payroll reporting errors, worker classification disputes, inconsistent filings, and other employment tax issues can all increase the risk of IRS scrutiny. Understanding what triggers an IRS employment tax audit can...
What Are the IRS Hobby Loss Rules? Generally, taxpayers may deduct “ordinary and necessary” business expenses under Sections 162 and 212 of the Internal Revenue Code. Many taxpayers believe that they can deduct their expenses related to their passions, similar to how one may deduct expenses related to a business. However, Section 183 limits this de...
Overview of Disclosure Requirements This is the second part of a two-part article. In Part 1, we briefly covered several international disclosure forms that must be submitted by certain U.S. taxpayers (including nonresident aliens that meet the “substantial presence test”) in connection with international accounts or transactions, including: FBAR/F...
Why Recordkeeping Matters for NIL Athlete Business Expenses Name, Image, and Likeness (“NIL”) has transformed college athletics into a significant commercial marketplace. Athletes such as Angel Reese have demonstrated that a college athlete’s name, image, and likeness can support major endorsement and sponsorship opportunities. With that earning po...
How Audit Preparation Helps Protect Your Business Receiving an IRS payroll audit notice can quickly disrupt business operations and create significant financial concerns for employers. Preparing payroll records, reviewing worker classifications, and identifying compliance issues early can help businesses respond more effectively if an audit occurs....
Understanding the Difference Between Tax Evasion and Tax Avoidance Reducing taxes legally is a common goal for Texas businesses and individuals, but many taxpayers are unclear where lawful tax planning ends and illegal tax evasion begins. Tax avoidance uses legal strategies to reduce tax liability, while tax evasion involves fraud, concealment, or ...
Understanding the Texas Franchise Tax Many business owners are surprised to learn that the State of Texas franchise tax applies to a wide range of business entities operating in Texas. Although Texas does not impose a personal income tax on individuals, many companies doing business in the state must still file annual franchise tax reports with the...
Why Multi-State Tax Nexus Matters for Texas Businesses Texas businesses increasingly expand operations beyond state lines through e-commerce, remote employees, and online sales, often without realizing that those activities may create tax obligations in other states. However, expanding operations across state lines, hiring remote employees, storing...
Understanding Civil Asset Forfeiture in Texas Many Texans are surprised to learn that law enforcement agencies may seize cash, vehicles, and other property even without a criminal conviction. Under Texas and federal law, civil asset forfeiture allows the government to pursue seized property through a separate legal process independent of any crimin...
Why FATCA Compliance Matters for Texas Taxpayers International tax reporting obligations have expanded significantly for taxpayers with foreign financial assets, offshore accounts, or interests in foreign financial institutions. Under federal tax laws applicable in Texas, individuals and businesses with specified foreign financial assets should und...
Why FBAR Compliance Matters for Texas Taxpayers Texans with foreign financial accounts, offshore accounts, foreign bank accounts, or other specified foreign assets may face significant FBAR filing requirements under federal tax laws. Failure to file an FBAR or properly report foreign financial assets may expose taxpayers to significant civil penalt...
