| Below-Market Interest Loans |
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| The Internal Revenue Service looks very suspiciously at loans that carry little or no interest. These loans, called below-market interest loans, can either be demand loans with interest payable at less than the statutorily prescribed applicable federal rate, or term loans where the amount of the loan exceeds the present value of all payments due under the loans. More... |
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| Corporate Fraud |
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| The Internal Revenue Service gets involved in corporation fraud investigations when a large publicly traded or private corporation violates the Internal Revenue Code (IRC) and related laws. Generally, corporate schemes to evade taxation are broad in their scope, complex, and have a great negative economic impact on communities, employees, creditors, investors, and financial markets. More... |
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| Amortization of Goodwill and Other Purchased Intangible Assets |
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| It is not unusual for a taxpayer to pay more for a business than the fair market value of its tangible assets would seem to command. So why does a taxpayer pay more? The answer is that he or she has actually bought more than hard assets. More... |
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| Liens |
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| Once the Internal Revenue Service has assessed a tax and has sent the taxpayer a bill in the form of a Notice and Demand for Payment, a lien arises in favor of the government on all real, personal, tangible, or intangible property of the delinquent taxpayer until the amount is paid. By filing notice of the lien, the IRS has publicly notified all creditors of the taxpayer that it has a claim against the taxpayer's property, including property acquired after the lien was filed. The notice establishes priority of the government's lien in circumstances such as bankruptcy proceedings or sales of real estate. A federal tax lien may harm a taxpayer's credit rating and impair his or her ability to get a loan, a credit card, or a mortgage. More... |
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| Tax-free Bond Interest Used for Education |
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| If you invest in U.S. savings bonds, you are generally obligated to pay federal income taxes on the interest earned on the bonds. If you do not include the interest in your gross income in the year in which it was earned, you must include it in the year in which you cash in the bonds. However, if you use the proceeds from certain bonds as part of an education savings bond program, you may be entitled to exclude the bond interest in income. More... |
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