Questions? Please call:
952-855-8210
Questions? Please call:
952-855-8210

Welcome to the Regan Tax Law BLOG

How Long Do I Need To Keep My Tax Records?

Posted by Tom Regan | Mar 14, 2017 | 0 Comments

I am often asked how long do I have to maintain records to protect myself against actions by the Internal Revenue Service? Along with that question comes the question about whether the IRS has the burden of proving a taxpayer owes the tax (assuming it met its burden when first assessing the tax) ...

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IRS Summons – Defending Against the Summons

Posted by Tom Regan | Apr 30, 2014 | 0 Comments

The United States Supreme Court is considering an investor's objection to summonses issued by the IRS. United States v. Clarke, No. 13-301.  Mr. Clarke, the investor, is arguing the IRS improperly issued summonses as retribution against him and his business partners for resisting an audit and tha...

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Real Estate Professional – Maintaining Adequate Records

Posted by Tom Regan | Dec 27, 2012 | 0 Comments

Doing well in a full time job is hard enough, but some people, for many reasons, spend significant time, energy, and money away from their “regular job” trying to build themselves a better future through real estate. They often feel like they spend every waking hour away from their regular job de...

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Can I Recover Income Tax Refunds When I File My Returns Late?

Posted by Tom Regan | Sep 04, 2012 | 0 Comments

Many individuals and businesses fail to file their income tax returns for multiple years for a variety of reasons, usually stemming from life and business pressures that made it almost impossible for them to file their returns. When they finally have the time and motivation to prepare and file the returns, they realize that they overpaid their taxes for many years. They then discover that it may be too late to recover some of these refunds.

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Contributing a Lake Home to a Fire Department

Posted by Tom Regan | Dec 22, 2011 | 0 Comments

In Scharf v. Comm'r 32 T.C. Memo 1247 (1973) acq, in result, 1974 WL 36031, the United States Tax Court decided, and the IRS had acquiesced to the decision, that a charitable contribution deduction was available for the donation of a building (albeit partially destroyed) to a volunteer fire depar...

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Historic Preservation Conservation Easements – A Good Tax Shelter?

Posted by Tom Regan | Dec 15, 2011 | 0 Comments

In the early 1980s, there was an almost endless supply of tax shelters promising deductions and credits that produced benefits far in excess of the investor's contribution. These shelters were not just for wealthy, promoters pushed them on the average income earner as both a great business a great business opportunity and an investment that would more than pay for itself with tax deductions and tax credits.

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Is it Maintenance or a Property Settlement?

Posted by Tom Regan | Dec 06, 2011 | 0 Comments

Parties to a divorce action may dispute the intent or impact of their agreement or the court's order. One area of dispute is the character of a payment as alimony/maintenance or a property settlement. The payment of alimony/maintenance is deductible by the payor while the payment of a property se...

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Professional Gamblers

Posted by Tom Regan | Nov 22, 2011 | 0 Comments

In the State of Minnesota, many gamblers are interested in taking the extra steps to be treated as professional gamblers. In contrast to the treatment the gambler receives from the IRS, a non- professional gambler in Minnesota is subject to the Alternative Minimum Tax and, as a result, is not all...

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Fee Shifting Statutes – Are Awarded Attorney Fees Taxable?

Posted by Tom Regan | Aug 24, 2010 | 0 Comments

This is the seventh in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article addresses the question of whether the fact that attorney fees are provided for by a statute has any affect on including these fees in plaintiff's gross income. United States S...

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Deducting Attorney Fees “Below the Line.”

Posted by Tom Regan | Aug 17, 2010 | 0 Comments

This is the sixth in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article explains when and how the cost of attorneys fees may be deducted “below the line.” For cases not covered by IRC Section 62(a)(20) the United States Supreme Court determined, in ...

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Deducting Attorney Fees From the Award – Above the Line

Posted by Tom Regan | Aug 10, 2010 | 0 Comments

This is the fifth in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article presents situations when the the expense of attorneys fees may be deducted “above the line.” Deducting Attorney Fees “Above the Line.” The American Jobs Creation Act of 2004, Se...

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Contingent Attorney Fees as Gross Income

Posted by Tom Regan | Aug 03, 2010 | 0 Comments

This is the fourth in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article explains why an award of attorneys fees is included in a taxpayer's gross income. Gross Income and Anticipatory Assignment. The Internal Revenue Code defines “gross income” bro...

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Protecting the Character of a Settlement or Verdict.

Posted by Tom Regan | Jul 27, 2010 | 0 Comments

This is the third in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article identifies some of the things you can do to protect the character of the award. Allocate Damages. If a settlement agreement allocates the settlement payment among items taxable ...

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Exclusion from Gross Income under IRC Section 104(a)(2).

Posted by Tom Regan | Jul 19, 2010 | 0 Comments

This is the second in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article addresses the amounts that can be excluded from gross income. Amounts Excluded. Internal Revenue Code Section 104(a)(2) excludes from gross income compensatory damages: 1. ...

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Settlements and Verdicts as Gross Income

Posted by Tom Regan | Jul 12, 2010 | 0 Comments

This is the first in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. The article addresses the initial question of whether these amounts are included in gross income. General Rule. The proceeds from a settlement or verdict are part of the taxpayer's gross inc...

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Freedom of Information Act (FOIA)

Posted by Tom Regan | May 20, 2010 | 0 Comments

Much of the information the IRS has collected from or about a taxpayer in an audit or collection situation is available to the taxpayer. This includes the Revenue Agent's or Revenue Officer's notes and many of the documents they have collected about the taxpayer. Detailed information about what i...

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Debt Forgiveness

Posted by Tom Regan | Oct 31, 2009 | 0 Comments

Reducing or Eliminating the Tax Impact of the Forgiven Debt What are the tax implications when someone forgives debt that you legally owe? Is the amount forgiven taxable income to you? It really depends on a variety of facts. In this article, we will briefly address some of the things every taxp...

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Change in Method of Accounting

Posted by Tom Regan | Sep 30, 2009 | 0 Comments

One of the many decisions a business owner must make during the first year of operating is what accounting method is most appropriate for the company. While the Internal Revenue Service (IRS) requires that some taxpayers use the accrual method, for example, retail companies, some business taxpaye...

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