Terminology

Economic Substance Principle

The Internal Revenue Service uses an economic substance test to identify sham transactions that exist solely to reduce or eliminate taxes.    In addition,  the courts use this same doctrine to rule on the legitimacy of activity […]

Mailbox Rule
Income Taxes

Mailbox Rule in Business

There is one tax rule that confuses business owners and it relates to the year-end practice of paying bills and receiving compensation for receivables.  This is referred to as the ‘Mailbox Rule’.  This is strictly […]