JohnAlanCohan@aol.com 310.278.0203 Probate/Conservatorships IRS Audits IRS Collection IRS Appeals U.S. Tax Court IRS Criminal Investigation Tax Litigation Tax Opinion Letters Business Plans Aviation Law Tax Exempt/Nonprofit Organizations All aspects of equine and livestock law, particularly tax matters, syndications, business plans, tax opinion letters, and drafting of business documents.		New Tax Case Rules Against Taxpayer's Horse Activities (Elizabeth Giles) A new tax case, Elizabeth Giles v. I.R.S., T.C. Memo 2005-28, ruled against the taxpayer in connection with her Arabian horse activity. The taxpayer is a dentist in Rialto, California, who bought three horses and produced foals by breeding two of her horses, which the court characterized as "minimal breeding." Read More New Tax Case Rules Against Taxpayer's Horse Activities (Jane Freed) A new tax case, JANE FREED v. COMMISSIONER OF INTERNAL REVENUE, T.C. Memo 2004-215 (September 23, 2004) involved a deficiency of $64,213 on the question of whether the taxpayer operated her thoroughbred horse breeding and racing activities for profit in 1996. Read More Activity for Profit Measured by Time Spent An area of concern in IRS audits of farming, livestock and horse activities is the amount of time expended by the taxpayer in the activity. Read More How to Handle an IRS Audit Excessive business deductions by owners and breeders of horses, livestock or general farmers--or in other businesses activities-- can be a red flag that triggers IRS audits. Read More Are More People Being Audited in the Startup Phase? I have been asked to comment on what appears to be an upsurge in audits by the I.R.S. with respect to startup horse and farming activities. During the past few years there has been an unusually high number of taxpayers in the early startup phase of their activity being subjected to audits. Is this a trend? Is there some reason for this? Is it simply a coincidence? Read More Creative Advertising Methods Robert Sieber of Cincinnati, Ohio, was a self-employed custom builder of homes and barns. Mr. Sieber enjoyed playing polo, and was captain of his polo club. His sons and daughter participated in the team, and his wife fixed lunches for the team and guests. The team won various championships and garnered local newspaper coverage. Read More Operating in a Businesslike Manner In hobby loss audits, the IRS sometimes views horse activities as a means of generating tax losses, rather than as a profit-oriented venture. The IRS gives the greatest problems to individuals who have had a significant history of losses that they use to write off other income. Read More What is a Tax Opinion Letter? An area of concern for people in the horse, livestock and farming industries--among many other fields--is how to withstand IRS scrutiny in the event of an audit. Read More