The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

Can a corporation be an individual for tax purposes?

The debate over whether a corporate entity can be considered an individual can be considered a taxpayer has garnered a great deal of debate. Generally, speaking, corporations are not individuals for tax purposes. While there may be worthy circumstances for an exception to this rule, corporate entities routinely lose such arguments.

A recent example was chronicled in an accountingtoday.com report. The IRS issued a tax levy onto a small Oklahoma nursing home for failing to pay its quarterly taxes. The nursing home was located in a rural community of less than 3,000 residents and had a limited operating budget. It contested the levy, claiming that it would create economic hardship given that it was already experiencing substantial financial difficulty. 

The hospital demonstrated that it had not received more than $300,000 in promised funds from Medicaid, Medicare insurance and other private payments. However, the tax court reasoned that the economic hardship exception only applied to individuals who would not be able to pay their reasonable living expenses.

 

The story is particularly applicable to small businesses and closely held corporations who do not have legal departments to dispute tax issues that could affect their businesses for years to come. Having a skilled tax attorney can help in avoiding situations that put a corporation’s viability at risk and negotiating favorable resolutions for those subject to tax levies.

 

Most importantly, a seasoned tax lawyer can make the most of a corporation’s due process rights so that all available defenses can be exercised.

 

The preceding is not legal advice. 

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The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
Atlanta Office Location

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