They have income when money is received from employer. On the other hand, those who pass up the leave buyback aren't in constructive receipt of cash for tax purposes, even though they had the option to sell their vacation. Payment of a liability of an acquired company is not deductible . A business took over a company that had been sued for patent infringement and assumed liability for the case. The payment is treated as part of the cost of acquiring company's assets.
Financial problems don t excuse late payroll tax deposits .
A company used payroll taxes withheld from employees to keep itself afloat during bad times. But the Service wouldn't waive late-deposit penalty. Business didn t have reasonable cause for the untimely deposits, a district court says. Lawsuit winners cannot deduct their legal fees off the top . A fired worker won a suit for age discrimination.