Handling Of Complex Constructive Dividend Cases

When a corporate executive or business owner uses corporate funds in a way that does not constitute business expenses, but rather expenses to enrich his or her personal life, the officer may face a tax issue with the IRS. A single transaction or even a series of smaller transactions may not be sufficient in the eyes of the IRS to warrant action. But if it detects a pattern or the transactions are large enough, it could classify those expense payments as constructive dividends. You could face either a higher tax liability or even a possible criminal indictment.

If the IRS has sent you a notice of audit, or you believe that it is about to question the legitimacy of the corporate payments you have received your for expenses, you need to seek out a tax attorney as soon as possible. Contact Theodore L. Craft for a consultation about your case.

Experience You Can Depend On

Theodore L. Craft, an experienced Boston area IRS tax attorney, understands how to identify what really is a constructive dividend. He will work to resolve your problem in the most positive way possible.

If the activity in question does not truly constitute a constructive dividend, the goal will be to answer the IRS's questions in a satisfactory manner so you do not incur any additional tax liability. Depending on the case, the IRS may view overlapping of business and personal expenses as a civil matter and simply adjust the amount of individual taxes due. However, if you are seen as looting the company for your personal gain, there is a good chance the IRS will seek a criminal prosecution. In the latter case, Theodore L. Craft will work to build an effective tax defense strategy for you.

Contact A Boston Area Tax Lawyer

For a consultation about a tax problem with Massachusetts attorney Theodore L. Craft, contact the law firm by calling 888-TAX-RISK.