The new tax law signed by President Trump, called the Tax Cuts and Jobs Act (TCJA), has several provisions beneficial to owners and breeders in the horse and livestock industries. I will discuss some of the highlights.

A resolution has been introduced in the U.S. House to impeach IRS Commissioner John Koskinen for violation of the public trust, failing to comply with congressionally issued subpoenas and misleading the public over the IRS’s practices of targeting conservative groups in audits.

Now that Republicans control the Senate, the question arises whether this will result in tax reform or at least impact how the IRS conducts its business. Top aides to the president have made the IRS hostile turf to honest taxpayers.

A new case, Mullins v. United States, decided in the United States District Court in Knoxville, Tennessee, considered an individual who owned and operated a cattle-raising operation who claimed he was entitled to deduct losses over a period of years.

Enforcement action by the Internal Revenue Service has actually increased in recent months in the farming and livestock field.

There are many websites and radio advertisements that offer services to help “compromise” IRS tax bills. Many of these offers make dubious claims and can entail up-front costs that exceed the results produced.

Many taxpayers fear being audited, for good reason. An extended period of deductions for livestock ranching or other farming ventures can easily trigger an audit.

We all know that recordkeeping is important for tax purposes, as well as for keeping track of day-to-day activities on the ranch, but most ranchers do not keep the right kind of records.

It may seem like a trivial matter, but to the IRS, commingling of funds suggests your ranch or farm is a hobby rather than a business. What exactly is “commingling?” The usual situation is depositing checks made payable to your business into your personal bank account, or using your business account for personal expenditures.