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The U.S. Tax Court has held that payments received by a police detective on his retirement — for unused sick and vacation time — were includible in income. Based on that conclusion, the court rejected the taxpayer’s argument that a portion of the vacation time...

A set of tax rules known as the uniform capitalization (UNICAP) rules require certain business costs that are normally expensed as they’re incurred to instead be capitalized as part of the cost of inventory held for resale or noninventory items produced by a taxpayer for use in...

Businesses often prefer to treat workers as independent contractors to lower their costs and administrative burdens. But the IRS, the U.S. Department of Labor, various state agencies or even the employees themselves may challenge an employer’s classification. The U.S. Tax...