The hobby loss assault on distributors of direct sellers - hardly justified and particularly unwarranted
Article Abstract:
Distributors in the business of direct selling have been inappropriately subject to the burdensome hobby-loss rules of IRC section 183 and its accompanying regulations. Direct sales distributors who wish to deduct business losses against other income must have a profit motive determined by factors listed in IRS Regulation 1.183-2(b). Case law can aid in structuring business activities to avoid the operation of section 183, but Congress should legislate new provisions which operate specifically on direct selling distributorships.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1997
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State tax alert
Article Abstract:
In 1967 the U.S. Supreme Court ruled that out-of-state mail-order companies are not required to pay tax on their out-of-state mailers. The problem for direct marketers, however, lies in the fact that direct marketing has been tremendously successful for the past two decades and state tax collectors and legislators want to enforce a 'use tax'. The Direct Marketing Association is urging all direct marketers to write to their state legislators and voice their outrage at pending 'use tax' proposals.
Publication Name: ZIP-Target Marketing
Subject: Business
ISSN: 0739-6953
Year: 1986
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DM alert: 1986 looks bleak as Congress srutinizes industry issues
Article Abstract:
Funding for nonprofit rates seems slim for 1987 nonprofit mailings while, in addition, eligibility for nonprofit status will also be investigated. Use taxes are another issue that is currently under considerations by legislators for mail order companies. Telephone marketing operations are also under legislative scrutiny.
Publication Name: ZIP-Target Marketing
Subject: Business
ISSN: 0739-6953
Year: 1986
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