Law Office of Luis R. De Luna, PLLC Experienced, Effective Representation For Tax, Business And Probate Matters 2026-07-28T13:35:40Z https://www.delunataxlaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1300850/2020/11/fav-icon-75x75.png On Behalf of Law Office of Luis R. De Luna, PLLC <![CDATA[What happens when an estate includes a family business?]]> https://www.delunataxlaw.com/?p=47671 2026-07-28T13:35:40Z 2026-07-28T13:35:40Z Operations may continue or pause A corporation or an LLC generally continues after an owner dies. Managers might keep it running. Yet work could stall if no one has authority to pay employees or sign contracts. A sole proprietorship generally has no legal identity separate from its owner. Business property and obligations that belonged to the decedent therefore become part of the estate administration. The executor may need to preserve or sell them through the estate.

An heir may receive value without control

If the family business is a limited liability company (LLC), its structure often affects what an heir receives. In Texas, an assignee generally receives any distributions covered by the assignment. Becoming a member of the LLC usually depends on the business agreement or approval from all members under the state’s LLC ownership rules. An heir could therefore receive profits without gaining a vote. Unclear records can delay the estate’s distribution of the inherited interest. Community property questions might also affect what belongs to the estate and what the surviving spouse owns.

The family may sell, buy out or retain the company

A buy-sell agreement might require another owner or the company to purchase the estate’s stake. Without one, the heirs may negotiate a sale or buyout. A professional valuation usually provides a reasonable basis for the purchase price. The appraisal might cover cash flow, equipment, goodwill and ownership-transfer limits. It can also support tax filings and show what remains after debts, personal guarantees and creditor claims. Even when the valuation supports keeping the business, that choice may create conflict when one sibling works there while others do not. The active sibling might seek control, while the others expect income and access to accounts. Claims of poor management or withheld information can deepen the divide. The executor owes fiduciary duties to the beneficiaries and must act impartially.

How to manage the business through probate

Prompt action can reduce disruption during estate administration. The executor should safeguard company property, document major decisions and keep the beneficiaries informed about material developments. Guidance from a Texas attorney familiar with closely held companies can help the executor fulfill these duties. The attorney may address the probate, tax and business issues involved while working with accountants and valuation professionals when needed.]]> On Behalf of Law Office of Luis R. De Luna, PLLC <![CDATA[What documents should you gather after a loved one passes away?]]> https://www.delunataxlaw.com/?p=47668 2026-07-15T08:41:35Z 2026-07-15T08:36:52Z Estate planning documents Start by locating any estate planning paperwork because it explains your loved one's wishes and identifies the person responsible for managing everything after their death. If you can find them, gather:
  • The will and any amendments
  • Trust documents
  • Written funeral or burial instructions
You may also come across powers of attorney or health care directives. Although these generally no longer apply after death, they can still provide helpful background information or point you toward other important records.

Financial and property records

Next, collect records that show what your loved one owned and what obligations may still need attention. Having this information in one place makes it easier to identify the estate's assets and prepare for probate. Helpful records include:
  • Bank and investment account statements
  • Property deeds and vehicle titles
  • Mortgage, loan and credit card statements
  • Life insurance policies and retirement account information
These records can also help you determine which organizations you need to contact as the estate moves forward.

Personal identification and official records

Some official records are commonly required before you can begin many probate-related tasks. Collecting them early can help you avoid unnecessary delays when working with the court or financial institutions. You may need:
  • Certified copies of the death certificate
  • A Social Security card or number
  • Birth, marriage or divorce records when they affect heirs or beneficiaries
  • A government-issued photo ID, if available
Keeping these items together can save time when completing paperwork or verifying your loved one's identity.

Stay organized from the start

Every estate is different, and you may have questions as you sort through your loved one's records. If you are unsure what information you need or how to move forward, legal guidance can help you avoid unnecessary delays and address any issues before they become more complicated.]]> On Behalf of Law Office of Luis R. De Luna, PLLC <![CDATA[What happens if you haven’t filed taxes in years?]]> https://www.delunataxlaw.com/?p=47667 2026-06-23T08:10:30Z 2026-06-23T08:10:30Z Years of unfiled tax returns can feel impossible to fix, especially when the income involved is substantial. Many people delay because they fear the number, the paperwork or the possibility of criminal exposure. But ignoring the problem gives the Internal Revenue Service (IRS) more control over the story. Filing late is stressful, but it often creates a clearer path than waiting for the IRS to act first.

The IRS may already know about the income

The IRS receives wage, investment, retirement, business and brokerage information from third parties. For high-income earners in San Antonio, that means unfiled returns may still leave a clear paper trail. The IRS can compare those records against its system and send notices when a return appears missing. Once the IRS starts asking questions, a non-filer tax issue can become harder to manage. Notices may lead to proposed assessments, collection action and increased pressure to respond quickly.

A substitute return may cost more

If you do not file voluntarily, the IRS may prepare a substitute return using information it already has. That return may not include deductions, exemptions or credits that would reduce the balance. The IRS can then send a notice of deficiency and give you 90 days to file your own return or challenge the proposed assessment in Tax Court. That is why filing your own accurate return usually matters. It lets you include the records, deductions and business expenses the IRS may not have considered.

The six-year rule has exceptions

Many taxpayers hear that they only need to file six years of back returns. In practice, IRS procedures often focus on a six-year enforcement period, but that is not an absolute protection. The IRS can require more or fewer years depending on the facts, and managerial approval may support enforcement beyond six years. Fraud, business returns, payroll tax issues, foreign reporting problems or older years with large balances can complicate the analysis. The safest question is not simply how far back the IRS can go. It is which returns will bring you into compliance under your specific facts.

Penalties can grow quickly

Unfiled returns can create failure-to-file penalties, failure-to-pay penalties and interest. The longer the delay lasts, the harder it becomes to separate the original tax from the added charges. In some cases, penalty relief may exist if the taxpayer can show reasonable cause, but that review depends on the records and explanation.

Start with records, not guesses

Getting back into compliance usually starts with gathering wage and income transcripts, bank records, business records and prior notices. From there, the next step is deciding which years to file, what returns require correction and how to address any balance due. The issue may feel overwhelming, but a structured plan can turn years of avoidance into a set of specific tax years, documents and deadlines.]]> On Behalf of Law Office of Luis R. De Luna, PLLC <![CDATA[Can bankruptcy eliminate your business’s IRS debt?]]> https://www.delunataxlaw.com/?p=47648 2026-05-29T12:18:56Z 2026-05-29T12:18:56Z Not all IRS debt receives the same treatment Bankruptcy law does not treat every business tax debt the same way. Some income tax liabilities may receive more favorable treatment, while payroll tax liabilities and debts connected to fraud generally do not. A court may consider factors such as:
  • The kind of tax the business owes
  • How long the debt has existed
  • When the business filed its returns
  • Whether fraud allegations exist
  • How much interest and penalties have accumulated
These factors can influence how the debt receives treatment during the bankruptcy process.

The timing rules can affect your options

Federal bankruptcy law includes timing requirements that apply to many tax debts. Certain tax liabilities generally must reach a specific age before they may qualify for different treatment under bankruptcy law. The filing date of a tax return can also affect the analysis. Recent tax liabilities usually remain collectible after bankruptcy, and late-filed returns may receive different treatment. As a result, two businesses with similar tax balances may face different outcomes.

Payroll tax cases create unique risks

Payroll taxes involve money that businesses withhold from employee paychecks for federal tax obligations. During financial hardship, some businesses use those funds for operating expenses instead of sending them to the government. The IRS treats these situations seriously because the business already collected the money from employees. The agency may assess a trust fund recovery penalty against owners, officers or others who controlled financial decisions. Bankruptcy generally does not eliminate this type of liability.

Bankruptcy may pause collection efforts

Filing for bankruptcy usually triggers an automatic stay, which temporarily stops many collection activities. The automatic stay may affect:
  • Wage garnishments
  • Bank levies
  • Collection lawsuits
  • IRS enforcement actions
  • Property seizure efforts
The automatic stay can provide temporary relief from collection activity while the bankruptcy case moves through the court system. It does not permanently resolve the underlying tax debt.

Bankruptcy is not a guaranteed solution for business tax debt

Bankruptcy can help address some IRS obligations, but it is not a universal solution. Certain tax debts may receive favorable treatment, while others can survive the bankruptcy process and remain subject to collection. For business owners, the nature of the liability is often more important than the dollar amount. A business that owes income taxes may face a very different situation than one that failed to pay over employee withholding taxes, which is why IRS debt and bankruptcy do not always go hand in hand.]]> On Behalf of Law Office of Luis R. De Luna, PLLC <![CDATA[Addressing an IRS letter after tax return season ends]]> https://www.delunataxlaw.com/?p=47647 2026-05-25T19:20:17Z 2026-05-25T19:20:17Z Review the notice carefully The IRS may send letters advising people of an underpayment of taxes. Notices could address allegedly unreported assets or income. They could advise of an upcoming audit. In some cases, they may include an amount due to the IRS, as well as information about penalties and interest. Taxpayers should read the letter carefully to determine the exact underlying cause of the tax controversy and respond appropriately. The letter may include critical deadlines for addressing the issue.

Contact a tax attorney

Understanding the basis of the IRS letter does not resolve the issue. Taxpayers may need to prepare for an audit, communicate with the IRS or gather evidence to prove that the claims made in the letter are actually inaccurate. A tax attorney can manage much of that process on behalf of a taxpayer. They can make sense of the IRS's claims, advise the taxpayer of what evidence might be necessary and help them avoid escalating consequences.

Respond appropriately

Taxpayers may need to submit documentation, negotiate an offer in compromise or prepare for an audit. They need to avoid actions that could worsen their situation, such as transferring assets to others to avoid collection activities. An attorney can help ensure that people address the issues in an IRS letter before any deadlines. Delays when responding to IRS notices may result in additional penalties or interest accruing. Timely action is necessary, but the exact steps a person should take depend on the type of notice they’ve received and whether the IRS accurately assessed the situation or not. Scheduling an initial consultation with the tax attorney as soon as possible after receiving an IRS tax letter can help people avoid worsening financial consequences and other potential penalties.]]> On Behalf of Law Office of Luis R. De Luna, PLLC <![CDATA[How do plea deals work in Texas criminal tax cases?]]> https://www.delunataxlaw.com/?p=47645 2026-04-30T09:56:52Z 2026-04-30T09:41:01Z you face criminal tax allegations in Texas, conversations about resolving the matter often start early, sometimes even before trial preparations begin. A plea deal sits at the center of that process. It reflects an agreement between you and the prosecution that may shape how the case moves forward and what outcome you might expect.

What does a plea deal involve?

A plea deal or plea bargain generally means you agree to plead guilty to a specific charge or a less serious version of it. In return, the prosecution may narrow the charges or suggest a more limited sentencing range. In Texas, these cases often follow one of two tracks depending on the type of tax issue involved:
  • State level cases may involve the Texas Tax Code, such as sales tax or motor fuel tax issues
  • Federal cases may involve the Internal Revenue Code, including allegations like tax evasion
Choosing a negotiated resolution instead of a trial can reduce uncertainty and may shorten the overall process. Still, the outcome often depends on the details of your situation and how both sides evaluate the facts.

How do negotiations typically develop?

Negotiations usually unfold through a series of discussions between your defense position and the prosecution. These conversations often focus on what the evidence shows and how your intent appears in financial records and filings. During these discussions, several key points often come up:
  • The charge that best matches the facts of the case
  • The level of intent reflected in your financial history and records
  • Your willingness to take responsibility for certain actions tied to the allegations
As the parties review these points, both sides may adjust their positions. Transitioning from early discussions to a structured agreement often depends on how each side interprets the strength of the evidence.

What are the possible sentencing outcomes?

If you reach a plea agreement, sentencing may differ from what could follow a trial conviction. A deal may reduce the severity of charges or create a more predictable sentencing range. In some situations, certain counts may no longer move forward. Federal cases often rely on the U.S. Sentencing Guidelines to help structure outcomes. State cases follow the Texas Penal Code framework. In both settings, a judge reviews the agreement and considers whether to accept it. In some Texas state court situations, if a judge rejects a plea agreement, you may have the option to withdraw your plea and reassess your approach.

Which factors influence the final deal?

Several factors often shape plea discussions in tax cases. These may include the amount of tax involved, your level of cooperation during the investigation and your prior filing history. Clear and organized financial records can also influence how both sides view the case. Because each situation carries unique details, outcomes may vary depending on how the evidence presents these factors and how the parties interpret them during negotiations.

Final thoughts on resolution strategies

Plea deals in Texas criminal tax cases often serve as one possible path to resolve disputes without a trial. They can provide structure and reduce uncertainty, although the terms depend heavily on the facts and how the case develops over time.]]> On Behalf of Law Office of Luis R. De Luna, PLLC <![CDATA[Organizing your assets for your heirs in Texas]]> https://www.delunataxlaw.com/?p=47644 2026-03-27T14:32:34Z 2026-03-27T14:32:34Z Getting your affairs in order is a practical step to protect your family. In Texas, clear organization helps your heirs avoid the confusion, delays and added costs of the probate process. A simple plan guided by state law makes a difficult time much easier for everyone involved.

Create a clear and complete asset inventory

Start by listing everything you own, including bank accounts, retirement funds, real estate and vehicles. Do not forget digital assets, such as cryptocurrency or online accounts. Under the Texas Revised Uniform Fiduciary Access to Digital Assets Act, simply writing down passwords may not be enough. You should use online tools provided by providers like Apple or Google to name a legacy contact, as these settings legally override instructions in a will. For each asset, note account numbers and locations. Keep this in a secure place and tell a trusted person where it is. An organized inventory helps your executor comply with the law, which requires them to file a formal inventory with the court within 90 days of their appointment.

Keep ownership and beneficiary details updated

In Texas, some assets, such as life insurance and retirement accounts, pass directly to named beneficiaries. However, this only works if you list a valid living person. If you name your estate or leave the section blank, the asset must go through a full probate court process. Thus, you need to check how you titled each asset. Also, review joint ownership carefully. In Texas, owning an account or house with someone else does not automatically transfer it to them when you die. Under Texas law, you must sign a separate written agreement that specifically grants a right of survivorship. Without this, your share may go to other heirs instead of the co-owner.

How legal guidance protects your plan

Even a well-organized plan can fail if it does not meet Texas legal standards. An attorney can help you align your beneficiary designations with your will and prevent conflicts. Taking these steps now protects your wishes and gives your family peace of mind.]]> On Behalf of Law Office of Luis R. De Luna, PLLC <![CDATA[5 common tax mistakes to avoid that could lead to an audit]]> https://www.delunataxlaw.com/?p=47642 2026-03-23T10:09:35Z 2026-03-23T10:09:35Z Your chances of an IRS audit depend largely on what is in your tax return. In 2024, the agency audited over 500,000 returns. Because it lacks the resources to audit every filing, the IRS focuses on returns with specific warning signs. The common thread? Many taxpayers made the same avoidable mistakes. Protecting yourself and your business from an audit means recognizing and eliminating these five recurring errors before you file.

Failing to report all income sources

The IRS receives copies of every 1099, W-2 and income document that third parties send you. When your reported income does not match these records, automated systems will flag your return instantly. This issue typically affects freelancers, gig workers and small business owners. You must report all income, including cash payments, side job earnings and rental revenue. Texas business owners who handle cash transactions face extra scrutiny because the IRS assumes unreported income occurs more often in cash-based industries. Under federal tax law, omitting income can result in penalties of up to 20% of the underpayment.

Overstating business deductions

Business expenses legally lower taxable income. Still, deductions that are unusually large for your revenue or industry draw IRS scrutiny. The agency targets these particular categories:
  • Home office expenses that exceed actual business use
  • Vehicle deductions claiming 100% business use without proof
  • Inflated meals and entertainment expenses
  • Travel costs without a clear business purpose
  • Round-number expenses that look like guesses
You need receipts, logs and documentation for every deduction you claim. The government requires you to prove your expenses, not the other way around.

Making basic math errors

Calculation mistakes seem minor but they catch IRS attention immediately. The agency's computers scan every return for arithmetic errors, transposed numbers and incorrect totals. These discrepancies often happen when you rush through your return or skip the final review. Using tax preparation software helps, but you still must verify all numbers before submitting. 

Misclassifying workers

If you are a business owner or employer, treating employees as independent contractors generally saves you money on payroll taxes, workers' compensation and benefits. The IRS, however, actively investigates this practice because it costs the government billions in lost revenue. Federal law uses a multi-factor test to determine worker status. The test examines who controls the work, who provides tools and materials and whether the relationship is permanent. Texas follows these federal guidelines strictly. Misclassifying workers triggers audits and leads to back taxes plus penalties. You also face potential liability under employment laws that can reach back several years.

Mixing personal and business expenses

Commingling funds is a major red flag for any auditor. When you use a business credit card for groceries or a personal vacation, you risk losing the legal protections of your business entity. Using business accounts for personal expenses suggests you treat your business as an extension of yourself rather than a separate company. This practice can lead to "piercing the corporate veil" in legal proceedings. If this happens, a court could expose your personal assets to business liabilities.

How to stay compliant and avoid tax audits?

Prevention is typically easier and less expensive than dealing with an audit after it starts. Consider the following strategies:
  • Keep a solid record system: Store all receipts, invoices and financial documents in one secure location, whether digital or physical. This system simplifies filing and provides the proof you need if questions arise later.
  • Check your books regularly: Review your tax situation quarterly rather than waiting until April. This approach gives you time to identify potential issues, adjust your estimated payments and ensure you capture all deductible expenses.
  • Educate yourself about the tax rules: The IRS publishes industry-specific audit guides that outline what auditors look for in different sectors. This way, you can prepare stronger documentation and avoid common pitfalls in your field.
If you receive a notice from the IRS, consider getting help before responding to inquiries. Experienced professionals understand what the agency wants, how to present information effectively and when to negotiate. Securing this representation often resolves issues faster and more favorably than handling matters on your own.]]> On Behalf of Law Office of Luis R. De Luna, PLLC <![CDATA[Silent partner suddenly wants control? You have legal options]]> https://www.delunataxlaw.com/?p=47641 2026-02-24T11:05:26Z 2026-02-24T11:05:26Z What makes a partner "silent"? A “silent partner” is an informal label for an investor who provides capital to your business but stays out of daily operations. They earn profits based on their ownership percentage without managing employees, signing contracts or making business decisions. This arrangement benefits both parties: you get funding, and they get returns without the work. Whether a person qualifies as a silent or limited partner depends on the entity type and, most importantly, the partnership or operating agreement. Simply put, the written agreement is the primary source of each party’s rights and duties.

How do silent partners commonly overstep?

When a previously passive investor starts exerting influence, they often do so in specific, identifiable ways:
  • Pressing to hire or fire key employees
  • Demanding approval rights over vendors, contracts, or purchases
  • Insisting on attending or directing management meetings
  • Threatening to block major business decisions
  • Requesting detailed day-to-day financial access or control
  • Attempting to sign contracts or otherwise act for the business
Any of these steps can disrupt operations. Depending on your agreement and the facts, these actions may breach contractual limits on the investor’s role.

What is the risk for the silent partner?

Texas law generally protects limited partners or other passive investors from personal liability for partnership obligations as long as they remain passive. If a passive investor starts exercising control inconsistent with that status, a court may find they assumed managerial functions and could lose limited liability protections. That risk is fact-specific. Courts will look at the totality of conduct, such as signing contracts, directing employees and making operational decisions. Not every vote or meeting attendance will automatically strip limited status.

What are the legal tools you can consider?

Your partnership agreement serves as your primary protection. This document defines each partner's rights, duties and limitations. Texas courts enforce these agreements when they clearly establish management roles. You can send a formal demand letter reminding your partner of their contractual obligations. Many disputes resolve at this stage once the silent partner understands they lack legal standing. If they continue interfering, you can pursue mediation or arbitration if your agreement requires these steps. Litigation remains an option for serious breaches. You can ask the court to enforce your agreement and stop the partner's interference. Texas law allows managing partners to seek injunctive relief, which prevents silent partners from taking unauthorized actions. You might also explore buying out their interest or restructuring the partnership entirely.]]> On Behalf of Law Office of Luis R. De Luna, PLLC <![CDATA[What happens if you do not have an executor for your estate]]> https://www.delunataxlaw.com/?p=47635 2026-01-29T07:43:45Z 2026-01-29T07:43:45Z When there is no named executor When someone passes away in Texas, their estate typically goes through probate. This legal process allows the courts to validate a will and distribute assets. However, if there is no executor named in a will or no will exists, the court steps in to appoint an administrator. While an administrator has similar goals to an executor—collecting assets, paying debts and distributing property—the process is often far more restrictive. Additionally, the court generally cannot choose based on who is most qualified. Instead, state law enforces a strict priority list to determine who serves. For example, the surviving spouse is usually first on that list, though the court can disqualify them if they are unsuitable or incapable of managing the estate.

What cost and complications follow

Without a named executor, your estate may face additional expenses and a longer probate timeline. One significant difference involves dependent administration versus independent administration. In Texas, independent administration allows an executor to handle most estate matters without constant court approval. This option is faster and less expensive. However, when there is no named executor and heirs cannot agree, the court may require dependent administration instead. Dependent administration means the court supervises every major action the administrator takes. Each transaction may require a court hearing and approval. This process must remain open for at least 6 months and often takes much longer. A court-appointed administrator is almost always required to post a bond. This bond acts like an insurance policy protecting the estate from potential mismanagement. Bond premiums typically cost between 0.5% and 1% of the bond amount, usually the value of personal property, and must be paid annually until the estate closes.

How you can avoid this situation

Avoiding these issues is straightforward with some basic estate planning. Creating a valid will that names an executor is the most direct solution. You can also name backup executors in case your first choice is unable or unwilling. Your will can include language that authorizes independent administration and waives the bond requirement. These provisions can significantly reduce the cost and complexity of probate for your family. If you already have a will, reviewing it periodically is a wise practice. Life changes such as marriages, divorces and deaths can affect your estate plan. Consider discussing your wishes with the person you plan to name as executor to ensure they understand the responsibility.]]>