Tax-Free Transfers to Charity in January 2013 Can Still Count for 2012 For IRA Owners 70½ or Older

Act now! According to the IRS IRA owners age 70½ or older have until Thursday, Jan. 31 2013 to make a direct transfer, or alternatively, if they received IRA distributions during December 2012, to contribute, in cash, part or all

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Posted in IRA, Retirement, Tax Deductible Expenses, Tax Guidance & Preparation, Tax Relief

American Taxpayer Relief Act 2012

The American Taxpayer Relief Act of 2012 makes permanent many otherwise expiring tax provisions. The following is my summary of what I believe to be relevant provisions: Ordinary income above a certain threshold is taxed at a higher rate. The

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Posted in Adoption, Alternative Minimum Tax (AMT), Cancelled Debt, Capital Gain, Charitable Contribution, Child Tax, Employment Tax, Estate Tax, Excise Tax, Generation Ski[[ing Transfer Tax, Social Security Tax, Tax Credit, Tax Guidance & Preparation, Tax Relief

Withholding Tax for Social Security Goes to 6.2% of Wages

Contrary to the manufactured 'news' dribbling out of the main stream media to sell advertising, last week the IRS published updated employer's withholding guidance clearly stating that employers are to now withhold Social Security tax at the rate of 6.2 percent of wages rather

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Posted in Employment Tax, FICA, Paying Taxes, Payroll Tax Problems, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Guidance & Preparation, Tax Problems & Requests

The ‘Fiscal Cliff’ and Your Tax Obligations

Our esteemed President has proven to me to be extraordinarily disingenuous with his statements about the middle class and their purported tax obligations as pretty much everyone's taxes will go up in 2013 as a direct result of the cumulative

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Posted in Capital Gain, Charitable Contribution, Children, Earned Income Tax Credit, Education Expense, Estate Tax, Paying Taxes, Payroll Tax Problems, Self Employ, Small Business, Social Security Tax, Tax Filing Status, Tax Guidance & Preparation, Tax Preparer, Tax Problems & Requests, Tax Relief, Taxable Income

S Corp Late Filing Penalty Excused IRC 6699 Ensyc Technologies v. Commissioner

Considering the scope of the reasonable cause language to the Code Sec. 6699 penalty for late filing of an S corporation return, the Tax Court determined that the failure to timely file a 2008 2008 1120-S tax return was due to reasonable

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Posted in IRS Collections, IRS Enforcement, IRS Penalties, IRS Penalty and Interest Abatement, Penalty, Small Business, Sub-chapter S, Tax Court, Tax Guidance & Preparation, Tax Relief

Moving Expenses and Military Duty – IRS Publication 3, Armed Forces Tax Guide Vs. IRS Publication 521, Moving Expenses

According to IRS Publication 3, Armed Forces Tax Guide if you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you do not have to meet the distance and time

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Posted in Military, Moving Expenses, Tax Guidance & Preparation, Tax Problems & Requests

YIKES! IRS Issues Proposed Regulations on New 3.8% Net Investment Income Tax

A new Net Investment Income Tax goes into effect starting in 2013. The 3.8 percent Net Investment Income Tax applies to individuals, estates and trusts that have certain investment income above certain threshold amounts. The IRS and the Treasury Department have

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Posted in Investment Income, IRS Collections, Paying Taxes, Tax Guidance & Preparation

Gift Tax on Transferred Real Estate

The person or entity transferring a property has a capital gain to the extent that the amount realized exceeds the adjusted basis of the property. However according to Reg § 1.1001-1(e) no loss is allowed on a transfer that is part

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Posted in Estate Tax, Family, Gift Tax, Rental Real Estate

IRS Can Levy More Than 15% of Social Security Benefits According to Bowers V. US

The distinction of how this is possible distills down to understanding the nuanced difference between a 'Continuous' and a 'One Time' IRS tax levy. Under Code Sec. 6331(h) once a tax levy is approved, the effect of the levy on specified

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Posted in Back Taxes Owed, Income, Intent To Levy, Intent To Lien, IRS Centralized Insolvency, IRS Collections, IRS Enforcement, IRS Levy, IRS Lien, Social Security, Social Security Tax, Tax Court, Uncertain Tax Position
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