IRS Publication 503 – Dependent Care Expenses

A taxpayer came to me today for verification on dependent care expenses. Their basic profile may be similar to yours. A husband and wife with two children in day care. The wife is a full time student that does not work outside of the house. The husband was laid off from his former job and…

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Dependency Exemption and the American Opportunity Tax Credit

A new client came to me this week – husband/wife – filing a joint tax return.  Their son a full time 21 year old student with some earned income but not enough to provide for over one half of his own support. The son meets all the requirements to qualify for the American Opportunity Credit.…

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Tax Court Rejects Conclusions of Cost Segregation Study – Amerisouth Vs. Commissioner

This blog is my personal tax research tool. Pursuant to the rules of professional conduct set forth in US Treasury Circular 230 nothing contained in this blog was intended to be used by any taxpayer for the purpose of avoiding penalties that may be imposed by the Internal Revenue Service, and it cannot be used by any…

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IRS Compliance Requirements and the Bankruptcy Code

This blog is my personal tax research tool. Pursuant to the rules of professional conduct set forth in US Treasury Circular 230 nothing contained in this blog was intended to be used by any taxpayer for the purpose of avoiding penalties that may be imposed by the Internal Revenue Service, and it cannot be used by any…

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IRS’ Taxpayer Advocate Service Changed Case Acceptance Criteria

The Taxpayer Advocate Service (TAS) at the Internal Revenue Service changed the cases it will consider going forward. As of essentially today IRS TAS will generally NOT accept cases involving problems in these four areas: 1. processing of original tax returns, 2. processing of amended returns, 3. Processing of rejected and unpostable returns, and 4. injured…

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Injured v. Innocent Spouse Tax Relief

You may be an injured spouse if you file a joint tax return and all or part of your portion of a refund was, or is expected to be applied to your spouse’s past due financial obligations. For consideration of this nature you must have paid federal income tax or claimed a refundable tax credit, such…

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IRS Publication 526 – Charitable Contributions

This post is a brief review of IRS Publication 526. Basically if your goal is a legitimate tax deduction, then you must be giving to a qualified organization. Don’t get duped.  You cannot deduct contributions made to specific individuals, political organizations or candidates.  Regardless of the amount donated when deducting a contribution to a qualified…

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IRS Publication 225, Farmer’s Tax Guide

This post is a brief overview of IRS Publication 225, Farmer’s Tax Guide. According to this IRS Publication you are in the business of farming if you cultivate, operate or manage a farm for profit, either as an owner or a tenant. A farm includes livestock, dairy, poultry, fish, and fruit. It also includes plantations, ranches, ranges…

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How to Report Your Child’s Investment Income

If your minor child has been blessed with the opportunity to be endowed with income producing investments be wary as I have witnessed this can indeed become a curse for you on many levels. As if parenting isn’t hard enough it seems to only be complicated more so when children – particularly adolescents – are…

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