IRS Tax Preparation Scams + The American Opportunity Tax Credit

I opened another file today involving a taxpayer that got scammed by the person who prepared his 2011 tax return. In this scheme the promoter claimed the taxpayer could get a tax refund based on the American Opportunity Tax Credit

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Posted in Tax Abuse, Tax Guidance & Preparation, Tax Preparer, Tax Problems & Requests

Ex Parte Communication and IRS Appeals – Rev. Proc. 2012-18

Ex parte communication is oral or written communication that takes place between any IRS Appeals employees such as Appeals Officers, Settlement Officers, Appeals Team Case Leaders, Appeals Tax Computation Specialists and employees of other IRS functions without the taxpayer's representative being given an

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Posted in Appeals & Audit Resolution, IRS Appeal

IRS Publication 4681 Re: Mortgage Debt Forgiveness

This post is a brief review of IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonment (For Individuals) as it relates to mortgage debt forgiveness. If your debt is reduced or eliminated you normally will receive a year-end statement, IRS Form 1099-C, Cancellation

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Posted in Bankruptcy, Debt, IRS Centralized Insolvency, Mortgage, Tax Guidance & Preparation

Reporting Involuntary Conversion of Business Property IRC 1231

Generally when §1231 gains exceed §1231 losses during the year, the net §1231 gain is taxed as a long-term capital gain. However, if there are nonrecaptured §1231 losses from prior years, the net §1231 gain is taxed as ordinary income

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Posted in 1031 Exchange, 1231 Exchange

The 5 Tax Benefits of Procreating

Generally the five tax benefits of having children are the: dependency exemption, child tax credit, earned income credit (EIC), child and dependent care credit and head of household filing status. These benefits can be split only when the parents are

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Posted in Child Tax, Children

Reporting Capital Gains and Losses to IRS

In tax year 2011 the IRS created Form 8949, Sales and Other Dispositions of Capital Assets, for taxpayers to calculate capital gains and losses. List all capital gain and loss transactions on this form. The subtotals from this form will

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Posted in Capital Gain, Capital Loss

Moving Expenses – IRS Form 3903 – Publication 521

This post is an overview of IRS Form 3903 as well as IRS Publication 521, Moving Expenses Generally your move must be closely related to when you start work. You should be safe if moving expenses were incurred within one year from the

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Posted in Moving Expenses

Tax Issues Surrounding U.S. Military Retirement

When adjusting to civilian life it is important to understand what is taxable and what is not taxable in regard to your pay after service to the US Military. This post is a rudimentary overview to some of those issues that

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Posted in Military Personnel Tax, Retirement

Is Your Filing Status Head of Household – IRS Publication 501

According to IRS Publication 501 if you are not married, but provide a home for a qualifying dependent, you may be able to use the head of household filing status. The head of household filing status provides a higher standard deduction, lower tax

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Posted in Tax Filing Status, Tax Guidance & Preparation

IRS Form 8863 + Publication 970 – Hope and Lifetime Learning Credits

According to IRS Publication 970 the modified version of the Hope Credit is now referred to as the American Opportunity Tax Credit (AOTC) and extended through 2012. The AOTC is available for the first four years of post-secondary education. It has been expanded so that

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Posted in Children, Education Expense, Tax Credit
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