How to Report a Foreclosure to the IRS

A foreclosure on rental property technically involves the sale of the property back to the lender. Form 1099-A Acquisition or Abandonment of Secured Property reports that the lender has repossessed or foreclosed on the property. Box 2 is the amount of the outstanding mortgage debt, and

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Posted in Asset Classification, Capital Gain, Capital Loss, Foreclosure, Passive Activity, Rental Real Estate, Taxable Income

IRS Penalty Abatement – Reasonable Cause

Quite often I get asked to seek penalty abatement relief for an IRS delinquency or set of delinquencies as part of helping taxpayers chart a path towards compliance. Today while perusing the IRS web site I stumbled across some text

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Posted in IRS Penalties, IRS Penalty and Interest Abatement

IRS Form 8952 – Voluntary Worker Classification Settlement Program

I received an interesting call today from a small business employer who was reported to the IRS by a disgruntled past worker who claimed that he was paid as an independent contractor (and received IRS Form 1099) when in actuality

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Posted in Employee Business Expense, Employment Tax, Independent Contractor, Trust Fund Recovery Penalty, Unemployment, Worker Classification

Who Should I Hire To Do My Taxes?

We all know there are good and bad people everywhere, both inside the IRS and in the tax practitioner community alike.  Routinely readers of this blog report specific and egregious allegations of tax practitioner misconduct in violation of United States

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Posted in Estimated Taxes, PTIN, Tax Abuse, Tax Fraud, Tax Guidance & Preparation, Tax Preparer, Tax Relief, Taxpayer Advocate

IRS Implications for Medical Marijuana Dispensaries Update

I was at the IRS Practitioner Liaison Meeting yesterday morning in downtown Denver where local IRS officials in positions of authority presented operational updates. In regards to medical marijuana dispensaries Matthew Houtsma, acting Associate Area Council spoke. I found his

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Posted in Marijuana

Should A Husband/Wife Form a Limited Liability Company (LLC) to Invest In Real Estate?

A husband and wife formed a Limited Liability Corporation (LLC) that invests in rental real estate to protect themselves in event of a lawsuit. They want to know if they formed the most appropriate business structure and whether their rental

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Posted in Husband/Wife, LLC, Rental Real Estate

Is My Charity Legitimate with the IRS

Now is a GREAT TIME OF YEAR TO MAKE A CHARITABLE DONATION if you are so fortunate. When you make a donation to a charity you may be able to take a deduction for it on your tax return as

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Posted in Charitable Contribution, Gift Tax, Taxable Income

Tax Practitioner Fraud and Incompetence US Treasury Circular 230

Lately I've been getting deluged with cases involving blatant US Treasury Circular 230 violators of regulations governing practice before the Internal Revenue Service. The perpetrators it seems come from all walks of life, some are unregulated tax return preparers while

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Posted in Tax Fraud

IRS Request for Miscellaneous Determination – IRS Form 8940

The IRS has released Form 8940, Request for Miscellaneous Determination that tax-exempt organizations will use to request certain determinations about their tax-exempt status.  In addition to foundation status issues, organizations will use this new form to obtain advance approval of certain activities and exemption from

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Posted in Charitable Contribution, IRS Examination, Non-profit, Tax Guidance & Preparation, Tax Relief, Uncertain Tax Position
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