Tax Tips for Military Personnel – IRS Publication 3

Moving Expenses If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you can deduct the reasonable unreimbursed expenses of moving you and members of your household. Combat

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Posted in Military Personnel Tax, Tax Guidance & Preparation

IRS Restrictions on Contacting Taxpayers

The Treasury Inspector General for Tax Administration (TIGTA) recently issued Report Number: 2011-30-090. In this report it clearly states that Internal Revenue Service (IRS) employees are required to stop an interview if the taxpayer requests to consult with a representative and

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Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Mediation, Tax Guidance & Preparation, Tax Preparer, Tax Problems & Requests, TIGTA

IRS Treatment of Marijuana Dispensary Expenses

If you are in the business of dispensing marijuana according to the United States Office of Homeland Security you are selling an illegal drug not a medicine like many individual states believe. Nevertheless Internal Revenue Code IRC 280(E) states that the expenses

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Posted in Business Expense, Business Income, Cost Segregation, Deductible Expense, Marijuana

Dwelling Unit vs. Primary Residence

Many taxpayers have both a dwelling unit and a principal place of residence.  Understanding the difference between the two is important for a wide variety of reasons.  The file that landed on my desk today involves such a matter.  The

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Posted in Appeals & Audit Resolution, IRS Appeal, IRS Audit, IRS Enforcement, IRS Examination, Rental Real Estate, Tax Guidance & Preparation, Tax Problems & Requests, Uncertain Tax Position

Medical Expense Deduction Allowed for Lactation Supplies

Under Internal Revenue Code §213 an expense is considered for medical care if it is paid for the diagnosis, cure, mitigation, treatment or prevention of disease. It is deductible on the taxpayer’s Schedule A, subject to 7.5 percent of adjusted gross income for the

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Posted in Medical Expenses

Professional Gambler’s Loss Limited to Winnings. However….

IRC §165(d) stipulates that gambling losses shall be allowed only to the extent of the gains from such transactions. The IRS also cites Valenti v. Commissioner to deny professional gambler's deductions for their net gambling losses in excess of winnings. However gambling-related travel expenses are not subject to

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Posted in Business Expense, Business Income, Gamble

Communicating with the IRS Requires Organized + Detailed Note Taking

When you call the IRS I suggest doing it as early in the work day as possible to minimize wait time.  Have a pen and pad of paper in hand and ideally be sitting in front of a computer.  Write

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Posted in Appeals & Audit Resolution, Basis, IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, Tax Court, Tax Guidance & Preparation, Tax Problems & Requests

Overstated Basis Causes Understated Income However …..

The lesson I learned today is that an overstatement of basis (cost of an asset) could result in an understatement of income in the future when the asset is sold but is not necessarily the same as under reported income that,

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Posted in Asset Classification, Basis, Business Expense, Rental Real Estate

Burden of Proof

The IRS as many of you are painfully aware is often looked upon as accusing first without due process requiring the tax payer to shoulder the burden of proof in regards to his or her innocence relevant to the Internal

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Posted in Appeals & Audit Resolution, Cancelled Debt, IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement
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