United States Postal Service Advantage – Post Mark Date v. Delivery Date

In discussing expiration dates to the 90 day notice I rediscovered an interesting fact this morning about the difference between a post mark date and a delivery date worth researching and posting. Generally speaking when sending in packages to the Internal Revenue Service, United States Treasury Department or United States Tax Court using a for…

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How to Request an IRS Private Letter Ruling

The first revenue procedure published each year provides the necessary guidance to request a letter ruling. The current guidance is in IRS Rev. Proc. 2011-1. A private letter ruling (PLR) is a written response by Chief Counsel to a taxpayer that interprets and applies the tax law to the taxpayer’s specific set of facts. Taxpayers tend to…

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Colorado Tax Amnesty October 1st through November 15, 2011

The Colorado Department of Revenue is offering a tax amnesty period. The program begins October 1st 2011. Tax amnesty is a limited-time opportunity for individuals and businesses with overdue taxes to pay without additional penalties. Those with overdue taxes can pay the full amount owed, plus half the total interest owed. Please note that if a…

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IRS Voluntary Worker Classification Settlement Program: Apply using IRS Form 8952

The Internal Revenue Service launched a new program that will enable many employers to voluntarily reclassifying their workers in an effort to resolve past worker classification issues. It is called the Voluntary Classification Settlement Program (VCSP). This new program will allow employers the opportunity to make a minimal payment covering past payroll tax obligations rather than waiting…

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Basis Calculation

Under §165, in general, the basis of a partnership interest equals the sum of the amount of money contributed, the partner’s share of partnership liabilities and the partner’s distributive share of partnership income and losses. How to compute the adjusted basis of the partnership interest when there is an initial contribution to the partnership, followed by a large distributed loss that exceeds the partner’s…

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IRS Appeals Needs Help with Collection Statute Expiration Dates

The following report was issued by the Treasury Inspector General for Tax Administration (TIGTA) on August 15, 2011 and it basically says that which many of us already know, the IRS Office of Appeals needs help with Collection Statutes Expiration Dates (CSED).  In my opinion this is more of a funding issue than anything else.…

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Net Operating Loss Carry Back

I have been developing quite an expertise in resolving Net Operating Loss carry back matters yet with each new situation there is something new that seems to be discovered. IRC section 6511(d)(2) states, a claim for credit or refund that corresponds with an over payment attributable to an Net Operating Loss (NOL) being carried back…

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How IRS Enforcement Employees Are Evaluated

The Internal Revenue Service (IRS) is not formally evaluating its enforcement employees’ job performance based on quotas or other records of tax enforcement results, according to a new report from the Treasury Inspector General for Tax Administration (TIGTA) contrary to the opinion of many. The IRS Restructuring and Reform Act of 1998 (RRA 98) requires…

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Are Cell Phone Expenses Tax Deductible?

I’ve been getting asked this question quite a bit so I put it directly to the IRS.  My guess is that I wasn’t the only one who asked because today the Internal Revenue Service issued guidance designed to clarify the tax treatment of cell phones. The guidance relates to a provision in the Small Business…

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Trusts and Charitable Contributions CCA 20104202

Under IRC §170(c)(2)(A) generally speaking when a trust uses its income to buy an asset and in a later year gives that asset to a charity it is allowed a charitable deduction. Chief Counsel Advice 20104202 stipulates however that if the deduction was not limited to the trust’s basis in the assets, the contribution of low-basis property would yield a…

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