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

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Posted in IRS Enforcement, IRS Mediation

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

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Posted in Deductible Expense, Small Business, Sub-chapter S, Tax Guidance & Preparation

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

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Posted in Charitable Contribution, Trusts

Payroll Service Providers: Further Guidance Defining “Responsible Person”

It has been truly amazing to see so many failed payroll service providers all around the United States screw over small business owners by collecting tax revenue from business owners to be passed on to federal and state governments and

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Posted in Payroll Tax Problems, Self Employ, Small Business

Refurbishing Real Estate for Resale is (usually) Taxed as Ordinary Income

According to Tax Court Memo 2010-261, a husband and wife purchased real estate, refurbished it and reported the sale on Form 4797. They contended the homes were purchased for use as rentals; however, over the three-year period at issue, none of the homes were

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Posted in Capital Gain, Capital Loss, Rental Real Estate

Who is a Professional Gambler?

In the Tax Court case of Trieu M. Le, et ux. v. Commissioner TC Summary Opinion 2010-94 the IRS took the position that the taxpayer was a casual gambler and should have deducted his losses up to his winnings on

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Posted in Gamble

IRS Form 8332 Outweighs Divorce Decree Regarding Dependency Exemption

Section 152(e) of the tax code specifies how to determine the dependent status of children of divorced parents. This code section states that the noncustodial parent can claim the dependency exemption for a child when the custodial parent signs a written declaration that the

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Posted in Child Tax, Children, Dependent

Abusive Tax Shelters

Abusive tax shelters of every nature are what I call scum bag lawyer schemes.  It is difficult to specifically define abusive tax shelters because new ones are constantly emerging.  Essentially they are arrangements usually designed by 'promoters' to circumvent tax

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Posted in Abusive Tax Shelter

IRS Criminal Investigation Enforcement Trends

Hey everyone, check out what the Treasury Inspector General for Tax Administration is writing... "Criminal Investigation’s (CI) primary resource commitment is to develop and investigate legal source tax cases. The prosecution of these cases is key to supporting the Internal

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Posted in IRS Collections, IRS Enforcement, IRS Examination, Tax Fraud
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