Mileage Deduction as Unreimbursed Employee Business Expense

Okay I got a new case for appeal consideration and am blasting out my thoughts as to why this one is not receiving further consideration.  In short it is not winnable. You need to be very diligent in your research

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Posted in Business Expense, Employee Business Expense

IRS Guidance on Qualified Long Term Care Insurance Contracts

IRS Notice 2011-68 provides interim guidance on the federal income tax treatment of annuity and life insurance contracts with a qualified long-term care insurance (QLTC) feature. The guidelines address the application of certain changes to the federal income tax rules governing annuity

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Posted in Dependent, Health Insurance, Medical Expenses, Tax Guidance & Preparation

Ponzi V. Pyramid Scheme

A friend of mine asked me to blog today about my experiences from a tax perspective with Ponzi schemes and pyramid schemes. Both are for the most part perpetrated by clandestinely malcontent people that have inadvertently grown trustworthy, a "friend"

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Posted in Tax Abuse, Tax Fraud

Personal Expenses V. Deductible Medical Expenses

Generally you can deduct expenses paid for medical care for yourself, your spouse and your dependents to the extent the total expenses for the year exceed 7.5 percent of your adjusted gross income and you itemize your deductions (Schedule A). IRS Pub. 502,

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Posted in Medical Expenses

Personal Guarantee of Corporate Debt Does NOT Add to Basis (Investment)

Taxpayers who own shares in an S corporation are allowed pass-through losses to the extent of their basis (also commonly referred to as investment) under §1366(d) in their entity. Shareholders can obtain basis in a variety of ways such as direct investment,

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Posted in Cost Basis, Disallowed Expenses, Entity Classification, NOL, Self Employ, Small Business, Sub-chapter S

2010 Small Business Jobs Act + Rental Property Owners + IRS Form 1099misc

The Small Business Jobs Act of 2010 is amazingly complex legislation. Some pundits estimate that the provisions offering tax relief will actually 'cost' up to $12 billion. These tax cutting measures were I believe intended to offer incentive to businesses to make

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Posted in Rental Real Estate

Trends in IRS Collection and Enforcement

According to a report filed by the Treasury Inspector General for Tax Administration there has been a 19 % increase of enforcement personnel serving in the Collection and Examination function of the IRS since Fiscal Year 2006. Whereas on average overall

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Posted in Appeals & Audit Resolution, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Mediation, IRS Penalties, Tax Abuse, Tax Fraud

What is a Real Estate Professional?

In reviewing James F. Moss, et ux. v. Commissioner 135 TC No. 18 to be a real estate professional, a taxpayer must meet two requirements: (1) More than one-half of the taxpayer’s personal services must be performed in real property trades or businesses in which

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Posted in Rental Real Estate

IRS Accuracy Related Penalties

Section 6662(a) and (b)(1) imposes a penalty equal to 20 percent of the underpayment of tax due to negligence or intentional disregard of the rules or regulations.  If your attitude toward the preparation of your tax returns appears to be cavalier you will definitely be

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Posted in Appeals & Audit Resolution, Audit Reconsideration, IRS Audit, IRS Enforcement, IRS Penalty and Interest Abatement

What is a Church?

The IRS developed 14 criteria to evaluate applications for church foundation status. If a church does not meet these criteria, it will not receive tax exempt status. The criteria are weighted with the four most important of these being: • A complete organization

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Posted in Charitable Contribution, Tax Guidance & Preparation
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