Alimony Deduction

Back from vacation! Nashville, TN! Awesome town! In reviewing Paul T. Banach v. Commissioner - TC Memo 2010-33 - I learned that payments may be claimed as alimony under §215 if all four requirements of §71(b)(12) are met. Payment in cash will be

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Posted in Alimony, Tax Court

Innocent Spouse Determination

Here are my notes on reviewing Wendy W. Bozick v. Commissioner TC Memo 2010-61 regarding innocent spouse relief. The issues of disagreement are whether Wendy: • Knew her husband would not pay the tax liability. • Will suffer economic hardship if she is

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Posted in Innocent Spouse Relief, Tax Court, Tax Guidance & Preparation

What The IRS Instructs You To Do If You Have NOT Filed Your Taxes

Basically the simple answer is file your tax forms with both the US Federal government and applicable state governments.  Start by filing the previous 3 years of income tax returns ASAP. It is possible the IRS may have already filed

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Posted in Appeals & Audit Resolution, Back Taxes Owed, Currently Not Collectible, IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement

IRS Mileage Deduction Rate Increases: $0.55.5-Business; $0.23-Medical or Moving; and, $0.14-Charitable

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six

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Posted in Business Expense, Charitable Contribution, Highway Tax, Tax Guidance & Preparation, Tax Problems & Requests

IRA’s Cannot Hold Sub-Chapter ‘S’ Stock: Trusts Can Though

To be taxed as an S corporation, a C corporation must elect S status by filing IRS Form 2553. Electing S status is fairly simple for a new or existing corporation, but meeting the requirements for S status can be more complex when the

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Posted in Abusive Tax Shelter, Entity Classification, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Abuse, Tax Court, Tax Fraud, Tax Guidance & Preparation

Protective Tax Refund Claim

Protective refund claims are filed to preserve a taxpayer’s right to claim a refund when the taxpayer’s right to the refund is contingent on future events like future litigation, and may not be determinable until after the statute of limitations expires. Without a protective refund claim, taxpayers will

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Posted in Employment Tax, FICA

Heavy Highway Vehicle Use Tax Return (IRS Form 2290) Deadline Extended Until 11/3011

The Internal Revenue Service advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due Aug. 31, will instead be due on Nov. 30, 2011. In general, the highway use tax applies

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Posted in Highway Tax, Tax Guidance & Preparation, Use Tax

Time Limit to File IRS Innocent Spouse Claim

The Internal Revenue Service announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests under IRC 6015(f). The IRS launched a thorough review of the equitable relief

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Posted in Innocent Spouse Relief

Domestic Partners: Income Reporting

The IRS issued three rulings in 2010 to address how the income of registered domestic partners in California should be reported and taxed for both state and federal income tax purposes. In Chief Counsel Advice 201021050, the IRS determined that for tax years beginning after December

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Posted in Family, Foreign Income, Marriage, Offer In Compromise, Paying Taxes, Private Letter Ruling, Tax Guidance & Preparation, Uncertain Tax Position

The Use of Quick Books by IRS Auditors

In January 2011 IRS agents began to audit Quickbooks data files and will require a copy of your QuickBooks data, if used, to help them with the audit. YIKES! These are some of my suggestions to prepare for a tax audit involving

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Posted in Appeals & Audit Resolution, Audit Reconsideration, Audit Technique Guide, IRS Audit, IRS Enforcement, IRS Examination, IRS Mediation, Tax Guidance & Preparation, Tax Problems & Requests
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