“NOL Carry Back Allowed to Reduce Outstanding Tax Liability”

Check out what I read in a recent edition of the NATP's TaxPro Weekly publication about Net Operating Loss Carry backs (NOL).... "Chief Counsel Advice (CCA) 201049035 cleared the air regarding whether there is any limitation period applicable to reducing a

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Posted in Net Operating Loss, NOL

Characterizing Partner Distributions

Generally if payments are in exchange for partnership property, the amount received in excess of the partner’s outside basis in his/her partnership interest is taxed as capital gain. However if the payments represent a distributive share of partnership income or are deemed to be guaranteed payments, the payments

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Posted in Cost Basis, Distributions, Investment Income, Retirement, Small Business, Tax Guidance & Preparation, Taxable Income

32,000 Taxpayers Adversely Affected: Did Not Receive Proper IRS Tax Lien Notification

I had to read this report twice today. Check it out the IRS is not always following it's own procedures or governing statutes when it comes to properly issuing tax liens. What? Really? How can this be? Before anyone gets

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Posted in Appeals & Audit Resolution, IRS Lien

Charitable Contribution: Donated Real Estate

I have a new case involving donated rental real estate and in preparation for appeal I stumbled across the US Tax Court case of Theodore R. Rolfs, et ux. v. Commissioner 135 TC No. 24 in which the taxpayer donated a

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Posted in Charitable Contribution, Rental Real Estate

Tax Scams by Tax Practitioners Including CPA’s and ‘Tax’ Attorneys Have Been on the Rise

Most paid tax return preparers provide honest and professional service, but there are some who engage in fraud and other illegal activities.   Regardless of professional designation unscrupulous promoters, even those with CPA's and Law degrees, deceive people into paying

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Posted in Tax Abuse, Tax Fraud, Tax Guidance & Preparation, Tax Preparer, Tax Whistle Blower

Hazardous Duty Pay IS Included in Gross Income

This is a review of of tax court case John T. Bayse v. Commissioner TC Summary Opinion 2010-118.  The bottom line is that if you are injured on the job be sure to think carefully about whether you wish to be

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Posted in Taxable Income

Hobby v. Business determined based on how records were kept: TC Memo 2010-92

If you think you have a viable ongoing business with a profit motive be sure to maintain adequate financial records on a computer that you back up off site on a regular and consistent basis.  Also be aware that in

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Posted in Business Expense, Deductible Expense, Disallowed Expenses, IRS Penalties, NOL, Tax Guidance & Preparation, Tax Problems & Requests, Taxable Income

Medical Expense Deductions

Many medical costs are deductible including the cost of treatment to alleviate conditions or diseases and the cost of prescriptions and certain diagnostic services. Additional deductible medical expenses include: Capital expenses for special equipment installed in, or improvements made to, a

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Posted in Medical Expenses, Self Employ, Small Business, Sole Proprietor, Tax Deductible Expenses, Tax Guidance & Preparation

Home Office Deduction: IRS Publication 587

Okay I'm taking another case to IRS appeals regarding the home office deduction.  In preparation I reviewed IRS Publication 587: Business Use of Your Home and I pulled some relevant quotes. "You can have more than one business location, including

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Posted in Business Expense, Cost Basis, Deductible Expense, Home Office, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Abuse, Tax Guidance & Preparation

Taxable and Non Taxable Settlements

I've been getting quite a few calls lately from taxpayers that have received 'settlement' money and are confused over the prospective tax ramifications of receiving such money.   The Internal Revenue Service recognizes that receiving a settlement award (amount) from

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Posted in Capital Gain, Capital Loss, Casualty Loss, Estimated Taxes, Tax Fraud, Tax Guidance & Preparation, Taxable Income
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