IRS Changes Lien Process

The IRS is making important changes to its lien filing practices that will lessen the negative impact on taxpayers. The changes include: Tax Lien Thresholds - The IRS will significantly increase the dollar thresholds when liens are generally filed. The

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Posted in IRS Levy, IRS Lien

Noncustodial Parent and the Dependency Deduction

The bottom line is that if your estranged spouse or X spouse is inappropriately claiming your child as a dependent you may encounter problems with the IRS.  If you are the custodial parent one solution that seems to help is

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Posted in Dependent

What Income is Taxable? What Income is NOT Taxable? IRS Publication 525

Generally, most income you receive is considered taxable but there are situations when certain types of income are partially taxed or not taxed at all.  Examples of NON Taxable income include: Adoption Expense Reimbursements for qualifying expenses Child support payments

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Posted in Taxable Income

What is an Enrolled Agent?

An enrolled agent (EA) is a federally licensed tax practitioner who has technical expertise in the field of taxation and is empowered by the US Treasury to represent taxpayers for audits, collections and appeals before the IRS.  Only enrolled agents

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Posted in Enrolled Agent

Documents Required When Negotiating Payment with the IRS

Alimony or Child Support Received Commission statement Completed Form 433- A, B or F Copies of delinquent tax returns and /or ASFR returns Explain in detail why the taxpayer is not able to full pay or borrow to pay Employer’s

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Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Examination, IRS Levy, IRS Lien, IRS Penalties, IRS Penalty and Interest Abatement

Characterizing Liquidating Distributions – Wallis, et ux. v. Commissioner TC Memo 2009-243

Liquidating payments made by a partnership to a retiring partner are governed by §736.  In general, if the payments are in exchange for partnership property, the amount received in excess of the exiting partner’s outside basis in his partnership interest is taxed as capital gain.  On the

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Posted in Distributions


Bartering is the trading of one product or service for another. Usually there is no exchange of cash. However, the fair market value of the goods and services exchanged must be reported as income by both parties. A barter exchange

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Posted in Barter

Be Sure to Allocate Costs If You Share Ownership: US Tax Court Summary Opinion 2010-15: Sword v. Commissioner

Unless of course you are married and filing a joint tax return, whereby the IRS essentially classifies both individuals together as a single tax payer, you should take care to allocate costs equitably for items of shared ownership. In US

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Posted in Cost Segregation, Rental Real Estate

Net Operating Loss (NOL) Carryback Allowed to Reduce Outstanding Tax Liability

Generally, a claim for credit or refund of an overpayment must be filed by the taxpayer within three years from the time the return was fi led or two years from the time the tax was paid, whichever is later [§6511(a)].  There

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Posted in Net Operating Loss, NOL

Alternative Minimum Tax (AMT) Triggers and Tax Planning

The Alternative Minimum Tax, or AMT, is a parallel tax system to the standard tax system.  Every taxpayer is responsible for paying the higher of the regular tax or the alternative minimum tax. The difference between the two tax calculations

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Posted in Alternative Minimum Tax (AMT)
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