LOOKOUT SMALL BUSINESS OWNERS FILING IRS Form 1120-S or 1065 – Net Operating Loss (NOL) Carry backs trigger Alternative Minimum Tax (AMT)

Please be advised that Net Operating Losses carried back to previous tax years can trigger an Alternative Minimum tax liability in the previous tax year that the loss was carried to, even if you originally did not have a tax

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Posted in Alternative Minimum Tax (AMT), Net Operating Loss, NOL

Who should and who must file an income tax return – refundable tax credits

To determine if you are obligated by law to file a US tax return and pay US income taxes you should consult the instruction book that accompanies the IRS form 1040.  You must file a federal income tax return if

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Posted in Refundable Tax Credit, Tax Guidance & Preparation, Tax Problems & Requests, Tax Refund, Taxable Income

Situations that would not qualify for IRS Fast Track Mediation

Issues for which there is no legal precedent Issues where the courts have rendered opposing or differing decisions in different jurisdictions Industry Specialization Program issues An issue for which you filed a request for competent authority assistance Service Center penalty appeals cases Service Center Offer in Compromise cases Collection

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Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Examination, IRS Mediation, Uncategorized

Choosing a Tax Preparer

If you pay someone to prepare your tax return, know that you are legally responsible for what’s on your tax return even if it is prepared by someone else. So, it is important to choose carefully when hiring an individual

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IRS USE OF HARD-CORE ENFORCEMENT TOOLS, ESPECIALLY TAX LIENS

The Taxpayer Advocate's 2010 annual report to congress describes continuing concern that IRS collection practices inflict unnecessary harm on financially struggling taxpayers and fail to achieve the IRS’s overriding objective of increasing long-term voluntary compliance with the tax laws.  “Tax

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

Common Terms used in IRS Appeals

90-day letter Term includes the 150-day letter. Admin File A file consisting of one or more examined tax returns of a taxpayer, the report of examination, and all papers, correspondence, and other documents relative to the taxpayer's liability for the

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Posted in IRS Appeal

IRS Fast Track Mediation: Small Businesses + Self Employed

The IRS released Announcement 2011-05 creating opportunity for small business and self-employed taxpayers to use the Fast Track Settlement process to resolve disputes within the IRS's Small Business/Self Employed (SB/SE) units of the IRS in certain locations including Chicago, Ill.; Houston,

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Posted in IRS Mediation, Uncategorized

Dept of Justice Program to Shut Down Schemes and Scams – Check out your Tax Return Preparer

The Department of Justice, Tax Division, working together with the IRS, has intensified its efforts to shut down fraudulent tax return preparers and promoters of tax-fraud schemes, using both civil and criminal enforcement. Under the Tax Division’s civil injunction program, the

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Posted in Tax Preparer

Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 aka ‘Bush Tax Cut Extensions’

Individuals The following Bush tax cuts that expired for tax years beginning after December 31, 2009, under the Economic Growth and Tax Relief Reconciliation Act of 2001  (EGTRRA), are extended through 2011: • Election to claim itemized deduction for state/local sales

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Posted in Tax Relief

2011 Payroll Tax Instruction – IRS Notice 1036

According to the IRS millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social

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Posted in Employment Tax, Payroll Tax Problems, Uncategorized
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