IRS Appeals Collection Issues

The Mission of IRS Appeals is to resolve tax controversies without litigation on a basis which is fair and impartial to both the government and the taxpayer in a manner that will enhance voluntary compliance and public confidence in the integrity and the efficiency of the service. IRS Appeals is independent within but not from…

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How to Request Abatement of Interest – IRS Form 843

You request an abatement or reduction of IRS interest using IRS form 843. File the form with the IRS service center where you filed your tax return that was affected by the error or delay.  If you already paid the interest and you would like a credit or refund of interest paid you must file…

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Suspension of IRS interest and penalties

Generally the IRS has 3 years from the date you filed your return or the date the return was due to assess any additional tax.  However if you timely file your tax return interest and certain penalties will be suspended if the IRS does not mail a notice to you within a 36 month period…

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Student Loan Applications and the IRS

Preparing for college often means applying for student loans to pay for it as well. Every year students struggle and stress while trying to complete the Free Application for Federal Student Aid (FAFSA). Completing your student financial aid application is now easier than ever. Department of Education/Federal Student Aid, mandated through the American Recovery and…

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What to do IF you do not agree with an IRS Examiner

If you do not agree with the proposed changes of your assigned examiner, you tell this to the examiner by saying or writing  ‘I do not agree with your changes.’.  The first thing the examiner must do is explain to you your appeal rights.  If he/she doesn’t you ask for a supervisor. It is in…

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IRS Examination Selection Criteria

Your tax return may be examined for any one of a number of reasons, and the exam can take place in any one of a variety of ways, in a variety of locations, and quite frankly without you even knowing about it.  It really is quite remarkable but your return may be selected for examination…

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IRS Helps Small Employers Claim New Health Care Tax Credit; Forms and Additional Guidance Now Available on Small Business Health Care Tax Credit

The Internal Revenue Service today released final guidance for small employers eligible to claim the new small business health care tax credit for the 2010 tax year. Today’s release includes a one-page form and instructions small employers will use to claim the credit for the 2010 tax year. New Form 8941, Credit for Small Employer…

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What is a short term rental requiring material participation?

A ‘Short Term Rental’ usually involves Condos, B&B’s, Hotels, Etc.  These ‘short term rentals’ fall outside of the definition for tax purposes of rental real estate.  As such these investments are treated as a business and the owner must materially participate in order to recognize tax losses. If the average use is 7 days or…

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Who is not considered a ‘real estate professional’ for tax purposes?

Attorney specializing in real estate CPA’s specializing in real estate Banker or mortgagor Investment advisor Financial planner or consultant Interior decorator Taxpayer who works on a building but is not in the real property business Taxpayer who is less than a 5% owner (regardless if he/she is in the ‘real property business or not)

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