New 10% Tax on Tanning Service

The Internal Revenue Service issued regulations outlining the administration of a 10-percent excise tax on indoor tanning services that goes into effect on July 1, 2010. The regulations were published today in the Federal Register. In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning…

Details

More Security needed to protect IRS Automated Collection

The Treasury Inspector General for Tax Administration (TIGTA) issued the following report IMPACT ON TAXPAYERS The Automated Collection System (ACS) is a telephone contact system used by Internal Revenue Service (IRS) employees to perform critical IRS processes such as collecting tax revenues and helping taxpayers resolve their tax issues. The IRS needs to implement additional…

Details

Tax Considerations of Converting to a ROTH IRA

1. The tax bite is too big. 2. Retirement is too close. 3. Savings are too concentrated in one place. 4. Tax brackets often change in retirement. 5. The income can change your tax bracket now. If an investor is receiving Social Security benefits, the spike in income could force them to pay taxes on…

Details

LIEN DETERMINATIONS WERE UNTIMELY OR NOT MADE APPROPRIATELY FOR OVER $1.4 BILLION IN DELINQUENT TAXES

IMPACT ON TAXPAYERS The Internal Revenue Service (IRS) protects its claims against taxpayers who owe delinquent taxes by filing Federal Tax Liens (liens), which establishes the IRS’ priority among secured creditors for the taxpayers’ equity. However, lien determinations were not appropriately made or were made late for more than $1.4 billion in delinquent taxes. Failure…

Details

Court: Innocent Spouses Still Have Only Two Years

The Seventh Circuit Court of Appeals ruled yesterday that the Internal Revenue Service can still apply a two-year deadline to taxpayers looking to file for “innocent spouse” relief. The court reversed a previous Tax Court ruling, which held that because the statute did not specify a particular deadline for filing, the IRS could not impose…

Details

What information must be disclosed about uncertain tax positions?

The draft proposal would require identification of up to three Internal Revenue Code sections which relate to the position. Some commentators have suggested it might be a good idea to disclose additional code sections in the description of the position to avoid later assertions of non-disclosure. The position must be described as either a temporary…

Details

Are you required to report an uncertain tax position?

As set forth in the draft instructions, the initial disclosure with respect to the 2010 tax year would be required from corporations that have uncertain tax positions own assets exceeding $10 million issue audited financial statements, and are required to file a Form 1120, 1120L, 1120PC or 1120F. It is expected that, once this first-year…

Details

What is an uncertain tax position?

As set forth in the current drafts, an uncertain tax position includes a federal income tax position for which the taxpayer has recorded a reserve in an audited financial statement. It also includes a position where no reserve is reported either due to an asserted IRS administrative practice or because of an expectation to litigate…

Details

Special Tax Incentives for Small Businesses to Provide Health Care, Hire New Workers

Videos HIRE Act: English Small Business Health Care Tax Credit: English WASHINGTON — In recognition of National Small Business Week, the Internal Revenue Service encourages small businesses to take advantage of tax-saving opportunities included in recently enacted federal legislation. A variety of business tax deductions and credits were created, extended and expanded by the American…

Details

HIRE – Depreciation and Section 179 Expense

HIRE and Section 179 Deduction – A qualifying taxpayer can choose to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years. This property is frequently referred to as section 179 property. The Hiring Incentives to Restore…

Details