Automatic Extension Request of Time to File Personal Income Taxes: IRS Form 4868

Income tax forms and payment are due AGAIN. Don’t sweat it, file IRS Form 4868 today! Remember this is an Automatic 6 month Extension Request for time to file IRS Form 1040 only. It is not an extension of time to pay your federal and (where applicable) state income taxes.  You are always best served estimating…

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Turbo Tax vs. Licensed Tax Professional

It is a rare occasion that guests are allowed to write for this blog but when they do it is ALWAYS worth reading. The following is a guest post from my friend and all around great guy, Andy Stadler about the perils some DIYers are facing with TurboTax. Thursday 5 Feb 2015 state of Minnesota announce…

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Incorrectly Issued Health Insurance Marketplace Statement Relief – Form 1095A

I had a grEAt conversation with my friend Bob Kerr Friday. We talked about the Department of the Treasury expanding the relief it announced previously on February 24, which will mitigate any harm to tax filers in regards to filing Form 1095A under the Affordable Care Act. Basically, if you enrolled in Marketplace coverage, received…

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How Professional Athletes Attribute “Rest Days” for State Income Tax Purposes: A Major Controversy Brews

Many young professional athletes and their less than experienced managers are learning for the very first time that the money “earned” PLAYING or competing is subject to income tax both at the federal level AS WELL AS AT THE STATE LEVEL WHERE THEY ARE PERFORMING or rendering service on behalf of their employer. Basically for example…

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Releasing a Federal Tax Lien from the IRS – A Step by Step Guide

Fortunately I graduated from providing this service for hire preferring to refer all tax collection work to a handful of trusted friends and advisers consciously choosing (bless their hearts) to focus solely on Section 6325(a) of the Internal Revenue Code that directs the release of a Tax Lien after a liability becomes fully paid or legally unenforceable.…

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LLC Income is INDEED Subject to Self Employment Tax: IRS Chief Counsel Advice 201436049

In 1997, the IRS issued proposed regulations governing when the distributive share of partnership income for Limited Liability Company (LLC) members was to be included in self-employment income. It basically advised that an LLC member would be treated as a limited partner — and thus the distributive share would NOT be self-employment income– unless the…

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Marijuana Dispensary Income Tax Guidance Update: IRS Memo 201504011

As many of you know who follow my tax musings via this blog, I recently led a team of people that shepherded a Marijuana Dispensary through the IRS Examination and Appeals functions. The dispensary in question was owned and operated by a taxpayer who in all regards was a good, honest, hard working, caring, person…

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IRS Form 1099-misc Filing Requirements Defined as per IRC 6041

I was talking with a taxpayer the other day who registered as an LLC with Colorado Secretary of State. She developed an intriguing business model that is doing remarkably well according to the financial statement. As part of a tax planning conversation our discussion surrounding gross receipts digressed into how the billing function works. Interestingly…

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