Calculating Adjusted Basis in an S-Corporation

It seems to me that a relatively significant problem for most Sub chapter S Corporations is accounting for the capital accounts of each and every single shareholder. The company must maintain reasonably detailed records of each shareholder's equity investments of

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Posted in Basis, Corporation, Sub-chapter S

Medical and Dental Expenses – IRS Publications 502 + 969

This post is a quick overview of IRS Publication 502, Medical and Dental Expenses and IRS Publication 969 Health Savings Accounts and Other Tax-Favored Health Plans. You can deduct expenses primarily paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or

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Posted in Medical Expenses

IRS Rules for Providing K-1’s Electronically: Rev. Proc. 2012-17

Certain entities, such as partnerships, are required annually to file K-1s with the IRS and provide a copy to their partners. The IRS estimates that partnerships filed almost 26 million K-1s during 2011. Revenue Procedure 2012-17 provides new rules describing when partnerships may

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Posted in Corporation, Income, Partnership, Small Business, Sub-chapter S, Tax Guidance & Preparation

Understanding IRS Notices and Letters

Look on the IRS notice or letter you received in the upper right hand corner for an alpha numeric sequence.  The corresponding IRS explanations below to their Notices and letters are sub categorized as follows: 1. Redesigned Notices 2. Other

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Posted in IRS Appeal, IRS Audit, IRS Centralized Insolvency, IRS Collections, IRS Criminal Enforcement, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Notice, IRS Penalties, IRS Penalty and Interest Abatement, Tax Guidance & Preparation

Unemployment Benefits and the IRS

Unemployment compensation generally includes, among other forms, state unemployment compensation benefits, but the tax implications depend on the type of program paying the benefits. You must report unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A,

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Posted in Income, Tax Guidance & Preparation, Unemployment

IRS Bartering Tax Center

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 in the year

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Posted in Barter

Updated Rules Issued for IRS Communications with Appeals Office – Rev. Proc. 2012-18

The IRS Office of Appeals resolves more than 100,000 tax cases each year. Employees staffed in this function are trained to resolve disputes taking into consideration the hazards of litigation as well as the benefits of efficient tax administration. They are not

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Posted in Appeals & Audit Resolution, IRS Appeal

Tax Deductible Job Search Expenses

Recently the IRS' Outreach Corner published an article stating that if you’re searching for a job, "you may be able to deduct some of your expenses, such as attending career fairs, moving expenses and submitting resumes, on your tax return as

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Posted in Business Expense, Disallowed Expenses, IRS Examination, Tax Records

Colorado’s Uniform Debt Management Services Act

According to Colorado’s Uniform Debt Management Services Act (UDMSA) any person acting on behalf of a consumer in an effort to negotiate a debt must register with the Attorney General (AG).  Subsequently I learned ANYONE NEGOTIATING TAX DEBT RELIEF could

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Posted in Colorado Attorney General, Debt, Tax Guidance & Preparation, Tax Problems & Requests

Researching Tax Treaties – IRS Publications 54 and 901

IRS Publication 901 U.S. Tax Treaties is to be used as a quick reference guide that will tell you whether a tax treaty between the United States and a particular country offers a reduced rate of, or possibly a complete exemption from, U.S. income

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Posted in Foreign Income, International Tax
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