IRS Tax Treatment of Incentive Stock Options Forms 3921, 6251, 8949

Incentive stock options (ISO) are compensation to employees in the form of stock rather than cash. With an ISO, the employer grants to the employee an option to purchase stock in the employer's corporation, or parent or subsidiary corporations, at

Tagged with: , , , ,
Posted in Alternative Minimum Tax (AMT), Stock Options

Cash Basis Balance Sheet Basic Overview

Having spent way too much time dissecting a balance sheet today I thought it might be a good idea to put out a cash basis balance sheet basic overview post. A balance sheet is a snap shot at a specific

Tagged with: ,
Posted in Accounting Method, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Guidance & Preparation, Tax Preparer, Tax Problems & Requests

IRS And the Trust Fund Recovery Penalty (TFRP) for Employment Tax Delinquencies

Here are 5 things I learned through experience regarding TFRP: 1. An IRS Revenue Officer makes a determination to "assess" or "not assess" the Trust Fund Recovery Penalty (TFRP). Bankruptcy does not stop the Assessment Statute even though it can

Tagged with: , , ,
Posted in Employment Tax, IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Penalty and Interest Abatement, Tax Guidance & Preparation, Trust Fund Recovery Penalty

Major Changes Made to IRS Penalty Relief + Lien Process Through New Fresh Start Program

The IRS announced new policies and programs to help taxpayers pay back taxes and avoid tax liens. The changes include: Tax Lien Thresholds The IRS will significantly increase the dollar thresholds when liens are generally filed. The new dollar amount is

Tagged with: , ,
Posted in IRS Lien

IRS Undercover Operations STILL Lacks Sufficient Oversight

The Treasury Inspector General for Tax Administration released a report today dated February 3rd 2012 titled Criminal Investigation Can Take Steps to Strengthen Oversight of Its Undercover Operation. This audit was conducted as a follow up to an audit in tax years 2001 and

Tagged with: , , ,
Posted in IRS Collections, IRS Criminal Enforcement, IRS Enforcement, IRS Examination

Reporting A Settlement

If you happen to be awarded a settlement you need to be careful in how the proceeds are reported to avoid scrutiny by the taxing authorities. I just closed a file today in IRS Examination the facts of which surrounded

Tagged with: ,
Posted in Tax Guidance & Preparation, Tax Preparer, Tax Problems & Requests, Taxable Income

Exclusion of Capital Gain from Sale of Personal Residence Does Not Always Apply

The US Tax Court case of David A. Gates, et ux. v. Commissioner 135 serves as best I can tell as precedent. Under §121, if married taxpayers own and use property as their principal residence for at least two of the five years ending

Tagged with: , , ,
Posted in 1031 Exchange, Capital Gain, Capital Loss, Tax Court, Tax Guidance & Preparation, Tax Problems & Requests

Reporting Back Pay

Reporting back pay is not as straight forward as one imagines. If you issued back pay you should report it on IRS Form W-2 (in boxes 1, 3, and 5) for the year payment is made. If any punitive damages are involved in

Tagged with: , , ,
Posted in Employment Tax, Paying Taxes, Payroll Tax Problems, Social Security Tax, Tax Guidance & Preparation, Tax Problems & Requests, Taxable Income

Partnership Vs. Qualified Joint Venture

Under IRC 761 the term partnership essentially includes a syndicate, group, pool, joint venture, or other unincorporated organization through or by means of which any business, financial operation, or venture is carried on, and which is not, a corporation or a trust or estate. It

Tagged with: ,
Posted in Partnership, Qualified Joint Venture

Co-ownership of Rental Real Estate Does Not Require Partnership Formation

Generally co-ownership in rental property does not require the formation of a partnership when the following conditions are met. 1. Each co-owner must hold title to the property as a tenant in common (TIC) under local law. This usually doesn't apply

Tagged with: , ,
Posted in Husband/Wife, Partnership, Rental Real Estate
Subscribe via Email

Follow me on Twitter
QuickBooks Advanced Certified ProAdvisors Online

QuickBooks Certified ProAdvisor - QuickBooks Online Advanced Certification