IRS Request for Miscellaneous Determination – IRS Form 8940

The IRS has released Form 8940, Request for Miscellaneous Determination that tax-exempt organizations will use to request certain determinations about their tax-exempt status.  In addition to foundation status issues, organizations will use this new form to obtain advance approval of certain activities and exemption from

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Posted in Charitable Contribution, IRS Examination, Non-profit, Tax Guidance & Preparation, Tax Relief, Uncertain Tax Position

IRS Collection Limitations

There are several options available through the IRS to resolve delinquent tax obligations and/or request relief.  One of the many reasons you need to be careful when engaging the IRS in these regards is because many of the programs including

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Posted in IRS Collections, IRS Enforcement

Severance Payments and FICA Tax

Generally severance payments made to terminated employees have been held by the US Tax Court to be FICA wages because the definition of "wages" for FICA purposes found in the Internal Revenue Code is so broad. "Wages" include all remuneration

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Posted in FICA, Social Security, Social Security Tax, Tax Court

Mortgage Interest Allocation

I received a very interesting question from my last post on mortgage interest concerning allocation for tax deduction purposes. This post is a summary of research conducted in these regards on the National Association of Enrolled Agents web site. For example sake

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Posted in Mortgage

Mortgage Refinancing Tax Deductible Expenses

With mortgage rates at levels not seen in generations and the banks finally starting to lend again many people have been calling with questions about the tax implications of refinancing. It can be a little confusing and this is my

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Posted in Deductible Expense, Mortgage, Tax Court

Municipal Bond Interest Can Be Taxable – Make Sure You Trust Your Broker Is Competent

I am so sick and tired of late night commercials selling snake oil. My latest angst comes from claims of tax free municipal bonds. Not all municipal bonds offer tax free interest so the next time slick Rick the broker

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Posted in Alternative Minimum Tax (AMT), Municipal Bond

Foreign Income Reporting IRS Publication 515

IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, includes a table of income source rules, including pay for personal services, interest, rents, royalties, income from natural resources, scholarship and fellowship grants, and guarantees of indebtedness. I must write from experience

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Posted in Foreign Income

IRS Audit Guidelines Assessing Asset Dissipation

If you are delinquent on taxes you may be considering some IRS payment arrangement whereby your total tax liability will be considered satisfied in exchange for a payment plan that is less then the full amount owed. Two different plans that

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Posted in Abusive Tax Shelter

What is a Foreigner for US Tax Purposes? IRS Forms W-8BEN + 1042-S

I have had the pleasure of helping many people new to either living or conducting business in the USA determine their tax liability to the US Treasury and have grown increasingly surprised about the confusion over who or what type

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Posted in Foreign Income, Immigrant, Undocumented Alien

Alternative Minimum Tax – AMT and Unexpected Investment Income

It is no secret that the US Congress' growing inability to agree on matters of substance is both disturbing and frustrating. The Alternative Minimum Tax (AMT) problem of not automatically adjusting for inflation is yet another example of the collective

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Posted in Alternative Minimum Tax (AMT)
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