2010 Small Business Jobs Act + Rental Property Owners + IRS Form 1099misc

The Small Business Jobs Act of 2010 is amazingly complex legislation. Some pundits estimate that the provisions offering tax relief will actually 'cost' up to $12 billion. These tax cutting measures were I believe intended to offer incentive to businesses to make

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Posted in Rental Real Estate

Trends in IRS Collection and Enforcement

According to a report filed by the Treasury Inspector General for Tax Administration there has been a 19 % increase of enforcement personnel serving in the Collection and Examination function of the IRS since Fiscal Year 2006. Whereas on average overall

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Posted in Appeals & Audit Resolution, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Mediation, IRS Penalties, Tax Abuse, Tax Fraud

What is a Real Estate Professional?

In reviewing James F. Moss, et ux. v. Commissioner 135 TC No. 18 to be a real estate professional, a taxpayer must meet two requirements: (1) More than one-half of the taxpayer’s personal services must be performed in real property trades or businesses in which

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Posted in Rental Real Estate

IRS Accuracy Related Penalties

Section 6662(a) and (b)(1) imposes a penalty equal to 20 percent of the underpayment of tax due to negligence or intentional disregard of the rules or regulations.  If your attitude toward the preparation of your tax returns appears to be cavalier you will definitely be

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Posted in Appeals & Audit Resolution, Audit Reconsideration, IRS Audit, IRS Enforcement, IRS Penalty and Interest Abatement

What is a Church?

The IRS developed 14 criteria to evaluate applications for church foundation status. If a church does not meet these criteria, it will not receive tax exempt status. The criteria are weighted with the four most important of these being: • A complete organization

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Posted in Charitable Contribution, Tax Guidance & Preparation

Alimony Deduction

Back from vacation! Nashville, TN! Awesome town! In reviewing Paul T. Banach v. Commissioner - TC Memo 2010-33 - I learned that payments may be claimed as alimony under §215 if all four requirements of §71(b)(12) are met. Payment in cash will be

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Posted in Alimony, Tax Court

Innocent Spouse Determination

Here are my notes on reviewing Wendy W. Bozick v. Commissioner TC Memo 2010-61 regarding innocent spouse relief. The issues of disagreement are whether Wendy: • Knew her husband would not pay the tax liability. • Will suffer economic hardship if she is

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Posted in Innocent Spouse Relief, Tax Court, Tax Guidance & Preparation

What The IRS Instructs You To Do If You Have NOT Filed Your Taxes

Basically the simple answer is file your tax forms with both the US Federal government and applicable state governments.  Start by filing the previous 3 years of income tax returns ASAP. It is possible the IRS may have already filed

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Posted in Appeals & Audit Resolution, Back Taxes Owed, Currently Not Collectible, IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement

IRS Mileage Deduction Rate Increases: $0.55.5-Business; $0.23-Medical or Moving; and, $0.14-Charitable

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six

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Posted in Business Expense, Charitable Contribution, Highway Tax, Tax Guidance & Preparation, Tax Problems & Requests

IRA’s Cannot Hold Sub-Chapter ‘S’ Stock: Trusts Can Though

To be taxed as an S corporation, a C corporation must elect S status by filing IRS Form 2553. Electing S status is fairly simple for a new or existing corporation, but meeting the requirements for S status can be more complex when the

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Posted in Abusive Tax Shelter, Entity Classification, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Abuse, Tax Court, Tax Fraud, Tax Guidance & Preparation
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