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 he materially participates; and (2) The taxpayer must perform...
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 of ordained ministers ministering to their congregations. • The...
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 considered alimony only if the: (1) payment...
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 not relieved of the joint tax liability. • Benefited from the...
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 returns for you. Under Section 6020(b)...
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 months of 2011, as set...
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 C corporation is not owned...
Protective refund claims are filed to preserve a taxpayer’s right to claim a refund when the taxpayer’s right to the refund is contingent on future events like future litigation, and may not be determinable until after the statute of limitations expires. Without a protective refund claim, taxpayers will only have a three-year statute of...
The Internal Revenue Service advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due Aug. 31, will instead be due on Nov. 30, 2011. In general, the highway use tax applies to trucks, truck tractors and buses...
The Internal Revenue Service announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests under IRC 6015(f). The IRS launched a thorough review of the equitable relief provisions of the innocent spouse program...