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...
The IRS issued three rulings in 2010 to address how the income of registered domestic partners in California should be reported and taxed for both state and federal income tax purposes. In Chief Counsel Advice 201021050, the IRS determined that for tax years beginning after December 31, 2006, registered domestic partners in...
In January 2011 IRS agents began to audit Quickbooks data files and will require a copy of your QuickBooks data, if used, to help them with the audit. YIKES! These are some of my suggestions to prepare for a tax audit involving Quickbooks. Make an annual backup that matches...
Check out what I read in a recent edition of the NATP's TaxPro Weekly publication about Net Operating Loss Carry backs (NOL)...
Generally if payments are in exchange for partnership property, the amount received in excess of the partner’s outside basis in his/her partnership interest is taxed as capital gain. However if the payments represent a distributive share of partnership income or are deemed to be guaranteed payments, the payments are taxed as ordinary income. According to...
I had to read this report twice today. Check it out the IRS is not always following it's own procedures or governing statutes when it comes to properly issuing tax liens. What? Really? How can this be? Before anyone gets too mad, I know as...
I have a new case involving donated rental real estate and in preparation for appeal I stumbled across the US Tax Court case of Theodore R. Rolfs, et ux. v. Commissioner 135 TC No. 24 in which the taxpayer donated a lake house with conditions to...
Most paid tax return preparers provide honest and professional service, but there are some who engage in fraud and other illegal activities. Regardless of professional designation unscrupulous promoters, even those with CPA's and Law degrees, deceive people into paying for advice on how to...
