For 2011 and 2012, the gift, estate and GST tax exemptions are unified again, with the exemption set at $5 million and the tax rate at 35%. The $5 million exclusion is indexed for inflation beginning in 2012. Remember these changes are effective only for the next...
If in December 2010 you purchased and placed in service a new piece of capital equipment to use in your business - say for example a farmer buys a new tractor and placed it in service in his farming business. The tractor cost $300,000. The...
The first step to filing your federal income tax return is to determine which filing status to use. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax. There are five filing statuses:...
Please be advised that Net Operating Losses carried back to previous tax years can trigger an Alternative Minimum tax liability in the previous tax year that the loss was carried to, even if you originally did not have a tax liability in the year the...
To determine if you are obligated by law to file a US tax return and pay US income taxes you should consult the instruction book that accompanies the IRS form 1040. You must file a federal income tax return if your income is above a...
Issues for which there is no legal precedent Issues where the courts have rendered opposing or differing decisions in different jurisdictions Industry Specialization Program issues An issue for which you filed a request for competent authority assistance Service Center penalty appeals cases Service Center Offer in Compromise cases Collection Appeals Program cases Automated...
If you pay someone to prepare your tax return, know that you are legally responsible for what’s on your tax return even if it is prepared by someone else. So, it is important to choose carefully when hiring an individual or firm to prepare your...
The Taxpayer Advocate's 2010 annual report to congress describes continuing concern that IRS collection practices inflict unnecessary harm on financially struggling taxpayers and fail to achieve the IRS’s overriding objective of increasing long-term voluntary compliance with the tax laws. “Tax collection requires a delicate balancing...
90-day letter Term includes the 150-day letter. Admin File A file consisting of one or more examined tax returns of a taxpayer, the report of examination, and all papers, correspondence, and other documents relative to the taxpayer's liability for the year or years involved. An administrative file may also...
The IRS released Announcement 2011-05 creating opportunity for small business and self-employed taxpayers to use the Fast Track Settlement process to resolve disputes within the IRS's Small Business/Self Employed (SB/SE) units of the IRS in certain locations including Chicago, Ill.; Houston, Texas; St. Paul, Minn.; Philadelphia,...
