A Collection Appeal Request (CAP) - IRS Form 9423 - is filed in response to the IRS enforcing collection against an accrued amount they believe they are owed by you or the denial or termination of an installment agreement. Except in specific cases involving asset seizure,...
The IRS Restructuring and Reform Act of 1998 established the Collection Due Process or Equivalent Hearing (CDP), which is an appeal filed in response to the following collection actions: Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC Sec. 6320;...
The following are the top issues for the IRS regarding passive losses: Airplane Leasing Farm loss - particularly when the taxpayer lives out of state Rental Real Estate Real Estate Professionals demonstrating 'material participation' Equipment leasing losses 1120S and 1065 losses on the Schedule 'E'...
Rental Income from a building leased to a business where the tax payer works - Reg 1.469-2(f)(6) Rental income from leased land - Reg. 1.469-2T(f)(3) Income from land, a building or other property held for investment IRC 469(e)(1)(A)(ii)(II) Gains on stocks or bonds - IRC 469(e)(1)(A)(ii)(II) Royalties - IRC...
A certificate of lien withdrawal will remove the tax lien from the taxpayer’s credit report. The IRS has discretionary authority to withdraw a lien if one of the four criteria is met according to the 1996 Taxpayer Bill Of Rights The lien filing was premature or not in accordance...
This audit was initiated by the Treasury Inspector General for Tax Administration (TIGTA) to determine whether minimum probes for unreported income during sole proprietor audits are conducted in accordance with IRS policies and procedures. This audit was conducted as part of the Fiscal Year 2010 Annual...
A recent Congressional Research Service (CRS) Report sheds some light on the misconception that the 3.8% Medicare contributions tax on unearned income, which was added by the Health Care and Education Reconciliation Act of 2010, and effective for tax years beginning in...
The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2011. In general, these limits will either remain unchanged, or the inflation adjustments for 2011 will be small. Highlights include: The elective deferral (contribution)...
The Internal Revenue Service has started accepting taxpayer records in electronic format from small businesses using Intuit’s QuickBooks and Sage’s Peachtree accounting software for audits and examinations. Electronic files should be provided on a CD, DVD, or flash/jump drive to ensure security of the files. E-mail...
The Patient Protection and Affordable Care Act created a new §1411, which is effective for tax years beginning after December 31, 2012. This section will impose on high-income households a 3.8% Medicare tax on the lesser of “net investment income” or the excess of modified adjusted...