Tax Considerations of Converting to a ROTH IRA

1. The tax bite is too big. 2. Retirement is too close. 3. Savings are too concentrated in one place. 4. Tax brackets often change in retirement. 5. The income can change your tax bracket now. If an investor is

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IMPACT ON TAXPAYERS The Internal Revenue Service (IRS) protects its claims against taxpayers who owe delinquent taxes by filing Federal Tax Liens (liens), which establishes the IRS’ priority among secured creditors for the taxpayers’ equity. However, lien determinations were not

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Posted in Intent To Levy, Intent To Lien, IRS Collections, IRS Enforcement, IRS Levy, IRS Lien, IRS Penalties, IRS Penalty and Interest Abatement

Court: Innocent Spouses Still Have Only Two Years

The Seventh Circuit Court of Appeals ruled yesterday that the Internal Revenue Service can still apply a two-year deadline to taxpayers looking to file for "innocent spouse" relief. The court reversed a previous Tax Court ruling, which held that because

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What information must be disclosed about uncertain tax positions?

The draft proposal would require identification of up to three Internal Revenue Code sections which relate to the position. Some commentators have suggested it might be a good idea to disclose additional code sections in the description of the position

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Are you required to report an uncertain tax position?

As set forth in the draft instructions, the initial disclosure with respect to the 2010 tax year would be required from corporations that have uncertain tax positions own assets exceeding $10 million issue audited financial statements, and are required to

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What is an uncertain tax position?

As set forth in the current drafts, an uncertain tax position includes a federal income tax position for which the taxpayer has recorded a reserve in an audited financial statement. It also includes a position where no reserve is reported

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Special Tax Incentives for Small Businesses to Provide Health Care, Hire New Workers

Videos HIRE Act: English Small Business Health Care Tax Credit: English WASHINGTON — In recognition of National Small Business Week, the Internal Revenue Service encourages small businesses to take advantage of tax-saving opportunities included in recently enacted federal legislation. A

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Posted in Business Expense, Employee Business Expense, Health Insurance, Self Employ, Small Business, Sole Proprietor

HIRE – Depreciation and Section 179 Expense

HIRE and Section 179 Deduction - A qualifying taxpayer can choose to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years.

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Posted in Deductible Expense, Depreciation

Grouping Passive Activities – IRS Disclosure Rules

As part of the IRS's continuing efforts to require greater disclosure of tax positions and strategies on returns, it recently released new, mandatory disclosure rules for grouping passive activities. Rev. Proc. 2010-13 for the first time mandates that passive-activity groupings

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Posted in Appeals & Audit Resolution, Asset Classification, Cost Segregation, Passive Activity, Rental Real Estate, Tax Deductible Expenses

*****S Corporations and Self Employment Tax

The American Jobs and Tax Loopholes Act, currently in Congress, would subject to Self Employment Taxes (FICA, FUTA, SUTA) all distributions from S Corporations which are "personal service" corporations. This is HUGE. This is not good for the small business

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Posted in Employment Tax, FICA, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Guidance & Preparation
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