PROPER STATUS FOR FILING BUSINESS TAXES

Proper status for filing business taxes. Whenever someone decides to open up a business, they should at some point stop, and determine what status the business should take. Why ? Well because we have spoken to hundreds of business owners over the last 36 years who did not do that very simple thing, and went […]

REPORTING FOREIGN SOURCED INCOME

Reporting foreign sourced income. With the need for more revenue, due to the once in a life time health pandemic, the U.S. Government is cracking down on anyone who avoids foreign sources of income. They were alerted to schemes to hide income, by the revelations of the Panama Papers, and the ridicule it caused the […]

TAX RESOLUTION CRITICAL WITH IRS BACKLOG

Tax Resolution critical with IRS backlog. It looks like the IRS will send a second team of clerical workers to work on the backlog of unprocessed tax returns from the last filing season, that some estimates say is nearly 12 million tax returns. To make the matters worse, the IRS is updating the most outdated […]

SMALL BUSINESS TAXES CREATING STRUCTURE

Small business taxes creating structure. This is a multi part article designed to help small businesses, in an effort to prevent them from obtaining tax debt’s at the beginning of their business. The first thing you need to determine, when creating a business, is the structure of the business. This is important, in regard to […]

ADVISORY COMMITTEE RELEASES ANNUAL REPORT

Advisory committee releases annual report. The Electronic Advisory Committee released its annual report to Congress, featuring recommendations that focus on the prevention of identity theft and refund fraud. The ETAAC is a public forum whose members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and the nation’s tax […]

SURPRISE TAX BREAK IN NEW RELIEF BILL

Surprise tax break in new relief bill. The coronavirus pandemic has brought the global economy to its knees, and lawmakers in Washington are pulling out all the stops to find ways to support hard hit Americans. Even after three rounds of legislation to stimulate the U.S. economy, there’s been discussion of still more proposals to […]

GUIDANCE ON NOL CARRYBACK ADJUSTMENTS

Guidance on NOL carryback adjustments. The has provided guidance on how taxpayers who want to elect to waive or reduce the new provision requiring taxpayers with net operating losses (NOLs) arising in tax years beginning in 2018, 2019, and 2020 to carry them back five years. (Rev. Proc. 2020-24) The IRS also extended the deadline […]

MANAGE TAXES FOR YOUR GIG WORK

Manage taxes for your gig work. What is the gig economy ? The gig economy–also called sharing economy or access economy–is a activity where people earn income providing on demand work, services or goods. Often, it’s through a digital platform like an app or website. The gig economy is taxable. You must report income earned […]

GILLETTE AND SZCZEPANSKI V COMMISSIONER

Gillette and Szczepanski v Commissioner. In our ongoing coverage of Tax Court issues and cases we focus on this case, an Offer in Compromise issue case. The petitioners, Gillette and Szczepanski(a married couple), were assessed a liability on their 2012 federal income tax which included the penalty for early withdrawal from an IRS and the […]

AUTOMOBILE FLEET REGULATIONS

Automobile fleet regulations. Notice 2019-08, is the notice under Section 1.61-21(d) that shows the proposed IRS regulations updating the fleet average and vehicle cents per mile valuation, which are described in detail. To align the limitations on the maximum vehicle fair market values for use of these special valuation rules with recent statutory changes made […]