TAX COURT CASE ON PROCEEDS FORMULA

Tax Court case on proceeds formula. The Eleventh Circuit found the IRS‘s interpretation of the judicial extinguishment proceeds formula for conservation easements to be procedurally invalid under the Administrative Procedure Act. In 2012, David Hewitt made a conservation easement contribution to the Pelican Coast Conservancy Inc. The recorded deed of conservation easement reserved Hewitt’s and […]

GIG ECONOMY INCOME IS REPORTABLE TO IRS

Gig economy income is reportable to IRS. The Internal Revenue Service in public announcement IR-2022-45, announced that and reminded taxpayers that gig economy income, virtual transactions, and foreign source income and assets are taxable assets and income reportable to the IRS. They stated that you may obtain information on the IRS website, IRS.GOV for more […]

PHISHING SCAMS TARGET TAX PROFESSIONALS

Phishing scams target tax professionals. With the number of scams in the United States exploding, the IRS is warning tax professionals again, to be aware of scams that specifically target the tax professional community. It is one of the reasons the IRS commissioned the Security Summit, a partnership between Tax Professionals, Tax Software Distributors and […]

FRENZY OF TAX FILING FOR TAX REFUNDS

Frenzy of tax filing for tax refunds. People are filing their taxes at a blistering pace so far this year, underscoring how serious Americans are about getting any tax refund due or any stimulus check money they missed last year. The IRS began accepting and processing 2020 tax returns slightly later than usual because its […]

WHEN WILL YOU GET BIDENS TAX STIMULUS

When will you get bidens tax stimulus. President Biden’s $1.9 trillion dollar tax relief plan proposes another batch of checks for Americans of $1400 for just about all Americans. With the economy now showing signs of weakness, a lackluster jobs report, due to increased Coronavirus cases, this next round of checks could provide relief to […]

SIMPLIFIED ACCOUNTING RULES FOR BUSINESS

Simplified accounting rules for business. The IRS has finalized updates to various tax accounting regulations to adopt the simplified tax accounting rules for small business enacted by the tax law known as the Tax Cuts and Jobs Act. The Regulations issued in July with a few changes in response to comments. For years beginning in […]

COALITION WANTS CHANGE FOR PPP LOANS

Coalition wants change for PPP loans. With all the talk that large companies were getting the bulk of the Paycheck Protection Program loans, other criticisms have been forthcoming also. One has been that the way the pay calculation is made is not an accurate determination for what a company really needs. An AICPA led small […]

CONFIDENTIALITY OF TAX RETURN INFORMATION

Confidentiality of tax return information. We are often asked by clients about the information that they provide us, and whether it is confidential. Let us provide you with some of the IRS guidelines for Tax Professionals that discuss the measures needed to safeguard a person’s tax return and other tax related information. Internal Revenue Code […]

RENTAL PROPERTIES SAFE HARBOR RULES

Rental properties safe harbor rules. The IRS has issued safe harbor guidelines for the owners of rental properties in order to qualify for the new 20% deduction (Section 199A). While your rental activities may be considered an eligible trade or business with appropriate substantiation, the IRS has provided the following requirements if you elect to […]

TRUMP TAX DOCUMENTS SHOW PROBLEMS

Trump tax documents show problems. Documents obtained by ProPublica show stark differences in how Donald Trump’s businesses reported some expenses, profits and occupancy figures for two Manhattan buildings, giving a lender different figures than they provided to New York City tax authorities. The discrepancies made the buildings appear more profitable to the lender–and less profitable […]