INFLATION REDUCTION ACT ADDS 87,000 IRS

Inflation reduction act adds 87,000 IRS. The newly passed Inflation Reduction Act will add according to the GAO an estimated 87,000 New IRS People. Republicans were quick to state that the Act would increase the chance of audits on ordinary American, although that seems more a political year hype, designed to sway voters. The IRS […]

IRS SAYS ABUSIVE INSURANCE IS A SHAM

IRS says abusive insurance is a sham. The IRS stated that a recent court decision upholds its long standing regarding abusive microcaptive insurance transaction as a sham. Taxpayers are being alerted to the scheme by both the IRS and U.S. Treasury Department. These are peddled by promoters and will cost taxpayers lots of money if […]

DEMOCRATS TO RAISE TAXES ON HIGH EARNERS

Democrats to raise taxes on high earners. Senate Democrats have reached an agreement to increase the tax rates on high income wage earners. They believe these individuals have been misusing or in some cases abusing a loophole in the tax law to avoid paying taxes. The lawmakers in the Senate plan to close the loophole […]

TAX DEBT IS HELD TO BE DISCHARGED

Tax debt is held to be discharged. In our ongoing coverage of Tax Court cases, this case is of Nicole Golden and her husband, Stephen Alter, who timely filed an extension until Oct. 15th, 2009, for the 2008 tax return but did not file the return by the extended date. They experienced financial and marital […]

GAO SAYS THE RICH WERE AUDITED LESS

GAO says the rich were audited less. Taxpayers with incomes over $200,000 were audited less than the general population, according to a report by the Government Accountability Office. The report shows a definite discrepancy among audit rates for rich versus poorer taxpayers. The GAO also released a second report on the IRS‘s enforcement of taxpayer’s […]

AFTER LULL IRS GETTING MORE AGGRESSIVE

After lull IRS getting more aggressive. When the IRS shut down for nearly seven months, due to the Covid lockdown, they fell behind in filing almost 24 million back tax returns. They then hired 10,000 people to have a “surge”, to get those back returns caught up. In the meantime they also had nearly 8 […]

IRS ISSUES ACCOUNTING CHANGE PROCEDURES

IRS issues accounting change procedures. Many of the tax changes in the Tax Cuts and Jobs Act have taken some time to come out and get guidance from the IRS. As they are quite numerous and at times some of the tax law changes are not given guidance until some taxpayer realizes they can’t make […]

IRS ENFORCEMENT OF TAX LAWS

IRS enforcement of tax laws. The IRS has many tools in attempting to collect unpaid taxes from delinquent taxpayers. They mail math error notices to taxpayers who appear to make a calculation or clerical error on a tax return. Many tax forms require adding two lines together or subtracting one line from another. If these […]

BIDEN THE RICH AND TAX INCREASES

Biden the rich and tax increases. With the political winds shifting, most knew the time for tax increases on the rich was here. A lack of investment in America’s infrastructure, ahs hurt us in a competitive world, where broadband is a must, and having working bridges and highways for a functioning economy should be a […]

PRINTING MONEY FOR STIMULUS PROPOSALS

Printing money for stimulus proposals. When the economy was going down the toilet, due to the COVID pandemic, back in the spring, the government had to decide whether to put stimulus money into the economy to jump start the economy. Since the cost of inaction, lost tax revenue, due to lost jobs and business failures, […]