CONTROVERSY OVER TAX CUTS AND JOBS ACT

Controversy over Tax Cuts and Jobs Act. When then President Trump passed the Tax Cuts and Jobs Act, which gave 85% of the tax cuts to the wealthiest 5% of Americans, not a single Democrat voted for the bill. But Trump wanted to deliver for the donors who gave to him massively and got him […]

ESTATES CAN ELECT LATE PORTABILITY OPTION

Estates can elect late portability option. The IRS issued revenue procedure 2022-32 that allows estates to elect “portability” of a deceased spousal unused exclusion exclusion amount as much as five years after the decedent’s date of death. Estates of decedents dying after Dec. 31, 2010, who are survived by a spouse, if not required to […]

IRS BLAME GAME FOR DESTRUCTION OF RETURNS

IRS blame game for destruction of returns. In a somewhat surprising statement, the IRS stated it had destroyed nearly 30 million unprocessed information returns because its “antiquated technology” forced it to dispose of the paper documents and vowed to process all such information returns that it received in 2021 and 2022. The IRS statement was […]

IRS FORMS DESTRUCTION PART TWO

IRS forms destruction part two. The Tax Professional community was shocked to learn that the IRS had destroyed nearly 30 million information return. Net Operating Losses and Carry Forwards cannot be determined without certain information, and those particular Information returns will create a nightmare for millions of taxpayers down the road. The Tax Inspector General […]

IRS MOSTLY CORRECT ON REBATE CREDITS

IRS mostly correct on rebate credits. The IRS correctly calculated taxpayers eligibility for a recovery rebate credit in the 2021 filing season 99.3% of the time, the Treasury Inspector General for Tax Administration (TOGTA) reported. However, even the 0.7% error rate involved millions of dollars in improper allowance of the credit, and TIGTA found other […]

TREASURY EQUITY ACTION PLAN PART TWO

Treasury equity action plan part two. The Treasury and IRS are looking at ways to to make the tax system better, and fairer to taxpayers. They have started the “Equity Action Plan: One Year Progress Report”, which will detail the progress on the plan. The data will then be used to validate statistical studies at […]

IRS ISSUED 70 MILLION TAX REFUNDS

IRS issued 70 million tax refunds. With the the April 18th, 2022, tax deadline for most taxpayers now past, the IRS issued a statement saying it has already issued over 70 million tax refunds from filing of tax returns this year. That is from an estimated 103 tax returns that it had received as of […]

IRS CRACKDOWN TO GET REVENUE

IRS crackdown to get revenue. With the Biden Administration spending so much to combat the impact of the economic disaster from the Covid health crisis, one part of the plan has been to infuse the Internal Revenue Service with more funds, to go after those who owe back taxes and those who have not filed […]

DOMESTIC PRODUCTION DEDUCTION CLAIMS TWO

Domestic production deduction claims two. In our ongoing series on tax issues that can get individuals and businesses in trouble, which sometimes leads to the need for Tax Court help, we again discuss the IRS alert on improper corporate domestic production activities deduction refund claims. This provision of the law was repealed as part of […]

TEXAS BILLIONAIRE BIGGEST TAX FRAUD CASE

Texas billionaire biggest tax fraud case. Robert Brockman was so concerned that the IRS would catch him, that he had his offshore money man travel to the states, to destroy paper evidence and electronic media, using shedders and hammers. Eventually prosecutors caught up to him and his decades long tax fraud scheme, the biggest in […]