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 […]

NO STEP UP BASIS PART TWO

No step up basis part two. The case in question involves a prior IRS Letter Ruling made regarding the step up basis of a Private Foundation, and then a subsequent Foundation relying on that ruling to make Tax Filins judgements that were then reversed in Tax Court. The IRS, under similar facts in IRS Letter […]

PROTECT IDENTITY PIN FROM THE IRS

Protect identity PIN from the IRS. IN bulletin IR-2022-78, the IRS reminded taxpayers, especially those who were victims of identity theft–of an important step they should take to protect themselves from tax fraud. Some identity thieves us taxpayers information to file fraudulent tax returns. By requesting identity Protection PIN’s from the “Get an IP PIN” […]

USE TAX CALCULATOR TO MAKE ACCURATE RETURN

Use tax calculator to make accurate return. With the Tax Season for the majority of Taxpayers now behind us, the IRS is memo IR-2022-81, April 13, 2022, is urging Taxpayers to use the Withholding Estimator to ensure the accuracy of tax returns. The Withholding Calculator is a Free toll you can find on the IRS […]

STEPS TO STOP TAX RETURN ERRORS

Steps to stop tax return errors. The IRS announced in bulletin IR-2022-62 that taxpayers should be aware of common mistakes that can delay issuing tax refunds. This filing season, the IRS is seeing signs of a number of common errors, including some taxpayers claiming incorrect amounts of the Recovery Rebate Credit and Child Tax Credit. […]

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 […]