LATE PETITION DOES NOT BAR TAX COURT CASE

Late petition does not bar Tax Court case. In our ongoing coverage of cases related to Tax Court, we analyze an Eighth Circuit case. The U.S. supreme Court found that the time limit to file a petition with the Tax Court was not a condition of the Tax Court’s jurisdiction but rather a non-jurisdictional rule […]

IRS MESS IS SLOWLY GETTING HANDLED

IRS mess is slowly getting handled. After a large public outcry over missing tax refunds, and the fact that the National Taxpayer Advocate stated that in 2021 only 12 percent of all phone calls to the IRS actually got thru to someone, along with the fact that the government piled on loads more work to […]

BIDENS RETIREMENT PLAN CHANGES

Bidens retirement plan changes. Presidential candidate and former Vice President Joe Biden recently proposed a key change to the employer-sponsored 401(k) plan that could help lower  earners save for retirement. But this proposed change also would likely reduce the financial benefit of a traditional 401(k) for high earners, say experts, possibly encouraging more to take […]

ADVOCATING IN WAKE OF WAYFAIR DECISION

Advocating in wake of Wayfair decision. The Association of International Certified Public Accountants addressed two separate tax issues at important forums, advocating for small businesses in the wake of the Wayfair decision and discussing the taxation of virtual currency in separate events. Jamie Yesnowitz, J.D. chair of the AICPA State and Local Taxes Technical Resource […]

TAX COURT CASE LASSEK MEMO

Tax court case lassek memo. The Tax Court held that a wife was entitled to innocent spouse relief that was related to the understatement of tax when her husband reported a 401(k) IRS distribution on a tax return as nontaxable. Although the IRS has conceded that the wife was entitled to the relief, the husband, […]

IRS GRANTS VIRUS TAX RELIEF

IRS grants virus tax relief. Whenever the economy or our Nation encounters an event that shakes the foundations of our society, and impacts the economy in its wake, eventually the IRS reacts and issues memorandums and notices, granting taxpayers and impacted businesses tax relief. The type and various forms of the tax relief depend upon […]

BLOOMBERGS TAX PLAN EXPLAINED

Bloombergs tax plan explained. As part of President Trump’s signature legislation–the Tax Cuts and Jobs Act–the top rate on ordinary income–things like wages, business income, and interest income, was reduced from a high of 39.^% to 37%. Of course, the U.S. tax system is a progressive system, meaning we pay higher taxes as our income […]

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 […]

STATES FAIL TO OVERTURN SALT DEDUCTION

States fail to overturn salt deduction. In our ongoing coverage of Tax Court issues, this case focuses on the SALT cap deduction limits.  It turns out that there is such a thing as too much SALT. U.S. District Judge J. Paul Oetken has dismissed a lawsuit filed by four states to strike down the cap […]

TAXPAYER FIRST ACT OF 2019

Taxpayer first act of 2019. This legislation was signed into law on July 1, 2019. The focus of the bill is to enact changes in the IRS’s organizational structure which includes customer service, enforcement procedures, management of information technology, and improving interactions with taxpayers. By September 2020, the IRS is required to draft new organizational […]