IRS UNDER SCRUTINY FOR POLITICAL AUDITS

IRS under scrutiny for political audits. Democrats were seen raising pressure on the IRS, to explain why foes of former President Trump were targeted for a extensive audit after being fired from their government jobs. IRS Commissioner Charles Rettig was questioned about this by the tax writing House Ways and Means Committee, asking Rettig about […]

1256 FOREIGN CURRENCY CONTRACTS DEFINED

1256 Foreign currency contracts defined. The proposed regulations by the IRS and Treasury Department defined the mark to market rules that would be defined as only including forward contracts. The new definition, which would be added at Regulations Section 1.1256(g)-2, would define a foreign currency contract within the meaning of Section 1256 as one that […]

TAX PROFESSIONALS ADAPTING TO SUPPLY CHAIN

Tax professionals adapting to supply chain. With the supply chain causing havoc worldwide, governments, companies, and even Tax Professionals have had to alter the perception of the supply chain that was created after both World War One and Two. Those supply chains were set up towards a simple, linear supply chain that concentrated on lowering […]

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 […]

TAX COURT CASE RELYING ON TAX PREPARER

Tax Court case relying on tax preparer. Erik and Aspasia Oosterwijk filed their 2017 tax return late and now seek a refund for the IRS’s late file penalties because their accountant failed to e-file for an extension and then gave them incorrect advice on how to obtain an extension and stop the penalties from accruing. […]

TAX REFORM FACT SHEET

Tax reform fact sheet. In looking at tax reform, the White House has proposed radical changes to the tax code which include both individual and business tax reform. This proposal would eliminate the estate tax and the alternative minimum tax. Corporations would not have to pay taxes on their foreign profits and would be able […]

STIMULUS PAYMENT PROBLEMS PART THREE

Stimulus payment problems part three. Doug McKirahan, a 64 year old San Franciscan, told TIME he struggled to input his information into the IRS Get My Payment tool before finally succeeding last week. But McKirahan said what’s most frustrating is his inability to contact the agency directly. The IRS said it’s currently unable to provide […]

VIRUS EMPLOYER TAX CREDITS FORM

Virus employer tax credits form. The IRS issued a new form and instructions,  irs.gov/pub/irs-pdf/i7200.pdf  for employers to use to obtain advance payments of three tax credits that were created to help businesses cope with the coronavirus pandemic. Employers may file new Form 7200. Advance Payment of Employer Credits Due to Covid 19, to obtain advances […]

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 […]

IRS INCREASES VISITS TO HIGH EARNERS

IRS increases visits to high earners. Over the last 32 years we have seen the pendulum of the IRS Collection Division swing from being aggressive to being passive, depending upon what the broader economy was doing. When times are tough the IRS usually backs off of collection, when times are good, they put the foot […]