GIG WORK TAX BILL AND STATUS AT THE IRS

Gig work tax bill and status at the IRS. A bill was introduced into the U.S. House of Representatives, that would amend the current labor law in the United States, to establish a new classification for gig workers, denying them the right to a minimum wage and other employment protections. Called the “Worker Flexibility and […]

DELAYED SCREENING RISKED TAXPAYER DATA

Delayed screening risked taxpayer data. In a report from TIGTA, the Tax Inspector General for Tax Administration, officials found that some IRS new workers in 2020 and in 2021 had access to sensitive information including taxpayer data while preemployment fingerprinting and in-person verification of their identification documents had been deferred because of the COVID_19 pandemic. […]

IRS ANNUAL DIRTY DOZEN TAX SCHEMES

IRS annual dirty dozen tax schemes. The IRS comes out every year with its list of the most prominent tax schemes of the year. Some stay in the list, while other new schemes, concocted by criminal elements, enter the list, and some leave the list as well. This year’s list includes four “bogus tax avoidance […]

IRS HAS SUPERFUND LIST CHANGES

IRS has superfund list changes. In IRS Revenue Procedure 2022-26, the IRS prescribed the exclusive procedures for requesting an addition to, or removal from, the list of chemical substances subject to an excise tax commonly known as the Superfund tax. The Superfund, or as it was formally known, the Hazardous Substances Response Trust Fund, was […]

AFTER AUDIT DECLINE IRS TO AUDIT MORE

After audit decline IRS to audit more. After a long period where the IRS was auditing less, especially against the richest Americans, the trend is finally swinging back to more audits. The reason has to do with ballooning federal budget deficits. The Biden Administration has made it a priority to give the IRS additional funding […]

IRS DESTROYED 30 MILLION PAPER FILINGS

IRS destroyed 30 million paper filings. In a highly controversial move, the IRS destroyed 30 million paper filings. This was a result of the backlog that started when the Covid crisis began. The IRS, along with a large number of other government agencies and companies, shut down operations during the first 7 months of the […]

IRS AUDITS FOR RICH TURNING AROUND

IRS audits for rich turning around. With the revelations in the Panama Papers and Pandora Papers of the rich, sports figures, and the world’s politicians using abusive tax shelters to hide billions of taxable dollars from the world’s governments, along with the increasing income inequality in the world, the governments of the world and in […]

ELEVENTH CIRCUIT RULING ON FORMULA

Eleventh Circuit ruling on formula. In our ongoing coverage of Tax Court cases, we focus on the case of a easement contribution to Pelican Coast Conservancy by David Hewitt, and whether it adhered to rules that would allow the deductions claimed by the Hewitt’s as reported in the records of the case. The Eleventh Circuit […]

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 RULED AGAINST STARTUP FARM

Tax Court ruled against startup farm. The Tax Court held that a taxpayer’s farming venture was still in the startup phase in the tax year at issue and denied the claimed business expense deductions. Vardan Antonyan bought 10 acres in the Mojave Desert of Southern California, intending to develop it and rent parcels to farmers. […]