MIDDLE CLASS WILL SEE ADDITONAL AUDITS

Middle class will see additional audits. According to House Republicans, Americans earning less than $75,000 a year are going to receive nearly 60% of the increased audits that will be performed by the IRS, once they gear up from the increased funding they just received from Congress. The reason for that, is that the IRS […]

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 […]

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 […]

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 […]

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 […]

TAX COURT CASE ON PROCEEDS FORMULA

Tax Court case on proceeds formula. The Eleventh Circuit found the IRS‘s interpretation of the judicial extinguishment proceeds formula for conservation easements to be procedurally invalid under the Administrative Procedure Act. In 2012, David Hewitt made a conservation easement contribution to the Pelican Coast Conservancy Inc. The recorded deed of conservation easement reserved Hewitt’s and […]