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Every Tax Professional Needs – Tax Career Insurance

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Few people understand what really goes on behind the scenes of major corporations, public accounting firms, and law firms in how they go about hiring tax professionals. Unless you are a seasoned tax headhunter (http://www.etsearch.com/clients.htm), you will never know the many nuances and obstacles every tax professional goes through in the process of being hired. Believe me, I have seen more reasons tax professionals do not get hired than you could possibly imagine. Ask any experienced recruiter and they will have their own stories to tell you. Having the opportunity to educate you and provide a solution to protect you is what you will learn today.

Here are the behind the scenes real life truths that you never hear about finding a tax job or how a tax job can find you.  I have seen these familiar occurrences over and over again Read More

When Do You Need To Hire A Tax Attorney?

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In a world of CPA’s, tax preparers, enrolled agents, bookkeepers and accountants, it can be confusing to know when to hire a tax attorney. After all, you’re not hiring a tax lawyer to prepare your annual income tax return. So when and why would you need a tax attorney’s services?

IRS And State Tax Disputes

First and foremost, you need a tax lawyer if you have a dispute with the Internal Revenue Service (IRS) or any State Tax Agency.

Most tax disputes arise in the form of an audit of one or several past tax returns. If the IRS notifies you of an audit, you should hire a tax attorney immediately. Read More

Political Campaign Activity by Non-profit Organizations – Part 2

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We previously discussed the prohibition against a church or religious organization from participating in political campaign activities.  The specific prohibitions that are a part of the law were discussed.  However, a church or religious organization is not being placed in a situation where is cannot express opinions on the issues of the day, nor are they expected to “put its head in the sand” in regard to the political process.

Lobbying Activities

A church or religious organization is permitted to engage in lobbying activities.  These activities are limited, however, as the organization must maintain a focus on its exempt purpose.  If the IRS determines that the organization is devoting more than an “insubstantial” part of its total activities during the year to lobbying activities, its tax-exempt Read More

Beyond The FBAR – Everything You Never Wanted To Know About All of The Other International Reporting Forms (But Must)

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With all of the focus on FBARs and Form 8938s these days, it’s sometimes easy to forget about the other IRS international reporting forms. Below is a list of other important international reporting forms that relate to foreign asset reporting along with their penalties.

(1) Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts: Under IRC § 6048, taxpayers must report various transactions involving foreign trusts, including creation of a foreign trust by a United States person, transfers of property from a United States person to a foreign trust, and receipt of distributions from foreign trusts. This return also reports the receipt of gifts from foreign entities under IRC § 6039F. The penalty for failing to file each one of these information Read More

The One Thing IRS Tax Scammers Hope You Don’t Know

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The ongoing IRS tax scam that has topped the Dirty Dozen list for the past three years is the phone call where the person on the other end impersonates an IRS agent. These scammers target the most vulnerable taxpayers, which include the elderly, recent immigrants and those whose first language is not English. These scammers are counting on those Americans not being aware of how the IRS works.

So, in this case, just one bit of knowledge goes a long way in foiling the IRS scammers’ attempts at stealing your refund or filing a false tax return in your name.

Here is the only thing you really need to know. The IRS doesn’t call, they send a formal letter. Sear this into your brain. Read More

Tax Advantages of Investing In Real Estate

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As the economy shows signs of improvement, with the stock market rebounding and unemployment falling steadily, it is only reasonable to believe, all thing being equal, that the housing market will also rebound, and will once again become a very viable investment vehicle. There are a number of distinct tax advantages to be derived from investing in real estate, and this article will look at some of these advantages. For both middle and high-income individuals alike, the tax advantages of investing in real estate can be substantial. Some of the advantages are as follows:

Depreciation:

The IRS allows investors to depreciate (deduct from rental income) the cost of a residential rental building over a period of 27.5 years, and 39 years for nonresidential Read More

How Professional Athletes Attribute “Rest Days” for State Income Tax Purposes: A Major Controversy Brews

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Many young professional athletes and their less than experienced managers are learning for the very first time that the money “earned” PLAYING or competing is subject to income tax both at the federal level AS WELL AS AT THE STATE LEVEL WHERE THEY ARE PERFORMING or rendering service on behalf of their employer.

Basically for example if you earn money in Colorado you pay Colorado income tax as well as federal income tax on those same earnings. Professional athletes compete or perform (aka earn money) in many different states, the majority of which have a state income tax obligation, some higher than others and all pretty nasty.

A few months ago a select group of professional athletes shared concerns about Read More

An Unusual But Effective IRS Collection Tool: The Writ Of Ne Exeat Republica

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Congress has given the IRS potent tools to collect taxes. The IRS can impose liens on a taxpayer’s property and can seize it through levy, all without prior judicial authorization. But for taxpayers who attempt to move or keep their assets offshore to circumvent IRS collections – beware of the writ of ne exeat republica.

The writ of ne exeat republica effectively prevents a person from leaving the Court’s jurisdiction and the IRS has demonstrated that where its efforts to seize a taxpayer’s property to collect his past due taxes, the IRS essentially seized the taxpayer instead.

Predictably, it takes some fairly serious misbehavior to lead a court to bar someone from traveling – and that is what happened to Charles and Kathleen Barrett of Colorado. Read More

OECD Announces New Country-by-Country Reporting Standard Starting in 2016!

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On 02/06/15 the OECD and G20 countries have agreed three key elements that will enable implementation of the BEPS Project:

• a mandate to launch negotiations on a multilateral instrument to streamline implementation of tax treaty-related BEPS measures;

• an implementation package

     • for country-by-country reporting in 2016 and

     • government-to-government exchange mechanism to start in 2017;

• criteria to assess whether preferential treatment regimes for intellectual property Read More

Tax Changes For 2015: A Checklist

New Year's Eve 2015 with Fireworks

It’s been a few months, but “Welcome 2015!” As the new year rolls around, it’s always a sure bet that there will be changes to current tax law and 2015 is no different. From health savings accounts to retirement contributions and standard deductions, here’s a checklist of tax changes to help you plan the year ahead.

Individuals

For 2015, more than 40 tax provisions are affected by inflation adjustments, including personal exemptions, AMT exemption amounts, and foreign earned income exclusion, as well as most retirement contribution limits.

For 2015, the tax rate structure, which ranges from 10 to 39.6 percent, remains the Read More

Corporate Tax Reform: An Illusion Or A Reality?

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It has been a rallying cry that is as old as time and that rivals that of the standing ovation that the Rangers receive after scoring a power play goal: “Corporate tax in this country needs to be reformed.” Who is leading the charge? America’s chief executives. What is responsible for catapulting this into the public eye? None other than the nation’s aging tax code, which has been blamed for putting U.S. multinational corporations at a competitive disadvantage in the global marketplace.

As tax reform chatter grows louder, chief executives have become more outspoken. Timothy D. Cook, Apple’s chief executive, told lawmakers, “Apple has recommended to the Obama administration and several members of Congress — and suggests to the subcommittee today — to pass legislation that Read More

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