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U.S. Constitution 16th Amendment Gave Congress Authority To Enact An Income Tax – View First 1040 Tax Form In 1913

IRS- First Tax Return Form In 1913

Origin Of Internal Revenue Service
The roots of IRS go back to the Civil War when President Lincoln and Congress, in 1862, created the position of commissioner of Internal Revenue and enacted an income tax to pay war expenses. The income tax was repealed 10 years later. Congress revived the income tax in 1894, but the Supreme Court ruled it unconstitutional the following year.

16th Amendment
In 1913, Wyoming ratified the 16th Amendment, providing the three-quarter majority of states necessary to amend the Constitution. The 16th Amendment gave Congress the authority to enact an income tax. That same year, the first Form 1040 appeared after Congress levied a 1 percent tax on net personal incomes above $3,000 with a 6 percent surtax on incomes of more than $500,000.

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How To Recover Damages For An IRS Error

Venar Ayar- How To Recover Damages For An IRS Error
Recovering Damages

You may be able to recover economic damages if an IRS error ends up costing you money. However, the circumstances under which you can recover damages are quite limited.

These situations typically occur when an IRS mistake results in a bank charge. There are three ways this can happen:

  • You have a direct debit installment agreement, and the IRS makes a mistake when processing your payment, such as withdrawing the incorrect amount or making a withdrawal on the wrong date.
  • You send a check to the IRS and they lose or misplace it.
  • The IRS wrongfully levies your bank account.

In these situations, you may seek reimbursement of the associated bank charges using Form 8546, Claim for Reimbursement of Bank Charges.

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ASC 740 Stock Compensation And Sec 162m – Complimentary Webinar For Tax Professionals – Friday October 19th 2018

Webinar- ASC 740 Stock Compensation

TaxConnections invites corporate tax professionals and tax professionals in public accounting serving corporate clients to attend this complimentary webinar with Tax Reform updates and the tax provision “ASC 740 Stock Compensation And Sec 162m”.

Hosted by leading tax provision expert Nick Frank, Tax Prodigy CEO you will guided you through these issues Friday, October 19th 2018.

Register To Attend Complimentary Webinar

By Leading Expert On ASC 740 Stock Compensation And Sec162m

 

Expenses For Business Meals Under § 274 of the Internal Revenue Code – IRS Wants Your Comments By 12.02.18

IRS Update- Business Meals

PURPOSE OF IRS NOTICE

This notice provides transitional guidance on the deductibility of expenses for certain business meals under § 274 of the Internal Revenue Code. Section 274 was amended by the Tax Cuts and Jobs Act, Pub. L. No. 115-97, § 13304, 131 Stat. 2054,
2123 (2017) (the Act). As amended by the Act, § 274 generally disallows a deduction for expenses with respect to entertainment, amusement, or recreation. However, the Act does not specifically address the deductibility of expenses for business meals.
This notice also announces that the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to publish proposed regulations under § 274, which will include guidance on the deductibility of expenses for certain business meals. Until the proposed regulations are effective, taxpayers may rely on the guidance in this notice for the treatment under § 274 of expenses for certain business meals.

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IRS On New Tax Law – Property Improvements And Depreciation Of Automobiles

IRS- Business Expenses And Automobile Depreciation

A taxpayer may elect to expense the cost of any section 179 property and deduct it in the year the property is placed in service. The new law increased the maximum deduction from $500,000 to $1 million. It also increased the phase-out threshold from $2 million to $2.5 million. For taxable years beginning after 2018, these amounts of $1 million and $2.5 million will be adjusted for inflation.

The new law also expands the definition of section 179 property to allow the taxpayer to elect to include the following improvements made to nonresidential real property after the date when the property was first placed in service:

  • Qualified improvement property, which means any improvement to a building’s interior. However, improvements do not qualify if they are attributable to:
    • the enlargement of the building,
    • any elevator or escalator or
    • the internal structural framework of the building.
  • Roofs, HVAC, fire protection systems, alarm systems and security systems.

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Senior Director of Tax Job – Southern New Jersey Area

Senior VP Tax Job - Southern New Jersey

TaxConnections has recently been retained to conduct a search for a Senior Director of Tax for a publically listed regulated company in the New Jersey area. With a presence in more than 46 U.S. states and Canada this company employs more than 7,000 professionals. Our client seeks a tax executive with experience in a regulated industry to lead and develop a strong tax team.

Key Responsibilities Include The Following:

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Director of Tax (North Dakota)

Director of Tax - North Dakota - Bismarck

TaxConnections has been retained to conduct a search for a Director of Tax for a publically listed regulated company in the North Dakota area. With a presence in more than 48 U.S. states this company employs more than 10,000 professionals. Our client seeks a tax executive with experience in a regulated industry to lead and develop a strong tax team. We would appreciate your review of this opportunity and referring this to anyone you feel would like to learn more about it.

Key Responsibilities Include The Following:

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Letter To TaxConnections Begs For Help From National Taxpayer Advocate Or Tax Professionals

Tax Question - Taxpayer Needs Help From Taxpayer Advocate

TaxConnections Offline Message Left on 16 Oct 2018, 05:47 PM 

To whom it may concern,

I am sending this letter because I was not informed by the IRS about the wages on my 1040 that did not match the information reported to the IRS back in March of 2018. There was never a letter sent to me about this matter.The only thing I received was a letter stating my identity was being checked for fraud and I had to send information pertaining my identity. I did that and still never heard anything back. According to https://taxpayeradvocate.irs.gov/reports/fy-2018-objectives-report-to-congress/news-release National Taxpayer Advocate Nina E. Olson praises the IRS for running a generally successful filing season, including reducing the incidence of identity theft, implementing new accelerated Form W 2 reporting requirements, and matching Forms W 2 against tax returns claiming refunds. Ms. Olson says taxpayers who require assistance from the IRS are continuing to face significant challenges obtaining it. I am one of these people and my rights have been violated in the: #1 TAXPAYER BILL OF RIGHTS.

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When The IRS Can Levy Property Without A Hearing

Venar Ayar - When The IRS Can Levy Property Without A Hearing
IRS Levy Procedures

The IRS must follow certain procedures before seizing your property. Typically, that process goes something like this:

  • You receive a notice stating that tax has been assessed and asking you to pay it.
  • You don’t pay or resolve the matter by the deadline.
  • A Final Notice of Intent to Levy is sent to you.

If these notices aren’t sent, the levy may be improper and you could request a levy release. When these procedures are followed, you have 30 days to request a hearing and attempt to stop the levy.

Levy Without Notice

There are limited circumstances where the IRS doesn’t need to let you know about the levy until after it takes place. Those situations are as follows:

  • The IRS believes the collection of the tax is in jeopardy
  • Levy of a state tax refund.
  • Levy for tax debt owed by a federal contractor.
  • Levy for unpaid employment taxes when the taxpayer has previously requested a Collection Due Process (CDP) hearing for employment taxes in the past two years.

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OECD Reports Countries With Residence-Citizenship Schemes

TC Admin- OECD Reports Countries With Citizenship Schemes

As reported by the OECD “While residence and citizenship by investment (CBI/RBI) schemes allow individuals to obtain citizenship or residence rights through local investments or against a flat fee for perfectly legitimate reasons, they can also be potentially misused to hide their assets offshore by escaping reporting under the OECD/G20 Common Reporting Standard (CRS). In particular, Identity Cards and other documentation obtained through CBI/RBI schemes can potentially be misused abuse to misrepresent an individual’s jurisdiction(s) of tax residence and to endanger the proper operation of the CRS due diligence procedures.

Potentially high-risk CBI/RBI schemes are those that give access to a low personal income tax rate on offshore financial assets and do not require an individual to spend a significant amount of time in the location offering the scheme.”

The OECD has identified the following countries and territories that potentially pose a high-risk to the Common Reporting Standard.

Antigua and Barbuda

Antigua and Barbuda Citizenship by Investment

Antigua and Barbuda

Permanent Residence Certificate

Bahamas

Bahamas Economic Permanent Residency

Bahrain

Bahrain Residence by Investment

Barbados

Special Entry and Residence Permit

Colombia

Migrant (M) Visa – Category 6 or Category 10

Colombia

Residence Visa by Investment (R visa)

Cyprus

Citizenship by Investment: Scheme for Naturalisation of Investors in Cyprus by Exception

Cyprus

Residence by Investment

Dominica

Citizenship by Investment

Grenada

Grenada Citizenship by Investment

Malaysia

Malaysia My Second Home Programme

Malta

Malta Individual Investor Programme

Malta

Malta Residence and Visa Programme

Mauritius

Occupation Permit/Permanent Residence Permit

Monaco

Residence by Investment

Montserrat

Economic Residency Programme of Montserrat

Panama

Friendly Nations Visa

Panama

Economic Solvency Visa

Panama

Reforestation Investor Visa

Qatar

Investor Residence Visa

Qatar

Residence Visa for Real Estate Owner

Saint Kitts and Nevis

Citizenship by Investment

Saint Kitts and Nevis

Residence by Investment

Saint Lucia

Citizenship by Investment Saint Lucia

Seychelles

Type 1 Investor Visa

Seychelles

Type 2 Investor Visa

Turks and Caicos Islands

Permanent Residence Certificate via Undertaking and Investment in a Home

Turks and Caicos Islands

Permanent Residence Certificate via Undertaking and Investment in a Business

Turks and Caicos Islands

Permanent Residence Certificate via Investment in a Designated Public Sector Project

Turks and Caicos Islands

Permanent Residence Certificate via Investment in a Home or Business

United Arab Emirates

UAE Residence by Investment

Vanuatu

Development Support Programme

Vanuatu

Self-Funded Visa

Vanuatu

Land-Owner Visa

Vanuatu

Investor Visa

http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/residence-citizenship-by-investment

 

IRS Commissioner, Top Officials And Organization Chart

IRS - Organization Chart And Officials

 IRS Commissioner, Top Officials And Organization Chart

Specialized IRS units report directly to the Commissioner’s office. The IRS Chief Counsel also reports to the Treasury General Counsel on certain matters.

  • CommissionerInternal Revenue — Charles P. Rettig
  • Chief of Staff — Lia Colbert
  • IRS Chief Counsel — Vacant
  • Taxpayer Advocate Service — Nina E. Olson, National Taxpayer Advocate
  • Appeals — Donna Hansberry, Chief
  • Communications and Liaison — Terry Lemons, Chief

Deputy Commissioner for Services and Enforcement

The Deputy Commissioner reports directly to the Commissioner and oversees the four primary operating divisions and other service and enforcement functions:

  • Deputy Commissioner for Services and Enforcement — Kirsten Wielobob
  • Wage and Investment Division — Ken Corbin, Commissioner
  • Large Business and International Division — Douglas O’Donnell, Commissioner
  • Small Business/Self Employed Division — Mary Beth Murphy, Commissioner
  • Tax Exempt and Government Entities Division — David Horton, Acting Commissioner
  • Criminal Investigation — Don Fort, Chief
  • Return Preparer Office — Carol Campbell, Director
  • Office of Professional Responsibility — Stephen A. Whitlock, Director
  • Office of Online Services — Michèle L. Causey, Acting Director
  • Whistleblower Office — Lee Martin, Director

Deputy Commissioner for Operations Support

The Deputy Commissioner reports directly to the Commissioner and oversees the integrated IRS support functions:

  • Deputy Commissioner for Operations Support — Jeff Tribiano
  • Chief Information Officer — Gina Garza
  • Chief Facilities Management and Security Service — Richard Rodriguez
  • Chief Research and Analytics Officer — Ben Herndon
  • Equity, Diversity and Inclusion — Elita Christiansen, Executive Director
  • Chief Human Capital Officer — Robin D. Bailey, Jr
  • Chief Financial Officer — Ursula Gillis
  • Chief Privacy Officer — Edward Killen
  • Chief Procurement Officer — H. Harrison Smith, Acting
  • Chief Risk Officer — Thomas Brandt

Organization Chart

See the basic structure of today’s IRS in this picture of the IRS Organization Chart.

https://www.irs.gov/pub/newsroom/marketing/internet/irs_organization_chart.pdf

 

The Affordable Care Act, Medical Insurance And Taxes

Charles Woodson - The Affordable Care Act, Medical Insurance And Taxes

The Affordable Care Act (ACA) imposed significant penalties on taxpayers and their families who do not have ACA-compliant health insurance. Even though the tax reform removed these penalties after 2018, they still apply for this year and can be as high as the greater of $2,085 or 2.5% of the family’s household income. So, just about everyone is being forced to carry medical insurance, and it is probably one of your largest expenses. Even though the penalty is going away in 2019, it is important to understand how the health insurance expense is handled for tax purposes so you can get the most tax benefits possible.

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