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Archive for John Dundon

Navigating The Shoals Of IRS Penalty Abatement – Types Of Defense (Part II)

Now that you may have missed the income tax filing and payment deadline perhaps it is a good time to understand how to cope with penalization as it can get woefully expensive – not to mention mind numbing – if you go about it have baked.

There are a handful of defenses you can attempt to assert when it comes to navigating the shoals of IRS penalty abatement, chose with care and proper counsel.

The key IMHO is to comport yourself with law abiding dignity whilst deliberately navigating through these general options, including: Read more

Navigating The Shoals Of IRS Penalties

John Dundon, Tax Advisor, Tax Blog, Denver, Colorado, USA, TaxConnections

For those of us inclined to the proverbial ‘head-bury’ strategy with Big Brother, it is best to understand the civil penalties assessed when IRS systems catch up – as measured in tangible $$ out the pocket. For the brave of heart, navigating the shoals of IRS Penalties can be intimidating to comprehend but it is far from rocket science.

Understanding IRS civil penalties starts with picking up Part 20.1 of the Internal Revenue Manual (IRM).  Here you will find guidance on all areas of civil penalties imposed by the Internal Revenue Code (IRC).

Criminal penalty provisions are contained in IRM 9.1.3 and beyond the scope of this post. Read more

5 IRS Penalties Changed Under The Tax Cuts And Jobs Act Of 2018

John Dundon, Tax Advisor, Denver, Colorado, USA, Tax Blog, TaxConnections

This post contains cocktail party killer one liners about how 5 IRS Penalties Changed Under the Tax Cut and Jobs Act of 2018.

My editor also quipped that reading this post helps with insomnia as well. So if you are looking to either kill a party and/or fall asleep faster please continue reading.

If you are a tax practitioner however, you better know this stuff and with all due respect – most do NOT.

The 5 big changes are summarized as follows: Read more

What You Should Know About Your Form W-2

John Dundon, Tax Advisor, Tax Blog, Denver, Colorado, TaxConnections

It’s tax time, and you need your Form W-2, Wage and Tax Statement from your employer(s) to file an accurate federal tax return. You should have received this form by January 31.

If you did not get it by now check with your employer to make sure they have your correct address.

If the employer(s) in question have your correct address and the W-2’s have not arrived by the end of February you must still file your income tax forms and pay any income taxes due on time. Not to worry. Read more

Reporting Casualties Under The New US Personal Income Tax Regimen- Thefts Not So Much

John Dundon, Tax Advisor, Denver, CO, TaxConnections

The new Tax Cuts and Jobs Act (TCJA) amends Internal Revenue Code Section 165further restricting our ability as individual taxpayers to write off CASUALTY LOSSES going forward solely to ‘disaster areas’ as declared by the POTUS.

Say whaaaat ?!?!?!?!?!?!?!?

Effective immediately this new restriction detailed in the US Tax Code WILL HARM ANYONE who falls victim to any tragedy that does not rise to a less than fully clear standard set by our beloved Twitter-In-Chief, aka #StableGenius (presently ‘trending’). Read more

Year-End Moves In Light Of Tax Cuts & Jobs Act

John Dundon, Tax Connections

With the new Tax Cut & Jobs Act Congress is enacting the biggest tax reform law in thirty years, one that will make fundamental changes in the way you, your family and your business calculate your federal income tax bill, and the amount of federal tax you will pay. Since most of the changes will go into effect next year, there’s still a narrow window of time before year-end to soften or avoid the impact of crackdowns and to best position yourself for the tax breaks that may be heading your way. Read more

20 Sound Bites On Tax Reform

John Dundon, Tax Advisor

Like a good tax nerd I spent a beautiful Saturday reviewing the US House Tax Cuts and Jobs Act H.R. 1 Section-by-Section Summary. For your impending confrontation with Drunk Uncle (or Aunt) over the holiday season, the following is what I’ve been able to distill down to sound bites.

Read more

“Corporations Are People Too ….. My Friend.” – Tax Law

Giving a speech on tax reform whilst stumping for president in what is now seemingly a woebegone era of politics, Mitt Romney quipped this now seemingly famous sound bite personifying the greed of purported capitalism. According to US tax law, unfortunately he is right. Corporations are ‘treated’ like people.

Since this is how we live, when it comes to writing tax laws it seems a reasonable expectation that corporations behave as moral agents of society just like the rest of us. After all, they have their own decision structures and choices to make between rightness and wrongness, goodness and badness that are justified with reasons just like us. Read more

Rollover Of Retirement Plans Self Certification For More Time

John Dundon

Normally you have 60 days to rollover retirement plan distributions in order to avoid current taxation and possible penalty. If you have special circumstances challenging your ability to complete the rollover within this 60-day time frame, please be advised that there are several circumstances in which the IRS has repeatedly given taxpayers additional time to complete the rollovers.

In an attempt to help taxpayers avoid costs and time, the IRS released Revenue Procedure 2016-47. This ‘Rev Proc’ in tax geek speak has a self-certification statement which should be completed and given to the financial institution receiving the rollover. Be sure to keep a copy of the statement in question along with the Rev Proc in case audited. Read more

IRS Dispute – At-Risk Limitations (IRC 465) – Part 1

I am knee deep in another interesting file under dispute with our esteemed taxing authorities involving At-Risk Limitations. This is intended as the first of many posts on the topic as I navigate the shoals of a relatively complicated file that involves equipment leasing by a closely held C Corporation.

Complimentary references for this post originate from:

What are the At-Risk Rules?

Read more

Rollover Of Retirement Plans Self Certification For More Time

Normally you have 60 days to rollover retirement plan distributions in order to avoid current taxation and possible penalty.  If you have special circumstances challenging your ability to complete the rollover within this 60-day time frame, please be advised that there are several circumstances in which the IRS has repeatedly given taxpayers additional time to complete the rollovers. Read more

At-Risk Limitations (IRC § 465) Part 1

I am knee deep in another interesting file under dispute with our esteemed taxing authorities involving At-Risk Limitations. This is intended as the first of many posts on the topic as I navigate the shoals of a relatively complicated file that involves equipment leasing by a closely held C Corporation.

What are the At-Risk Rules? Read more

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