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Archive for John Stancil

IRS Challenged On Legality Of PTIN Fees

John Stancil

PTIN stands for Preparer Tax Identification Number. This was originated by the IRS in 1999 to protect the identity of professional tax return preparers. Prior to that time, preparers were required to list their social security number on the prepared return. This, obviously, was a good move that preparers readily accepted as it helped protect their identity. It was simple. You applied for the PTIN, paid no fee, and it was presumably good for life.

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A Modest Proposal – Let’s Fix Extensions

John Stancil

I remember when tax season was pretty much over after April 15. Sure, there were extensions, but for four months and you had to justify an additional two-month grace period. Since the additional extension was mostly perfunctory, the IRS changed things and now grants a single six-month extension. No additional extensions are granted except in the case of a federally declared disaster area.

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When Is A Corporation Not A Corporation?

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Most taxpayers are aware that an organization must submit papers to a state official, usually the Secretary of State in order to obtain a corporate charter and file an 1120 tax form as a corporation. However, one must meet all the IRS requirements for corporate status in order to file as a corporation.

First, some background.  In founding a Limited Liability Company (LLC) the taxpayer must file with the appropriate state official and receive its charter as an LLC. Read more

Trump, Clinton, Buffett And Taxes

John Stancil

Much has been made in the press of late regarding the tax returns of the major Presidential candidates. This article is not focused on promoting either candidate, but an attempt to shed some light on these recent tax revelations.

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IRS Initiating Private Debt Collection Program

John Stancil

The Internal Revenue Service announced on September 26, 2016, that it plans to begin private collection of certain federal tax debts. Four contactors have been selected to implement this program. The contractors are CBE Group, ConServe, Performant, and Pioneer Credit Recovery. The IRS appears to have done their homework in selecting reputable companies.

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Charitable Contribution Incentives In PATH Act

John Stancil

The Protecting Americans from Tax Hikes Act (PATH) contains a number of tax provisions that are designed to reduce the amount of taxes paid by United States taxpayers. This act was signed by the President in December 2015. The provisions in the act are not new incentives, but made existing incentives permanent. This can be seen as somewhat significant as there is sentiment in Congress and elsewhere to reduce the tax benefit from charitable contributions. I would add that “permanent” in tax lingo means the provisions do not expire, but may be changed at any time by Congress.

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Tax Positions Of The Major Presidential Candidates And Their Impact On Non-Profit Organizations

John Stancil

When one embarks on looking at what might happen with taxes, that path is fraught with many hazards. What a candidate says may not be what is actually proposed. What the elected candidate proposes may be modified or totally shot down by Congress. What Congress passes may not be signed by the President. However, I have my crystal ball and can foresee what the future holds in terms of future changes in taxes. Yeah, right. Unfortunately, that crystal ball is extremely cloudy and I cannot say with certainty what will happen.

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Tax-Free Sales Of Corporate Stock

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One day, you had an idea for a business. Acting on your dreams, you formed a corporation and opened a business. As it turned out, your business was highly successful but now you would like to step back, sell your stock, and enjoy the fruits of your labors. But you hesitate because you really don’t want to pay such a huge tax bill.

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Why Did The EU Order Apple To Pay Billions In Tax?

John Stancil

The background for the European Union (EU) assessing a $14.5 billion tax on Apple for its sales in Ireland is a rather complex maze of laws, treaties, and politics. It is not my purpose here to delve into those complexities. I am attempting a simple explanation of the issues involved and why the EU levied the tax, even though Apple and Ireland were both very content with thing the way there were.

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FAFSA Changes Simplify Life

John Stancil

If you are a college student or the parent of one, you are probably familiar with the Free Application for Federal Student Aid, commonly known as FAFSA. It is a long, tedious document to complete. Officially, it is supposed to take about 30 minutes to complete, but that time can expand significantly if you need to collect the information.

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Reverse Mortgages—Part Four Of Four

John Stancil

This is the fourth in a series of four articles on the mortgage interest deduction. (Read Part I, Part II, and Part III) Reverse mortgages have become increasingly popular as a vehicle for retired taxpayers to help fund their retirement. It’s hard to watch TV very long without seeing a pitch for reverse mortgages. What are the characteristics of a reverse mortgage, what are the tax implications, and what do taxpayers need to be aware of in regard to these loans? These are sometimes referred to as lifetime mortgages or home equity conversion mortgages (HECM).

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Special Mortgage Situations

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This is the third in a series of four articles on home mortgage interest. (Read Part I and Part II). There are several special situations relating to deductions for home mortgage interest and other costs. This is a brief overview of each. You should check with your tax professional should any of these apply to you.

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