In 2015, I wrote a blog post analyzing IRS collection performance, looking at the effects of different drivers of collection such as notices, installment agreements, liens, levies, and refund offsets. Today, I’d like to pick this topic back up, but focus on a collection issue associated with new legislation. In late 2015, Congress passed the Fixing America’s Surface Transportation Act (FAST Act), which aimed to boost tax collection through two avenues: Read more
Archive for IRS
Previously, I discussed keeping documented support for the basis of real estate. The easy part was the purchase and direct capital expenditures. But consider some of the other factors that directly impact your basis. Sale of an easement or eminent domain transfer, is it a sale, what is the allocated basis, does it diminish the remaining property value and if so how much? Read more
With the recent heavy focus on Congress and the Trump’s administration’s tax reform proposals, it can be easy to forget that the IRS continues to proactively crackdown on offshore tax evasion. Read more
The IRS instructions to Form 709 Gift Tax Return spell out the general rules for allocating the unified credit to prior gifts. For 2017, the annual gift tax exclusion is $14,000. That means you can give up to $14,000 to as many different people as you want as a gift without being subject to gift tax rules. Read more
Tax practitioners will face new questions from examination teams as the IRS selects compliance risks based on data, in the Large Business and International Division’s (LB&I) move from individual audits of multinationals to broader considerations involving risk assessment. Read more
One of the IRS hot buttons lately is the cost basis. That applies to not only the basis of your stock and bond investments but also the much more diverse real estate holdings and private investments in partnerships, corporations, joint ventures, LLC’s and even trusts. Read more
Who can taxpayers trust anymore? Add to the list of items our federal government employee’s posts on www.IRS.gov including answers to frequently asked questions.
The Preparer Taxpayer Identification Number (PTIN) was originated by the IRS in 1999 as a measure to protect the Social Security number identity of tax preparers. At that time, the IRS stated that preparers could use their SSN or apply for the free PTIN. The PTIN was apparently permanent, as it did not need to be renewed. And this was the status quo for 12 years. Read more
On June 1, 2017, the United States District Court for the District of Columbia upheld the Internal Revenue Service’s authority to require the use of a Preparer Tax Identification Number (PTIN), but enjoined the IRS from charging a user fee for the issuance and renewal of PTINs. Read more
The IRS sends many, many, many, letters and correspondence before they levy or garnished any taxpayer’s wages, bank accounts, or other assets. Many taxpayers take the ostrich approach and ignore the problem, in hopes that it will go away.
If you’re facing an IRS Problem, appropriate action can go a long way towards resolving it! Read more
Everyday people misinterpret the tax code. It does not matter if you are a bookkeeper, accountant, unlicensed tax practitioner, Enrolled Agent, CPA, tax attorney, or even a Tax Court Judge, the tax code is complicated and confusing and many of us struggle understanding it, much less applying it in practicality.
In May 2017, the IRS Small Business Division issued a memo to field directors to remind them that FAQs and other items posted to the IRS website are not legal authority unless published in the Internal Revenue Bulletin (IRB)! [SBSE-04-0517-0030 (5/18/17)]