IRC | Tax Blog

Tag Archive for IRC

09 Apr 2018

Written by Nina Olson | Posted in IRS • TaxConnections

A Digital “Mailbox Rule” Is Required As The IRS Steers Taxpayers Toward Self-Help Digital Tools

As the IRS steers taxpayers toward self-help digital tools, it is necessary to bring the “statutory mailbox rule” into the 21st century. Currently, the statutory mailbox rule in IRC § 7502 does not apply to the electronic transmission of many time-sensitive documents and payments to the IRS. The rule provides that if the requirements set forth in the statute are met, a document or payment is deemed to be filed or paid on the date of the postmark stamped on the envelope.

If the postmark date is on or before the last day of the period prescribed for filing the document or making the payment, the document or payment is considered timely filed or paid even if it is received after the due date. Further, IRC § 7502(c) provides that registered or certified mail, or methods deemed substantially equivalent by the Secretary of Treasury, is prima facie evidence of delivery. Read more

No comments | Tags: IRC, IRS, Nina Olson, Statutory Mailbox Rule, Tax Advocate, Tax Blog, TaxConnections, taxpayers, USA, Washington D.C.

08 Mar 2018

Written by Thomas Kerester | Posted in Interest Rate • IRS

Interest Rates Increase For The Second Quarter Of 2018

WASHINGTON – The Internal Revenue Service today announced that interest rates increased for the calendar quarter beginning April 1, 2018. The rates will be:

five (5) percent for overpayments [four (4) percent in the case of a corporation];
two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000;
five (5) percent for underpayments; and
seven (7) percent for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Read more

No comments | Tags: Interest Rate, IRC, Rate Of Interest, Second Quarter, Tax Ambassador, Tax Blog, TaxConnections, Thomas Kerester, Washington D.C.

24 Jan 2018

Written by Daniel Gray | Posted in FBAR • TaxConnections

FBAR Reporting Requirement Or Exception – 4 Types Of Foreign Retirement Accounts

Daniel Gray, Tax Advisor, Toronto, Canada, TaxConnections

Foreign retirement accounts do not meet the FBAR filing exception for U.S. retirement accounts in 31 CFR 1010.350(g)(4). That exception specifically applies to plans under sections of the Internal Revenue Code, that is, domestic U.S. plans.

FBAR reporting of foreign retirement accounts will be determined by the facts of each situation. However, these general guidelines may be helpful in determining whether your foreign retirement account should be reported on the FBAR. Read more

2 comments | Tags: Canada, Daniel Gray, domestic tax, FBAR, IRC, Tax Advisor, TaxConnections, Toronto

11 Jan 2018

Written by Trevor Bennington | Posted in 2018 Tax Law • Tax Reform

Tax Alert (USA) – US Tax Cuts & Jobs Act

Trevor Bennington, Tax Advisor, Langley, BC, TaxConnections

On November 2, 2017, the US Congress House Ways and Means Committee unveiled the tax reform plan called the Tax Cuts & Jobs Act. The bill aims to simplify the Internal Revenue Code and introduce tax savings for the average American family. Although it is unlikely that the legislation will make it through Congress unscathed, it does provide a more detailed blueprint of the tax reforms that the citizens would like to enact. Below are highlights of the proposed changes. Read more

No comments | Tags: Bill, Canada, Canada tax, IRC, law, Tax Cuts and Jobs Act, Tax Reform, TaxConnections, Trevor Bennington

08 Jan 2018

Written by Nate Collins | Posted in 2018 Tax Law • Tax Reform

Tax Reform Impacts The Research Tax Credit, Domestic Production Activities Deduction & Orphan Drug Credit

Nate Collins, Tax Advisor, San Francisco, CA, TaxConnections

Lower Corporate Tax Rate
The law cuts the corporate tax rate from 35% to 21%. In effect, this cut increases the Research Credit’s net benefit by more than 21%, from its previous amount of 65% to the law’s 79%.

The 21% increase in the credit’s net value is due to IRC Section 280C(c). Read more

No comments | Tags: 2018 law, CA, DPAD, IRC, Nate Collins, Orphan Drug Credit, San Francisco, Section 41, Tax Advisor, TaxConnections

22 Dec 2017

Written by Ephraim Moss | Posted in Capital Gains • TaxConnections

Taxing Capital Gains Of Nonresident Aliens Residing In The US- The 183- Day Rule

For a unique group of foreign individuals (i.e., non-US citizens referred to in the tax world as “aliens”), living in the U.S. does not trigger “resident” status for tax purposes. These so-called “exempt” individuals include foreign students, foreign scholars, and alien employees of foreign governments and of international organizations in the United States. U.S. tax law considers this lucky bunch to be exempt from counting days of presence in the United States for the purposes of determining whether they are resident aliens of the United States. Read more

No comments | Tags: 183 day rule, capital gains, IRC, nonresident aliens, Tax Capital Gains, Tax Home

26 Jul 2017

Written by Nina Olson | Posted in IRS

Private Debt Collection: Recent Debts (Part 3 of 3)

In an earlier blog I discussed my concern about how the IRS’s private debt collection (PDC) program affects taxpayers who are likely experiencing economic hardship. In this blog, I want to share my concern that the IRS is not making good business decisions as it implements the PDC initiative.

Since 2004, Internal Revenue Code (IRC) § 6306 has authorized the IRS to outsource tax debts to private collection agencies (PCAs).

No comments | Tags: IRC, Private debt collection, Recent Debt, taxpayers

26 Jul 2017

Written by John Richardson | Posted in International

Why Is The U.S. Imposing Full Taxation On Canadians?

Why is the United States imposing full U.S. taxation on the Canadian incomes of Canadian citizens living in Canada?

The Internal Revenue Code mandates that ALL “individuals”, EXCEPT “non-resident aliens”, are subject to full taxation, on their WORLDWIDE income, under the Internal Revenue Code. The word “individuals” includes U.S. citizens regardless of where they live and regardless of whether they are citizens and residents of other countries where they also pay tax. This means that, by its plain terms, the United States imposes full taxation on the citizens and residents of other nations, because they are also (according to U.S. definitions) U.S. citizens. The United States is the only country in the world that has a definition of “tax residency that mandates full taxation based ONLY on citizenship. Read more

3 comments | Tags: Canada, Canadian citizens, citizen based taxation, IRC, US taxation

27 Jun 2017

Written by John Dundon | Posted in Tax Deductions

Gluten-Free Federal Tax Deduction

To be eligible to deduct the excess costs of a gluten-free diet under Internal Revenue Code Section 213, you must have a documented reason to require the observance of a gluten-free diet, along with a physician’s prescription to follow a gluten-free diet. This should provide sufficient documentation of eligibility.

No comments | Tags: gluten-free diet, IRC, IRS, section 213, Treasury

27 Sep 2016

Written by Ronald Marini | Posted in Donald Trump • Presidential Election • Tax Return

Did You Know That President Obama Could Obtain Donald Trump’s Tax Returns?

In this presidential election, the Republican candidate Donald Trump steadfastly refuses to release his tax returns. This has caused political blogs to have a lively discussion regarding whether President Obama could request Donald Trump’s tax returns from the Internal Revenue Service (IRS)?

No comments | Tags: Internal Revenue Code, IRC, Obama, request taxpayer tax returns, Section 6103g

09 Mar 2016

Written by Ronald Marini | Posted in IRS

IRS issues Final Form 8971 & Instructions on How To Report the Final Estate Tax Value of a Property Transfered to Beneficiaries

For many years the IRS has had a problem verifying the basis of assets received by an heir from an estate. Within the last three or four years, the IRS has required brokerage houses and banks to supply it with the cost basis so that it could determine that the capital gain or loss on securities was correctly calculated.

There was no such parallel form within the estate tax forum. Section 1014 of the IRC gives the heirs a basis equal to a value reported on an estate tax return. Later, if an heir sells the inherited property, there is no transitional method for the IRS to Read more

No comments | Tags: Form 706, Form 706NA, form 8971, IRC, IRS, Ronald Marini, Section 1014, Section 6721, Section 6722

07 Dec 2015

Written by Barry Fowler | Posted in Tax Deductions

Are Legal Expenses Tax Deductible?

A frequent question that arises is whether legal expenses are deductible. The answer to that question can be both yes and no and can be complicated depending upon the nature of the legal expense.

The Internal Revenue Code (IRC), which is the body of tax laws written by the United States (U.S.) Congress and approved by the president in office at the time the law is created, tells us that except as otherwise expressly provided, such as itemized deductions, no deduction shall be allowed for personal, living, or family expenses. The IRC also says that, in the case of an individual, deductions are allowed for all of the ordinary and necessary expenses paid or incurred during the taxable year:

• For the production or collection of taxable income; Read more

No comments | Tags: Internal Revenue Code, IRC, IRS, Legal Expenses, tax, tax deductible, Taxable Income

« Older Entries

Current Articles
- Navigating The Shoals Of IRS Penalty Abatement – Types Of Defense (Part II)
  By John Dundon
  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 […]
- Tax Professionals – Proposed Presidential Executive Orders Researched For You With Our Compliments
  By Kat Jennings
  Tax Advisors- you would never know what was hidden in these regulations unless you conduct extensive research which we did for you! We will give you our twenty-five hours of research with links to […]
- Canada: Capital Cost Allowance For Real Estate
  By Grant Gilmour
  Capital cost allowance (CCA) is the tax term in Canada for the deduction of amortization on capital assets. There are separate classes of CCA for property, plant and equipment and different rates […]
- Newly-Revised Estimated Tax Form And Publication Can Help People Pay The Right Amount
  By IRS
  WASHINGTON – With tax reform bringing major changes for the year ahead, the Internal Revenue Service today reminded the many self-employed individuals, retirees, investors and others who need to pay […]
- What Is Wrong With IRS User Fees?
  By Nina Olson
  The IRS has been increasing user fees to fund its operations. It recently increased or proposed to increase a wide range of fees including the fees for installment agreements […]
Search for:
Blogger List
Recent Comments
Archives
Archives