Tag Archive for IRS

When Is A Corporation Not A Corporation?


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

US – Israeli Dual Nationals Lose FATCA Challenge In Israel

Ron Marini

An Israeli Supreme Court panel has thrown out a challenge to a tax information-sharing agreement with the U.S. and removed a temporary block on FATCA’s implementation, rejecting arguments that the agreement violates the rights of Israelis.

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Telephone Scams Continue—No End In Sight

Lawrence Zimbler

Owing taxes to the IRS can be very scary. Scammers take advantage of your fear to separate you from your money by dishonest means. Scammers are very good at making themselves seem real—they can make a fake website look real; they can alter their telephone number in your caller ID to look like the caller is from IRS, often with a Washington, DC area code.

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Student Gets Caught By The IRS On Education Credit

Harold Goedde

The credits for education are based on eligible expenses paid in the current year for academic periods beginning in the current year and/or the first three months of the following year. In a recent case, a student paid tuition of $5,895 in December 2011 for the spring 2012 semester that started February 1.

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The Saga of the “Panama Papers” Has Only Just Begun!

Ronald Marini

Well the world has been abuzz as a result of the leaked information from Panamanian Law Firm Mossack Fonseca in April of this year. It appears, at least to me, that hopefully the original informant “John Doe” has cut some type of deal for immunity, with the various interested countries around the world. Read more

New Rules Can Produce New Problems – AOTC and 1098-T

Annette Nellen

In writing a summary of a recent Tax Court summary opinion, I realized that a 2015 law change may cause problems for some students trying to claim the American Opportunity Tax Credit (Section 25A), Lifetime Learning Credit (Sec. 25A) or Section 222 above the line tuition deduction starting in 2016.  A 2015 law changes requires an individual to have received a Form 1098-T from the university in order to claim the tax benefit. Read more

When Is a Tip not a Tip?

John Stancil

When is a tip not a tip? According to the IRS, “when it is a service charge.” Under rules effective January 1, 2014, the IRS has redefined the terms “tip” and “service charge” for tax purposes. Under these rules, restaurants that charge an automatic percent charge for large parties may no longer treat these amounts as tips. Read more

Things You Should Know about Filing Late and Paying Penalties

Peter Flournoy

April 18 was this year’s deadline for most people to file their federal tax return and pay any tax they owe. If you are due a refund there is no penalty if you file a late tax return. If you owe tax, and you failed to file and pay on time, you will most likely owe interest and penalties on the tax you pay late. To keep interest and penalties to a minimum, Read more

Driving For Uber – The Tax Consequences

John Stancil

You have decided to take the plunge and become a driver for Uber, Lyft or some other rideshare program. Congratulations! You are now a small business owner and your tax return just got more complicated. The income you earn from Uber is taxable and must be reported on Schedule C of your 1040. However, you may deduct expenses incurred in earning this income.

In January, you should receive a Form 1099-MISC from Uber or whatever company you drive for. The amount should be Read more

IRS Provides Tax Relief to Houston Area Storm Victims; Tax Deadline Extended to Sept. 1

David Green

Texas storm victims, including those in the Houston area, will have until Sept. 1, 2016 to file their returns and pay any taxes due, the Internal Revenue Service announced today. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief. Read more

The IRS Issues New Version of Form W-8 BEN-E

Ronald Marini


On December 17, 2014 we posted How to Complete Form W-8 BEN E & and W-8IMY? where we discussed how to fill out the various Form W–8’s, which now has increased to 8 pages in some cases.

This post provided foreign entities a set of step-by-step instructions to complete the new Forms W-8BEN-E and W-8IMY, as well as a general overview of the obligations imposed on foreign financial institutions under the new chapter 4 FATCA regime including: Read more

Oh Thank Heaven For The IRS!

Barry Fowler

I remember the old jingle for 7-Eleven that sang “Oh thank heaven for 7-Eleven!” Well, now we can add the tax collecting IRS to that jingle. Oh, thank heaven for 7-Eleven and the IRS!

Believe it or not, you can now pay your taxes at that convenience store in 34 states. And, you can even make those payments in cash!

According to a recent announcement from the IRS, “Individual Read more