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Guide For Tax Audits: What These IRS Notices Mean

Venar Ayar - Tax Audit Guide

This Guide For Tax Audits was prepared by Tax Lawyer Venar Ayar. The Guide covers the many notices that the Internal Revenue Service sends to individual taxpayers regarding tax audits. This is an excellent guide for tax professionals and taxpayers alike and we thank Ayar Venar for compiling this information and reference guide for our readers.

Please be advised that all tax audits should be handled by an experienced tax professional. Please refer to the guide below:

IRS NOTICE NUMBER DESCRIPTION – VENAR AYAR’s ADVICE

CP11Audits   This notice states that your return has been changed because the IRS believes there was a miscalculation. This means you owe money on your taxes because of this. Double-check the numbers on your tax return to confirm that you actually did make a mistake.  If there was no mistake on the original return, you need to respond to the notice with an explanation.

CP14- Balance Due   The IRS has sent this notice because you owe money on unpaid taxes. This is the first letter sent in the collection process. It is the initial tax bill sent.  The letter gives you an opportunity to pay the tax in full to prevent any collection actions.  If you ignore the letter, the IRS will continue sending notices that get more and more threatening, and will eventually start taking collection actions.

CP16-Audits This notice was sent because we have found a miscalculation in your return that affects your refund. The IRS records show that you owe other tax debts, and we used all of part of your refund to pay them. Double-check the numbers on your tax return to confirm that you actually did make a mistake.  If there was no mistake on the original return, you need to respond to the notice with an explanation, otherwise the IRS will keep all or part of the refund you claimed.

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A Fun Complimentary Gift From TaxConnections To You: 200+ Best Tax Jokes, Tax Quotes, Fun Tax Forms eBook

Fun Tax Jokes ebook

Each year around this time, TaxConnections releases a fun eBook for our tax professionals to enjoy. This complimentary eBook is the 2019 Edition of 200+ Best Tax Jokes, Tax Quotes, Fun Tax Forms.

We like to provide you all some fun and remind you to take a moment to enjoy life and laughter! There are many known health benefits to laughter including: lowers blood pressure, reduces  stress hormones, improves cardiac health, boosts T-Cells, triggers the release of endorphins, and produces a general sense of well-being. Laughing is also very good for your abs:)

Looking to add some laughter and exercise? Request your copy:

2019 Edition of 200+ Best Tax Jokes, Tax Quotes, Fun Tax Forms.

 

 

200+ Best Tax Jokes, Tax Quotes, Fun Tax Forms eBook

200+ Best Tax Jokes eBook

Each year at tax time, TaxConnections releases our most recent Edition of 200+ Best Tax Jokes, Tax Quotes, Fun Tax Forms.This year we have an early release for you of the 2019 Edition.

You can now request a complimentary copy be sent to your email where you can download the PDF Document to your computer. We know you will enjoy our newest and most updated Edition as we have many requests for this fun and complimentary eBook every year.

Simply click on this link to receive with our compliments the new 2019 Edition of 200+ Best Tax Jokes, Tax Quotes, Fun Tax Forms.

https://www.taxconnections.com/best-tax-jokes-and-quotes

 

 

What Is A Doubt As To Liability Offer In Compromise?

Venar Ayar - OIC

A doubt as to liability Offer in Compromise (OIC) can be used to settle tax debt when there is a legitimate dispute about whether you actually owe the debt. If accepted, you may use a Doubt as to Liability OIC to settle your tax debt for much less than owe, sometimes for pennies on the dollar.

The process of preparing a Doubt as to Liability OIC takes a lot of effort and knowledge of IRS practices, so consult a tax attorney for assistance.

When Doubt As To Liability Exists

Doubt as to liability generally exits when there is a dispute about the tax assessment that couldn’t be argued earlier for some reason. In other words, the time to dispute the tax liability has passed, but you have a good argument for disputing it.

Doubt as to liability may come up in the following situations:

  • New evidence is found after a tax assessment.
  • You were unaware of a tax assessment and never received notices from the IRS.
  • The IRS audited your return and adjusted your tax liability, but you didn’t receive notices from the IRS.
  • You filed an amended return, but it was never processed by the IRS.
  • Errors made by employers on wage information returns or errors made by the IRS.

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Senior Vice President Tax – M&A, Real Estate (Los Angeles, CA)

Senior Vice President Tax Job In Los Angeles, CA

TaxConnections has been retained to conduct a search for a Senior Vice President Tax for a Southern California client. This tax executive role requires a high level of executive presence and interface with a wide range of internal and external advisors.  Responsibilities include private equity and real estate deals, mergers and acquisitions, financial modeling; review corporate and partnership tax returns; and managing company’s income tax compliance activities  (insourced and  outsourced); advise senior management regarding tax liabilities; and supervision of the incumbent tax team.

The Senior Vice President of Tax will lead acquisition structuring and due diligence including tax integration efforts including:

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International/Transfer Pricing Tax Partner – Midwest Law Firm

International And Transfer Pricing Tax Partner - Law Firm

TaxConnections has been retained by a leading multinational law firm to locate a Tax Partner to lead the Midwest region in serving  international and transfer pricing clients. This market facing role is due to the continued expansion of the international and transfer pricing practice. The Tax Partner will team with a group of talented economists who are already in place to grow the Midwest tax practice. The law firm currently has about 80 tax lawyers worldwide and this successful practice is expected to double in size.

The Tax Partner will assist multinational clients to design, develop, implement, document and defend international and transfer pricing strategies. They will provide clients guidance in analyzing factual material, communicate the benefits of the transfer pricing methodologies both to government representatives and the courts and negotiate advance pricing agreements on a worldwide basis.

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Sweetheart Tax Return – Happy Valentines Day!

Sweetheart Tax Return - TaxConnections

TaxConnections Members Can Download A Higher Resolution Copy Of This Fun Tax Form When You Login As A Member. Login And Go To Content Download In The Foot Of Any TaxConnections Page.

Click Here For Best View.

We welcome all your comments on Valentines Day!

 

Tax Reform Has Substantially Altered The Tax Benefits Of Home Ownership

Charles Woodson - Home Ownership And Tax Reform

As part of the recent tax reform, the Tax Cuts and Jobs Act of 2017, the deduction for home mortgage interest and property taxes has undergone substantial alterations. These changes will impact most homeowners who itemize their deductions each year.

Mortgage Interest – Prior to the tax reform, a taxpayer could deduct the interest he or she paid on up to $1 million of acquisition debt and $100,000 of equity debt secured by the taxpayer’s primary home and/or designated second home. This interest was claimed as an itemized deduction on Schedule A of the homeowner’s tax return. This tax deduction was often cited as one of the reasons to purchase a home, rather than renting a place to live.

Qualified home acquisition debt is debt incurred to purchase, construct, or substantially improve a taxpayer’s primary home or second home and is secured by the home.

Home equity debt is debt that is not acquisition debt and that is secured by the taxpayer’s primary home or second home, but only the interest paid on up to $100,000 of equity debt had been deductible as home mortgage interest. In the past, homeowners have used home equity as a piggy bank to purchase a new car, finance a vacation, or pay off credit card debt or other personal loans – all situations in which the interest on a consumer loan obtained for these purposes wouldn’t have been deductible.

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Summary Of Tax Reform Changes Now Available

TaxConnections ADMIN GIRL

TaxConnections has had numerous requests for a written summary of the changes due to Tax Reform.  According to the Taxpayer Advocate Services (TAS) website you can view Tax Changes By Topic:

Tax Changes by Topic

The Tax Reform Changes website shows you how the new tax law may change your future tax filings and helps you plan for these changes. Currently the site addresses the most common 2017 IRS Form 1040, US Individual Income Tax Return topics and whether the tax law has changed or not. It provides line by line explanations and scenarios to describe how the new law may affect you. You can also sign up to receive email notifications as the website is updated with new tax law information.

The information on this page is categorized by tax topic in the order of the IRS Form 1040. Simply choose a tax return category such as income or payments and find information including the previous (2017) tax law information and the tax law change, if any, plus scenarios to describe how the new law may affect you.

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How To Write A Letter Ruling Request To The IRS

IRS- How To Write A Revenue Ruling Request

To assist you in preparing a Letter Ruling Request, TaxConnections is providing this sample format. This Letter Ruling Request Template will be helpful as an outline for anyone writing one. If your request is different from the sample format, a different format will not defer consideration of your Letter Ruling Request. We simply want to provide you with a general sample and outline in writing one.

What Is A Letter Ruling?

A letter ruling is a written determination issued to a taxpayer by IRS Chief Counsel in response to the taxpayer’s written inquiry, submitted prior to the filing of returns or reports required under federal law. In general, it concerns the requester’s status for tax purposes or the tax effects of its acts or transactions. Letter rulings and other similar ruling requests interpret the tax laws and apply them to the taxpayer’s specific set of facts. You must pay a User fee that can range from $200 to $28,300, depending upon the type of ruling being sought.

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Tax Professionals – Can You Answer This Question?

Tax Question -Wyoming, New York, Delaware

TaxConnections is reaching out to our community of tax experts to help answer a tax question for one of our site visitors. Your advice will be most appreciated. Can you help?

When you are a member and answer our visitors tax questions we give you credit by promoting you and your tax expertise on the home page of TaxConnections. You can also make comments below.

“What would be the taxes (corporate and individual to shareholders upon dividends) on ordinary income in the following org structure: NY resident 100% owner of a Wyoming corporation ->Wyoming Corporation 100% owner of a DE LLC –> DE LLC generates ordinary income from interest, fees and rents. The DE LLC is doing business in NY.”

 

Tax Inspectors Without Borders Initiated By OECD-UNDP

Tax Inspectors Without Borders 3

Tax Inspectors Without Borders (TIWB) is a joint OECD-UNDP initiative and is at the forefront of efforts to build tax audit capacities in developing countries. As a result of these initiatives, more countries are collaborating to close tax loopholes, improve transparency and ensure that multinational enterprises pay tax where they operate. There are at least 149 countries and jurisdictions committed to the Global Forums standards, transparency and exchange of information. Implementation continues on measures to reduce tax avoidance by multinational enterprises under the G20/OECD Base Erosion And Profit Sharing project in 113 countries and jurisdictions.

This progress is bearing fruit, with billions in additional dollars of tax revenue resulting from voluntary compliance mechanisms and off-shore investigations. This additional revenue can help countries to mobilise more resources domestically in support of the United Nation’s Sustainable Development Goals – resources that are very much needed. While there is considerable positive momentum, last year’s Panama Papers revelations also remind us that much more can be done to tackle tax avoidance and evasion. Work on the international tax agenda has become more inclusive in recent years and has demonstrated the power of multilateral co-operation to deliver global solutions to global problems. Continued political leadership and advocacy will be vital. In parallel, countries also need the knowledge, tools and capabilities to effectively engage on international tax issues. In many developing countries, these technical skills are lacking. This is where TIWB comes in.

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