irs posts, articles, and infographics

The Futility of Tax Incentives

March 18, 2012 by James Maule
with 24 views

For many years reaching back to long before MauledAgain existed, and in many postings on that blog, I have rejected the use of tax law to accomplish indirectly what should be handled directly by government agencies other than the IRS and state revenue departments. In posts such as The Problem with Income Tax Vehicle Credits,... [read more]

I Agree with the IRS?

March 1, 2012 by Barbara Weltman
with 18 views

Can it be true that I’m in accord with the often-dreaded federal agency? Yes, with regard to recent remarks by Commissioner Shulman. He outlined various reasons why the agency has experienced various tax risks. However, these risks also apply to businesses. Here are some of these reasons (quoted from his remarks) and why I agree: [read more]

So, You Are Being Audited?

March 29, 2010 by Becky McCray
with 189 views

First rule: Don't panic. You have probably done nothing wrong. In the past 5 or so years, my clients have received about a dozen of those lovely letters from the IRS. There has been no change for any of them. The IRS conducts many of what they call "letter audits." These are merely requests for clarification of some entry on the tax... [read more]

4 cents x 4 years = $202.35 tax bill

March 18, 2010 by Kay Bell
with 176 views

Aaron Zeff had no idea he was a tax delinquent until two IRS agents showed up last week at his Sacramento car wash. The amount the IRS says Zeff didn't pay back in 2006: 4 cents. So the IRS sent two people to collect four pennies? Actually, the bill was a bit bigger. Over the last four years the unpaid tax debt had grown to $202.... [read more]

How to Find Fast Answers to Business Tax Questions

March 8, 2010 by Daniel Kehrer
with 234 views

Finding the right tax forms quickly and getting business tax questions answered accurately are tricky problems for many business owners. Some of the best help actually comes from the Internal Revenue Service itself. Contrary to popular belief, the IRS, and its website in particular, is a great place to find accurate tax answers. The... [read more]

Non-Shocking Tax Shockers

January 18, 2010 by James Maule
with 172 views

The Government Accounting Office has issued a report in which, relying on data from the IRS National Research Program, it discloses that 68 percent of S corporation returns filed for 2003 and 2004, the last years for which information is available, contained errors. It also noted that, citing an earlier report, 70 percent of sole... [read more]

Taxpayer Advocate midyear to-do list

July 6, 2009 by Kay Bell
with 149 views

Congress has been pretty busy of late, what with energy legislation and the debate on health care. But National Taxpayer Advocate Nina E. Olson has added a few more things to Congress' to-do list.As the Taxpayer Advocate Service enters its 10th year, Olson writes in her midyear report that both her office and the IRS "face a difficult... [read more]

Tax Court tips and tidbits

June 3, 2009 by Kay Bell
with 224 views

The United States Tax Court is one way for taxpayers to dispute an IRS decision. In addition to ruling on amounts that the IRS says are due, the Court also has jurisdiction to, among other things, make certain types of declaratory judgments, order abatement of interest charges and award administrative and litigation costs. While the Tax... [read more]

Yes, there is a downside to a plot to murder an IRS agent

March 6, 2009 by Joe Kristan
with 134 views

So the lady from IRS is getting nosy, and she seems to be on to your foreign bank accounts. So do you get in touch with your lawyer, own up, and try to work out a civil settlement? Or do you go with Plan B and hire a biker named "Reaper" to kill the agent and burn down the local IRS office? Well, what could possibly go wrong with... [read more]

APPLICABLE FEDERAL RATES (AFR) ISSUED FOR MAY 2008

April 24, 2008 by Joe Kristan
with 333 views

The IRS has issued (Rev. Rul. 2008-24) the minimum interest rates for loans made in May 2008: -Short Term (demand loans and loans with terms of up to 3 years): 1.64%-Mid-Term (loans from 3-9 years): 2.74%-Long-Term (over 9 years): 4.21% Historical AFRs are available at the "links" page at www.rothcpa.com. You can also click here for the... [read more]

Tax rebate winners and losers

February 8, 2008 by Kay Bell
with 50 views

As you know by now, Representatives and Senators on both sides of the aisle put aside their natural animus and agreed last night to a stimulus plan that includes tax rebates.Dubya is OK with the deal, too, even though it is slightly different from the one he and House leaders originally hammered out.Here's the basic framework:Individual... [read more]

HOW YOU WILL BE STIMULATED

February 8, 2008 by Joe Kristan
with 33 views

The final stimulus bill that flew through Congress yesterday is very close to the House bill, except with free stuff thrown in for old folks and veterans who might not get any free stuff otherwise. The rebates will work like this: The IRS will look at your 2007 return. If you incurred at least $600 in tax, or $1,200 on a joint return,... [read more]

Mileage reimbursement rate lags vehicle operating costs

February 5, 2008 by Diane Stafford
with 919 views

Effective Jan. 1, the Internal Revenue Service raised what people call the "mileage reimbursement rate" to 50.5 cents a mile. Officially, that's the standard mileage rate set by the IRS for calculating the deductible costs of operating a vehicle for business purposes. It's also the rate used by some -- but certainly not all --... [read more]

Maximize your medical deductions

February 3, 2008 by Kay Bell
with 58 views

Officially, Tom Brady's tender ankle was left of the Patriots' injury report. But speculation is still rampant as to whether it will have any effect on the game. And you can bet that tacklers will probably be aiming a bit low. Hey, it's a tough game.The NFL says it compiles its injury reports so that everyone, fans and teams alike, have... [read more]

Stimulation expectation

January 25, 2008 by Diane Stafford
with 33 views

A several-hundred-dollar check from Uncle Sam will be a nice gift, a few months down the road. But will the economic stimulus checks revive the U.S. economy? Coupled with business incentives, the individual rebates might stave off recession. Time will tell. What strikes me as the immediate effect, though, is the symbiosis of the... [read more]

Rebate checks mean more work for IRS

January 25, 2008 by Kay Bell
with 56 views

Pity the poor IRS. Really.Already this filing season, the agency is scrambling to get its computer systems fully operational to deal with late changes to the alternative minimum tax (blogged about here).Now the IRS will have to handle millions of rebate checks, perhaps in the thick of filing season if the legislation moves quickly on... [read more]

IRS targets four more frivolous arguments against paying taxes

January 14, 2008 by Kay Bell
with 64 views

The IRS apparently thinks all the attention generated by actor Wesley Snipes' tax evasion trial (blogged here) makes today prime time to get out the word on frivolous tax claims. The agency has issued a notice listing four more erroneous tax-avoidance legal positions that taxpayers should not try at home or their accountant's offices... [read more]

409A - Oh How I Love Thy Wiliness

January 9, 2008 by Brad Feld
with 64 views

Now that one of our favorite IRS regs - Mr. 409a - has been around for a while, it's still causing plenty of confusion, wasted time, energy, and money. The final regulations - issued in April - are to become effective on January 1, 2008. However, one 9/10/07, the IRS announced that they were extended the compliance deadline... [read more]

Rental Property Tax Reporting

January 9, 2008 by Ryan Ellis
with 18 views

Q: I own three vacation rental properties which I manage (no personal use). Typical rentals are weekly. Do I report income/losses on Schedule C or E? If schedule C are they subject to SE taxes? Scott A: For those that need a background on rental property issues, read my post here. The default is for all rental property income and... [read more]

Tax gloves coming off in campaigns

January 5, 2008 by Kay Bell
with 57 views

On the heels of news that the guy that currently occupies the White House is considering more tax cuts, the topic is getting renewed focus as a 2008 campaign issue. Matthew Mosk in The Trail, the Washington Post's campaign '08 blog diary, says: Apparently, there's only room in the Republican presidential field for one candidate who... [read more]