Your Guide to State, Local, Federal, Estate + International Taxation

No Respect for the Tax Court

The Tax Court doesn’t get much love out there by some.  They contend the Tax Court does not have the authority to decide legal issues. However the law says otherwise. The United States Tax Court is a federal court of record established by Congress under Article 1 of the United States Constitution.  Congress created the …

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Should You Use Form 1099-OID to Pay Your Debt?

You may have better luck getting the straw man from with Wizard of Oz to pay your debt than using the straw man in this scheme.  Advocates of this contention encourage individuals to use IRS form 1099-OID (Original Issue Discount), or a bogus financial instrument such as a bonded promissory note as what purports to …

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Arizona Legislature Assists Repair, Installation and Maintenance Businesses with TPT Relief

Repair, installation and maintenance companies in Arizona have often been classified as contractors for purposes of transaction privilege tax (TPT).  While this allowed them to purchase supplies tax-free, it subjected them to the standard 30% contractor deduction for labor, regardless of actual labor cost. Now there’s relief. Arizona Governor Brewer signed into law H2535 which …

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Is the IRS Getting Sneaky?

We have heard it said many times “know your customers”.  Based on this premise the IRS is trying to understand factors that affect how compliant you are as a taxpayer.  By focusing their questions to Schedule C filers they hope to understand what factors contribute to compliant taxpayers and what factors contribute to non-compliant taxpayers. …

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Fueling Up on Tax Credits

Frivolous tax arguments sometimes target very specific types of tax credits.  One such fraudulent tax scheme involves the fuels tax credit.  Proponents of this scheme assert that taxpayers can claim the section 6421 fuels tax credit without regard to whether they qualify for the credit through the purchase and use of gasoline for an off-highway …

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Five Good Reasons to E-file Your Return

Have a Smartphone?  Use an iPad?  Listen to music on an iPod?  If you’re comfortable using those electronics, surely it’s time to file your return using an electronic means.  Here are five good reasons to e-file your tax return: 1. Accurate and complete. E-file is the best way to file an accurate and complete tax …

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Your responsibility for quality single audits

Beginning with the Single Audit Act Amendments of 1996, the Office of Management and Budget (OMB) took a leading role in single audits. Single audits are required of any organization who expends more than $500,000 in federal assistance during the year. In June 2007 the President’s Council on Integrity & Efficiency (PCIE) issued a report …

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Safeguard Your Refund – Choose Direct Deposit

Direct deposit is the fast, easy and safe way to receive your tax refund. Whether you file electronically or on paper, direct deposit gives you access to your refund faster than a paper check. Here are four reasons more than 80 million taxpayers chose direct deposit in 2012: 1. Security.  Every year the U.S. Postal …

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Real Estate Professional – Would You Really Qualify

In a recent Tax Court case, the court concluded that a taxpayer, who also engaged in a consulting activity, wasn’t a real estate professional for purposes of the passive activity loss (PAL) rules. He failed to show that more than half of the personal services that he performed during the year were performed in real …

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