Of Baseball and Senators

This is not technically tax related, unless you stretch the fact that Senator John McCain was at the same baseball game as my family on August 12th.  He has had a hand In Tax legislation for decade’s worth of my career. But the exciting part was seeing the joy on my oldest daughter’s face when …

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Do I Owe Taxes On My Scholarship?

Once the euphoria of receiving a scholarship starts to subside you might start to wonder what kinds of strings are attached. Thankfully this is one of those few instances where you can receive a large payment and not have to worry about the IRS coming to look for their share. Scholarships are generally tax-free, whether …

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Final Repair Regulations are Out!! Excitement Reigns!

Okay – maybe excitement is not really reigning on the new repair regulations that were just released by the IRS on Friday.  I may be better able to determine the actual excitement factor when I review them, but since a major tax deadline is on Monday, September 16th, the perusal is not working themselves into …

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S Corporation Members are not Subject to Controlled Group Sec. 179 Limitations

In information letter 2013-0016, the IRS determined that S corporations of a controlled group are not subject to the Section 179 limitations of a controlled group. For tax years beginning in 2013, the maximum amount that can generally be taken as a Section 179 expense deduction, which is split among all of the members of …

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IRS Fresh Start Program Helps Taxpayers Who Owe the IRS

The IRS Fresh Start program makes it easier for taxpayers to pay back taxes and avoid tax liens. Even small business taxpayers may benefit from Fresh Start. Here are three important features of the Fresh Start program: • Tax Liens.  The Fresh Start program increased the amount that taxpayers can owe before the IRS generally …

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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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