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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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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Special Opportunity for Charitable IRA Rollover Gifts

H.R.8, the “American Taxpayer Relief Act” provides a special opportunity for Charitable IRA Rollover Gifts in 2012 if they are made in January of 2013.  The new tax law which has been signed by the President extends the Charitable IRA Rollover through December 31, 2013. This means that Donors age 70 and ½ or older …

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Income Taxes – A Long Road Traveled

As news comes in this morning of our almost leap over the fiscal cliff, you may ask, “How did we get here and has it always been this complicated?” Well, President Lincoln signed the first revenue-raising measure to help pay Civil War expenses in 1862.  The measure created a Commissioner of Internal Revenue and the nation’s first …

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Inherited IRAs … no 60 day rollover window!

Individual Retirement Accounts (IRAs) have many rules, and the penalties for failing to follow the rules can be painful. The taxpayer Elizabeth Beech found this out the hard way with her inherited IRA. Elizabeth Beech inherited an IRA from her deceased mother. In 2008, Ms. Beech took a $35,348 distribution from the IRA. She took …

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Straight-line expense recognition of leases

Update: The guidance below will be superseded upon the new lease accounting standard becoming effective for most private companies in 2020. For further information on the upcoming changes to lease accounting, click here. Sometimes operating leases aren’t as straightforward as they seem to be and there are a couple of situations that create a deferred …

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There’s A Pocket Guide for That?

While trying to research something both useful and interesting for government clients, I came across a “Pocket Guide for Government Employees” entitled:  “Protecting Federal Tax Information. While the guide was primarily addressing the need for state tax agencies which receive federal tax returns and return information, it reminded me that now many cities, towns and …

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