We don’t republish all the tips offered by the IRS, but if you’re up against the filing deadline, the following may be helpful. (more…)
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IRS Offers Last Minute Filing Tips
April 8, 2011
April 8, 2011
Law Professors Will Love This Case
April 7, 2011
Once in a while a real head-scratcher of a tax case comes along, and they always seem to involve in one way or another the definition of a capital asset. One that happened to be decided when I was in law school (and was used as the basis for an exam question in a course on tax law) involved someone with a rare blood type who received payments — tens of thousands of dollars, because we’re talking really rare — for permitting her blood plasma to be drawn repeatedly. Was she providing a service? Or selling a capital asset? If the latter, did she have any basis in the asset? (more…)
April 7, 2011
Once in a while a real head-scratcher of a tax case comes along, and they always seem to involve in one way or another the definition of a capital asset. One that happened to be decided when I was in law school (and was used as the basis for an exam question in a course on tax law) involved someone with a rare blood type who received payments — tens of thousands of dollars, because we’re talking really rare — for permitting her blood plasma to be drawn repeatedly. Was she providing a service? Or selling a capital asset? If the latter, did she have any basis in the asset? (more…)
Tax Court Says Day Trading Is Dissipation
March 25, 2011
If you find yourself owing the IRS more than you can possibly pay, you may be able to settle for a reduced amount through a procedure called an offer in compromise. The IRS doesn’t always agree, however. Among other possible reasons, they may reject an offer in compromise if it appears you dissipated assets, consuming or wasting money that could have been used to pay your debt to the government. In a recent case, the Tax Court ruled that the IRS can treat losses incurred in day trading as dissipation. The result is unusual because people who take up day trading generally do so with the thought that they’ll make a profit, rather than fritter money away. (more…)
March 25, 2011
If you find yourself owing the IRS more than you can possibly pay, you may be able to settle for a reduced amount through a procedure called an offer in compromise. The IRS doesn’t always agree, however. Among other possible reasons, they may reject an offer in compromise if it appears you dissipated assets, consuming or wasting money that could have been used to pay your debt to the government. In a recent case, the Tax Court ruled that the IRS can treat losses incurred in day trading as dissipation. The result is unusual because people who take up day trading generally do so with the thought that they’ll make a profit, rather than fritter money away. (more…)
Homebuyer Credit Causes Processing Delays
March 24, 2011
The IRS is working on solutions to problems that are causing delays in the processing of certain categories of income tax returns filed by individuals who claimed the homebuyer credit. The affected taxpayers do not need to contact the IRS or take any other action; they simply need to expect some delays.
March 24, 2011
The IRS is working on solutions to problems that are causing delays in the processing of certain categories of income tax returns filed by individuals who claimed the homebuyer credit. The affected taxpayers do not need to contact the IRS or take any other action; they simply need to expect some delays.
IRS Heard it Through the Grapevine: Pay Up!
March 14, 2011
Suppose you sell a business for $10,000,000, claiming your basis is $10,000,000 when it’s actually closer to $1,000,000. You’ll have to pay tax on that $9,000,000 difference (plus interest and penalties) if the IRS catches you before the statute of limitations runs out. How long do they have to catch you? The Supreme Court will probably have to step in and resolve this question, which has divided the Courts of Appeals. (more…)
March 14, 2011
Suppose you sell a business for $10,000,000, claiming your basis is $10,000,000 when it’s actually closer to $1,000,000. You’ll have to pay tax on that $9,000,000 difference (plus interest and penalties) if the IRS catches you before the statute of limitations runs out. How long do they have to catch you? The Supreme Court will probably have to step in and resolve this question, which has divided the Courts of Appeals. (more…)
IRS to Lien Less Heavily
February 28, 2011
The IRS has a responsibility to pursue collection when taxpayers fail to meet their obligations. An overly rigid approach can produce hardship, however, without necessarily enhancing government revenue. Recognizing this reality, the IRS has announced what they call “a new effort to help struggling taxpayers get a fresh start.” They’ve increased the dollar threshold at which they’ll impose liens, made it easier to obtain lien withdrawals, and implemented other changes that should be helpful to many individuals and small businesses that are unable to pay their taxes. Click here for the IRS announcement.
February 28, 2011
The IRS has a responsibility to pursue collection when taxpayers fail to meet their obligations. An overly rigid approach can produce hardship, however, without necessarily enhancing government revenue. Recognizing this reality, the IRS has announced what they call “a new effort to help struggling taxpayers get a fresh start.” They’ve increased the dollar threshold at which they’ll impose liens, made it easier to obtain lien withdrawals, and implemented other changes that should be helpful to many individuals and small businesses that are unable to pay their taxes. Click here for the IRS announcement.
Unpopular Paperwork Requirement Appears Doomed
February 4, 2011
It turns out there’s one feature of the healthcare reform law just about everyone agrees on. A provision requiring increased reporting of payments by businesses using Form 1099 was designed to increase government revenues by some $44 billion without increasing taxes. Yet the paperwork burden brought complaints from all quarters, reaching such a level that President Obama mentioned the need to repeal this provision in his State of the Union address. Repeal had been stymied by disagreement over how to prevent a $44 billion increase in the projected budget deficit. The Senate has now voted overwhelmingly in favor of repeal with a provision that calls for unspecified cuts in spending.
February 4, 2011
It turns out there’s one feature of the healthcare reform law just about everyone agrees on. A provision requiring increased reporting of payments by businesses using Form 1099 was designed to increase government revenues by some $44 billion without increasing taxes. Yet the paperwork burden brought complaints from all quarters, reaching such a level that President Obama mentioned the need to repeal this provision in his State of the Union address. Repeal had been stymied by disagreement over how to prevent a $44 billion increase in the projected budget deficit. The Senate has now voted overwhelmingly in favor of repeal with a provision that calls for unspecified cuts in spending.
Fairmark Wrapup
January 10, 2011
Here’s a summary of the top news, features and other items of interest relating to taxes and investing published recently at Fairmark.com.
The Fairmark Wrapup is also published as a free email newsletter. Click here to sign up.
January 10, 2011
Here’s a summary of the top news, features and other items of interest relating to taxes and investing published recently at Fairmark.com.
The Fairmark Wrapup is also published as a free email newsletter. Click here to sign up.
Mom Pays, Daughter Deducts
January 4, 2011
What happens when one person has a deductible expense, and someone else pays it? Suppose, for example, a mother covers medical expenses and real estate tax for her daughter. That’s what happened in a recent Tax Court case (Lang) (PDF). (more…)
January 4, 2011
What happens when one person has a deductible expense, and someone else pays it? Suppose, for example, a mother covers medical expenses and real estate tax for her daughter. That’s what happened in a recent Tax Court case (Lang) (PDF). (more…)
Fairmark Wrapup
January 3, 2011
Here’s a summary of the top news, features and other items of interest relating to taxes and investing published recently at Fairmark.com.
The Fairmark Wrapup is also published as a free email newsletter. Click here to sign up.
January 3, 2011
Here’s a summary of the top news, features and other items of interest relating to taxes and investing published recently at Fairmark.com.
The Fairmark Wrapup is also published as a free email newsletter. Click here to sign up.
Fairmark.com is your source for news, features, free online guides and other resources dealing with taxes and investing. To stay current, sign up for our free newsletter.
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