Tax Court Starts Off The Year Allowing the Deduction of Significant Losses from a Cattle Ranch... [ read ]
The U.S. Tax Court started off the year with a very nice win for taxpayers. In Wondries v. Commissioner, the court rejected the IRS's disallowance of loss deductions under IRC Section 183 and held that the taxpayers engaged in their cattle ranching activity for profit rather than as a hobby.
The IRS Compounding Interest Rate is 7%: Should You Make a Deposit or Advance Payment Now?... [ read ]
The IRS will charge interest on any amount of tax ultimately due. For taxpayers wanting to stop the accrual of interest before the liability is paid, some or all of the proposed deficiency can be deposited or paid to the IRS while the controversy continues.
UPDATE: SECURE 2.0: What You Need to Know... [ read ]
*UPDATE* President Biden has signed into law the 2023 Consolidated Appropriations Act.
To Rule or Not to Rule: IRS Updates for 2023 its No-Ruling Lists for Private Letter Rulings... [ read ]
Should you need either 100% tax certainty or the IRS to fix a past mistake, a private letter ruling may be the answer for you. There are areas, however, where the IRS will not issue a ruling. And for 2023, those areas have now been defined.
SECURE 2.0: What You Need to Know... [ read ]
Just three short years after the passage of some of the most significant changes to the U.S. retirement saving and funding system in the form of the SECURE Act, Congress has passed "SECURE 2.0" as part of the recent spending package, the 2023 Consolidated Appropriations Act, with Division T covering SECURE 2.0, a Senate Finance Committee summary. The Omnibus Bill is expected to be signed into law by President Biden ahead of the December 30th government funding deadline.
The Hidden Dangers of Filing a Tax Court Petition, Part III... [ read ]
I've previously written two blog posts regarding the "hidden" dangers of filing a Tax Court petition. In both blog posts, I discussed taxpayers who received Notices of Deficiency, filed Tax Court petitions and were surprised by the IRS answer, wherein the IRS increased the stakes by proposing a 75% fraud penalty for the first time.
IRS Exam Training Materials on Employee Retention Credit... [ read ]
In a prior blog post, I discussed the IRS warnings about Employee Retention Credit (ERC) abuse and the IRS training more than 300 auditors and criminal investigators to examine claims involving the ERC. According to IRS officials, the auditors and criminal investigators have now all completed a 56-hour training course on ERCs.
Want the Employee Retention Credit? The IRS Says Be Careful.... [ read ]
These days you can't throw a rock without hitting someone offering to assist an employer with the Employee Retention Credit(ERC). I have heard multiple reports of "tax specialists" making dubious claims about their ability to assist with ERC, some even claiming that they have received "special IRS training" for the ERC. Of course, they charge a substantial fee for this "specialized" help they will provide.
The IRS is About to Go Public with Many Criminal Crypto Cases... [ read ]
According to a Bloomberg news update, the head of the IRS's Criminal Investigation division, Jim Lee, announced yesterday that the IRS is building "hundreds" of criminal digital asset cases. The IRS is about to make many of them public.
Go, Hedgie, Go: Hedge Fund challenges IRS' Position on Limited Partner Exception to Self-Employment (SE) Tax... [ read ]
The tax community has been searching for a mighty torch bearer to challenge the IRS' position that a limited partner cannot wear two hats: one, as a service provider that receives guaranteed payments subject to self-employment (SE) tax, and another, as an investor that receives his or her share of partnership income exempt from SE tax. And it appears we now have one.
