May 18
As more and more commerce goes online, states have struggled with how to tax transactions that are not entirely within their borders. Under the U.S. Supreme Court’s decision in Quill Corp. v. N.D., 504 U.S. 298 (U.S. 1992) and other cases, a physical presence is required before a state may exercise tax jurisdiction over out-of-state …
Permanent link to this article: http://betweenthenumbers.net/2012/05/amazon-law-in-illinois-is-thrown-out/
May 06
California is now the twelfth state to coordinate its enforcement efforts with the U.S. Department of Labor (“DOL”) to combat worker misclassification as independent contractors. The other eleven states are Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington. Expect more states to follow. Calironia passes Senate Bill 459 to increase the …
Permanent link to this article: http://betweenthenumbers.net/2012/05/california-and-feds-now-cooperating-on-independent-contractor-misclassification/
Apr 29
In United States vs. Home Concrete & Supply, LLC (No. 11–139, Decided April 25, 2012), the U.S. Supreme Court affirmed a three year statute of limitations for audits involving a common tax shelter issue. The Court’s summarized the issue as follows: Ordinarily, the Government must assess a deficiency against a tax¬payer within “3 years after …
Permanent link to this article: http://betweenthenumbers.net/2012/04/supreme-court-limits-irs-audit-period/
Apr 26
In T.C. Memo 2012-115 (April 19, 2012), a taxpayer won a notable tax case involving the hobby loss rules. The Tax Court framed the issue as follows: We must decide whether petitioner’s documentary film production activity was a trade or business or a labor of love. Respondent asserts that Smile ‘Til It Hurts was the …
Permanent link to this article: http://betweenthenumbers.net/2012/04/filmmaker-wins-key-victory-in-deducting-losses/
Apr 16
The Treasury Inspector General for Tax Administration (TIGTA) recently issued a report addressing the IRS’s handling of tax offers in compromise (OIC). An OIC is a proposed agreement between a taxpayer and the federal government that settles a tax liability for payment of less than the full amount owed. The TIGTA summarized its findings as …
Permanent link to this article: http://betweenthenumbers.net/2012/04/irs-overwhelmed-by-proposed-offers-in-compromise/
Apr 10
The IRS has registered over 840,000 tax return preparers and has begun the process of administering competency tests for those who are not a CPA, attorney or enrolled agent. Paid preparers who fall outside of these three groups will also be required to take 15 hours of continuing professional education annually from IRS-approved vendors. IRS …
Permanent link to this article: http://betweenthenumbers.net/2012/04/irs-to-use-tax-preparer-data-to-identify-patterns-of-fraud/
Apr 01
There are few documents that are more confidential than one’s income tax return. Consequently, one should reasonably expect that the IRS’s computer record containing details of each individual’s tax return would be secure. In a 36-page March 16, report, the Government Accountability Office (GOA) found that the IRS’s computer systems and the data on them …
Permanent link to this article: http://betweenthenumbers.net/2012/04/gao-finds-irs-computer-system-security-is-lacking/
Mar 19
A former bank executive filed suit against the Internal Revenue Service (IRS) for failing to pay him a whistleblower award for information submitted in 2007. As initially reported in the Washington Post, Joseph Insinga … alleged that Rabobank Group, where he worked as an executive for more than a decade, helped seven companies avoid hundreds …
Permanent link to this article: http://betweenthenumbers.net/2012/03/irs-ignoring-payments-required-by-its-whistleblower-program/
Mar 16
The IRS recently eliminated an unpopular rule relating to how credit card and debit card payments are accounted for on tax returns. The new process was otherwise going to go into effect in 2012, and would require companies to explain the differences between 1099-K forms and their internal records. The Housing and Economic Recovery Act …
Permanent link to this article: http://betweenthenumbers.net/2012/03/irs-ends-unpopular-1099-reconciliation/
Feb 28
A few vocal members of the super-rich elite have come forth and publicly announced that they would welcome additional taxes. However, there is an widely underused mechanism that allows for any taxpayer who feels they have not contributed sufficiently to the government to remedy the situation. One can simply make a voluntary contribution to the …
Permanent link to this article: http://betweenthenumbers.net/2012/02/a-solution-for-the-tax-guilt-of-the-super-rich/
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