Category: Taxes

IRS Confirms Continued Deductibility of Business Meals (When Separable from Entertainment)

For months, the American Institute of CPAs (AICPA) and American businesses have been requesting guidance from the U.S. Treasury Department and Internal Revenue Service (“IRS”) regarding changes made by the Tax Cuts and Jobs Act (TCJA) (Pub. L. No. 115-97) that disallowed the deductibility of entertainment, amusement, recreation and qualified transportation fringe expenses. Businesses and their accounting …

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Permanent link to this article: http://betweenthenumbers.net/2018/10/irs-confirms-continued-partial-deductibility-of-business-meals-when-separable-from-entertainment/

Tax Deduction Available for Ponzi Scheme Related Theft

The current tax season brings some small consolation to victims of Ponzi schemes and certain other financial fraud, with the Internal Revenue Service (“IRS”) allowing duped investors to obtain partial relief in the form of a theft loss tax deduction.  Internal Revenue Code (“IRC”) 165(a) provides that a theft loss incurred in a transaction entered …

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Permanent link to this article: http://betweenthenumbers.net/2018/03/tax-deduction-available-for-ponzi-scheme-related-theft/

Appeals Court Provides Tax Benefit to Unmarried Couples with High Mortgage Debt

A federal appeals court has agreed with an unmarried California couple that they should not be treated as married with regard to mortgage interest deductions limits. Bruce Voss and Charles Sophy are co-owners of real property.  Each claimed a home mortgage interest deduction in reliance on Section 163(h)(3) of the Tax Code, which allows for …

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Permanent link to this article: http://betweenthenumbers.net/2015/08/appeals-court-provides-tax-benefit-to-unmarried-couples-with-high-mortgage-debt/

The IRS Wants More Of Your Gambling Winnings

The taxation of gambling winnings is widely misunderstood (or at least widely not followed).  Gambling gains are included in gross income, reported on “other income” on form 1040.  Losses from gambling are allowed to the extent of gambling gains, but only as an itemized deduction.  The amount spent to generate any win reduces the win.  …

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Permanent link to this article: http://betweenthenumbers.net/2015/06/the-irs-wants-more-of-your-gambling-winnings/

IRS Workers Found to Have Evaded Tax Payment

A recent report indicated that over a 10 year period approximately 1,600 Internal Revenue Service (“IRS”) employees willfully evaded their tax obligations.  The wrongful activity included: failing to file timely claiming improper dependents claiming improper first-time homebuyer credits The law calls for the termination of such employees unless it is waived by the IRS commissioner. …

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Permanent link to this article: http://betweenthenumbers.net/2015/05/irs-workers-found-to-have-evade-tax-payment/

Business Audit Rate Will Move Even Lower

With its budget continuing to shrink, the IRS is looking at even lower audit rates for the coming tax season.  The number of agents is current at under 12,000, the lowest number in the last decade. This related article provides additional info on IRS audit rates.

Permanent link to this article: http://betweenthenumbers.net/2015/03/business-audit-rate-will-move-even-lower/

Government Typo Will Require Certain Taxpayers to Delay Filing

Recently the government sent out Form 1095-A to Obamacare participants. However it appears that an error reported in the forms mailed out will need to be corrected.  As a result, affected taxpayers are requested to wait until they get corrected forms before filing.  The blog at healthcare.gov reads: “If you enrolled in a plan through …

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Permanent link to this article: http://betweenthenumbers.net/2015/02/government-typo-will-require-certain-taxpayer-to-delay-filing/

National Taxpayer Advocate Reports Grim Conditions Faced by US Filers Seeking Customer Service

With tax season just around the corner, the annual report from the National Taxpayer Advocate Service (“TAS”) is making headlines – for all the wrong reasons. This federally appointed office within the Internal Revenue Service (“IRS”) is responsible for assisting American taxpayers who are in burdensome, complex, and/or financially strenuous disputes with the IRS. In …

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How Likely Are You to Get Audited?

Tax season is gearing up, an annual source of tension for many Americans. The Internal Revenue Service (“IRS”) looms in the background, with a mission to “Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all”. Yet the benevolent vibe of …

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IRS Continues to Overpay Billions on the EITC

In accordance with Executive Order 13520, Reducing Improper Payments and Eliminating Waste in Federal Programs, Federal agencies are accountable for reducing improper payments while still providing access to beneficiaries.  The IRS estimates that the participation rate under the Earned Income Tax Credit (EITC) was nearly 80 percent, but this comes at a high cost.  A recent …

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