Category Archive: Taxes

May 28

$2.3 Billion of Taxable Income Disappears Via Alimony Reporting

Tax reporting for alimony payments is a relatively straightforward process.  Those who pay alimony deduct the amount on their tax return when calculating their taxable income.  Those who receive alimony must report the amount received as taxable income.  These requirements should result in a shifting of taxable income without changing the total amount.  In order …

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Permanent link to this article: http://betweenthenumbers.net/2014/05/2-3-billion-of-taxable-income-disappears-via-alimony-reporting/

Apr 21

IRS Audits Heavily Target Corporations Over Partnerships

The Government Accountability Office recently released a study on the subject of “Large Partnerships: Characteristics of Population and IRS Audits”.  This study tracked IRS activity related to such “large partnerships”, which the IRS defined as those that reported having 100 or more direct partners and $100 million or more in assets. The number of large partnerships …

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Permanent link to this article: http://betweenthenumbers.net/2014/04/irs-audits-heavily-target-corporations-over-partnerships/

Mar 29

Severance payments remain FICA taxable

On March 25, the U.S Supreme Court ruled in favor of the IRS over whether certain severance compensation is subject to payroll taxes. My prior blog post on this Sixth Circuit case is here. The Supreme Court ruled 8-0 to overturn the Sixth Circuit decision. This case would have had huge tax impact had the …

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Permanent link to this article: http://betweenthenumbers.net/2014/03/severance-payments-remain-fica-taxable/

Mar 12

Estate tax penalty occurs because of a lack of a professional appraisal

In Estate of Helen P. Richmond et al. vs. vs. Commissioner T.C. Memo. 2014-26, February 11, 2014, the Tax Court addressed reasonably straightforward estate tax valuation questions in a reasonably predictable manner. The additional tax imposed because of a higher valuation was not particularly surprising to me, and probably not to others who regularly practice …

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Permanent link to this article: http://betweenthenumbers.net/2014/03/estate-tax-penalty-occurs-because-of-a-lack-of-a-professional-appraisal/

Feb 27

The Big Marriage Benefit in Estate Planning

The tragic news of Philip Seymour Hoffman’s death also came with an expensive reminder of how estate tax law favors marriage.  It has been reported that most of Mr. Hoffman’s $35 million estate will go to Mimi O’Donnell, his longtime love and mother of his three children.  Unfortunately, the fact that this couple wasn’t married …

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Permanent link to this article: http://betweenthenumbers.net/2014/02/the-big-marriage-benefit-in-estate-planning/

Feb 26

IRS Reports its Investigative Wins

The IRS has released its Annual Business Report for 2013, detailing its investigative priorities and accomplishments during the year.  In terms of priorities, the focus has been on the following areas: Identity Theft Fraud Return Preparer Fraud & Questionable Refund Fraud International Tax Fraud Fraud Referral Program Political/Public Corruption Organized Crime Drug Enforcement Task Force …

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Permanent link to this article: http://betweenthenumbers.net/2014/02/irs-reports-its-investigative-wins/

Feb 19

How Much is Michael Worth?

The IRS is taking serious issue with Michael Jackson’s estate over the value of various assets upon which taxes are due.  According to a recent article in the Los Angeles Times (“LAT”), there is over a billion dollar discrepancy between the value reported by his estate after his 2009 death and the amount concluded by …

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Permanent link to this article: http://betweenthenumbers.net/2014/02/how-much-is-michael-worth/

Feb 07

Is Uber a Connectivity App or an Employer?

Uber identifies itself as a tech company which developed an app to connect livery car drivers with a network of registered users in need of rides.  Whenever a connection is made and a service is provided, Uber collects a 20% fee. However, some fail to see the difference between Uber and a cab company in …

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Permanent link to this article: http://betweenthenumbers.net/2014/02/is-uber-a-connectivity-app-or-an-employer/

Feb 04

IRS rules on sales-based royalties treatment

The IRS has determined that for sales-based royalties for tax years ending on or after January 13, 2014, taxpayers can either allocate sales-based royalties entirely to property sold and include those costs in cost of goods sold or allocate sales-based rolaties betwen cost of goods sold and ending inventory using a facts and cirucmstances cost …

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Permanent link to this article: http://betweenthenumbers.net/2014/02/irs-rules-on-sales-based-royalties-treatment/

Jan 14

Interesting IRS Facts

As 2013 has come to an end, we all must start gathering our 2013 tax records to start preparing for the dreaded tax man.  Do you ever wonder how many returns or how much money the IRS collects?  Or how many audits are conducted? In the 2012 IRS Data Book, released by the IRS, contains …

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Permanent link to this article: http://betweenthenumbers.net/2014/01/interesting-irs-facts/

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