Category: Taxes

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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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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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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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: https://betweenthenumbers.net/2014/02/irs-reports-its-investigative-wins/

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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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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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: https://betweenthenumbers.net/2014/01/interesting-irs-facts/

IRS finalizes delayed start date to start accepting returns

In October the IRS announced that the government shutdown would delay the start of the 2014 tax filing season at least a week and likely more.  According to the IRS announcement: “The government closure came during the peak period for preparing IRS systems for the 2014 filing season. Programming, testing and deployment of more than …

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No GAAP yet for Bit Coins

Bit Coins are increasingly in the news.  Denise Lugo of Bloomberg BNA describes “Bit Coins” as: a type of virtual currency, which loosely put, is created when a complex mathematical algorithm is solved using high power computers.  It seems like overnight bit coins have become legitimate.” Ms. Lugo also summarized the FASB’s recent position at a …

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California Franchise Tax Board Provides Tax Relief for Short Sales

The California Franchise Tax Board (“FTB”) issued a letter summarizing their position regarding the tax impact of short sales.  The FTB followed suit with the IRS’ position, meaning there will not be any California state tax impact for a majority of taxpayers in this position (See my previous blog post regarding the IRS’s position).  The FTB …

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