Category: Taxes

Forbes Gets it Wrong.

That’s a headline I did not expect to get a chance to write.  And to be honest, the mistake is on a post on the Forbes blog and not their namesake publication, which I presume gets more scrutiny.  But the flaw is in fact quite obvious. The post relates to the Internet Sales Tax bill …

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Permanent link to this article: https://betweenthenumbers.net/2012/08/forbes-gets-it-wrong/

Bullseye

In some respects I’m feeling pretty justified by last week’s Supreme Court ruling on the Individual Mandate.  That is because eighteen months ago I said that commentators were pushing aside the very real likelihood of it being justified under the taxation clause of the constitution.  That prediction got me more than a little ridicule in some online …

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Permanent link to this article: https://betweenthenumbers.net/2012/07/bullseye/

Will the IRS finally get serious about its whistleblower program?

A June 20, 2012 memorandum from Steven Miller, IRS deputy Commissioner for Services and Enforcement, acknowledges that the IS has done a poor job with it whistleblower program, and seeks to establish a new standard of much better responsiveness. This article describes the program that was signed into law at the end of 2006. Miller’s …

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Permanent link to this article: https://betweenthenumbers.net/2012/07/will-the-irs-finally-get-serious-about-its-whistleblower-program/

Grassley again criticizes IRS whistleblower program administration

Senator Chuck Grassley is a member of the Senate Finance Committee. In a May 2012 letter, he prods Treasury Secretary Timothy Geithner and IRS Commissioner Douglas Shulman to do a much better job of timely compensating IRS whistleblowers for their information. See this article for more information about the IRS whistleblower program and the program’s …

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Permanent link to this article: https://betweenthenumbers.net/2012/05/grassley-again-criticizes-irs-whistleblower-program-administration/

Filmmaker wins key victory in deducting losses

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 …

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Permanent link to this article: https://betweenthenumbers.net/2012/04/filmmaker-wins-key-victory-in-deducting-losses/

IRS to use tax preparer data to identify patterns of fraud

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 …

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Permanent link to this article: https://betweenthenumbers.net/2012/04/irs-to-use-tax-preparer-data-to-identify-patterns-of-fraud/

IRS ignoring payments required by its whistleblower program

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 …

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Permanent link to this article: https://betweenthenumbers.net/2012/03/irs-ignoring-payments-required-by-its-whistleblower-program/

Recent tax case approves use of related party loans to reduce and fund estate taxes

The expected significant change in the estate tax at the end of 2012 should cause most affluent persons to engage in estate planning. Usually, this will involve an irrevocable trust. One issue that invariably arises is how a future estate tax will be paid for those assets that have not been removed from the estate. …

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Permanent link to this article: https://betweenthenumbers.net/2012/02/recent-tax-case-approves-use-of-related-party-loans-to-reduce-and-fund-estate-taxes/

Mortgage Tax Relief on Debt Forgiveness Ending This Year!

Normally, when you receive any reduction in the amount of debt you owe someone it is a taxable event.  For example, if you owe someone $10,000 and the lender forgives $5,000 of that debt, that $5,000 is consider income and you have to pay tax on that amount.  Under the Mortgage Forgiveness Debt Relief Act …

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Permanent link to this article: https://betweenthenumbers.net/2012/02/mortgage-tax-relief-on-debt-forgiveness-ending-this-year/

IRS issues final regulations on taxation of personal injury damages

In late January, the IRS issued final regulations regarding the taxation of personal injury litigation damages. The regulations provide guidance regarding tax law changes included in the Small Business Job Protection Act passed in 1996. Specifically: Litigation settlements are excluded from gross income for damages received on account of physical injuries or sickness. Damages from …

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Permanent link to this article: https://betweenthenumbers.net/2012/02/irs-issues-final-regulations-on-taxation-of-personal-injury-damages/