A six-month extension of time to file Form 706 for the purpose of making the portability election has been made available to qualifying estates in which the decedent died in the first six months of 2011 in accordance with Reg. §6081-1(c). Pursuant to the guidance issued in Notice 2011-82, I.R.B. 2011-42, 516, in order to [...]
News
Feb
21
The head cattle buyer of a slaughterhouse and packaging facility was not liable for the trust fund recovery penalty. The individual was not a responsible person because he did not have sufficient control of the company’s finances to allocate funds to pay other creditors in preference to paying the government. The individual was not an [...]
Feb
19
Among the various estate tax proposals in the recently released President’s fiscal year 2013 budget proposal and Treasury explanation, is a new proposal that could alter estate planning techniques and benefits with intentionally defective grantor trusts (IDGTs). The assets in these trusts would be included in the estate of the grantor at death. The proposal [...]
Feb
18
Special Report Congress Passes 2012 Payroll Tax Holiday Extension Congress has extended the employee-side payroll tax cut through the end of 2012. After weeks of uncertainty over whether an agreement could be reached, the House passed the Middle Class Tax Relief and Job Creation Act of 2012 (H.R. 3630) by a vote of 293 to [...]
Feb
18
IR-2012-23, Feb. 16, 2012 WASHINGTON –– The Internal Revenue Service today issued its annual “Dirty Dozen” ranking of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud. The Dirty Dozen listing, compiled by the IRS each year, [...]
Feb
16
The Illinois Department of Revenue has issued a corporate income tax general information letter regarding potential nexus issues associated with running an out-of-state call center. The taxpayer asked whether it would owe Illinois income taxes as a result of operating a 24/7 call center for national retailers with multi-site locations. The taxpayer’s business consists of [...]
Feb
15
In the past couple of years Congress has been active in modifying filing requirements for informational returns, especially 1099s. All of these changes have left informational return filing requirements misconstrued, especially in the case of landlords on their individual tax returns. The Patient Protection and Affordable Care Act (PPACAP), enacted in 2010, increased the 1099 [...]
Feb
14
Unsubstantiated Business Expense and Depreciation Deductions Denied; Accuracy-Related Penalty Imposed
Taxes
A married couple were denied unsubstantiated business expenses and depreciation deductions, and an accuracy-related penalty was imposed. The business expenses were primarily related to the purchase, overhaul, maintenance and use of a small airplane, and the depreciation deductions related to the airplane. In addition, there were expenses related to automobile trips, and the purchase of [...]
Feb
14
The IRS has published adjustments to the limitation on the amount of housing expenses that can be excluded or deducted from gross income under the foreign earned income provisions. A taxpayer whose entire tax year is within the period the taxpayer meets the tax home test and either the bona fide resident or physical presence [...]
Feb
14
A real estate agent was denied business expense deductions for his real estate activity because he was not engaged in a trade or business. The taxpayer did not offer any evidence to show that he intended to realize a profit through his real estate activity. Despite claiming he received income from the sale of two [...]