An individual was granted a waiver of the 60-day IRA rollover requirement of Code Sec. 408(d)(3). The individual intended to roll over the remainder of his IRA. However, his financial advisor completed the rollover forms incorrectly and, as a result, the funds were deposited in a non-IRA account. IRS Letter Ruling 201205021 ©2012 Wolters Kluwer. [...]
News
Feb
05
If you changed your name after a recent marriage or divorce, the IRS reminds you to take the necessary steps to ensure the name on your tax return matches the name registered with the Social Security Administration. A mismatch between the name shown on your tax return and the SSA records can cause problems in [...]
Feb
03
Now that tax season is upon us, so are the e-mail scammers pretending to be the IRS. Most of these scams fraudulently use the IRS name, logo, and/or website header as a lure to make the communication appear more authentic and enticing. They lead you to believe you had a refund of some sort coming [...]
Feb
02
Noncustodial Parent Not Entitled to Dependency Exemption for Child; Head of Household Filing Status, Child Tax Credit Earned Income Credit Denied
Taxes
The individual who was the noncustodial parent of a minor child was not entitled to the child’s dependency exception; therefore, she was also not entitled to head of household filing status, the child tax credit or the increased earned income tax credit based on an individual with one child. The child was not the qualifying [...]
Feb
02
The IRS has seen an increase in identity theft, Deputy Commissioner for Services and Enforcement Steven T. Miller told reporters on January 31. In response, the Service is taking action to discover identity thieves and block fraudulent refunds. Miller highlighted the Service’s joint work with the Department of Justice (DOJ) in January to protect taxpayers [...]
Feb
02
Conviction and Sentence for Willful Failure to Pay Taxes Upheld; Couple Knew Had Duty to Pay Tax
Taxes
A couple was properly convicted and sentenced for willful failure to pay federal income taxes. The couple admitted that they knew they had a legal duty to pay their taxes on time and they willfully violated that duty. Their argument that the statute of conviction was void for vagueness was without merit because the statute [...]
Feb
02
An IRS revenue agent abused his discretion in denying a couple’s request for an abatement of interest for the tax years at issue. The revenue agent conceded that he erroneously provided the couple with misleading information regarding interest that had accrued on their tax liabilities. Also, there was a correlation between the error and the [...]
Jan
31
The IRS, at least unofficially, appears to agree with certain Form 1099-MISC reporting agents that not all frequent flyer miles are excludable from a recipient’s income. This position can be inferred by the IRS’s response to CCH’s inquiry relating to the receipt of certain 2011 Forms 1099-MISC that report as income the value of reward [...]
Jan
31
A married couple was denied deductions for expenses claimed to have been incurred in the wife’s trucking business due to lack of substantiation, and was subject to a penalty based on underpayment of tax. The taxpayers objected to the introduction of notices of deficiency as hearsay but failed to note that objection in the pre-trial [...]
Jan
30
The IRS Small Business/Self-Employed Division modified the maximum unpaid balance of assessment taxpayers must meet to qualify for its streamlined installment agreement program and extended the time for payment. The aggregate unpaid balance of assessment threshold has doubled, from $25,000 to $50,000. The timeframe for full payment has been extended from 60 months to 72 [...]