“Makeup” required minimum distributions salvage lifetime payouts to nonspouse IRA beneficiary Mike Habib, EAmyIRSTaxRelief.com A private letter ruling allows the nonspouse beneficiary of an IRA to salvage lifetime payouts even though she failed an essential rule requiring distributions to begin by the end of the year following the year of…
Starting March 2008, casinos and other sponsors of poker tournaments will be required to report most winnings to winners and the Internal Revenue Service, according to the IRS. Mike Habib, EAmyIRSTaxRelief.com The new requirement, which went into effect on March 4, 2008, was contained in guidance released Sept. 4 by…
IRS provides guidance on new rules for employment tax levies Mike Habib, EA The IRS has issued interim guidance to its directors and collection area offices that explains when it is permissible to issue a levy to collect employment taxes without first giving the taxpayer a pre-levy collection due process…
Reconstructing Your Records Mike Habib, EA Reconstructing records after a disaster may be essential for tax purposes, getting federal assistance or insurance reimbursement. Records that you need to prove your loss may have been damaged or destroyed in a casualty. While it may not be easy, reconstructing your records may…
Direct from the IRS Mike Habib, EA Is an Offer in Compromise Right for You? Should the IRS determine that a taxpayer is unable to pay the liability in a lump sum or through an installment agreement and has exhausted the search for other payment arrangements the last option would…
Final substitute return regs adopt temporary and proposed regs with one minor changeT.D. 9380, 2/12/2008; Reg. § 301.6020-1 Mike Habib, EA In 2005, IRS issued temporary (also issued as proposed regs) that broadened the scope of when IRS-prepared substitute returns (SFR) are valid. Specifically, the temporary regs provide that a…
IRS tax problem, IRS penalty, IRS Tax court ruling in favor of taxpayer Tax Court found that it could hear challenge to frivolous return penalty before rejecting summary judgment in favor of IRS Callahan (2008), 130 TC No. 3 After determining that the taxpayers could challenge a frivolous return penalty…
Changes made to Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) Mike Habib, EA The IRS has made some changes to the electronic/magnetic media filing procedures for 2007 Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, and also released the 2008 version of the form. Form…
Music composer tax related capital gain treatment IRS Temp reg describes how and when to elect capital gain treatment for self-created musical works T.D. 9379, 02/07/2008, Reg. § 1.1221-3T; Preamble to Prop Reg 02/07/2008, Prop Reg § 1.1221-3 IRS has issued a temporary reg on the time and manner for…
What’s New: IRS has $110 million in undeliverable refunds Are you still waiting for your tax refund? If so, you may be one of the 115,478 taxpayers to whom the IRS has been unable to deliver a refund check. The refunds total about $110 million. Every year there are taxpayers…