IRS Fact Sheet reviews whether a hobby is actually a for-profit endeavor [Fact Sheet 2008-23]: Taxpayers must follow appropriate guidelines when determining whether an activity is engaged in for profit, such as a business or investment activity, or is engaged in as a hobby, IRS said in a new fact…
To disclose or not to disclose, that is the question. Hiding Income Offshore is not the way to go. Mike Habib, EA For years, offshore accounts have been a hot topic in popular culture and for the IRS; most recently Liechtenstein has been mentioned, however the IRS is interested in…
If It Seems Too Good to Be True, It Probably Is Tax Return Preparer Fraud Mike Habib, EA Dishonest tax return preparers can cause many problems for taxpayers who fall victim to their schemes. These scam artists make their money in a number of ways including skimming a portion of…
Yes, we are all fed up with the cost of fuel. No, I’m sorry to report, not everyone is eligible for the fuel tax credit. Fuel Tax Credit Scams Mike Habib, EA The IRS has recently added fraud involving the fuel tax credit to the list of frivolous tax claims…
Tiered discount allowed in real estate FLP gift tax case In Astleford, a memorandum decision, the Tax Court permitted a taxpayer to apply a tiered discount in the context of a family limited partnership owning interests in real estate. Facts. On 8/1/96, Mrs. Astleford formed the Astleford Family Limited Partnership…
IRS Announces ‘Dirty Dozen’ Tax Scams for 2008 Phishing Scams, Fuel Tax Credits, Frivolous Arguments, Hiding Income Offshore Top the 2008 Tax Scams WASHINGTON — The Internal Revenue Service today issued its 2008 list of the 12 most egregious tax schemes and scams, highlighted by Internet phishing scams and several…
IRS or State Payroll Tax Audit & Employment Tax Audit The word audit can strike a very real sense of fear into the hearts of even the most courageous of men. When you own a business, there is even more at stake than a few minor penalties or fees; you…
TIGTA study finds modest audit rate increase for C corps but marked increase for passthroughs ( S Corps) Trends in Compliance Activities Through Fiscal Year 2007, TIGTA Reference Number 2008095 A recently released TIGTA (Treasury Inspector General for Tax Administration) report reveals that despite a slight uptick in FY 2007,…
Payments made by retailer in connection with sales promotion weren’t taxable – PLR 200816027 Mike Habib, EA myIRSTaxRelief.com The IRS has privately ruled that payments made by a retailer in connection with a sales promotion were nontaxable purchase price adjustments and they weren’t subject to reporting or withholding. Facts. Taxpayer,…
The IRS OKs deferral of income from intellectual property payments Mike Habib, EA myIRSTaxRelief.com The IRS has privately ruled that a taxpayer could defer reporting income from intellectual property payments until the tax year following the tax year of receipt of the payments under a revenue procedure governing advance payments.…