IRS OKs use of one property to engineer a reverse and forward like-kind swap Chief Counsel Advice 200836024 In Chief Counsel Advice (CCA), IRS has given its blessing to the use of one property to engineer both a completed reverse like kind exchange and an attempted forward like kind exchange.…
Like many of us, you’ve probably dreamed of turning a hobby or avocation into a regular business. You won’t have any unusual tax headaches if your new business is profitable. However, if the new enterprise consistently generates losses (deductions exceed income), IRS may step in and say it’s a hobby–an…
LLC may receive continuous wage levy on owner Chief Counsel Advice 200835030 A new IRS Chief Counsel Advice (CCA) says that a limited liability company (LLC) may be required to honor a continuous wage levy on salary and wage payments to its sole owner. [Note: The CCA may not be…
Victims of Hurricane Gustav in Louisiana qualify for tax relief IR 2008-100 https://www.irs.gov/newsroom/article/0,,id=186409,00.html An IRS news release says victims of Hurricane Gustav in the 34 parishes of Louisiana designated as presidential disaster areas have until Jan. 5, 2009, to make tax payments and file returns that would otherwise be due…
IRS Tax Help by Mike Habib, EA UNFILED BACK TAX RETURNS Do you have back tax returns that are Unfiled? Are you missing the records and forms necessary to file your tax returns? I have the experience and procedures to help you in reconstructing the records necessary to file your…
Employer not required to obtain worker status determination before withholding taxes Nino v. Ford Motor Company, DC MI, 102 AFTR 2d ¶2008-5215, Dkt. No. 07-13545, 8/8/08 A federal district court has dismissed an employee’s pro se (“for self”; non-attorney) complaint that he should not have had withholding deducted until his…
Court rebuffs IRS and allows deduction for lease termination payment ABC Beverage Corporation & Subsidiaries v. U.S., (DC MI 8/27/2008) 102 AFTR 2d ¶ 2008-5231 A district court has allowed a party that exercised an option to buy property that it was leasing to deduct a portion of the amount…
Ability to pay tax liability not relevant to determination of willfulness under Code Sec. 7202 U.S. v. Easterday (2008, CA9) 102 AFTR 2d ¶ 2008-5218 By a vote of two to one, a Ninth Circuit panel decision has upheld a district court’s ruling that a defendant’s ability to pay wasn’t…
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…
TIGTA reviews IRS methodology for selling seized property [Audit Report No. 2008-30-144]: IRS management needs to provide better oversight to ensure that employees consistently follow the requisite procedures for the storage and sale of seized property, according to a recent audit by the Treasury Inspector General for Tax Administration (TIGTA).…