New IRS Commissioner Shulman airs his philosophy to ABA audience: The question of whether IRS will focus on services or enforcement poses a false choice, IRS Commissioner Douglas Shulman, who became the 47th Commissioner of Internal Revenue on March 24, 2008, told an American Bar Association audience on May 9.…
IRS clarifies ruling allowing drug manufacturers to subtract Medicaid rebates from gross receipts Rev Rul 2008-26, 2008-21 IRB In a revenue ruling that clarifies an earlier one issued in 2005 on the same subject, IRS concludes that Medicaid Rebates that a pharmaceutical manufacturer pays to State Medicaid Agencies are adjustments…
Which tax-free and tax-favored fringe benefits are passthrough owners entitled to? Partnerships, LLCs treated as partnerships, and S corporations have distinct tax and nontax advantages. However, entrepreneurs considering these forms of business should be aware that fewer tax-free and tax-favored fringe benefits are available to owner-entrepreneurs of passthroughs than to…
Transfers to LLC were not includable in decedent’s estate Estate of Mirowski, TCMemo 2008-74 The Tax Court has held that assets the decedent transferred to a family limited liability company (LLC) shortly before she died were not includable in her gross estate under Section 2036(a). Facts. The decedent’s husband was…
Innocent spouse relief granted despite ex-husband’s objection Bishop, TC Summary Opinion 2008-33 The Tax Court agreed with the IRS and, over the objection of the taxpayer’s ex-husband, held that the taxpayer was entitled to equitable relief under Section 6015(f) from her husband’s tax underpayments. Facts. The taxpayer married in 1982,…
IRS fact sheet explains foreign earned income exclusion IRS Fact Sheet May 2008 Mike Habib, EA IRS has issued a fact sheet that explains the foreign earned income exclusion rules. Observation: Although the fact sheet is a valuable summary of the complex foreign earned income rules that apply starting with…
New bill seeks to reduce worker misclassifications H.R. 5804, 4/15/08 [Taxpayer Responsibility, Accountability, and Consistency Act of 2008] Rep. James McDermott (D-Wash) has introduced legislation that would revise employee vs. independent contractor rules and increase information reporting penalties The legislation is called the “Taxpayer Responsibility, Accountability, and Consistency Act of…
<span [Audit Report No. 2008-30-095]: Fiscal year 2007 marked another period of improvement in IRS’s compliance activities, continuing an eight-year period of upward trends in such endeavors, the Treasury Inspector General for Tax Administration (TIGTA) said in a new audit. Many enforcement activities continued to increase despite a slight reduction…
Tax Problem Solver – Why You Need Professional Help Tax problems come in different forms; IRS tax problems, State tax problems, and Sales tax problems. Tax authorities are constantly increasing their tax enforcement efforts through tax collection and tax audit. When taxpayers receive the dreaded tax notice that their tax…
Tax Court properly denied separate filer equitable innocent spouse relief – Christensen, (CA 9 4/21/2008) 101 AFTR 2d ¶ 2008-705 Mike Habib, EA MyIRSTaxRelief.com The Ninth Circuit has affirmed the Tax Court’s dismissal of a taxpayer’s claim for equitable innocent spouse relief under Code Sec. 6015(f). The Ninth Circuit agreed…