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…
JK Harris didn’t provide promised services to Missourians who sought help with tax problems, Nixon says in lawsuit Jefferson City, Mo. – A South Carolina company that advertises it can help consumers resolve their state and federal tax problems didn’t provide the services it promised, Attorney General Jay Nixon says.…
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…
Deduction for cost of goods sold limited to negotiated discount price IRS concluded in this ILM that the step transaction doctrine applied to the repayment to companies of the difference between the full list price of merchandise and the negotiated discount price, and therefore the companies’ deduction for cost of…
Beneficial owners can deduct home mortgage interest and taxes The Tax Court held that taxpayers were entitled to deduct mortgage interest and real estate taxes they paid on property owned by their son, because they were the beneficial owners of the property. The taxpayers resided at the property for all…
California LLC fee again held invalid Ventas Finance I LLC v. Calif. FTB, Cal. Ct. App., Dkt. Nos. A116277; A117751, 08/11/2008 The California Court of Appeal once again has ruled invalid the state fee imposed on limited liability companies (LLCs) under former Rev. & Tax. Cd. § 17942 (the “§…
IRS official pledges improved collection of billions in unpaid payroll taxes from businesses WASHINGTON (AP) — A top IRS official promised Congress Tuesday that the agency “will do better” in collecting billions in taxes that businesses supposedly withheld from employees’ paychecks but never remitted to the government. Linda Stiff, a…
Court rebuffs IRS and allows policyholder to escape gain on demutualization Eugene A. Fisher et al. v. U.S. (Ct Cl 8/6/2008) 102 AFTR 2d ¶ 2008-5150 The Court of Federal Claims has applied a variation of the open transaction doctrine with the result that a policyholder had no gain to…
New IRS settlement initiative for LILO and SILO transactions Mike Habib, EA IRS recently announced a settlement initiative for Lease-In/Lease-Out (LILO) and Sale-in/Lease-Out (SILO) transactions. Under this initiative, more than 45 of the nation’s largest corporations that participated in these shelters will receive a letter with an offer. Shelter participants…
Proposed regs explain strict charitable contribution substantiation & appraisal rules Preamble to Prop Reg 08/06/2008; Prop Reg § 1.170A-15, Prop Reg § 1.170A-16, Prop Reg § 1.170A-17, Prop Reg § 1.170A-18 Mike Habib, EA IRS has issued proposed regs explaining the charitable contribution substantiation changes made by the American Jobs…