Did you know that forgiven credit card debt triggered taxable income Mike Habib, EAmyIRSTaxRelief.com A new Tax Court case illustrates how a taxpayer generally has taxable income when a credit card company agrees to accept a reduced payment in settlement of his or her account. Background. A solvent debtor usually…
“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…
Investors suffered theft loss in connection with company that issued sub-prime loans Mike Habib, EA myIRSTaxRelief.com A Chief Counsel Advice (CCA) has concluded that a theft occurred in connection with investors’ losses on loans to a company engaged in writing sub-prime loans. However, it determined that whether and when a…
IRS unveils 2008 list of notorious tax scams – the “Dirty Dozen” Mike Habib, EA myIRSTaxRelief.com IRS has recently unveiled its latest list of notorious tax scams, which it calls the “Dirty Dozen,” highlighted by Internet phishing scams and several frivolous tax arguments. New to the “Dirty Dozen” this year…
IRS website provides guidance on S corporation election problems Filing Requirements for Filing Status Change, on IRS website Mike Habib, EAmyIRSTaxRelief.com In a recent posting on its website, IRS explains the steps to be taken and forms to be filed by taxpayers requesting to change their filing status from a…
House passes Pension Protection Technical Corrections Act – final action delayed till after recess Mike Habib, EA myIRSTaxRelief.com The House passed the “Pension Protection Technical Corrections Act of 2007” (H.R. 3361) by voice vote on Mar. 12, 2008. The bill would make technical corrections to the Pension Protection Act of…
IRS eases rules for partial annuity exchanges Mike Habib, EAmyIRSTaxRelief.com In 2003, IRS issued a revenue ruling formally sanctioning partial annuity exchanges as qualifying for tax-free treatment under Code Sec. 1035. At the same time, it issued a notice warning that it would go after taxpayers who use partial exchanges…
Final regs clarify treatment of loss from abandoned securities Mike Habib, EAmyIRSTaxRelief.com IRS has issued final regs that provide guidance on the availability and character of a loss deduction from abandoned securities under Code Sec. 165. The regs, which adopt proposed regs issued in 2007, apply to securities abandoned after…
New proposed regs address complex issue – capitalization of tangible assets – Part III Mike Habib, EAmyIRSTaxRelief.com IRS has issued new comprehensive proposed regs on when amounts are treated as paid to acquire, produce, or improve tangible property. They replace controversial proposed regs that were issued on the same subject…
New proposed regs address complex issue–capitalization of tangible assets Mike Habib, EAmyIRSTaxRelief.com IRS has issued new comprehensive proposed regs on when amounts are treated as paid to acquire, produce, or improve tangible property. They replace controversial proposed regs that were issued on the same subject in 2006 and that IRS…