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…
IRS explains how to claim credit for qualified fuel cell and qualified microturbine property A new Notice carries interim guidance on the terms and conditions that must be met by taxpayers that want to claim the Code Sec. 48 credit for fuel cells and microturbines. Background. A taxpayer may be…
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).…
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…
“In this world, nothing is certain but death and taxes.” – Benjamin Franklin Frivolous Arguments Don’t Work Mike Habib, EA Yes, folks, it’s a matter of fact. If you have earned income in the last year, you must file a tax return. There isn’t a way around it. If someone…
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…