Finance Chairman Baucus wants more action and details on IRS strategy to combat identity fraud [Press release dated Aug. 5]: A recent IRS update on its Identity Protection Strategy has failed to satisfy the concerns of Sen. Max Baucus (D-MT), chairman of the Senate Finance Committee. The report, submitted to…
IRS issues new version of Central Withholding Agreement form Mike Habib, EA The IRS has issued a June 2008 version of Form 13930, Application for Central Withholding Agreement. Under IRC §1441(a), nonresident alien (NRA) individuals are subject to 30% withholding on the gross amount of interest, dividends, rent, salaries, wages,…
IRS may require reporting of PAL activity groupings Mike Habib, EA Notice 2008-64, 2008-31 IRB 268 A new notice requests comments regarding a proposal to require taxpayers to report to IRS their groupings and regroupings of activities and the addition and disposition of specific activities within their existing groupings of…
Presidential candidates discuss merits of increasing the Social Security tax: Mike Habib, EA With less than three months until the 2008 presidential election, both candidates have expressed their views about a possible Social Security tax increase. The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees, and self-employed…
Innocent spouse relieved of tax from embezzlement and forgery Yakubik, TC Summary Opinion 2008-74 Mike Habib, EA The Tax Court recently held that the IRS abused its discretion in not granting equitable innocent spouse relief to a husband whose wife embezzled funds from her employer and forged checks taken from…
REIT changes in the 2008 Housing Act Mike Habib, EA Included in the $15.1 billion of housing tax incentives in the recently enacted “Housing Assistance Tax Act of 2008” (the Housing Act) is a package of changes liberalizing the real estate investment trust (REIT) rules. Under these new provisions: Foreign…
Tightened home sale exclusion and other revenue raisers in the 2008 Housing Act Mike Habib, EA To pay for the $15.1 billion of housing tax incentives in the recently enacted “Housing Assistance Tax Act of 2008” (the Housing Act), Congress passed several offsetting revenue raisers, including a requirement that banks…
Credit for first-time homebuyers in the 2008 Housing Act Mike Habib, EA The single largest provision in the $15.1 billion package of housing tax incentives in the recently enacted “Housing Assistance Tax Act of 2008” (the Housing Act) is a measure allowing individuals buying their first home to take a…
Property tax deduction for non-itemizers in the 2008 Housing Act Included in the $15.1 billion package of housing tax incentives in the recently enacted “Housing Assistance Tax Act of 2008” (the Housing Act) is a measure creating a new, temporary property tax deduction for non-itemizers (i.e., for taxpayers who claim…
IRS explains how to claim (or elect out of) 50% Kansas bonus depreciation Notice 2008-67, 2008-32 IRB Mike Habib, EA The Food, Conservation and Energy Act of 2008, popularly known as the Farm Act, provided temporary GO Zone-style tax relief for taxpayers in Kiowa County, Kansas, and surrounding areas, who…