House-passed Heroes Act would provide tax relief to military members & their families On May 20, by a vote of 403-0 the House of Representatives unanimously approved H.R. 6081, the “Heroes Earnings Assistance and Relief Tax Act of 2008.” The bill, dubbed the HEART Act by its sponsors, is very…
IRS focusing efforts on four employment tax initiatives American Payroll Association 26th Annual Congress May 13-17 (Austin, TX) John Tuzynski, IRS Chief, Employment Tax Operations, told attendees at APA’s 26th Annual Congress that the IRS is focusing its efforts on the following four key employment tax initiatives: (1) worker classification,…
Levy couldn’t force early distribution of taxpayer’s state retirement account Chief Counsel Advice 200819001 In Chief Counsel Advice (CCA), IRS has concluded that it can’t, after serving a notice of levy on a state retirement fund, exercise the taxpayer’s right to suspend her membership in the fund in order to…
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…
IRS or State Payroll Tax Audit & Employment Tax Audit The word audit can strike a very real sense of fear into the hearts of even the most courageous of men. When you own a business, there is even more at stake than a few minor penalties or fees; you…