Drywall victims could get tax relief
WASHINGTON, D.C. – The Internal Revenue Service has declared that residents whose homes have been severely damaged by Chinese drywall may qualify for special tax deductions.
Homeowners may be able to claim a casualty loss on their tax returns if they have Chinese drywall that emits an unusual or severe concentration of chemical fumes that causes extreme and unusual damage.
On June 18, 2009, Governor Linda Lingle signed Senate Bill 972 SD2, HD1, CD1 into law as Act 134, the “Cash Economy Enforcement Act of 2009.”
This Act provides the department with additional resources and tools to target high-risk, cash-based transactions to shore up confidence in Hawaii’s tax system. In this regard, this measure ensures that all sectors of Hawaii’s economy, including those prone to substantial underreporting, are paying their fair share of taxes.
This Act focuses on the civil collection and enforcement nature of Hawaii’s tax laws, by establishing the Special Enforcement Section, a group of tax officials charged with handling sensitive and high-risk civil tax cases as directed by the director. This Act also provides various enforcement tools, including the authority to issue monetary fines and cease and desist citations.
The IRS has provided a list of transactions that have been identified by the Service as “transactions of interest.” The IRS will consider transactions similar to any of the transactions on the list to be transactions of interest for purposes of Code Secs. 6111, 6112, 6662A, 6707, 6707A and 6708, and Reg. §1.6011-4(b)(6).
One transaction of interest (initially identified in Notice 2007-72, 2007-2 CB 544) involves taxpayers who purchase a remainder interest or similar successor member interest directly or indirectly in real property and then transfer such interest to a tax-exempt organization, claiming a charitable contribution deduction significantly higher than the amount paid for the interest. The Treasury and the IRS are concerned that taxpayers may be utilizing the contribution of such successor member interests to generate an excessive deduction.
Gov. Ted Kulongoski has signed legislation that authorizes the Oregon Department of Revenue (DOR) to initiate a tax amnesty program for taxpayers subject to the corporation excise (income) tax, the personal income tax, the inheritance tax, and the mass transit district tax on self-employment. The program will begin on October 1, 2009, and end on November 19, 2009, and applies to tax years, reporting periods, and estates for which the DOR could issue a notice of deficiency under ORS 305.265 or ORS 314.410, as amended and in effect on September 27, 2009.
To qualify for participation in the program, a taxpayer must have been required to:
A taxpayer may not participate in the tax amnesty program if the OR DOR issued a notice of deficiency before the start of the program or assessed a tax for a tax year for which the taxpayer could otherwise apply for amnesty. However, a taxpayer who has filed a bankruptcy petition may participate in the program if the taxpayer submits an order from the bankruptcy court allowing participation.
Louisiana: Tax Amnesty Program Enacted
The Louisiana Tax Delinquency Amnesty Act of 2009, which requires the Department of Revenue () to develop and implement a tax amnesty program to be effective for a period not to exceed two consecutive calendar months between July 1, 2009, and June 30, 2010, at the discretion of the secretary, is enacted.
The tax amnesty program will apply to all taxes administered by the DOR except for motor fuel taxes and penalties for failure to submit information reports that are not based on an underpayment of tax.
Closely held C corporations are more likely to accumulate earnings and profits beyond the reasonable needs of the business in order to avoid income taxes on its shareholders than are large C corporations. Each accumulated earnings case is unique. No pro forma guide for calculating a taxpayer’s reasonable needs can be prepared. Reasonable needs that would usually be considered in any accumulated earnings case are the need for sufficient net liquid assets to pay reasonably anticipated, normal operating costs through one business cycle and sufficient net liquid assets to pay reasonably anticipated, extraordinary expenses and capital improvement financing.
In addition, the following represents a non-exclusive list of specific items that should be considered for construction contractors:
Abusive Tax Evasion Schemes
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Examples of Abusive Tax Scheme Investigations – Fiscal Year 2009
Enrolled Agent vs. Tax Attorney / Tax Lawyer
Dealing with tax problems entails a good amount of hard work and stress, which is why it is not advisable to deal with such problems on your own. It requires that you have a fair understanding not only of the taxation process but also of how the IRS operates. Trying to gain such understanding is quite stressful in itself; much more is attempting to apply it to resolve your tax issues with the Internal Revenue Service and get tax relief. The sheer complexity involved in taxation and tax problems is what drives a lot of individual taxpayers and businessmen to approach a tax lawyer for assistance. While it is commendable that these people accept the need to seek assistance with their tax problems, they don’t always ask for help from the right tax relief professional. A tax attorney is not always the best person to seek assistance from when it comes to tax problems. Since it’s not a legal problem, but a tax problem, the IRS and State simply wants to know when your delinquent tax returns are going to be filed and when & how your taxes are going to be paid. What you need is a professional advocate who has the knowledge of the enforcement and collection procedures of the IRS, the State Franchise Tax Board and who has the specialized experience to effectively resolve these tax issues in your best interest.
Profile of the tax attorney
In face of tighter enforcement measures that the IRS is expected to use to strengthen its tax collection and monitoring policies, tax problems have become, if possibly, more stressful to deal with. Among truck drivers, in particular, the need to immediately address tax problems such as back taxes, unfiled delinquent tax returns, is more pressing than it has been in previous years. However, given the present economic climate, dealing with tax problems can prove hard for truckers, truck drivers. This is where tax relief for truck drivers plays an integral role. The IRS provides tax relief for truckers, provided that they certain law mandated qualifications and criteria.
Tax Relief Blog