Tax Relief Blog
District court holds that stipends paid to medical residents were exempt from FICA
Regents of the University of Minnesota v. U.S. (DC MN 4/1/2008) 101 AFTR 2d ¶ 2008-647
Contact Us Now For a Free Initial Consultation
Estimated tax payments – IRS Problem Resolution
New, changed and expired provisions affect 2008 individual estimated tax
Mike Habib, EA
MyIRSTaxRelief.com
Apr. 15, 2008 is the due date for affected calendar year taxpayers to make their first installment of 2008 estimated tax. There aren’t any drastic changes in the estimated tax rules themselves for 2008. However, there are a number of new, changed and expiring provisions that will affect some individuals’ estimated tax computations for 2008. This article provides a brief overview of the estimated tax rules for individuals and looks at the changes that may impact 2008 estimated taxes.
Who needs to pay estimated tax. Individuals who have income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.) must pay estimated tax or face a penalty. In addition, taxpayers who do not elect voluntary withholding on unemployment compensation and the taxable part of social security payments also may have to pay estimated tax on those items or face a penalty. (Code Sec. 6654)
When and how much to pay. For 2008 estimated tax, in general, a taxpayer must pay 25% of a “required annual payment” by Apr. 15, 2008, June 16, 2008, Sept. 15, 2008 and Jan. 15, 2009 to avoid an underpayment penalty. (Code Sec. 6654(c))
Insurance Agent Tax Resolution
Retired insurance agents’ renewal commissions didn’t qualify for FICA special timing rule
Mike Habib, EA
myIRSTaxRelief.com
Chief Counsel Advice 200813042
Trucker Tax Relief – Trucker Tax Resolution Service
Truckers Tax Relief – Are you a truck driver with tax problems?
Trucking Tax & Accounting: Back Taxes – Unfiled delinquent tax returns – IRS & State audits – Messy books / accounting
If you’re a truck driver and owe the IRS, you’re better off resolving your tax debt now. As you know, tax problems do not go away by themselves! Stop your IRS wage garnishment today, stop your IRS bank levy today, and release your IRS tax lien today.
Federal tax liens – failure to pay the estate taxes
Homes sold by estate beneficiary remained subject to federal estate tax liens
First American Title Insurance Co., et al. v. U.S. (CA9 3/27/2008) 101 AFTR 2d ¶ 2008-622
Dependent deductions tax problem
Tax breaks for qualifying relatives are limited – what you should know
Internal Legal Memorandum 200812024
Mike Habib, EA
myIRSTaxRelief.com
An Internal Legal Memorandum (ILM) explains that various tax breaks are not allowed for qualifying relatives. Specifically, the ILM concludes that, apart from a dependency exemption, a taxpayer’s qualifying relative may not qualify him for the earned income credit, head of household filing status, or the child tax credit, but in limited circumstances may qualify the taxpayer for the child and dependent care credit.
Background. A taxpayer is entitled to a deduction equal to the exemption amount for each person who qualifies as his “dependent.” (Code Sec. 151(c))
Trust fund penalty responsible person for the Code Sec. 6672(a)
Tax-exempt hospital’s chairman of the board was liable for trust fund penalty – have a tax professional on your side
PPA Pension Protection Act Tax Issues
IRS issues proposed regs reflecting PPA changes and guidance for notice of retroactively effective plan amendments
