Sunday, February 5, 2012

You are here: Home >

From the monthly archives:

March 2009

IRS problems and divorce often come bundled together.  Here is my response to a question I recieved about how a divorce decree impacts the IRS in the collection of an unpaid tax liablity:
My ex was self-employed when we were married, and he never paid his taxes. I made the mistake of signing joint returns. When [...]

{ 0 comments }

I.R.S. Finally Publishes 2008 Form 8804

by taxnick on March 29, 2009

The I.R.S. finally published Form 8804, Annual Return for Partnership Withholding Tax (Section 1446).  Form 8804 is used by partnerships with U.S. effectively connected income that is allocable to foreign partners.  Although the 2008 form is now completed, the instructions to this year’s form have not yet been released.
It is remarkable that the I.R.S. is [...]

{ 0 comments }

All recent indications are that the IRS is plowing ahead in its collection efforts under a weakening economy.  Revenue Officers continue to push hard, and there are no signs that Automated Collection Service has backed off its levy and lien filings.
The unfortunate result of this pressure is that more and more clients are turning to [...]

{ 0 comments }

Tax Ignorance

by taxnick on March 11, 2009

Tax ignorance disease afflicts both the general public and politicians. It knows no bounds, and can be curtailed only through reform of high school and undergraduate education, coupled with an effective public service campaign by the apppropriate authorities.
Turning first to the general public, consider this letter to the editor of the Philadelphia Inquirer with respect [...]

{ 1 comment }

IRS Ends Private Debt Collection Program

by taxnick on March 9, 2009

Last week, the IRS suddenly announced that it is cancelling its debt collection contracts with private vendors:
After conducting an extensive review of the private debt collection program, including the cost effectiveness of the effort, the Internal Revenue Service will not renew its contracts with two private debt collection agencies, the agency announced today.
The IRS determined [...]

{ 0 comments }

Thousands of people across the U.S. are entitled to a piece of about $1.3 billion in tax refunds from 2005, but since those taxpayers have yet to file their taxes from that year, the windfalls remain uncollected, the Internal Revenue Service (IRS) announced this week. And anyone entitled to a refund had better act fast, [...]

{ 0 comments }

Tax penalties present taxpayers with unique issues to consider.  Wilson v. Commissioner, T.C. Summary Opinion 2008-91, describes the situation where a tax attorney represents a taxpayer with a tax penalty that was imposed for a tax return prepared by the attorney’s firm. The issue that the case describes is the conflict of interest that the [...]

{ 0 comments }

In these difficult economic times, repaying the IRS is becoming harder than ever.  Installment agreements may be entered into in good faith, but while payments are being made, interest and penalties continue to run.  Every five years, interest and penalties double the original tax.  Most attempts to repay the IRS result in the amount owed [...]

{ 0 comments }

What Medical Expenses Are Tax Deductable?

by taxnick on March 5, 2009

If you are unsure of what medical expenses you can deduct on your taxes check out this great list from the tax girl:
1, Abortion
2, Acupuncture
3, Alcoholism treatment
4, Ambulance service
5, Artificial Limb
6, Artificial Teeth
7, Bandages
8, Breast Reconstruction Surgery (following a mastectomy for cancer)
9, Birth Control Pills
10, Braille Books and Magazines
11, Capital Expenses for home improvements and [...]

{ 0 comments }

With irate property owners clamoring for relief, Illinois lawmakers passed a law in 1991 to cap skyrocketing real estate tax bills.
At the time, no one anticipated that more than 17 years later, the rate of inflation—the key measure used in the legislation to limit tax increases—would be less than 1 percent.
In 2008, the annual bump [...]

{ 0 comments }