INFORMAL TAXPAYER LETTER DIDN’T SETTLE TAX DEBT
Posted by Kim Chen on October 26th, 2018
The taxpayer filed an amended return two days after he filed his original return. This resulted in a refund of $1,396. Upon audit, the IRS determined that the taxpayer wasn’t entitled to the refund and issued a notice of deficiency for $39,757. The taxpayer returned the refund, along with a letter that asked the IRS […]
TEMPORARY IRS RELIEF OPENS UP LOW-INCOME HOUSING UNITS TO DISPLACED HURRICANE VICTIMS
Posted by Kim Chen on October 21st, 2018
IR 2018-204 In the wake of Hurricanes Michael and Florence, IRS announced that it has provided temporary relief from certain low-income housing tax credit (LIHTC) requirements in order to allow owners and operators of low-income housing projects located anywhere in the U.S. and its possessions to provide temporary emergency housing to individuals who are displaced […]
RS ADVISES TAXPAYER ON VERIFYING PROPER PFIC REPORTING
Posted by Kim Chen on October 17th, 2018
Information Letter 2018-0028 In an Information Letter, IRS has advised a taxpayer, who sold his interest in a passive foreign investment company (PFIC), on the steps he can take to verify that he properly reported his PFIC transaction and, presumably, determine whether he is due a refund. Background. A PFIC is any foreign corporation if: […]
YEAR-END PLANNING: CONSIDERATIONS FOR THOSE ABOUT TO GET MARRIED
Posted by Kim Chen on September 21st, 2018
Prospective spouses have the opportunity to save money by taking income tax considerations into account before tying the knot. That’s particularly true for those who plan to marry late this year or early next year. As this article explains, from the federal income tax standpoint, some individuals marrying next year may come out ahead by […]
Small Business Tax Strategy: Heavy Vehicle Plus a Home Office
Posted by Kim Chen on August 31st, 2018
Small business owners are always looking for easy ways to lower their taxes. Here’s a simple, but effective, tax planning technique that’s available under the Tax Cuts and Jobs Act (TCJA) for 2018 through 2022. To take advantage, you need to purchase a “heavy” vehicle, work from a qualifying home office and keep detailed business […]
