Archives for IRS

IRS on the auditing warpath

See this article on IRS increasing audits of small to medium sized businesses by 30%.  We are seeing this in my practice and in talks with other practioners.  My opinion on this is that the IRS can get easier dollars by targeting small businesses rather than large ones with less resources, even though per dollar-wise, it still makes sense for the IRS to go after the Fortune 1000s.  Of course this is bad news for
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Celebrities with tax problems

Many average Americans have tax problems – tax liens, judgments, filing issues.  Well, the well heeled and famous also do too and many times they get the star treatment. Nicolas Cage – owes $6.3MM in back  taxes from 2002-2004 and 2007.  He is suing his business manager for taking extravagant tax deductions and not being told about it. Wesley Snipes – owes $17MM and has been found guilty of defrauding the government.  His tax advisors
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IRS New Changes 2010

After a very interesting discussion with the IRS liason recently here in Pasadena.  There are some interesting changes in store for tax professionals and the unsuspecting public: 1) Tax professionals and their unlicensed staff must either re-register (get a PTIN) or register with the IRS. Registration entails getting education (CE).  IRS wants to license all tax professionals.  No word yet on foreign tax professionals.  Wonder how Ernst & Young will cope since many of its
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Tax hikes or yikes – Bush tax cuts expire

Bush tax cuts are due to expire end of 2010: Here are the key provisions: 1) Top marginal income tax rate goes from 35% to 39.6% 2) Qualified dividend tax rate goes from 15% to your income tax bracket, which can be has high as 39.6% 3) Long term capital gain tax rate goes from 15 to 20% for most taxpayers. 4) Section 179 depreciation goes from $250,000 to $25,000 5) Estate tax exemption goes
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