IRS Audits

Anatomy of an IRS Audit As a taxpayer representative and preparer, I’ve recently finished up 3 interesting audit cases with the IRS and would like to share how they went: 1st Case: A client of mine was selected for an IRS audit due to a large partnership loss from a K1 that he invested in.  The IRS is currently auditing partnership losses especially for passive activity limitations.  Only issue is that partnership losses in this case
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Obamacare New Taxes 1/1/14

Obamacare Taxes 3% Tax on Medical Device Manufacturers 2014 10% Tax on Indoor Tanning Services 2014 Blue Cross/Blue Shield Tax Hike Excise Tax on Charitable Hospitals which fail to comply with the requirements of ObamaCare Tax on Brand Name Drugs Tax on Health Insurers $500,000 Annual Executive Compensation Limit for Health Insurance Executives Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D Employer Mandate on business with over
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IRS debt – Ways to consolidate your back taxes

People who have dealt with the Internal Revenue Service (IRS) before know how much of a herculean task it is come out of their grip unscathed. This federal tax collection body is entrusted as the guardian of the nation’s tax code. However, if the ground realities are to be considered, then people are bound to face financial crisis at any moment that may force them stop making tax payments and spend those money on more
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Tax Planning 2012 and Beyond

Starting in 2010, tax planning has been exceedingly difficult.  The Bush tax cuts were extended till 1/1/2013 – 2011 & 2012 tax years.  After 2012, tax rules revert to pre Bush tax cut days. Here is a list of tax cuts expiring: Top marginal income tax rate will increase from 35% to 39.6%, a 4.6% increase.  This tax bracket hits taxpayers the following way:  Single, Married Joint, Head of Household brackets – Over $388,350;  Married
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Patient Protection and Affordable Care Act (PPACA)

Patiently waiting, the PPACA has now passed muster with the Supreme Court.  Only 2 provisions were changed. The provision on penalty for PPACA for the individual mandate (all individuals must have health insurance) is now called a “tax” under Congress’s power to levy taxes.  Also states that opt out of Medicaid provisions, may not be mandated to follow-thru on the mandated Medicaid rules.  In essence, if these states don’t want to burden of administering the
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2011 Year End Tax Planning

This first article is entitles Part I because of uncertainty regarding some key developments that may or may not pass: Obama’s payroll tax cut extension and the Republican counterweight, odds are both are dead in the water and some pieces of it may pass possibly by year end. Longer term tax planning is especially challenging this year because of uncertainty over whether Congress will enact sweeping tax reform that could have a major impact in
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R&D tax credit cases – favorable

Multiple court cases settled in 2009 are likely to affect IRS examinations of prior- and future-year claims. The good news is that the rulings in these cases were favorable to taxpayers and sought to clear up long-standing issues regarding credit qualification and documentation. The following are brief comments about significant rulings:
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Obama Potential Tax Hikes after 2012

Five Types of Obama Tax Hikes President Obama’s unnecessary tax hikes break down into five categories: 1. Repeal of the 2001 and 2003 Tax Cuts for Upper-Income Families. President Obama reached an agreement with Congress in late 2010 to extend all 2001 and 2003 tax cuts for two more years, through 2012. After praising that agreement immediately after its passage, the President changed quickly back to his long-held preference of allowing those tax cuts to
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Obama Tax Compromise through 2012

The tax compromise extending Bush-era tax cuts has now been signed into law. It has cleared up some uncertainty concerning tax rates and deductions that made tax planning problematic for both this year and next. At the least, we hope the compromise brings certainty through 2012. The following main points summarize the compromise:
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