On December 16, 2014, Congress passed what is known as an extenders package including more than 50 of the tax credits that expired at the end of 2013. President Obama has signed the Act on December 19, 2014 and it is effective for the 2014 tax year only. Some of the most prominent tax credits are: state and local sales tax deduction, higher education tuition deduction, and the exclusion for discharge of mortgage debt, business and
Continue Reading
Archives for Audit
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
Continue Reading
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
Continue Reading