Homes sold by estate beneficiary remained subject to federal estate tax liens
First American Title Insurance Co., et al. v. U.S. (CA9 3/27/2008) 101 AFTR 2d ¶ 2008-622
Mike Habib, EA
MyIRSTaxRelief.com
The Court of Appeals for the Ninth Circuit, affirming a district court, has held that title companies couldn’t recover estate taxes that they paid [...]

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IRS Regs clarify Code Sec. 501(c)(3) exempt status and impact of excise taxes
Mike Habib, EA
MyIRSTaxRelief.com
T.D. 9390, 03/27/2008; Reg. § 1.503(c)(3)-1, Reg. § 53.4958-2IRS has issued final regs clarifying the substantive requirements for tax exemption under Code Sec. 501(c)(3) and the relationship between those requirements and the imposition of Code Sec. 4958 excise taxes. The final [...]

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Tax breaks for qualifying relatives are limited – what you should knowInternal Legal Memorandum 200812024
Mike Habib, EAmyIRSTaxRelief.com
An Internal Legal Memorandum (ILM) explains that various tax breaks are not allowed for qualifying relatives. Specifically, the ILM concludes that, apart from a dependency exemption, a taxpayer’s qualifying relative may not qualify him for the [...]

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Tax-exempt hospital’s chairman of the board was liable for trust fund penalty – have a tax professional on your side
Mike Habib, EA
myIRSTaxRelief.com
Stephen Verret v. U.S. (DC TX 2/14/2008) 101 AFTR 2d ¶2008-572
A district court has found that the chairman of the board of a tax-exempt hospital was a responsible person liable for the Code [...]

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IRS Has $1.2 Billion for People Who Have Not Filed a 2004 Tax Return
Mike Habib, EA
MyIRSTaxRelief.com
IRS-2008-46, March 19, 2008
IRS WASHINGTON — Unclaimed refunds totaling approximately $1.2 billion are awaiting about 1.3 million people who failed to file a federal income tax return for 2004, the Internal Revenue Service announced today. However, to collect the [...]

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IRS issues proposed regs reflecting PPA changes and guidance for notice of retroactively effective plan amendments
Mike Habib, EA
myIRS.TaxRelief.com
Prop Reg § 1.411(d)-3(a)(1); Prop Reg § 54.4980F-1, Q&A 8(d); Prop Reg § 54.4980F-1, Q&A 9(f); Prop Reg § 54.4980F-1, Q&A 9(g); Prop Reg § 54.4980F-1, Q&A 11(a)(7); Prop Reg § 54.4980F-1, Q&A 18(a)(4); Prop Reg § 54.4980F-1, [...]

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How falling interest rates and the declining stock market affect tax and estate planning
Mike Habib, EA
myIRSTaxRelief.com
Interest rates have dropped significantly in recent months and may drop even more given the state of the economy. Sagging rates can have a significant impact on many tax and estate planning strategies. Lower interest rates affect the income, [...]

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Did you know that forgiven credit card debt triggered taxable income
Mike Habib, EAmyIRSTaxRelief.com
A new Tax Court case illustrates how a taxpayer generally has taxable income when a credit card company agrees to accept a reduced payment in settlement of his or her account.
Background. A solvent debtor usually realizes income from the discharge [...]

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“Makeup” required minimum distributions salvage lifetime payouts to nonspouse IRA beneficiaryMike Habib, EAmyIRSTaxRelief.comA private letter ruling allows the nonspouse beneficiary of an IRA to salvage lifetime payouts even though she failed an essential rule requiring distributions to begin by the end of the year following the year of the IRA owner’s death. She made up [...]

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If you owe the IRS, you’re better off resolving your tax debt now. As you know, tax problems do not go away by themselves! Stop IRS wage garnishment today, stop IRS bank levy today, and release IRS tax lien today.
As you can see from the statement below by Mr. Douglas H. Shulman, [...]

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What are your chances for being audited? IRS’s 2007 data book provides some clues
Mike Habib, EA
myIRSTaxRelief.comIRS has issued its annual data book, which provides statistical data on its fiscal year (FY) 2007 activities. As this article explains, the data book provides valuable information about how many tax returns IRS examines (audits), and what categories of [...]

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Investors suffered theft loss in connection with company that issued sub-prime loans
Mike Habib, EA
myIRSTaxRelief.comA Chief Counsel Advice (CCA) has concluded that a theft occurred in connection with investors’ losses on loans to a company engaged in writing sub-prime loans. However, it determined that whether and when a theft occurred for any particular investor, and what [...]

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IRS unveils 2008 list of notorious tax scams – the “Dirty Dozen”
Mike Habib, EA
myIRSTaxRelief.com
IRS has recently unveiled its latest list of notorious tax scams, which it calls the “Dirty Dozen,” highlighted by Internet phishing scams and several frivolous tax arguments. New to the “Dirty Dozen” this year is a scheme, which IRS auditors discovered, that [...]

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IRS website provides guidance on S corporation election problems Filing Requirements for Filing Status Change, on IRS website
Mike Habib, EAmyIRSTaxRelief.com
In a recent posting on its website, IRS explains the steps to be taken and forms to be filed by taxpayers requesting to change their filing status from a C Corporation (filing Form 1120) to [...]

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House passes Pension Protection Technical Corrections Act – final action delayed till after recess
Mike Habib, EA
myIRSTaxRelief.com
The House passed the “Pension Protection Technical Corrections Act of 2007” (H.R. 3361) by voice vote on Mar. 12, 2008. The bill would make technical corrections to the Pension Protection Act of 2006 (PPA). The Senate had passed their version [...]

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IRS eases rules for partial annuity exchanges Mike Habib, EAmyIRSTaxRelief.com
In 2003, IRS issued a revenue ruling formally sanctioning partial annuity exchanges as qualifying for tax-free treatment under Code Sec. 1035. At the same time, it issued a notice warning that it would go after taxpayers who use partial exchanges to avoid tax under Code Sec. [...]

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How to compare tax relief and resolution service companies?
Customer…Beware!

How To Keep From Getting Ripped Off?
Many “Tax Negotiation” companies out there will absolutely rip you off. These unscrupulous firms will take your money regardless of whether they can help you or not. They’ll lie to you and tell you they can [...]

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Final regs clarify treatment of loss from abandoned securities
Mike Habib, EAmyIRSTaxRelief.com
IRS has issued final regs that provide guidance on the availability and character of a loss deduction from abandoned securities under Code Sec. 165. The regs, which adopt proposed regs issued in 2007, apply to securities abandoned after Mar. 12, 2008.
Background. If [...]

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Recurring item deduction exception allowed for payroll taxes on bonuses and vacation pay
Mike Habib, EA
myIRSTaxRelief.com
In a Revenue Procedure, IRS has provided a safe harbor accounting method for accrual method taxpayers that incur Federal Insurance Contributions Act (FICA) tax and Federal Unemployment Tax Act (FUTA) tax (i.e., payroll tax) liabilities bonuses and vacation pay, as [...]

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New proposed regs address complex issue – capitalization of tangible assets – Part III Mike Habib, EAmyIRSTaxRelief.com
IRS has issued new comprehensive proposed regs on when amounts are treated as paid to acquire, produce, or improve tangible property. They replace controversial proposed regs that were issued on the same subject in 2006 and that IRS has [...]

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New proposed regs address complex issue—capitalization of tangible assets—Part II
Mike Habib, EAmyIRSTaxRelief.com
IRS has issued new comprehensive proposed regs on when amounts are treated as paid to acquire, produce, or improve tangible property. They replace controversial proposed regs that were issued on the same subject in 2006 and that IRS has now withdrawn. The new proposed [...]

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New guidance for S corporations undergoing F reorganizations
Mike Habib, EAmyIRSTaxRelief.com
A new revenue ruling provides guidance for S corporations that undergo a type F reorganization where the operating S corporation becomes a qualified Subchapter S subsidiary (QSub) of a new holding corporation. It also explains which employer identification number (EIN) each entity is to use and [...]

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New proposed regs address complex issue—capitalization of tangible assetsMike Habib, EAmyIRSTaxRelief.com
IRS has issued new comprehensive proposed regs on when amounts are treated as paid to acquire, produce, or improve tangible property. They replace controversial proposed regs that were issued on the same subject in 2006 and that IRS has now withdrawn. The new proposed regs [...]

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Like-Kind Exchanges Under IRC Code Section 1031
Mike Habib, EAmyIRSTaxRelief.com
Whenever you sell a business or an investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest [...]

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Starting March 2008, casinos and other sponsors of poker tournaments will be required to report most winnings to winners and the Internal Revenue Service, according to the IRS.
Mike Habib, EAmyIRSTaxRelief.com
The new requirement, which went into effect on March 4, 2008, was contained in guidance released Sept. 4 by the Treasury Department and the IRS. The [...]

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Examination and Compliance Check Processes For Exempt Organizations
Mike Habib, EAmyIRSTaxRelief.com
The Internal Revenue Service has a variety of tools at its disposal to make certain that tax-exempt organizations comply with federal law designed to ensure they are entitled to any tax exemption they may claim.
The responsibility for administering these procedures belongs to the Exempt Organizations (EO) [...]

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Help Yourself by Filing Past-Due Tax Returns
Mike Habib, EAmyIRSTaxRelief.com
Most citizens voluntarily file their tax returns and pay their taxes. Most people explain it by saying they want to pay their fair share. Others file to get a refund, claim a credit or avoid breaking the law.
There are times when normally law-abiding citizens fail to file. [...]

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Guidance on timing of PPA-related amendments for calculating plan cash-outs starting in 2008
Mike Habib, EAmyIRSTaxRelief.com
IRS has issued guidance, in question and answer format, that addresses the timing of plan amendments made to comply with Sec. 302 of the Pension Protection Act of 2006 (PPA 2006, P.L. 109-280, Sec. 302), which changed the statutory assumptions that [...]

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IRS explains how to correct a failure to follow retirement plan termsRetirement News for Employers
Mike Habib, EA
In its Retirement News for Employers, IRS has explained how to correct the common retirement plan mistake of failing to follow the plan terms in its operation. IRS clarified when a plan amendment can be used to correct this [...]

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