What are your chances for being audited? IRS’s 2008 data book provides some clues IR 2009-22
Mike Habib, EA Tax Relief & Tax Problem Resolution

IRS has issued its annual data book, which provides statistical data on its fiscal year (FY) 2008 activities. As this article explains, the data book provides valuable information about how many [...]

• Comments Off

TIGTA assesses how well IRS Examination function scrutinizes all open tax periods during audits [Audit Report No. 2009-30-034]:

IRS Examination function employees do not always appropriately inspect and examine prior and/or subsequent year tax returns when warranted, the Treasury Inspector General for Tax Administration (TIGTA) said in a new audit.

Auditors reviewed [...]

• Comments Off

IRS OKs use of one property to engineer a reverse and forward like-kind swap Chief Counsel Advice 200836024

In Chief Counsel Advice (CCA), IRS has given its blessing to the use of one property to engineer both a completed reverse like kind exchange and an attempted forward like kind exchange. The forward exchange was necessary [...]

• 1 Comment

Do you have back tax returns that are Unfiled? Are you missing the records and forms necessary to file your tax returns?
The IRS will not allow you to file an offer in compromise or get an installment agreement if you are not current on filing your back tax returns.
If you have a refund coming to you and you file more than 3 years past the due date, the IRS will keep the refund.

• Comments Off

To disclose or not to disclose, that is the question.
Hiding Income Offshore is not the way to go.
Mike Habib, EA
For years, offshore accounts have been a hot topic in popular culture and for the IRS; most recently Liechtenstein has been mentioned, however the IRS is interested in accounts anywhere in the world that generate income [...]

• Comments Off

If It Seems Too Good to Be True, It Probably Is
Tax Return Preparer Fraud
Mike Habib, EA
Dishonest tax return preparers can cause many problems for taxpayers who fall victim to their schemes. These scam artists make their money in a number of ways including skimming a portion of their clients’ refunds, charging a percentage of [...]

• Comments Off

TIGTA study finds modest audit rate increase for C corps but marked increase for passthroughs ( S Corps)
Trends in Compliance Activities Through Fiscal Year 2007, TIGTA Reference Number 2008–30–095
A recently released TIGTA (Treasury Inspector General for Tax Administration) report reveals that despite a slight uptick in FY 2007, IRS audits of corporations have declined dramatically [...]

• Comments Off

Enhanced tax breaks make it an especially good time to buy business autos Mike Habib, EAmyIRSTaxRelief.com
Thanks to economic woes in general and financial trouble for auto manufacturers in particular, it’s a good time to shop for a new vehicle, if you can afford to do so. Thanks to bonus first year depreciation deductions under the [...]

• Comments Off

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 [...]

• Comments Off

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 [...]

• Comments Off

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) [...]

• Comments Off

Distressed asset trust transactions identified as listed transactions
Mike Habib, EA
In a Notice, the IRS has identified a distressed asset trust (DAT) transaction as a listed transaction under Reg. § 1.6011-4(b)(2), Code Sec. 6111 and Code Sec. 6112. In such a transaction, a tax-indifferent party contributes one or more distressed assets with a high basis and [...]

• Comments Off

Reconstructing Your Records
Mike Habib, EA
Reconstructing records after a disaster may be essential for tax purposes, getting federal assistance or insurance reimbursement. Records that you need to prove your loss may have been damaged or destroyed in a casualty. While it may not be easy, reconstructing your records may be essential for:
* Tax [...]

• Comments Off

Want to stop a wage levy or a bank levy? Read on….
Mike Habib, EA
If you have not noticed, the IRS is getting more aggressive in their collection, and audit activities. Enforcement actions is at its highest level for years now!
Here is the scoop directly from the IRS
Fiscal Year 2007 Enforcement and Services Results
The IRS continues [...]

• Comments Off

Tax Return Preparer Fraud
Since I recently represented an innocent couple who were victims of Tax Return Preparer Fraud, and successfully helped them in their audit, I thought you might be interested in the info below.
Per the IRS:
FS-2008-10, January 2008
Return preparer fraud generally involves the preparation and filing of false income tax returns by preparers who [...]

• Comments Off

IRS targets tool reimbursement plans that recharacterize wagesEmployee Tool & Equipment Alert
on IRS’s website http://www.irs.gov/businesses/article/0,,id=178028,00.html
IRS has established a cross divisional team to address significant concerns with employee tool and equipment plans that purport to be valid accountable plans. Taxpayers that are considering implementing these plans, which are widely marketed to various industries, including the [...]

• Comments Off

S corporations tax challenges by the IRS and other taxing authorities
Tax Advocate’s Report highlights S corporation issues
Despite the fact that Subchapter S corporations are the most common corporate entity (over three million S corporations filing returns in fiscal year 2006), the National Taxpayer Advocate’s 2007 Annual Report notes that IRS is still struggling to develop [...]

• Comments Off

How to handle the IRS at your Front Door? Is a Revenue Officer or a Revenue Agent visiting you soon?
If you find yourself face to face with an IRS Agent (Revenue Officer for collection issues, or Revenue Agent for audit and examination issues), at your front door you must remember to avoid these common mistakes:
[...]

• Comments Off

IRS tax audit and IRS tax problems facing transportation or construction businesses, and other similar industries
IRS SBSE-04-0108-003, 1/14/08

The IRS has reissued interim guidance that provides audit guidelines to its examiners reviewing excess per diem payments. The original guidance expired in November 2007.
The original guidance (IRS SBSE-04-1106-049) affected taxpayers who paid reimbursement allowances to employees for [...]

• Comments Off

IRS tax audit, IRS tax examination, IRS audit reconsideration, IRS appeal
Are you asking yourself … If I have tax problems who should I contact?
Fiscal Year 2007 Enforcement and Service ResultsAs reported in a statement issued by IRS, it has continued to make strong progress in a number of key enforcement areas. IRS enforcement efforts increased [...]

• Comments Off