No More Tax Problems in 2009

Mike Habib, EA

Here is a New Year resolution you can’t afford to ignore… No more tax problems!! Yes, you can get rid of your tax problems in 2009.

You can solve your tax problems and get tax relief through our tax resolution services. You can finally get a [...]

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Capital contributions did not restore or increase shareholders’ tax bases in loans to S corporations Nathel, (2008) 131 TC No. 17
Mike Habib, EA
The Tax Court has held that taxpayers’ capital contributions to S corporations did not constitute income to the S corporations and that the contributions did not restore or increase their tax [...]

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Timely reminder for small businesses to steer clear of trouble on payroll tax and retirement plan contributions IRS Employee Plan News (Fall 2008)

In these trying times, with cash scarce and credit hard to find, a small business might be tempted to “temporarily” use money it deducts for taxes and retirement plan contributions from [...]

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Once is enough as far as collection of the trust fund recovery penalty is concerned Chief Counsel Advice 200838027

The IRS has issued a new Chief Counsel Advice (CCA) on the trust fund recovery penalty. The IRS notes that the CCA may not be used or cited as precedent.
IRC §6672, imposes a penalty on [...]

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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.

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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 [...]

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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 [...]

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Yes, we are all fed up with the cost of fuel.
No, I’m sorry to report, not everyone is eligible for the fuel tax credit.
Fuel Tax Credit Scams
Mike Habib, EA
The IRS has recently added fraud involving the fuel tax credit to the list of frivolous tax claims being put forth by individuals and businesses. The [...]

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Beneficial owners can deduct home mortgage interest and taxes

The Tax Court held that taxpayers were entitled to deduct mortgage interest and real estate taxes they paid on property owned by their son, because they were the beneficial owners of the property.
The taxpayers resided at the property for all of 2003. During that [...]

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IRS official pledges improved collection of billions in unpaid payroll taxes from businesses
WASHINGTON (AP) — A top IRS official promised Congress Tuesday that the agency “will do better” in collecting billions in taxes that businesses supposedly withheld from employees’ paychecks but never remitted to the government.
Linda Stiff, a deputy Internal Revenue Service commissioner, agreed [...]

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Doctors get socked with big tax and penalties for donations tied to consolidation of their practice

Berquistist and Kendrick, et al., (2008) 131 TC No. 2

Mike Habib, EA

The Tax Court has determined that doctors grossly overvalued charitable donations of stock in their medical professional service corporation (PSC) that arose in connection with a consolidation of [...]

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Estate and Gift Tax Relief - Joint Committee Staff examines options for reforming transfer taxes Mike Habib, EAMyIRSTaxRelief.com
The Staff of the Joint Committee on Taxation has released JCX-23-08, Taxation Of Wealth Transfers Within A Family: A Discussion Of Selected Areas For Possible Reform. This document, which was prepared in conjunction with an Apr. 3, 2008 [...]

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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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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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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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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 [...]

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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 [...]

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IRS gets tougher on variable prepaid forward contracts with share lending arrangements Variable Prepaid Forward Contracts Incorporating Share Lending Arrangements
An IRS coordinated issue paper for all industries concludes that variable prepaid forward contract (VPFC) transactions that incorporate a share lending or similar agreement permitting the counterparty to borrow or dispose of the pledged shares [...]

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IRS tax problem, IRS penalty, IRS Tax court ruling in favor of taxpayer
Tax Court found that it could hear challenge to frivolous return penalty before rejecting summary judgment in favor of IRS
Callahan (2008), 130 TC No. 3
After determining that the taxpayers could challenge a frivolous return penalty before it, the Tax Court went on to [...]

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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 [...]

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Music composer tax related capital gain treatment
IRS Temp reg describes how and when to elect capital gain treatment for self-created musical works
T.D. 9379, 02/07/2008, Reg. § 1.1221-3T; Preamble to Prop Reg 02/07/2008, Prop Reg § 1.1221-3
IRS has issued a temporary reg on the time and manner for making an election under Code Sec. 1221(b)(3) to [...]

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Employment tax penalty abatement, Payroll tax problem, Abate tax penaltyCourt says bank error (not employee error) may be reasonable cause to abate employment tax assessment
Mike Habib, EA
Don Johnson Motors, Inc. v. U.S., DC TX, 101 AFTR 2d 2008-370, Civil Action No. B-06-047, 12/21/07
Employment tax problem? Get representation today!
A Texas U.S. district court has ruled that [...]

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IRS Tax Penalties, type of IRS tax penalties, options to address your IRS tax penalty and more…

The IRS has over 148 different types of penalties. And boy do they love to hand them out. The worst part is that the IRS also charges interest and additional penalties on the original penalty.

So you must try [...]

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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 [...]

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I thought you might find this list of tax provisionsexpiring 12/31/07 helpful as you do year-end taxplanning.
TAX PROVISIONS EXPIRING 12/31/07
* Deduction of up to $2,000 or $4,000 (depending on income) for college tuition.
* Option to deduct state and local sales tax instead of state income tax.
* Election to include combat pay as earned income for [...]

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