Category Archives: IRS

Can You Spin Garbage Into Gold?

Posted on August 18, 2018 by Russ

I guess I’ll spoil the post: Rumpelstiltskin could spin straw into gold. Rumpelstiltskin, Inc. thought it could do the same for garbage, spinning it into tax credits. The Commissioner of the Internal Revenue Service disagreed. So did the Tax Court. … Continue reading →

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Return to Sender

Posted on July 24, 2018 by Russ

A client was selected for a correspondence audit; the IRS asked the client to submit all the documentation regarding a tax credit taken on a recent return. The client had all the documentation, made his photocopies, and mailed off the … Continue reading →

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The Amazing, Incredible, Expanding Postcard!

Posted on June 29, 2018 by Russ

When I was a child, people used postcards to save on postage. Postage for postcards ran a nickel. That was less than a phone call. Today, with the emergence of cellphones, the only postcards I receive are advertisements. But the … Continue reading →

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IRS Interest Rates Unchanged for the Third Quarter of 2018

Posted on June 9, 2018 by Russ

The IRS announced yesterday that IRS interest rates will be unchanged for the third quarter of 2018: The rates will be: – 5 percent for overpayments, 4 percent in the case of a corporation; – 2.5 percent for the portion … Continue reading →

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IRS Offers Penalty and Filing Relief on New Transaction Tax on Foreign Earnings

Posted on June 4, 2018 by Russ

Individuals who own foreign entities typically have complex returns. I prepare returns for three such individuals; they’re all on extension. Yet one item needed to be prepared for these individuals by April 18th: the new Section 965 transition tax. One … Continue reading →

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Back to the Old Drawing Board

Posted on May 23, 2018 by Russ

I’ve written before about certain states’ efforts to get around the new $10,000 cap on state and local taxes that can be deducted on federal tax returns. The IRS announced today they will be proposing regulations later this year on … Continue reading →

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Tax Deadline Extended One Day for IRS Purposes

Posted on April 17, 2018 by Russ

The IRS announced late today that due to the computer issues with IRS Direct Pay and the IRS e-filing systems, that individuals and businesses with a tax deadline of today (April 17th) have an extra day, until midnight, April 18th. … Continue reading →

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IRS Direct Pay Down

Posted on April 17, 2018 by Russ

It’s not as if today is a big day, right? IRS Direct Pay is down. This is not impacting most tax professionals efiling and initiating direct debit (the information is being sent to our software providers), but it is causing … Continue reading →

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Bozo Tax Tip #4: Procrastinate!

Posted on April 10, 2018 by Russ

Today is April 10th. The tax deadline is just seven days away. What happens if you wake up and it’s April 17, 2018, and you can’t file your tax? File an extension. Download Form 4868, make an estimate of what … Continue reading →

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Bozo Tax Tip #6: The $0.49 Solution

Posted on April 6, 2018 by Russ

With Tax Day fast approaching it’s time to examine yet another Bozo method of courting disaster. And it doesn’t, on the surface, seem to be a Bozo method. After all, this organization has the motto, Neither rain nor snow nor … Continue reading →

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