Category Archives: IRS

Bozo Tax Tip #1: The Eternal Hobby Loss

Posted on April 14, 2014 by Russ

The goal of must businesses is to make money. There aren’t many businesses that can lose on each sale and make it up in volume. In fact, I don’t know of any. But I digress…. So let’s take Sam and … Continue reading →

Posted in IRS, Taxable Talk | Tagged , | 1 Comment

IRS: Bitcoins Are Property

Posted on March 25, 2014 by Russ

The IRS finally released guidance on Bitcoins and other virtual currency today. The IRS’s notice states that Bitcoins should be treated as property. What does this mean? 1. Bitcoins held as investments are generally treated under capital gain rules. If … Continue reading →

Posted in Cryptocurrencies, IRS | Tagged | Comments Off on IRS: Bitcoins Are Property

IRS Releases New Forms W-8BEN and W-8ECI

Posted on March 19, 2014 by Russ

The IRS released a new version of Form W-8BEN. The new version should be used by an individual responding to a withholding request from the US. It’s commonly used to note tax treaty benefits. There is a disclaimer on the … Continue reading →

Posted in International, IRS | 1 Comment

The Other March 17th Deadline: Form 1042s

Posted on March 16, 2014 by Russ

There’s another tax deadline today: Form 1042s. The form 1042 series (1042, 1042-S, and 1042-T) is used to report annual withholding for US-source income of foreigners. Again, this is a postmark deadline (for paper-filed returns). There is no extra time … Continue reading →

Posted in IRS | Tagged | 1 Comment

Corporate Tax Deadline Is Here

Posted on March 16, 2014 by Russ

March 15th is the deadline to file calendar year corporate tax returns (Forms 1120 and 1120S). Because that fell on a Saturday, Monday, March 17th is the deadline. If you’re not ready to file, file an extension. Download Form 7004 … Continue reading →

Posted in IRS | Tagged | Comments Off on Corporate Tax Deadline Is Here

The IRS Needs Volunteers for the Taxpayer Advocacy Panel

Posted on March 12, 2014 by Russ

The IRS is looking for a few good men and women. The IRS is looking for volunteers to serve on the Taxpayer Advocacy Panel (TAP), a federal advisory committee that listens to taxpayers, and help identify concerns and make recommendations … Continue reading →

Posted in IRS | Tagged | 1 Comment

Your Check Might Not be in the Mail

Posted on March 6, 2014 by Russ

I used to live in Orange County, California. Earlier this week a US Postal Service caught fire as it was heading toward an airport after leaving the Santa Ana mail sorting center. So if you mailed something on Monday, March … Continue reading →

Posted in California, IRS | Tagged | 1 Comment

Deadlines for Us, but Not for Them

Posted on March 4, 2014 by Russ

I was on the phone today with the IRS about a client. Back in October he received an IRS notice regarding his 2012 return. We believed the IRS notice was incorrect. With this particular notice the only option was to … Continue reading →

Posted in IRS | 3 Comments

The Fun With the Two-Month Automatic Extension Continues

Posted on February 20, 2014 by Russ

I’ve been having issues with clients who take the automatic two-month extension. As I learned years ago, a taxpayer outside of the United States on April 15th gets two extra months to file his return. This is noted in Treasury … Continue reading →

Posted in IRS | Tagged | Comments Off on The Fun With the Two-Month Automatic Extension Continues

DC Court of Appeals Rules Against IRS: Loving Decision Upheld

Posted on February 11, 2014 by Russ

This morning the US Court of Appeals for the District of Columbia unanimously upheld the district court’s decision in Loving v. IRS. This means that the IRS’s goal of mandating licensing for all tax professionals is dead. At some future … Continue reading →

Posted in IRS | Tagged | 1 Comment