Category Archives: IRS

1031 Swaps for Vacation Homes

Posted on February 17, 2008 by Russ

The IRS gave the go-ahead to §1031 exchanges for vacation homes. Do note there are significant restrictions. If you own a second home and are considering a §1031 exchange, make sure you follow the restrictions. Joe Kristan has the details … Continue reading →

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Taxing the Virtual World

Posted on February 14, 2008 by Russ

Let’s suppose you’re playing an online role playing game such as Second Life. You’ve accumulated quite a bit of virtual property, and have a stash of virtual money. James Doe offers you $5,000 for your virtual money and virtual property—that’s … Continue reading →

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Strawberry Settles

Posted on February 13, 2008 by Russ

Darryl Strawberry, the former major league baseball player, has been in lots of trouble over his life. He’s battled drugs, cancer, ex-wives, and baseball players. Today he agreed to settle a tax dispute with the IRS. Back in 1995 Darryl … Continue reading →

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The New Standard for Preparers

Posted on February 10, 2008 by Russ

In years past, if I took a position on a tax return it needed “Substantial authority.” That’s equivalent to about a 30% chance of being upheld. Congress changed the law; now in order for me to take a position it … Continue reading →

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If You Lose, Try 66 More Times….

Posted on February 6, 2008 by Russ

There are losing streaks and then there are really long losing streaks. Larry Harvey has not had a good year battling IRS attorney Randall Preheim. Yesterday, as Joe Kristan noted, Mr. Harvey lost his 64th and 65th cases. Today, that … Continue reading →

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Final Thoughts on the Snipes Trial

Posted on February 3, 2008 by Russ

Why was Wesley Snipes found not guilty of tax fraud charges? Was it a repeat of the OJ Simpson case? Is this a huge victory for tax protesters? It’s interesting that both prosecutors and defense attorneys praised the jury in … Continue reading →

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Is the IRS Reading Taxable Talk?

Posted on January 28, 2008 by Russ

It’s not a dumb question. The TaxProf Blog quotes a piece in Tax Analysts that states that the IRS is aware of tax blogs. “The tax press has played an increasingly important role in the IRS’s communications strategy as the … Continue reading →

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EFTPS Passwords Must be Updated

Posted on January 27, 2008 by Russ

If you use the federal EFTPS system to pay your federal taxes you must update your password. EFTPS now requires passwords to be eight to twelve characters long, containing at least one uppercase letter, one lowercase letter, and one number … Continue reading →

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IRS: Audits, Customer Satisfaction Up

Posted on January 22, 2008 by Russ

The IRS released the statistics on the most recent tax season last week. The good: customer satisfaction with the IRS toll-free telephone line (for answering tax questions) has risen to 94%. Do note that there is still a significant chance … Continue reading →

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IRS Releases a Not-So Frivolous Announcement

Posted on January 14, 2008 by Russ

Every year the IRS releases a list of positions that will be considered frivolous under Section 6702 of the Internal Revenue Code. Today, the IRS issued Notice 2008-14. There are some new positions that will be considered frivolous: (9)g. The … Continue reading →

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