Category Archives: IRS

The IRS Give Single Member S Corps a Lump of Coal

Posted on May 30, 2006 by Russ

The IRS announced today a “clarification” of the rules for self-employed health insurance deductions for S Corporations. This is bad news overall, and especially bad news for California S Corporations. The self-employed health insurance deduction allows sole proprietorships, partnerships, LLCs … Continue reading →

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The Spanish-American War Officially Ends!

Posted on May 25, 2006 by Russ

And you thought that the Treaty of Paris (signed on December 10, 1898) ended the Spanish-American War. No! It ended today, May 25, 2006, when the Department of the Treasury announced that they will no longer fight for enforcement of … Continue reading →

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The 2% Solution

Posted on May 1, 2006 by Russ

Today the Tax Court looked at an ambiguous section of the Tax Code. Suppose an S Corporation is owed a refund, with interest. What interest rate should be used? The general “corporate overpayment” rate, the “large corporation” overpayment rate, or … Continue reading →

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How Big Is the Tax Gap?

Posted on April 26, 2006 by Russ

The “Tax Gap” is difference between the amount of tax that the IRS should collect if everyone followed the law and the amount that it actually collects. There are three components of the gap: nonfiling, under-reporting, and underpayment. Of course, … Continue reading →

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T-Day

Posted on April 17, 2006 by Russ

Today is the deadline. You have until midnight tonight to file your taxes. The question were asked every year (usually around 9pm) is, “We just realized that we need to file our taxes…What do we do?” The answer is to … Continue reading →

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PayPal Users Better Watch Out

Posted on April 12, 2006 by Russ

The digital age has spawned numerous successful companies and industries. One industry that did not exist ten years ago is online auctions, such as those on eBay. A company that sprung up to facilitate payment transfers for eBay is PayPal. … Continue reading →

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One Week To T-Day

Posted on April 9, 2006 by Russ

Tax Day is Monday, April 17th…except for some municipal taxes in Ohio that are still due on April 15th. So, at this late date, what can you do to lower your taxes? 1. Make a contribution to an IRA, if … Continue reading →

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Swearing at the Court Isn’t a Great Idea

Posted on April 5, 2006 by Russ

The IRS puts two liens against you. You fight the case, filing a lawsuit against the Commissioner of the IRS, claiming $4.5 million in damages for slander of title, inconvenience, aggravation, and generally annoying behavior. But you lose in District … Continue reading →

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I Wish the IRS Would Look At….

Posted on March 24, 2006 by Russ

Have you ever thought of an area where you’d like to see the IRS issue guidance? Now is your chance to send the IRS cogent tax items that need clarification. Today the IRS issued Notice 2006-36 requesting recommendations for the … Continue reading →

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Shades of Wetsern Tax Service

Posted on March 17, 2006 by Russ

Out of the news and into my email inbox this afternoon comes word that a Bell Buckle, TN woman and a Florida couple have been charged with preparing tax returns with phony deductions, causing unwarrented refunds to taxpayers in the … Continue reading →

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