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Dealing with unpaid taxes and the IRS bureaucracy can be challenging. Sometimes the key is to get in front of the right person at the IRS. But the IRS often refuses in-person meetings. The Roberts v. Commissioner, T.C. Memo. 2019-117, case provides an example of this. It involves the taxpayers request for an in-person collection……
Tax Articles
Bad Debt Deduction for Real Estate Lender for Non-Real Estate Loan
If a taxpayer regularly makes real estate loans from their personal accounts, they would be entitled to a bad debt deduction for loans that are not repaid. But what if they venture beyond real estate loans and make a single… Read More The post Bad Debt Deduction for Real Estate Lender for Non-Real Estate Loan appeared…
Setting Off a Non-Tax Debt Owed by the IRS
If you owe back taxes but the Federal government owes you for some other matter, can the IRS offset the unpaid taxes with the amount the government owes you? The answer is more complex than one would think. The court addresses this in Tartt v. Commissioner, T.C. Memo. 2019-112. Facts & Procedural History The taxpayer……
Court Addresses Tax Losses from Short-Term Rentals
Short-term rental properties are more popular than ever. Online services like Airbnb have made this possible. But how are tax losses from short-term rentals handled? Can the taxpayer use the rental losses to offset their non-rental income for tax purposes?… Read More The post Court Addresses Tax Losses from Short-Term Rentals appeared first on Houston Tax…
What is a Genuine Opportunity to Dispute a Tax Liability?
Taxpayers are able to dispute a tax liability before the IRS can take certain collection actions. But what if the IRS does not afford the taxpayer with a genuine opportunity to dispute the liability as required by law? The court addresses this in Dood v. Commissioner, T.C. Memo. 2019-107. Facts & Procedural History The taxpayer……
The Importance of Accounting for C Corporation Expenses
It is important to keep accurate books and records. Accurate books and records can result in significant tax savings. This is particularly true for entrepreneurs who own more than one business. When one or more of these businesses are taxed… Read More The post The Importance of Accounting for C Corporation Expenses appeared first on Houston…
Does the IRS Have the Burden to Prove Constructive Dividends?
When a C corporation pays expenses for its shareholder, the payment can be subject to income tax for the shareholder as a constructive dividend. One defense is that the expenses for the C corporation were legitimate. Does the taxpayer have… Read More The post Does the IRS Have the Burden to Prove Constructive Dividends? appeared first…
Is a Taxpayer Liable for Interest if the IRS Delays an Audit?
Can the IRS fail to audit a taxpayer for several years and then, once it actually opens the audit, drag its feet for years and then charge the taxpayer interest retroactively back to the date the tax return was filed?… Read More The post Is a Taxpayer Liable for Interest if the IRS Delays an Audit?…
IRS Tax Debts from Retirement Account Distributions
Retirement account distributions typically trigger sizable tax liabilities. These liabilities often go unpaid, which results in unpaid tax debts and IRS collection enforcement actions. With careful planning, sometimes these taxes can be avoided. Tax on Retirement Account Distributions Most distributions from retirement accounts trigger income taxes. This includes distributions from IRAs and 401(k)s. The idea……
Reasonable Cause: Proving Reliance on a Tax Advisor
If you hire a competent tax advisor and end up having a late filed return, you may be able to avoid penalties for the late filing. But this is a defense. It is something that you, the taxpayer, have to… Read More The post Reasonable Cause: Proving Reliance on a Tax Advisor appeared first on Houston…
