According to the CCH news article, "House, Senate Reach Accord on FY10 Budget," House and Senate leaders agreed on Apr. 27 on a fiscal year (FY) 2009-2010 budget resolution. The resolution includes a $764 billion provision in tax cuts over...
Continue reading "CCH Tax News: House, Senate Reach Accord on FY10 Budget"
According to the CCH Tax News article, "IRS Reminds Plug-In Vehicle Purchasers of Available Tax Credits (IR-2009-45)" individuals who purchase vehicles with certain types of rechargeable batteries may be eligible for one or two tax credits. Posted by Monique Moreira, Chief Managing...
According to the CCH Tax News article, "IRS Denial of Equitable Innocent Spouse Relief Reviewed Under De Novo Standard" published on April 24, 2009, "In a decision reviewed by the court, the Tax Court held that an individual who appealed the IRS'...
Revenue Ruling 2009-26 provides guidance under § 1211 of the American Recovery and Reinvestment Tax Act of 2009 on how a taxpayer that is an eligible small business makes an election to carry back a net operating loss (NOL) for...
Notice 2009-41 provides procedures that manufacturers may follow to certify property as qualified residential energy efficient property under § 25D of the Internal Revenue Code, as well as guidance regarding the conditions under which taxpayers seeking to claim the §...
Continue reading "Notice-2009-41: Credit for Residential Energy Efficient Property"
Revenue Ruling 2009-12 provides the various prescribed rates for May 2009 federal income tax purposes.Posted by Min Young Choi, Associate Editor, Wealth Strategies Journal....
Continue reading "Revenue Ruling 2009-12: Applicable Federal Interest Rates for May"
According to Tax Tip 2009-3, individuals who buy a new car or several other types of motor vehicles this year may be entitled to a special tax deduction when they file their 2009 federal tax returns next year. The tax...
According to the CCH Tax News article, "IRS Awards Grants for Low Income Taxpayer Clinics (IR-2009-43)." published on April 22, 2009, "Almost $9.5 million in matching grants were awarded by the IRS to nonprofit organizations and academic institutions that qualify as Low...
Continue reading "CCH Tax News: IRS Awards Grants for Low Income Taxpayer Clinics (IR-2009-43)"
Taxpayers who buy a new car or several other types of motor vehicles this year may be entitled to a special tax deduction when they file their 2009 federal tax returns next year. The tax break is part of the...
Continue reading "Seven Facts about the New Sales Tax Deduction for Vehicle Purchases"
Notice 2009-27 provides guidance relating to premium assistance for COBRA continuation coverage. Section 3001 of ARA provides for a 65 percent reduction in premium otherwise payable by certain involuntarily terminated individuals and their families who elect COBRA continuation under the...
Continue reading "Notice 2009-27: Premium assistance for COBRA benefits"
According to, IR-2009-31, the number of visitors to IRS.gov is up more than 24 percent since last year, indicating that taxpayers a relying more heavily on the IRS online resource to get the answers to their questions:More than 138 million...
Tax Notes has released the preliminary estimates of the current-law distribution of gross estate and net estate tax by size of gross estate for 2011. See Tax Policy Center, "TPC Releases Estatimates on Distribution of Gross Estate, Net Estate," 66...
Continue reading "TNT Reports: TPC Releases Estimates on Distribution of Gross Estate, Estate"
Tax Tip 2009-73 provide information if you've already filed your tax returns but still have some questions: Refund Information You can go online to check the status of your 2008 refund 72 hours after IRS acknowledges receipt of your e-filed...
Continue reading "Tax Tip 2009-73: What Happens After I File?"
Tax Tip 2009-72 give tips and advice on how not panic if you receive a letter from the IRS that is not a refund check:Each year, the IRS sends millions of letters and notices to taxpayers to request payment of...
Continue reading "Tax Tip-2009-72: What to do if You Receive an IRS Notice "
According to an ILM 200915035, the IRS ruled that the signing of a Form 2751-AD by an IRS appeals team manager is not considered final administrative determination sufficient to start running the statute of limitations for assessment under section 6672...
The US Patent and Trademark Office published a patent application for the system and method for maximizing after-tax income using split method charitable remainder trusts with varying investment strategies. Posted by Min Young Choi, Associate Editor, Wealth Strategies Journal....
Continue reading "Patent Application for Charitable Remainder Trust Investment System Published"
Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of Estate of Jorgensen, T.C. Memo 2009-66.Section 2036 Applied to Creation of FLPs; Equitable Recoupment Allowed to Adjust for Prior Income Tax Overpayments in Light of Increase in Basis...
Continue reading "Steve Akers' Summary of Estate of Jorgensen, TC Memo 2009-66"
The Tax Policy Center released estimates for the next decade of numbers of estate tax returns and liability under current law and various reform proposals. Estimates of current law distribution of the estate tax for 2009 were released as well.Posted...
Continue reading "Tax Policy Center Examines Distribution of Estate Tax"
Republican Senator of Alaska Lisa Murkowski introduced S. 798, a bill to permanently extend existing elective tax treatment for Alaska Native Settlement Trusts.Posted by Min Young Choi, Associate Editor, Wealth Strategies Journal....
Tax Tip 2009-57 provides information for those who want to deduct charitable deductions:When preparing to file your federal tax return, don't forget your contributions to charitable organizations. Your donations could add up to a sizeable tax deduction if you itemize...
Continue reading "TAX TIP 2009-57: Ten Tips for Deducting Charitable Contributions"
Tax Tip 2009-58 provides tips for bartering:Bartering is the trading of one product or service for another. Usually there is no exchange of cash. Barter may take place on an informal one-on-one basis between individuals and businesses, or it can...
Tax Tip 2009-28 provides tips on what you can do if you have lost your W-2: Contact your employer. If you have not received your Form W-2, contact your employer to inquire if and when the W-2 was mailed. If...
Continue reading "IRS Tax Tip 2009-28: What to Do If You Are Missing a W-2"
In PLR 200915017, the IRS ruled that income from a trust providing health and welfare benefits to retired state employees is excludable from gross income under section 115. In addition, the IRS ruled that contributions to the trust will be...
Continue reading "PLR 200915017: Trust Income Exempt as Exercise of Essential Government Function"
In PLR 200915016, the IRS ruled that income and a trust providing health and welfare benefits to retired state employees is excludable from gross income under section 115. The IRS also ruled that contributions to the trust will be excludable...
Continue reading "PLR 200915016: Trust Income Exempt as Exercise of Essential Government Function"
According to, IR-2009-32, it has been announced that victims of severe flooding in Minnesota and North Dakota have an extra 30 days, until May 15, to file their 2008 individual tax returns and pay any taxes due. Because the flooding...
According to, IR-2009-34, it has been announced that the IRS is requesting membership nominations for the Information Reporting Program Advisory Committee by May 29, 2009.Established in 1991, IRPAC provides recommendations to IRS leadership on a wide range of information reporting...
According to, IR-2009-35, the IRS has announced that an enrolled agent, Richard Hargus, was suspended for not performing services related to offers in compromise paid for by taxpayers.Multiple taxpayers paid the companies for Hargus to resolve their income tax liabilities...
In PLR 200915015, the IRS ruled that income from a trust providing health and welfare benefits to retired state employees is excludable from gross income under section 115. In addition, the IRS ruled that contributions to the trust will be...
Continue reading "PLR 200915015: Trust Income Exempt as Exercise of Essential Government Function"
According to, IR-2009-36, announced that people who need extensions should file them immediately. This year, anyone, regardless of income, can e-file their extensions at no cost from a home computer using IRS traditional FreeFile or F reeFile Fillable Forms. E-filing...
According to, IR-2009-37, it has been announced that credit or debit card convenience fees charged for paying federal individual income taxes may be electronically are deductible for some taxpayers who itemize.Federal law bars the IRS from paying any fees associated...
Continue reading " IR-2009-037: Credit and Debit Card Fees Related to Tax Payment are Deductible"
Revenue Procedure 2009-24 is provides information for people planning on filing returns and claims for refunds, credits or abatements. Posted by Monique Moreira, Chief Managing Associate Editor....
According to, IR-2009-39, tax payers should file and pay their taxes by the April 15th deadlines so that a payment plan can be set up. Filing and Paying on Time Saves Money The IRS cautioned that there is a failure-to-file...
Continue reading "IR-2009-039: IRS Offers Tax Payment Options"
Tax Tip 2009-69 provides tips for filing extensions when you need some more time to file your taxes:An extension will give you extra time to get your paperwork to the IRS, but it does not extend the time you have...
Tax Tip 2009-68 provides some tips about the different options you have to pay your taxes:Additional Time to Pay Based on your circumstances, you may be granted a short additional time to pay your tax in full. The IRS...
According to a survey in an April report by the Tax Foundation, a majority of taxpayers consider federal income taxes too high and the tax code to be complex and in need of major changes. Posted by Min Young Choi, Associate Editor, Wealth Strategies...
Continue reading "Tax Foundation Survey Shows Majority of Americans Consider Taxes Too High"
The Tax Policy Center released preliminary estimates of the current-law distribution of gross estate and net estate tax by size of gross estate for 2011. The estimates are also available in pdf and Microsoft excel formats. Posted by Min Young Choi, Associate...
Tax Tip 2009-45 provides information for those who can possibly receive a tax credit:With the Child Tax Credit, you may be able to reduce the federal income tax you owe by up to $1,000 for each qualifying child under the...
Continue reading "Tax Tip 2009-45: Can you Claim the Child Tax Credit"
Tax Tip 2009-44 provides information for those who's mortgage debt is partly or entirely forgiven during the 2007-2012 tax years:Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able...
Continue reading "Tax Tip 2009-44: Mortgage Debt Forgiveness"
Tax Tip 2009-43 provides some tax credits to consider prior to filing your taxes:1. The Earned Income Tax Credit is a refundable credit for low-income working individuals and families. Income and family size determine the amount of the credit. For more...
Continue reading "Tax Tip 2009-43: Five Important Tax Credits"
Tax Tip 2009-42 provides information about where you can find free tax help:Need help filing your tax return? If so, then you should look into the free, IRS-sponsored, volunteer tax return preparation programs. Trained community volunteers can help eligible taxpayers...
Continue reading "Tax Tip 2009-42: How to Find Free Tax Services"
Tax Tip 2009-40 provides information for those who are part of the military: If you or your spouse are a member of the military, you may be eligible to receive free tax return preparation assistance. The U.S. Armed Forces participates...
Continue reading "Tax Tip 2009-40: Free Tax Assistance for Members of the Military "
The following chart is provided courtesy of Robert S. Keebler, CPA, MST, DEP.Disadvantages of Safe Harbor1. Removing phantom income from higher tax brackets may be advantageous2. Claim of right or mitigation for closed years3. State tax issues may affect the...
An amendment introduced by Senate Assistant Majority Leader Richard Durbin (Democrat, Illinois) to the fiscal 2010 budget resolution would provide that any estate tax relief beyond that included in the budget resolution must be paired with equitable tax relief for...
Continue reading "Durbin Amendment Would Match Future Estate Tax Relief with Wider Tax Relief"
According to partially redacted e-mailed advice, the IRS determined that in a TETRA proceeding in which both a trust and its beneficiaries are potentially taxable, two Forms 872-I, "Consent to Extend the Time to Assess Tax as Well as Tax...
According to partially redacted e-mailed advice, the IRS has addressed whether a trust or its beneficiaries would be taxed on partnership items flowing through an S corporation owned by the trust when the S corporation is a partner in the...
Continue reading "IRS Addresses Taxation of Trust Partnership Items"
In PLR 200914010, the IRS ruled that the income from a trust providing health and welfare benefits to retired state employees is excludable from gross income under section 115 and that contributions to the trust will be excludable from the...
In PLR 200914009, the IRS ruled that the income from a trust providing health and welfare benefits to retired state employees is excludable from gross income under section 115 and that contributions to the trust will be excludable from the...
Continue reading "PLR 200914009: Trust Income Exempt as Exercise of Essential Government Function"
Revenue Procedure 2009-22 is provided to individuals who fail to meet the eligibility requirements of section 911(d)(1) of the Internal Revenue Code because adverse conditions in a foreign country preclude the individuals from meeting those requirements. A current list of...
According to, IR-2009-30, the Internal Revenue Service has announced that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns...
Continue reading "IR-2009-30: Special Tax Break Available for New Car Purchases This Year"
In an April 2 news release, House Budget Committee Chair John M. Spratt Jr. (Democrat, South Carolina) praised the passage of the fiscal 2010 House budget resolution. According to the release, the resolution extends middle-class income tax cuts adopted in...
The fiscal 2010 budget passed the Senate late April 2, sending the resolution to a conference committee. The debated Lincoln-Kyl estate tax amendment was passed narrowly. Other tax-related amendments regarding charitable deductions and small business taxation were adopted as well.Posted...
In a Center on Budget and Policy Priorities report dated April 2, authors Chuck Marr and Jason Levitis deemed the Lincoln-Kyl estate tax amendment both "unnecessary and unaffordable." According to the report, the estate tax amendment proposed in the Senate...
Continue reading "CBPP Report Calls Estate Tax Amendment "Fiscally Irresponsible""
Tax Tip 2009-65 provides tips for individuals who wish to appeal results of an examination of their tax returns: When the IRS makes an adjustment to your tax return, they will send you a report or a letter explaining the...
Continue reading "Tax Tip 2009-65: Six Important Facts about Your Appeal Rights"
Tax Tip 2009-64 provides tips for dealing with the Taxpayer Advocate Service: The Taxpayer Advocate Service is your voice at the IRS. You may be eligible for TAS help if you've tried to resolve your tax problem through normal IRS...
Continue reading "Tax Tip-2009-64: Seven Things to Know About the Taxpayer Advocate Service"
Tax Tip 2009-63 provides tips to reduce errors on your tax returns and ensure that you'll get your return on time: Recovery Rebate Credit - Many returns filed in 2009 have errors involving the Recovery Rebate Credit, a credit for...
Continue reading "Tax Tip 2009-63: Nine Common Errors Made on Tax Returns"
Jason Calacanis, a prominent tech entrepreneur and founder and CEO of Mahalo.com, maintains an email list in lieu of a blog, which you can sign up for at http://www.tinyurl.com/jasonslistOn Friday, Mr. Calacanis sent out an email captioned "How to hire--and...
Continue reading "How to hire--and get hired--in a recession"
Tax Tip 2009-59 provides tips for individuals and businesses on what they can do to be prepared for a disaster: 1. Recordkeeping Take advantage of paperless recordkeeping for financial and tax records. Many people receive bank statements and documents by...
Continue reading "Tax Tip 2009-59: IRS Tips on Preparing for a Disaster"
Tax Tip 2009-61 provides some helpful facts you should know about the money you are putting aside for your Individual Retirement Arrangement: You may be able to deduct some or all of your contributions to your IRA and you also...
Continue reading "Tax Tip 2009-61: Top Ten Tips about IRA Contributions"
Tax Tip-2009-60 provides important information about Tax-Exempt Organizations: 1. Tax returns are made available to public. Exempt organizations generally must make their tax return available for public inspection. This also includes the organization's application for exemption. These documents must be...
Continue reading "Tax Tip-2009-60: Six Important Facts about Tax-Exempt Organizations "
According to e-mailed advice from the IRS, the new custodian of a trust held by IRA partners in a TEFRA partnership authorized to sign a consent extending statute of limitations. Posted by Min Young Choi, Associate Editor, Wealth Strategies Journal. ...
According to e-mailed advice from the IRS, the Internal Revenue Code section 6166(c) can be used for some, but not all, business interests in estate. Posted by Min Young Choi, Associate Editor, Wealth Strategies Journal. ...
Tax Tip 2009-62 informs tax payers of what to do when the tax filing deadline is getting close:E-file your return. Consider filing electronically instead of using paper tax forms. Choosing to e-file is the best way to ensure your return...
Continue reading "Tax Tip-2009-62: Top Ten Tips for Last Minute Filers"
Tax Notes has published a letter to the editor by James Q. Riordan that calls for tax simplification. In particular, Riordan calls for simplification of tax law in the Obama administration, whose proposals both simplify and complicate existing tax legislation. See James...
Continue reading "TNT Letter to Editor by James Riordan Calls for Estate Tax Simplification"
Tax Notes has published an article by Wendy C. Gerzog, professor of law at the University of Baltimore School of Law. The article discusses forthcoming proposed regulations under section 529 that would curtail abuses of qualified tuition programs. See Wendy C....
Tax Notes has published an article by Jonathan Zhu, partner with Wilson Sonsini Goodrich & Rosati PC, Palo Alto, CA. The article argues that, for federal income tax purposes, single-owner grantor trusts are not identical to disregarded entities. In addition, Zhu proposes...
According to e-mailed advice from the IRS, the IRS cites a prior field service advice (FSA 1996-9) regarding a real estate investment trust (REIT) closing agreements. Posted by Min Young Choi, Associate Editor, Wealth Strategies Journal. ...
Continue reading "IRS Advises on Closing Agreements for REITs"
In PLR 200913002, the IRS ruled that the proposed division of a generation-skipping transfer tax (GSTT) exempt trust into two trusts and modification of one of the trusts will result in making the trust eligible to elect electing small business trust (ESBT)...
In PLR 200913001, the IRS ruled that the loans of an Alaskan native corporation from a limited liability company owned by trusts created by the Alaskan native corporation do not affect the section 646 elections made by the trusts and that...
