The Second Circuit Court of Appeals has held for the second time that a preferred investor was not a partner for tax purposes, and it denied an allocation of taxable income to the tax-indifferent investor. The decision reversed the district court...
Continue reading "Second Circuit Again Holds That Preferred Investor Was Not a Partner"
The IRS has released Publication 596, Earned Income Credit (EIC), for use in preparing 2011 returns. The publication discusses who qualifies for the tax credit, the rules regarding individuals with qualifying children, how to figure and claim the credit, and...
Continue reading "IRS Releases Publication 596, Earned Income Credit (EIC)"
Forbes has published an article by Ashlea Ebeling discussing how individuals, whose income is too high to contribute to a Roth IRA, may be able to contribute directly to a Roth IRA by opening a traditional IRA and then converting...
Continue reading "How to Contribute to a Roth IRA Even if You Make Too Much Money"
Representatives of the National Tax Sheltered Accounts Associations and the American Society of Pension Professionals & Actuaries have urged the IRS to include Section 403(b) plan documents in the agency's pre-approved plan program. The sponsors of these plans include...
A recent order by the Federal Circuit has helped bring some clarity to the availability of non-party taxpayer information in tax litigation. The order establishes firmer guidelines for when otherwise nondisclosable return information should be released by the federal government. The...
Continue reading "Federal Circuit Clarifies Third-Party Return Information Disclosure Exception"
The Court of Federal Claims has held that a taxpayer waived possible work product privilege for tax reserve workpapers by claiming reliance on the advice of its independent auditor in order to avoid penalties. The case is an example...
Continue reading "Work Product Privilege Waived For Penalty Defense Documents"
Kara Friedenberg discusses the future impact of the new tax imposed by the Patient Protection and Affordable Care Act. The law imposes on individuals, estates, and trusts a new Medicare tax equal to 3.8 percent on net investment income....
Continue reading "Impact of New Medicare 3.8% Net Investment Tax"
David Brunori outlines his view of the necessary components of a practical libertarian tax policy. Rather than calling for a shutdown of the entire tax system, as some libertarians might hope for, he advocates a trimmer and more understandable tax...
A new Tax Notes article on small business provides food for thought in this election season. Martin A. Sullivan expresses doubt that tax cuts for small business, a favorite campaign pledge, really create jobs or grow the economy. Sullivan's review...
The IRS's fact sheet on 2011 tax law changes is available. It's suitable for client use. It quickly summarizes, in layman's terms, various filing deadlines, new credits, and reporting rules in a number of areas. Health insurance costs issues...
As of January 1, U.S. taxpayers are facing the return of the Alternative Minimum Tax (AMT) as well as the loss of other key tax deductions. These lost deductions include: college tuition expenses, charitable IRA contributions, teachers who spend their own...
A hobby is usually something we do in our spare time, or as an escape from daily cares. However, if properly structured and planned, the costs of a hobby can be turned into a tax deduction. Specifically, if the activities in the hobby can...
Wal-Mart will offer tax return preparation services, coordinating with Jackson Hewitt and H&R Block. This will include free filing of Forms 1040EZ at more than 3,000 locations this year. Also, Wal-Mart will offer flat fees of $3 to $6...
Continue reading "Wal-Mart To Offer Tax Return Preparation Services, Tax Refund Check Cashing"
PLR 201202012 - There have been three recent PLRs issued by the IRS: The IRS ruled that the income of a city's trust, established to provide medical benefits to eligible retirees, is excludable from gross income under Section 115(1) because...
The Court of Federal Claims originally dismissed a complaint by an estate for lack of jurisdiction because third-party issues still needed to be resolved. However, the Court has now amended the opinion for this tax refund case, stating that...
Continue reading "Court of Federal Claims Amends Opinion on Estates Lack of Jurisdiction"
