Under Section 311, a corporation that distributes appreciated property to its shareholders must recognize gain at the corporate level and pay income tax on the gain as if the property was sold for fair market value. The shareholder must recognize the distribution as a dividend to the extent of the corporation’s accumulated earnings and profits [...]
Read More Corporate Tax, Income Tax Planning, Income Tax Preparation, IRS Audit, IRS Letters, IRS Penalty, IRS requirements, IRS Small Business, Tallahassee Tax Service, TallyTaxManAbout 12,000 tax cheats have come clean under a program that offered reduced penalties and no jail time to people who voluntarily disclosed assets they were hiding overseas, the Internal Revenue Service announced Thursday. Those people have so far paid $500 million in back taxes and interest. IRS Commissioner Doug Shulman said he expects the [...]
Read More Income Tax Planning, Income Tax Preparation, IRS Audit, IRS Letters, IRS Penalty, IRS requirements, Tallahassee Tax Service, TallyTaxMan, Tax AmnestyWith a new congressional “super committee” tasked with finding $1.5 trillion in cuts by No-vember, creative ways to find additional revenue are in high demand. And allowing the IRS to prepare you taxes could be one solution. The idea has been around for a while, but has been picking up steam in recent years. In [...]
Read More Income Tax Preparation, IRS Help, IRS requirements, IRS tax savings, Tallahassee Tax Service, TallyTaxManI would submit that this is one of the top 3 most importing things when dealing with income taxes. When dealing with the IRS, you will prevail as long as you have the law and the facts on your side. The tax law dictates the documentation requirements. In cases that I have studied, the IRS [...]
Read More Income Tax Planning, Income Tax Preparation, IRS Audit, IRS Letters, IRS requirements, Tallahassee Tax Service, TallyTaxMan, Tax DeductionsThe Government Accountability Office (GAO) just issued its report discussing the various elements of the IRS’s 2012 proposed budget. The report breaks down not only the spending proposed by the IRS but also addresses the so-called “revenue increasing recommendations” that were presented in previous GAO reports. President Obama requested $13.3 billion to fund the IRS’s [...]
Read More Income Tax Preparation, IRS Audit, IRS Help, IRS Letters, IRS requirements, IRS Small Business, Tallahassee Tax Service, TallyTaxMan, Tax IncreasesA Foxnews article dated May 23, 2011 reports that thousands of companies that cashed in on President Obama’s economic stimulus package owed the government millions in unpaid taxes, congressional investigators have found. The Government Accountability Office, in a report said at least 3,700 government contractors and nonprofit organizations that received more than $24 billion from [...]
Read More Income Tax Preparation, IRS Help, IRS requirements, Tallahassee Tax Service, TallyTaxManThere are a couple of limits on deductible mortgage interest. The acquisition debt mortgage deduction is limited to the interest paid on $1M ($500K MFS) at any time. This limit is reduced by any grandfathered debt. Debt over this limit may qualify as home equity debt. Refinanced debt may be considered grandfathered debt, acquisition debt, [...]
Read More Income Tax Planning, Income Tax Preparation, IRS Letters, IRS requirements, Tallahassee Tax Service, TallyTaxMan, Tax Deductions