Feb 4What Affects OIC?On February 23rd, the U.S. Tax Court filed T.C. Memo. 2022–5 deciding whether the Office of Appeals abused its discretion in rejecting an offer-in-compromise (OIC) . The United States Tax Court found no abuse of discretion and granted summary judgment in favor of the IRS. Why? The petitioner submitted form 12153…Taxes2 min read
Jan 24Recent Tax Related ChargesJanuary 24, 2022Owner of a network of health care and rehabilitation facilities willfully failed to withhold and pay over employment taxes on behalf of his employees.Charged with tax evasion, and failing to file benefit plan reports.January 24, 2022a North Carolina man did not file any federal income tax returns, allegedly…3 min read
Jan 22Innocent Spouse ReliefThe IRS has the authority to collect from both spouses, regardless of who earned money and whether or not a joint tax return is filed. Section 6013 of the Code of Civil Procedure (d). https://www.irs.gov/businesses/small-businesses-self-employed/innocent-spouse-relief Innocent spose criteria: “ there is an understatement of tax attributable to erroneous items of one…5 min read
Jan 18Charitable Contribution Deductions for a Conservation Easement.Docket №7288–19. Filed January 13, 2022. This case reviews whether the supervisor lacked the authority to supply timely approval of penalties. A partnership acquired roughly 260 acres of land in Alabama. Later, the partnership granted to the National Wild Turkey Federation Research Foundation a conservation easement over the land. Then…2 min read
Jan 18Taxability of Social Security Benefits.Docket №13970–19 December 6, 2021 US Tax Court petitioner resided in Colorado and filed her petition with the court in order to issue a decision in regards to the taxability of social security benefits. The taxpayer received a notice of deficiency for over $3,400 in additional tax. For the taxable…1 min read
Jan 10Disallowing Deductions.Disallowing Deductions. According to the United States Tax Court (Docket №329–19S) the IRS disallowed all deductions in the following circumstances. Facts of the case: The petitioner was stationed at Fort Sam Houston in San Antonio, Texas, but typically performed her duties at both Lackland Air Force Base (Lackland) in San Antonio, Texas, and…2 min read
Jan 10Renewing ITINSource: https://www.irs.gov/individuals/itin-expiration-faqs You can renew your ITIN if it has expired when you file your tax return. You must send a completed Form W-7, Application for IRS Individual Taxpayer Identification Number, along with your U.S. federal tax return, valid supporting original or certified copies by the issuing agency, identification documents…3 min read
Jan 10When a husband says, “We are partners,” what does he REALLY mean?When a husband says, “We are partners,” what does he REALLY mean? According to the United States Tax Court opinion (Docket №10417–18), on December 9th, 2021, a married (later divorced) couple got in trouble with their taxes. The wife asserted an innocent spouse relief. Facts of the case: The husband…Marriage2 min read
Dec 30, 2021Have you complied with the IRS notices?According to T.C. Memo. 2021–141 Docket №20438–19L. Filed December 28, 2021, a taxpayer filed a Tax Court petition to review an IRS determination letter regarding a levy. The taxpayer never submitted the requested financial information or outstanding tax returns though. The taxpayer also claimed that the IRs abused their discretion…3 min read
