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Don’t Invite an IRS Audit With mid-April marking the official sunset for regular tax season, many may be breathing a sigh of relief that the always dreaded chore is over for your family and/or business.  However, a potential audit always hangs over your head.  No one wants to deal with the immense hassle of finding …

Charitable Conservation Easements Charitable conservation easement contribution deduction cannot be based on consideration.  A charitable contributions deduction is allowed for contributions of certain partial interests in real property for conservation purposes.  Specifically, a deduction is allowed with respect to any “qualified conservation contribution.”    Qualified Conservation Contribution Only three types of real property interests are …

IRS to Start Processing Tax Returns With Education Credit, Depreciation For those of you are eager to get your tax returns filed so that you can get your tax refund as soon as possible, the recent delay in processing caused by the issues in Washington may have been an inconvenience or frustration.  The good news …

Canceled Debt Can Create Taxable Income It’s not well known, but typically, if you are contractually bound to pay a debt, and that debt is cancelled, forgiven, or discharged or otherwise goes away you just received “income.”   The issue you need to understand is that this so-called dischargeof debt “income” taxable or not?   Under …

An IRS Due Process hearing is intended to protect your constitutional rights against an illegal taking, and provides a mechanism for a taxpayer to be heard when they disagree with an IRS assessment of tax. Within five business days after the day a federal tax lien is filed, the IRS must provide written notification of …

IRS Announces Simplified Option for Claiming Home Office Deduction Starting This Year; Eligible Home-Based Businesses May Deduct up to $1,500.  The Internal Revenue Service recently announced a simplified option that many owners of home-based businesses and some home-based workers.   The new option is effective beginning January 1, 2013 so it will be available for tax …

IRS Will Not Waive Penalties When Taxpayer Did Not Realize Law Was Uncertain Taxpayer claimed a deduction for a charitable contribution for contributing property, and made no effort to verify the validity of their sizable deduction.   However, the state of the law on the issue was uncertain. The IRS disallowed the deduction and then assessed …

The IRS want you to know that if you need to resolve a tax problem, have tax law questions or you’re just more comfortable talking with someone face-to-face, visit your local IRS Taxpayer Assistance Center (“TAC”) where you can spread out your records and talk with an IRS representative across the counter.  No appointment is …

IR-2011-69, June 23, 2011 WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The rate will increase to 55.5 cents …

Eventually all businesses, particularly in this economy, will be left with unpaid invoices, which later become known as bad debts.  It’s possible that bad debt may be tax-deductible.  As so often in law, it will depend on the facts and circumstances of the transaction.  The deductibility will also vary based on if the underlying debt …