Transferring Property to a Spouse After IRS Lien

There are a number of difficult questions that come up when one spouse owes the IRS and also owns property jointly with their spouse. The question is often whether the spouses can transfer the property ...
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Applying Tax Overpayments to Later Years is Usually a Bad Idea

Instead of requesting a refund, taxpayers can ask the IRS to hold the overpayment and apply it to the taxpayer’s tax liability for the following year. These tax payment credits can result in significant headaches ...
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Establishing Tax Basis in IRA Contributions

Contributions to IRAs are deductible.  If not deductible, the taxpayer has basis in his IRA so that this amount is not taxable when taken out of the IRA.  The idea is that the taxpayer probably ...
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Failures in Reporting Taxes is Not Tax Obstruction

Does a taxpayer commit a felony offense if they pay a babysitter without withholding taxes, fail to keep receipts for charitable donations, or neglect to provide every record to an accountant? A strict reading of ...
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What is a Real Estate Trade or Business?

There are a lot of questions about the new Sec. 199A pass thru deduction.  One question is whether real estate will qualify as a trade or business.  Since it is not defined in Sec. 199A, ...
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Documenting Loans to Closely-Held Corporations

In Norgaard v. United States, No. 16-12107-FDS (D. Mass. 2018), the court addressed whether a personal loan made to a closely held corporation can be deducted as a bad debt when the business goes out ...
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Freedom of Information Act Reaches Whistleblower Documents

Since its inception, the IRS’s process for paying whistleblower claimants has been widely criticized. Setting aside these criticisms, there have been a number of developments that would-be informants have to consider before submitting IRS Whistleblower ...
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Limited Window of Time to Structure Divorce Settlements

The tax deduction and income provisions for alimony have been repealed for divorce decrees entered into after December 31, 2018 or for earlier divorces where the agreements are modified after that date. This gives married ...
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Improbable Position by IRS Sufficient to Impose Tax

The Transupport, Inc. v. Commissioner, No. 17-1265 (1st Cir. 2018) case involved evidence that was not sufficient to support imposing a penalty, but the same evidence was sufficient to hold the taxpayer liable for the ...
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IRS Summons Reaches Attorney’s Client Names

Communications with an attorney are generally protected from disclosure.  But what about client names?  And what power does the IRS have the power to force an attorney to disclose the names of his clients?  The ...
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