Tag: IRS

Using the “Cohan Rule” to take record-less deductions

Most taxpayers realize they must keep adequate records in order to substantiate tax deductions and credits. Adequate business records can also be critical for a host of other situations, i.e., insurance losses, wage and hour claims, and civil litigation, to...

What to do when an IRS notice shows up in your mailbox

  • August 27, 2023
  • Steve Wisinski, CPA, MAFF

In the course of a typical person’s lifetime, they likely have very little interaction with the IRS.  However, it is possible to receive a legitimate written piece of correspondence from the IRS.  What next? The most important response is to...

Do you have a hobby or a business? The IRS will want to know…

From collecting stamps and woodworking to crafting and quilting, people have all kinds of hobbies – and most of these hobbies will never turn a profit. For hobbies that do earn income, people should know that they must report it...

Department of Defense offers free tax filing resources for military members

Active military service can make tax filing challenging, especially if the service member is deployed or on an intensive training mission. MilTax is a Department of Defense program designed to lessen the burden on service members by offering free tax return...

Tax issues when operating a business as a married couple

One of the advantages of operating one's own business is hiring family members. However, the employment tax requirements for family employees may vary from those that apply to other employees. The IRS points out some issues to consider when operating...

Law changes to IRS Code Section 174 create uncertainty around R&D deductions

  • May 3, 2023
  • ShindelRock

The Tax Cuts and Jobs Act of 2017 enacted a series of new provisions to the Internal Revenue Code.  A change to Section 174, enacted in 1954 to allow businesses to deduct the costs of research and experimental expenditures, has...

IRS tax rules for self-rental properties

When a taxpayer owns and materially participates* in an operating business AND also owns the accompanying real estate rented to that operating company, that is defined as a “Self-Rental” per IRC, Sec. §469.  There are complex regulations around reporting income and losses...

‘Tis the season: Real estate gifts must be appraised

If your holiday list this year includes gifts of real estate, the gifts must be appraised and made at their current fair market value per the IRS.  A detailed appraisal by a professional appraiser, who is thoroughly trained in the...

SCAM ALERT: Beware a new IRS-themed phishing scam via text

The Internal Revenue Service is warning taxpayers of a recent increase in IRS-themed texting scams aimed at stealing personal and financial information. So far in 2022, the IRS has identified and reported thousands of fraudulent domains tied to multiple MMS/SMS/text...

Penalty relief coming for taxpayers and businesses

  • August 26, 2022
  • ShindelRock

The IRS has announced broad-based penalty relief for certain 2019 and 2020 returns due to the COVID-19 pandemic. The penalty abatement will be automatic for people and businesses who qualify and if the penalty has already been paid, the taxpayer will...