Our Blog

Virtual Currency Constitutes Taxable Property for U.S. Federal Tax Purposes

The IRS recently released guidance on the U.S. federal tax implications of transactions in, or transactions that use, virtual currency, such as Bitcoin.[1] For tax purposes, “gross income” is defined as “all income from whatever source derived”, including interest income, gains from dealings in property, and compensation paid for services, whether furnished by the taxpayer […] Read More…

Read More

IRS FBAR OVDP Opt-Out Interview Questions Revealed !

For more than a year, numerous taxpayers with previously undisclosed interests in foreign financial accounts and assets have been seeking participation in the current IRS offshore voluntary disclosure program (the OVDP) which began in 2012, modeled after similar programs in 2009 and 2011. Taxpayers participating in the OVDP generally agree to file amended returns and […] Read More…

Read More

IRS Internal IDR Training Materials Revealed !

The IRS Large Business & International (LB&I) Division recently issued three recent Directives relating to the issuance and enforcement procedures regarding Information Document Requests (IDRs)(See previous Blog “NEW IRS LB&I Revised IDR Enforcement Process“).[1] LB&I is generally responsible for examinations of wealthy individuals, closely held entities and partnerships, corporations, and S-corporations with assets greater than $10 […] Read More…

Read More

NEW IRS LB&I Revised IDR Enforcement Process

Variations of this informal IRS information discovery process are anticipated to spread throughout the remaining examination functions of the IRS. The IRS Large Business & International (LB&I) Division recently issued three recent Directives relating to the issuance and enforcement procedures regarding Information Document Requests (IDRs).[1] LB&I is generally responsible for examinations of wealthy  individuals, s-corporations, partnerships and […] Read More…

Read More

AGOSTINO & ASSOCIATES – Procedural Challenges to Interest and Penalties in CDP

To download a great article regarding “Procedural Challenges to Interest and Penalties in CDP” prepared by our very close friends at the Law Firm of Agostino & Associates in Hackensack, NJ ( www.agostinolaw.com ), see the Agostino & Associates Newsletter https://origin.library.constantcontact.com/download/get/file/1109538512255-80/A%26A+Newsletter+%28April+2014%29.pdf The article begins “One of the challenges in collection due process  proceedings is convincing the Internal […] Read More…

Read More

“Ballpark Guesstimate” Insufficient to Support “Real Estate Professional” Status – Accuracy-Related Penalty Applied

A “real estate professional” may treat rental real estate activities as non-passive if the taxpayer “materially participates” in the rental activities. Taxpayers claiming to be a real estate professional should contemporaneously document their efforts with respect to each real estate activity. A taxpayer is generally allowed deductions for certain business and profit-seeking investment expenses[1]. However, […] Read More…

Read More

Simplified Option for Home Office Deduction Now Available !

Beginning with tax year 2013 returns (filed in 2014), taxpayers may elect to use a simplified “safe harbor” option when figuring the deduction for business use of their home. Recognizing that the calculation, allocation, and substantiation of allowable deductions attributable to the use of a portion of the taxpayer’s residence for business purposes can be complex and […] Read More…

Read More

IRS Releases YouTube Video and Updates FAQs re Tax Information for Same-Sex Couples

The Internal Revenue Service recently released a new YouTube video designed to provide useful tax tips to married same-sex couples[1]. The video is less than two minutes long, is available in English, Spanish and American Sign Language and can be accessed via IRS.gov. More than 150 topics covered in various online IRS instructional videos ranging from […] Read More…

Read More

IRS-Criminal Investigation 2014 Investigative Priorities

The Internal Revenue Service recently announced the release of its IRS Criminal Investigation (CI) Annual Report for fiscal year 2013[1], identifying their investigative priorities for 2014 and reflecting significant increases in criminal tax enforcement actions around the country.[2] CI investigates potential criminal violations of the Internal Revenue Code (Code) and related financial crimes. Together with local […] Read More…

Read More

IRS Identifies the “Dirty Dozen” Tax Scams for 2014

The Internal Revenue Service recently issued its annual “Dirty Dozen” list of tax scams (IR-2014-16, Feb. 19, 2014), compiled each year identifying a variety of common scams taxpayers can encounter at any point during the year. Seehttps://www.irs.gov/uac/Newsroom/IRS-Releases-the-“Dirty-Dozen”-Tax-Scams-for-2014;-Identity-Theft,-Phone-Scams-Lead-List  Many of these schemes peak during filing season as people prepare their tax returns. “Taxpayers should be on […] Read More…

Read More

Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions in Hidden Offshore Accounts

The Permanent Subcommittee on Investigations (PSI) of the United States Senate will hold a hearing, “Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions in Hidden Offshore Accounts,” on Wednesday, February 26, 2014, beginning at 9:30 a.m., in Room G-50 of the Dirksen Senate Office Building. See https://www.hsgac.senate.gov/subcommittees/investigations/hearings/offshore-tax-evasion-the-effort-to-collect-unpaid-taxes-on-billions-in-hidden-offshore-accounts The PSI is the chief […] Read More…

Read More

Criminal Tax Prosecutions Surge Under President Obama

The number of criminal tax prosecution referrals each year by the Internal Revenue Service (IRS) to the U.S. Department of Justice (DoJ) has risen by nearly a quarter — 23.4 percent — during the administration of President Obama (FY 2009-2013) when compared with the George W. Bush years (2001-2008) according to a February 4, 2014 […] Read More…

Read More