Dealing With The IRS Part 2

Dealing with the IRS may be one of the most intimidating thoughts or notions for any American taxpayer. Everyone wants to know how to deal with the IRS when the time comes. Here are some tips if a taxpayer receives a notice from the IRS, thus necessitating some contact with the IRS.

The IRS typically sends a notice or a letter for a variety of reasons, including information about some specific issue related to a federal tax return or account, or information about changes to such an account. A notice may also request further information about some tax-related issue or request a payment.

Dealing With The IRS Part 1

Dealing with the IRS may be one of the most intimidating thoughts or notions for any American taxpayer. Everyone wants to know how to deal with the IRS when such unmentionable time arrives. Here are some tips for two common situations in which taxpayers may have to deal with the IRS. The first is the situation when a taxpayer simply has an inability to file a return and pay taxes; the second situation is the occurrence of an extensive delay in receiving an anticipated tax refund. Both may necessitate IRS contact. A qualified tax professional may offer the necessary guidance and assistance in these and many other tax-related scenarios.

Deducting Graduate School Expenses When You’re A Student

For full-time students attending graduate school, tuition and costs are exorbitantly high. It’s often difficult to maintain studies and still work to help defer some of the costs. For those who have not yet entered the professional workplace, is it possible to obtain any tax benefits for graduate school expenses? Is tuition for law or graduate school a deductible educational expense?

Deducting Graduate School Expenses When You’re Already Employed

Graduate students may deduct the costs of tuition and other fees under most circumstances. But what if an individual decides to go back to school after he or she has already entered the workforce, what, if any, tuition, costs, and fees are deductible?

Taxpayers may deduct the costs of qualifying work-related education as a business expense when the education leads to a degree, but only if at least one of the following two tests is met:

  • The education is required by an employer or by law to maintain present salary, status or employment. The required education must serve a bona fide business purpose of a taxpayer’s employer.

History Of The Internal Revenue Code

The last blog presented some basic information about the Internal Revenue Code (IRC or “Tax Code”), enacted by Congress in Title 26 of the United States Code (26 U.S.C. et seq). As all tax attorneys and accountants know, this “Tax Code” contains the federal domestic statutory tax law of the United States. This installment will review the history of the Internal Revenue Code.

U.S. statutes were not codified until 1874. Up until this time, congressional acts were not separately organized and published in separate volumes based on subject matter. Codifications of statutes first began in 1873 and created the Revised Statutes of the United States, approved June 22, 1874, effective for the laws in force as of December 1, 1873.

About The Internal Revenue Code

Federal tax law begins (and ends!) with the Internal Revenue Code (IRC or “Tax Code”), which was enacted by Congress in Title 26 of the United States Code (26 U.S.C. et seq). The Tax Code, formally known as the Internal Revenue Code of 1986, contains the federal domestic statutory tax law of the United States.

The Internal Revenue Code is organized by such topics as income tax, payroll tax, estate tax, gift tax, and excise tax. The Tax Code also contains rules for procedure and administration. As everyone soon finds out after earning their first paycheck, if not sooner, the agency responsible for administering its rules and associated regulations is the Internal Revenue Service, aka IRS.

Who Reports What? Some Data About Uncertain Tax Positions

The Internal Revenue Service keeps statistics based on the data it receives and gathers related to the filing of tax returns. Of course, current statistics are only up to date for the tax year two years prior to the present tax year. In this case, the latest statistics released by the IRS are for the tax year, 2014. In late 2016, the IRS released Schedule UTP, “Uncertain Tax Position Statement” filing statistics for the tax year ended Dec. 31, 2014, showing figures that are consistent with those from past filing years.

Getting a New Car for Business? Buy or Lease? Part 2: Tax Consequences

This blog will address the tax consequences of both leased and owned vehicles used for business purposes. Hopefully, it will offer some insight into the decision as to what is best for your business: buying or leasing?

With both owned and leased cars, any related expenses may be deducted using the standard mileage rate or the total amount of actual expenses. If the vehicle is owned, you may choose the standard mileage rate in the first year and switch to the actual expense method in a later tax year. If a vehicle is leased, you may also choose the standard mileage rate in the first year but once you the standard mileage rate is chosen, it must be used for the life of the lease.

Getting a New Car for Business? Buy or Lease? Part 1: Leased Vehicles

Many business owners rely on transportation to achieve the goals and purposes of their business. A car purchased for use in a business has certain tax advantages for the owner. However, many business owners are now leasing cars for business use. More Americans lease autos than ever before because of attractive monthly costs and the ability to change cars frequently to keep up with new technology and safety features. But what’s better for your business, an owned or leased car?

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