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IRS Denies Wesley Snipes' Offer in Compromise
Snipes still owed $23.5 million in back taxes when he was set free. In order to resolve his tax debt, the actor made an OIC of $850,000, or about 4% of the amount he owed.
Ken Berry, JD
CPA Practice Advisor Tax Correspondent
Ken Berry, Esq., is a nationally-known writer and editor specializing in tax and financial planning matters. During a career of more than 35 years, he has served as managing editor of a publisher of content-based marketing tools and vice president of an online continuing education company in the financial services industry. As a freelance writer, Ken has authored thousands of articles for a wide variety of newsletters, magazines and other periodicals, emphasizing a sense of wit and clarity.
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TIGTA Reports on Worker Classifications in Gig Economy
Advisory
Workers Need to Double Check Payroll Withholding
Generally, employees can satisfy their annual tax obligations by having enough tax withheld from their paychecks during the course of the year. However, if you fail to pay enough tax, including both withholding and any quarterly installments, the IRS ...
Sales Tax
4 States Sue IRS and Treasury Over $10,000 Local Tax Deduction Limit
The provision in the new Tax Cuts and Jobs Act (TCJA) limiting itemized deductions for state and local taxes – known by the acronym of SALT – remains a sticky issue months after enactment of the law. Now four states along the eastern seaboard ...
Supreme Court Says Railroad Stock Options Aren’t Taxable Compensation
In a new case harkening back to the days of F.D.R., the U.S. Supreme Court decided by a narrow 5-4 vote that stock options paid to employees who were “working on the railroad” do not constitute taxable compensation (Wisconsin Central Ltd, v. U.S. ...
New Law Modifies Tax Credits for Building Renovations
The new tax law enacted late last year – the Tax Cuts and Jobs Act (TCJA) – includes a couple of key changes for real estate investors who are planning to renovate their properties. For one thing, the TCJA completely eliminates the rehabilitation ...
Section 529 Plans Can Now Be Used for Private Elementary and High Schools
Now the TCJA is opening up Section 529 plans to pre-college schooling. Beginning in 2018, the definition of qualified expenses is broadened to include tuition for enrollment at an elementary or secondary public, private or religious school.
The Tax Travails of Employees Crossing State Lines
Lawmakers have attempted to address the issue several times. However, the Mobile Workforce State Income Tax Simplification Act, which was reintroduced into legislation last year, has failed to gain enough traction in Congress.
The Tax Blotter: March 20, 2018
IRAs have been around for more than half a century and an entire cottage industry has sprung up concerning the rules for contributions and distributions.
Income Tax
Feb. 8 Government Shutdown Could Cripple IRS in Middle of Tax Season
The shutdown of the federal government on January 20 only lasted two days. But another deadline is looming: Uncle Sam will close up shop again on February 8 if Congress doesn’t take further action.
Advisory
Trump to Tap Beverly Hills Lawyer to Lead the IRS
If nominated and approved, Rettig faces an uphill battle in turning around the IRS, which has suffered in recent years from a dwindling budget and several black eyes, including the “Tea Party scandal” that unfolded under Koskinen’s watch.
Technology
Taxpayer Advocate Releases Annual Report to Congress, Unveils “The Purple Book”
In addition, as part of the report, the NTA has released “The Purple Book” presenting 50 legislative recommendations. Many of these proposals have been detailed in prior NTA, but others are presented in this inaugural publication for the first time.