IRC §165(d) stipulates that gambling losses shall be allowed only to the extent of the gains from such transactions. The IRS also cites Valenti v. Commissioner to deny professional gambler's deductions for their net gambling losses in excess of winnings. However gambling-related travel expenses are not subject to the §165(d) limit because §165(d) applies...
The lesson I learned today is that an overstatement of basis (cost of an asset) could result in an understatement of income in the future when the asset is sold but is not necessarily the same as under reported income that, if in excess of 25%...
When you call the IRS I suggest doing it as early in the work day as possible to minimize wait time. Have a pen and pad of paper in hand and ideally be sitting in front of a computer. Write your questions down in advance...
The IRS as many of you are painfully aware is often looked upon as accusing first without due process requiring the tax payer to shoulder the burden of proof in regards to his or her innocence relevant to the Internal Revenue Code. In other words...
According to the Treasury Inspector General for Tax Administration (TIGTA) the IRS needs to expand audits to other tax years and tax matters when large dollar amounts are involved in a preexisting audit making it all the more important to know exactly what you are...
Another fabulous question came my way today from a small business owner that is actually proving to be monetarily successful and wants to know how to pay herself while minimizing her tax burden. Basically the answer depends first on the type of business structure elected, sole proprietorship,...
I routinely get calls from taxpayers who thought they had a solid trusting relationship with their tax adviser only to discover otherwise. The stories involved are usually quite tragic as the relationship one has with their tax adviser has been shown to be one of...
In discussing expiration dates to the 90 day notice I rediscovered an interesting fact this morning about the difference between a post mark date and a delivery date worth researching and posting. Generally speaking when sending in packages to the Internal Revenue Service, United States Treasury...
How to Request an IRS Private Letter Ruling. The first revenue procedure published each year provides the necessary guidance to request a letter ruling. The current guidance is in IRS Rev. Proc. 2011-1. A private letter ruling (PLR) is a written response by Chief Counsel to a taxpayer that...
The Colorado Department of Revenue is offering a tax amnesty period. The program begins October 1st 2011. Tax amnesty is a limited-time opportunity for individuals and businesses with overdue taxes to pay without additional penalties. Those with overdue taxes can pay the full amount owed,...