Federal Debt Limit Talks Move Major Tax Proposals Up for Consideration
The federal debt limit negotiations that preoccupied Washington for most of July did not result in immediate tax legislation. However, the general debate did succeed in helping to jumpstart a serious discussion over taxes that now has the momentum to continue. Tax increases, rate hikes, rate reductions and general tax reform are now all on the table. more

IRS to Discontinue High-low Method for Substantiating Travel Expenses
The IRS has announced that it will discontinue the high-low method used by taxpayers in a trade or business to substantiate travel expenses incurred while away from home. The method, developed by the IRS, applies to travel expenses for meals, lodging and incidental expenses. It not only has provided a short-cut method for employers to cover the paperwork required to substantiate business travel deductions but in the past it has also helped the IRS streamline certain audits. more

IRS Instructs Auditors on Economic Substance Doctrine
A transaction may comply with a literal reading of the Tax Code but result in unreasonable tax consequences that are not intended by the tax laws. To combat these transactions, the IRS has used for many years a doctrine known as the economic substance doctrine. Congress codified the doctrine in 2010 and recently the IRS issued instructions to examiners explaining how to apply the codified
doctrine. more

How Do I - Qualify for the Code Sec. 25C Residential Energy
Property Tax Credit in 2011
In recent years, Congress has used the Tax Code to encourage individuals to make energy-efficient improvements to their homes. The credit is very popular. The Treasury Department estimates that more than 6.8 million individuals claimed over $5.8 billion in residential energy tax credits in 2009. more

FAQ - When Will the IRS Withdrawal a Tax Lien Under Its Fresh Start Program
Early in 2011, the IRS announced a series of measures to help taxpayers buffeted by the economic slowdown. The IRS calls these measures its "Fresh Start" program and they are intended help taxpayers who want to pay their tax liabilities but because of unemployment, slow business sales or for other legitimate reasons, cannot pay their tax debts. One of the most attractive features of the Fresh Start program involves the withdrawal of a tax lien. more

August 2011 Tax Compliance Calendar
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of August 2011. more

FinCEN Announces e-file Option for FBAR
Effective immediately, filers of Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (known as the "FBAR") may opt to file the FBAR electronically. The Treasury Department's Financial Crimes Enforcement Network (FinCEN) announced the long-awaited e-file option for the FBAR. more

IRS Abandons Two-year Limitations Period for Equitable Innocent Spouse Relief
The IRS has abandoned its controversial regulations that imposed a two-year statute of limitations period for taxpayers to request equitable innocent spouse relief under Code Sec. 6015(f). Instead, taxpayers can request relief within the applicable statute of limitations period. more

IRS Posts Individual Income Data by Zip Code
Ever wonder how other residents in your area are doing, either in terms of income or deductions, or other tax information? You may be able to get some indication through IRS-provided online tables for Individual Income Tax Zip Code Data. more

Tax Court Finds Individual’s Drag Racing a Hobby - No Profit Motive
A drag racing enthusiast has failed to persuade the Tax Court that his sport was a business and not a hobby. The Tax Court acknowledged the taxpayer's long experience in drag racing but found that experience did not equate to business expertise. This and other factors indicated that the taxpayer lacked a genuine profit objective in drag racing. more

FUTA Surtax Expires - Retroactive Reinstatement Possible
The Federal Unemployment Tax Act (FUTA) surtax expired effective July 1, 2011. The 0.2 percent surtax, originally enacted in 1976, had been last extended by the Worker, Homeownership and Business Assistance Act of 2009 (2009 Worker Act) through 2010 and the first six months of 2011. It has been extended for one or two year increments since its 1976 enactment. more

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