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Andrew Presti

TIGTA Finds IRS Doesn’t Always Protect Taxpayers, Follow Rules When Filing Liens

A report issued by the Treasury Inspector General for Tax Administration (TIGTA) says the IRS does not always follow legal requirements when issuing liens and lien notices. The report also concludes that, as a result, action is needed to protect taxpayer rights during the lien process. A federal tax lien arises when the IRS attaches […]

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Andrew Presti

A Double Taxation Warning

U.S. companies with overseas subsidiaries may want to heed the warning of an older tax case that discusses what constitutes ownership for purposes of foreign tax credits. As the global economy begins to show signs of recovery, it may be a good time to review an Internal Revenue Service ruling, upheld by two courts, related […]

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Andrew Presti

Making Work Pay tax credit set to expire

Get ready for a smaller paycheck. At least that’s what could happen if Congress doesn’t approve President Obama’s proposal to extend the Making Work Pay tax credit soon. The credit, introduced last year as part of the government’s stimulus package, boosts paychecks by up to $400 for single filers and up to $800 for joint […]

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Andrew Presti

“Glimmers of improvement,” but state woes remain

WASHINGTON (Reuters) – State tax revenue is improving, but only slightly, and may not be enough to end steep spending cuts or replace the loss of assistance from the federal stimulus plan that expires in December, according to a report on Tuesday. The National Conference of State Legislatures said states faced a collective budget gap […]

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Andrew Presti

IRS Proposes Rules Setting Fee for Preparers to Get Unique ID Number

The Internal Revenue Service July 21 issued proposed rules (Reg-139343-08) establishing a new annual $50 user fee for individuals who apply for or renew a preparer tax identification number (PTIN). The much-anticipated guidance is the first step in setting up a regime of registration with the IRS that will in essence create a new profession […]

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Andrew Presti

Renewal of Bush tax cuts could be only temporary

WASHINGTON – Many Americans could be hit with a big tax increase in the next two or three years despite President Barack Obama’s repeated promises to shield the middle class from higher rates. Democrats are hedging about making Obama’s pledge stick for more than a year or two, setting up a major battle on a […]

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Andrew Presti

Small-Business Owners: Prepare For A Tax Hike

A change in payroll taxes on small service S corporations seems likely. But there are things you can do to minimize the pain. Owners of small businesses should prepare themselves for some big changes on the corporate tax front. Here’s the background: The American Jobs and Closing Tax Loopholes Act (H.R. 4213) was recently approved […]

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Andrew Presti

Compensatory Damages Can Be Tax Deductible

A 2010 court decision that favored the IRS over a corporate taxpayer provides useful insights for other companies making restitution payments to the government. On January 18, 2000, Fresenius Medical Care Holdings Inc. and the United States signed a “Global Agreement” resolving a series of suits against the company on claims of Medicare fraud. The […]

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Andrew Presti

Turning Business Losses into Tax Refunds

Businesses with a need for a cash infusion may be able to obtain one quickly as a result of a tax refund from recently expanded net operating loss (NOL) carryback allowances. These provisions address the fact that, although a net loss may appear in only one tax year, it represents weaknesses that may have arisen […]

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Andrew Presti

Lost in Taxation

It seems as if the tax code was conceived by graphic artist M.C. Escher, wait until you meet the new and not improved Internal Revenue Service created by ObamaCare. What, you’re not already on a first-name basis with your local IRS agent? National Taxpayer Advocate Nina Olson, who operates inside the IRS, highlighted the agency’s […]

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