Most Recent Posts
Deconstruction – CPA Calls For Appraisal Standards For Deductions
My recent post titled Tax Court Demolishes Deconstruction Deduction seems to have struck a nerve. The feedback I have gotten indicates that Second Chance Inc., the...
Gay Rights, Religion And Dinosaurs – My Top Tax Stories Of The Decade
I picked these three story arcs because they ran so long and raise so many other issues. They are not the only controversial activities I have covered. More importantly, they have not distracted me from the practical focus as I have provided lessons on not blowing off 1099s, thinking carefully about filing joint returns and being bold in claiming “hobby losses” among other things
Mormons And The Tax Law
The issue of whether churches should be exempt from the same transparency as other not-for-profits has been litigated. Generally speaking the concern about lack of transparency seems to usually be ministers essentially looting from their congregations. Nobody seems to be thinking anything like that is going on with the Mormons.
Tax Court Rescues Taxpayer From The Agent From Hell
AFH is firmly convinced that your client is up to no good. I have only run into AFH a couple of times. My personal approach to Revenue Agents is that we are brother or brother and sister accountants searching for the truth. That the truth is definitely “no change” or in a very rare circumstance a refund is something that I don’t emphasize.
AFH is a different story. I have a friend who would yell and scream and pound the table with AFH. My approach is more passive-aggressive, which I like to think gets under AFH’s skin even more.
IRS Grinch Ruining Christmas For Syndicated Conservation Easements
Bill Clabough, Executive Director of Foothills is unable to comment on the case, since Foothills is not really involved in the tax structuring or the valuation. He can wax poetic on the beauty of the property and the satisfaction of having it preserved. And he assured me that there is not a lot of unexploded ordnance laying around. We made some tentative arrangements for me to visit the property, but that won’t be for a few months.
How Not To Deal With A Bad 1099
In an email exchange in one of the exhibits, it is mentioned that Jane’s attorney was charging $850 per hour. Given that Jane’s exposure might have been an unjustified tax deficiency in the $20,000 vicinity, it’s hard to see the value there particularly since having to pay any sort of deficiency would be highly improbable.
Special American Flags – Do It Like The Marines
When the American flag has a Marine Corps flag on its left (which is the correct way of doing it of course), it will never look faded, or, God forbid, torn.
More On The Mormon Ensigngate
I have expressed the view that there is probably nothing for the IRS to investigate. Still, much of what Lars Nielsen, the whistleblower’s brother, has to say in his long video is worthy of attention and I agree with some of the reforms that he proposes
$100B In Mormon Till Does Not Merit IRS Attention
If LDS has accumulated $100 billion and not been transparent about it, it is really up to the members to deal with their leadership. If it is bad policy to allow exempt organizations to accumulate so much, Congress should change the law. There is really nothing here for the IRS to do making the whistleblower complaint pure drama.
IRS Wins Most Hobby Loss Cases But Don’t Let That Intimidate You
If your client has something that they want to do and can tell you with a straight face that they are trying to make money at it, you should counsel them to take the losses, but only if they are willing to act in a businesslike manner. Separate accounts. Strong substantiation. But most importantly at least once a year talk to your client about why there were losses and what they are going to do differently in the future in order to change things. Document those discussions.
It does not matter that profitability is improbable, it just has to be sincerely pursued.