If IRS Imposes a Penalty, That Penalty Cannot be Negotiated as Part of a Settlement on Another Tax Matter The Internal Revenue Service is opposed to negotiating penalties with noncompliant taxpayers, a stance that should benefit appraisers and tax advisors because individuals will be required to assume more responsibility for their deductions, Bloomberg BNA (subscription required) reported this month. Appraisers News Online offers details at its site:
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Case Involved $6M in Gift Tax and $5M in Estate Tax; Interest in General Partnership Sold for Private Annuity; Much Planning at the End of 2012 Bruce Givner at Financial Planning reports that U.S. Tax Court Judge Elizabeth Paris handed the taxpayers a victory last Thursday [2/14/2013] involving a powerful estate tax planning tool: private annuities. The case, Estate of Kite v. Commissioner, is important, Givner explains, partly because much of the planning was done in a panic at the end of 2012, for fear that the lifetime exclusion would drop from $5.12 million to $1 million per person, and it…
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Tax Court Judges Structured Trust Advantaged Repackaged Securities” (“STARS”) as Illegitimate. Costs to BNY/Mellon May Exceed $800M. The Internal Revenue Service won a high-profile tax shelter case involving Bank of New York Mellon Corp. on Monday, in a ruling that could cost the company more than $800 million. John D. McKinnon at the WSJ Washington Wire reports the news:
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The IRS Has a Nationwide Organization of Approximately 2,000 Taxpayer Advocates to Help U.S. Individual and Business Taxpayers Resolve Problems. Here’s How It Can Help Advisors and Your Clients. Nina E. Olson is the IRS’s National Taxpayer Advocate. Since 2001, she has led the Taxpayer Advocate Service (TAS), a nationwide organization of approximately 2,000 taxpayer advocates who help U.S. individual and business taxpayers resolve problems and work with the IRS to correct systemic and procedural problems. In this capacity, she reports to Congress annually on the most serious problems taxpayers face in dealing with the IRS and proposes solutions.…
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Few Business Owners Seem to Even Know How to Make a Good Guess at What Their Business is Worth. NY Times Introduces Technology to Help—and Certified Advisers Provide Extra Value. Mark Cohen, at The New York Times Small Business Guide, reports: “At 53, Joe Ritz is old enough to remember a time when many of the classic cars that now pull into his specialized repair shop were new. “It’s one field where it pays to be a senior citizen,” he said. It’s Critical for a Business Owner to Know the Value of His Business; Here are Tips on Technology, Advisors,…
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A Valuation Principal Takes Issue With Revenue Ruling 59-60: “Does Analysis of Macroeconomic Conditions Add Credibility to My Opinion of Privately Owned Company Value In My Region?” Rick Warner, ASA, AVA, Principal, Great Lakes Valuations writes that “Most of us as appraisers are familiar with Revenue Ruling 59-60 and its prescription for factors to be considered as part of the valuation of the stock of closely held companies . . . And while I agree with most of what 59-60 has to say, I do have a bone to pick . . . with at least one of the…
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Stakeholders Discuss Greater Institutional Investor Makeup, Governance Structures, Greater Regulatory Scrutiny Deloitte Insights contributes a piece to the CFO Journal on the Wall Street Journal site, part of a series designed to provide financial executives a customized resource to help them address the strategic, operational and regulatory issues they face in managing their finance organizations and careers, with top-line digests, research, perspectives and technical analyses. This Deloitte Insight reports on the Third Annual Hedge Fund Symposium Series held in New York recently. There, Joseph Fisher, who leads the Hedge Fund Audit practice for Deloitte & Touche LLP in New York, commented on how…
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Details Found in IRS Explanation Issued Wednesday; $20,000 Figure Based on a Family of Four. In a final regulation issued Wednesday, January 30, 2013, the Internal Revenue Service (IRS) assumed that under Obamacare the cheapest health insurance plan available in 2016 for a family will cost $20,000 for the year. Under Obamacare, Americans will be required to buy health insurance or pay a penalty to the IRS. The news was reported by Huffington Post, CNS News, Catholic News, Investment Watch, Economonitor, Naked Capitalism, Investor Village, and more. The Journal of Accountancy offered detailed analysis of the new regulations, and NPR weighed in…
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Still Fighting for its RTRP Program; More Case Analysis and Industry Reaction Frank Byrt at Accounting Web reports what’s happened in last two weeks since the U.S. District Court for the District of Columbia found the IRS lacked authority to regulate independent tax preparers. Here’s more:
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There Are Different Standards. They Have Different Places in Various Appraisals. Here’s Why. Jim Hitchner considers various responses to the query: “When valuing an operating company, is it necessary to mention USPAP in addition to SSVS 1 when talking about the standards adhered to?” Good question. There were lots of answers from various valuators in a recent discussion. Here’s Jim’s take on it all.
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You Can Now Follow the IRS on Twitter, Like it on Facebook, View Updates on YouTube, and Connect on LinkedIn Michael Cohn at Accounting Today reports at the Internal Revenue Service has joined the popular microblogging service Tumblr, expanding the IRS’s array of social media networks.
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The Wall Street Journal Recounts What the IRS Advises: Moves to Make as April Grows Near April deadlines may not be that far way, but some Americans still haven’t even rounded up their W2s, the Wall Street Journal noted in a (just-before-deadline) filing last year. Acknowledging the tax procrastination is a national pastime, the Internal Revenue Service issued some tips and a series of videos to help last-minute filers avoid the common blunders that could delay their returns. Here is a look at the most common errors:
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The Tax Court Speaks Loudly and Firmly on the Responsibilities of Business Appraisers Hempstead & Co. has published “Estate of Gallagher is a Valuation Tutorial.” The article emphasizes the importance of providing the court with a clear and convincing explanation of the assumptions and arguments you have employed in carrying out a business appraisal. It discusses the recent Tax Court Memorandum opinion in the Estate of Gallagher v. Commissioner, (TC Memo. 2011-148). The court’s valuation was closest to the value on the return as filed.
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Ahead of the new health-care law, small firms worry about crossing the crucial 50-person threshold — and about rising premium rates Emily Maltby at the WSJ Law blog reports on increasing concerns about the forthcoming healthcare laws among small business owners. This seems to be a prominent issue and concern among small business owners, and has been noted in most every major media outlet in recent weeks, from the New York Times to Forbes, CNN, US News & World Report, FoxNews, The Economist, The Hill, the Washington Post, and more:
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Here are four surprising ways to protect yourself in a law suit and keep legal fees to a minimum. Kevin Daum at Inc. advises: “Shakespeare said, “First kill all the lawyers.” Maybe this seems a tad aggressive, but then again, for most people the last thing you look forward to is someone showing up at your door with a subpoena. Whether a lawsuit is business related or personal, the thought of engaging an attorney for protracted litigation can strike fear into a person’s heart.” Not only is there emotion and argument to contend with, but the sheer agony of…
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Qualifying Offices Can Deduct Up to $1,500 Per Year Michael Cohn at Accounting Today reports that The Internal Revenue Service plans to introduce a simplified way for small business owners and home-based employees to claim the home office tax deduction.
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When Is a Foreign Tax Creditable Under Sec. 901? The Tax Adviser’s James A. Beavers, J.D., LL.M., CPA, CGMA, reports that The U.S. Supreme Court has agreed to hear a case that delves into the contentious issue of when taxpayers are eligible to claim a foreign tax credit under Section 901 of the U.S. tax code. A ruling by the court would clarify part of the provision that has been litigated for decades.
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Beyond The Fiscal Cliff: Details to Act On Gail Perry at Accounting Web introduces a set of articles on the effect of the “fiscal cliff.” A first article – New Tax Law Emerges Beyond the Fiscal Cliff – provides an overview of the key tax provisions that will affect your individual and business clients. It’s followed by coverage of how the new law will impact federal estate, gift, and generation-skipping tax exemption limits. Today’s workplace fitness exercise encourages you to get out of your chair for a quick, low-impact pick-me-up! nature of such cooperation uncertain, the heads of the U.S. and international accounting standards setters said…
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Appraisers in Violation of 6701 May Face Devastating Consequences. Learn More About Potential Penalties—and How to Stay in Compliance Joel N. Crouch and Joseph D. Brophy discuss the IRS Code’s Section 6701 and the relevant penalties that can be leveraged against violators. While IRS sources say that the number of penalties imposed is still negligible, this number has increased significantly and the trend continues.
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Top Vote-Getters Include Fed Honchos, Private Sector Leaders, and Association Chief Who’s the most important person in Accounting? Is it Leslie Seidman (Chairman of the FASB), Hans Hoogervorst (Chairman of the IASB), or Douglas Shulman (Commissioner, IRS)? Or instead, might it be James Doty (PCAOB Chair), Mary Shapiro (SEC), or even an as-yet-unnamed person—our next president? Or someone else entirely? Find out how respondents voted in an Accounting Today survey.