Posts

The IRS urges prompt action for some filers

/in /by

Taxpayers who have expired Individual Taxpayer Identification Numbers (ITINs) and who need to file tax returns this season must act fast to renew their ITINs, as the renewal applications can take up to 11 weeks to process. ITINs are used by those who have federal tax obligations but don’t qualify for a Social Security Number. Among the numbers that expired in 2017 are those with middle digits of 70, 71, 72, and 80 or ITINs that haven’t been used on a return in the past three years. Learn more at http://bit.ly/2ErXe0i

Fast Track Settlement program established for small business and self-employed taxpayers

/in , /by

In a Revenue Procedure, the IRS has formally created the Small Business/Self Employed (SB/SE) Fast Track Settlement program to provide an expedited format for resolving disputes with SB/SE taxpayers. It can be used to resolve both factual and legal issues, and may be initiated at any time after an issue is fully developed. One of the goals of the program is that the entire process be completed within 60 days after acceptance into the program. (Rev. Proc. 2017-25)

No risk, no deduction

/in /by

Taxpayers may deduct losses up to the amount of their at-risk investment, under certain conditions. But deducting a loss if no risk was involved could lead to a civil fraud penalty of 75% of the resulting underpayment. A U.S. District Court denied one taxpayer’s loss, stating he hadn’t engaged in an at-risk financial activity, and that his capital contributions were made to an account in a Cayman Island entity that he could freely draw from. Based on a finding of fraudulent intent, the court imposed the penalty. (DC UT, 3/8/17, 2017-519)