The Treasury Inspector General for Tax Administration says the IRS needs to improve the quality of its audits of small corporations. Listen: TIGTA reviewed whether IRS examiners followed proper procedures and guidelines when auditing the returns of small corporations. The IRS defines small corporations as corporations with assets of less than $10 million. Many corporations in the [...]
Tags: Announcements · IRS Audits · S Corporations
Taxpayers and their advisors have good reason to want to categorize losses as theft losses rather than investment losses. Theft losses are treated as ordinary losses and are deductible in the year incurred.¹ Investment losses are treated as capital losses and are limited to the amount of capital gains plus $3,000. It is, therefore, not surprising that TIGTA has [...]
Tags: Announcements · Deductible Expenses · IRS Audits · News
The Treasury Inspector General for Tax Administration (TIGTA) has issued another report on IRS inefficiency, which, no doubt, will be met by the Commissioner’s demand for more funding (see Related Posts, below). TIGTA reports that some taxpayers received multiple refunds for their First-Time Homebuyer Tax Credit claims, while others changed the acquisition date of their homes on their [...]
Tags: Credits · IRS procedure
The Treasury Inspector General for Tax Administration (TIGTA) reports what tax practitioners have known for years (emphasis is mine): After filing Notices of Federal Tax Lien, the Internal Revenue Service (IRS) must notify the affected taxpayers in writing, at their last known address, within five business days of the lien filings. However, as noted in previous [...]
Tags: IRS Liens and Levies · IRS procedure
Paul Caron reports that the Treasury Inspector General for Tax Administration has released Security Over Databases Could Be Enhanced to Ensure Taxpayer Data Are Protected (2011-20-044): Some of the 2,200 databases that the IRS uses to manage and process taxpayer data are not configured securely, are running out-of-date software, and no longer receive security patches. Nor has [...]
Tags: IRS procedure
This doesn’t come as a surprise to me, but it’s still disturbing. The Treasury Inspector General for Tax Administration has released its Fiscal Year 2011 Review of Compliance With Legal Guidelines When Conducting Seizures of Taxpayers’ Property (2011-30-049). It found that the IRS failed to follow the law in 38% of all seizures. In conducting its statutory [...]
Tags: IRS procedure · News · Taxpayer Rights
In my previous post we talked about the absurdity of giving more taxpayer money to government entities like the IRS who have a history of wasting the money taxpayers have already given it. Yesterday, right on cue, I received a report from The Treasury Inspector General for Tax Administration titled Millions of Dollars in Questionable Qualified Motor Vehicle [...]
Tags: Deductible Expenses · IRS procedure
