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Category: Announcements

TIME TO CHANGE YOUR WITHHOLDING?

TIME TO CHANGE YOUR WITHHOLDING?

Taxpayer situations change from year to year for a variety of reasons – new job, house purchase, additional dependent(s), windfall income and/or changed deductions. Depending on your situation, this might mean you should consider a change in your withholding so you hit the necessary target of required annual pay-as-you-go payments, without allowing your employer to overwithhold, which will result in your achieving nothing more than making an interest free loan to Uncle Sam until you later file and collect your…

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Employer May Not Refuse to Hire Applicant Based on Suspicion of Need For Religious Accommodation

Employer May Not Refuse to Hire Applicant Based on Suspicion of Need For Religious Accommodation

Early last week, the U.S. Supreme Court handed down its decision in EEOC v. Abercrombie & Fitch Stores, Inc. In that case, a young Muslim woman who wore a hijab (a religious headscarf) to her interview was denied employment because the headscarf violated Abercrombie’s “look policy,” which did not allow head wear of any kind. Without discussing the policy with the applicant, Abercrombie simply denied her employment.  (For more about the facts of this case, see our previous post, How…

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MORE IRS LENIENCY REGARDING 60 DAY ROLLOVER RULE The Internal Revenue Code says that amounts withdrawn from an IRA are not taxable as long as the entire amount is “rolled” back into the same or another IRA no later than 60 days after the distribution. Sometimes taxpayers don’t quite comply with the 60 day timeline for one reason or another, and the same Internal Revenue Code does enable IRS to allow more time in cases where failure to do so…

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INTENT DICTATES CHARACTER OF REAL ESTATE GAIN

INTENT DICTATES CHARACTER OF REAL ESTATE GAIN

Check out the decision in Fargo and King (TC Memo 2015-96) for a refresher on the rules regarding whether real estate gains are capital versus ordinary, depending on whether the property was “held” for development, as opposed to an investment purpose. The courts typically analyze various factors when this issue arises, in evaluating whether a taxpayer “held” property primarily for sale to customers in the ordinary course of business, including: ~The purpose for which the property was originally acquired ~The…

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DON’T FORGET THE TAXPAYER ADVOCATE

DON’T FORGET THE TAXPAYER ADVOCATE

The Taxpayer Advocate Service is an independent organization within IRS, whose role is to protect taxpayers’ rights and ensure that all taxpayers are treated fairly. Among other things, the Advocate: ~Helps individuals, businesses and exempt organizations in a myriad of ways ~Helps in cases where the taxpayer’s IRS problem is causing a financial difficulty or, most commonly, in cases where IRS procedure has simply bogged down and the taxpayer is trapped in a morass of red tape with no resolution…

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