By Ron Cohen, CPA, MSTPartnerGreenstein, Rogoff, Olsen & Co., LLPMy comments and rant: This I.R.S. assumes taxpayers and tax advisors have a duty to search for complex and revised FAQs on their website, digest the information, advise our clients...

California allows a nonrefundable credit against net tax equal to the lesser of 5% (.05) of the purchase price of the qualified principal residence or ten thousand dollars ($10,000). But only a limited amount of funds are available for the credit, and...

“E-Verify is an Internet based system operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA) that allows participating employers to electronically verify the employment eligibility of their...

U.S. v. McFERRIN (CA 5 6/9/09) Congress enacted IRC Sec. 41 providing a tax credit to stimulate research and development activities within the U.S.  The intent was/is to keep research labs and people on-shore in the U.S. with the obvious economic...

Proposal to amend the U.S. Internal Revenue Code:  Any Seller, Buyer or Insured Party who enters into a Credit Default Swap (“CDS”) contract insuring U.S. source risks will be subject to an excise tax of 10% of the face amount of such CDS. ...

UPDATE:  June 16, 2009: Perhaps President Obama called the Commissioner and expressed anger about his need to pay income tax on his employer-provided cell phone calls to the First Lady? The IRS triggered so much bad press and anger (Wall Street...

The I.R.S. has warned they will take this filing deadline more seriously than in the past and impose penalties on late or non-filers. PLEASE TAKE THIS SERIOUSLY! Form TD F 90-22.1 (Report of foreign Bank and Financial Accounts, commonly known as an...

Cost Sharing Arrangements (“CSA”) allow a taxpayer to legally move and exploit intellectual property outside the U.S. when it’s related to products sold outside the U.S.  This reduces the U.S. tax liability of a multi-national company in legal...

The I.R.S. issued the following guidance on how to make tax claims for Ponzi-Type losses. I hear from other CPAs that some investors have lost all their money in the Madoff funds and are rushing to CPAs to file refund claims in a desperate attempt...

Here’s the quote on June 2, 2009: “First, for too many years, the IRS was in the position of not having the resources to go toe-to-toe with taxpayers operating in the international markets. They had deep pockets and could hire a cadre of legal and...

The California Legislature is considering law changes for Madoff losses. However, in the current budget crisis, it is hard to see how they can help. California law makes no provision for recovering taxes paid on “phantom income.” State law currently...

Business Issue Establish due date for estimated capital callsReview personal liability insuranceReview medical insurance issuesPrepare personal cash flow forecast & balance sheetCarried interest: 4 - 6 years away (Don't spend until in your pocket)Partnership...

There are a couple of proposals in Obama’s green book that you may want to be aware of: Carried interest taxed as ordinary incomeSubject to self-employment taxCannot use loans or other advances to “purchases carried piece (or additional lp piece)Use...

The California Legislature and Governor Schwarzenegger enacted a new rule, for 2009 and thereafter, for taxpayers with Adjusted Gross Income (“AGI”) over $1 million per year. In the past, for at least three decades I can remember, a taxpayer...

Under the American Recovery and Reinvestment Act of 2009, certain individuals who are eligible for COBRA continuation health coverage, or similar coverage under state law, may receive a subsidy for 65 percent of the premium. These individuals are...

Taxpayer loses the Xilinx Case (click this link to see the complete Ninth Circuit Court of Appeals Decision of 5/27/09) in the Court of Appeal on May 27, 2009. Subject to further appeal to the Supreme Court (which almost never happens with tax related...

Limited Liability Companies (“LLCs”) that had business within and outside California may be entitled to refunds. This opportunity is specific to a certain set of facts. FTB Notice 2009-04 at this link, below, includes a complete review of the status...

According to the article, Accenture Is Seeking to Change Tax Locales, published on May 27th, 2009 by the Wall Street Journal, many companies are moving their international holding companies out of the Cayman Islands and Bermuda, as these countries...

The Cayman Islands is becoming transparent. Tax Evaders with Cayman bank accounts and unreported income should be warned that their bank account information may be shared with U.S. and European tax authorities. Becoming a member of the...

Per the California CPA Magazine, May 2009 with some editorial comments by Ron Cohen: Managing Vs. Non-managing Members of an LLC A booby trap in LLC taxation is that California's Employment Development Department differentiates between "managing...

Taxpayer victory in Tax Court Real estate agents can claim the real estate professional exception to the passive loss limitations. The I.R.S. tried to argue that the taxpayer needs to be a “Broker” not a just an “Agent” to meet the 750 hour...

Training classes nondeductible; no election required for Sec. 195 start-up costs Thomas J. Woody, TC Memo 2009 –93 This new case covers a number of common issues for real estate investors and small businesses. Facts: Mr. Woody paid $22K to the...

One of the most frustrating issues taxpayers confront as they attempt to deal with their taxes is to determine the required amount and due dates for estimated tax payments during the tax year. Everyone is aware that any unpaid taxes are due on...

As time passes, I hear from reliable sources the same type of stories, over and over, about doing business in China.  So, I thought I’d pass along some recent reviews: Assume a taxpayer sets up a Wholly-Owned Foreign Enterprise (W.O.F.E.)...

That Franchise Tax Board (FTB) has begun mailing notices (FTB 4106 MEO) to taxpayers who meet the mandatory e-pay threshold. The new mandatory e-pay law requires taxpayers to remit their payments electronically if their tax liability exceeds $80,000,...