...the QAAA, and prepared and filed the tax returns. Karen sued Tom, because she thinks that Tome mismanaged QAAA and sold the land and building in a low price, and she wants to ask for an increased portion of the proceeds from sale of the property based on its “true value”. The land and building was sold for $7.0 million in an all-cash sale. After closing of the sale, Karen received a 2012 Schedule K-1 from QAAA listing her reportable taxable gain as $500,000. Karen wants to not report the gain on her 2012 tax return, since she the taxable income from the sale is disputed and she hasn’t received and proceeds yet from the sale. Issues: Is the money taxable which you haven' Findings: “Each partner is required to take into account separately in his return his distributive share, whether or not distributed, of each class or item of partnership income, gain, loss, deduction, or credit described in subparagraphs (1) through (9) of this paragraph.” Reasoning & Authority: The existence of a partnership for Federal income tax purposes is a question of Federal law and does not depend on whether an enterprise is recognized as a partnership under local law. Commissioner v. Culbertson, 337 U.S. 733, 741 [37 AFTR 1391] (1949); Commissioner v. Tower, 327 U.S. 280, 287-288 [34 AFTR 799] (1946); see also Bergford v. Commissioner, 12 F.3d 166, 169 [73 AFTR 2d 94-498] (9th Cir. 1993), affg. Alhouse v. Commissioner, T.C. Memo. 1991-652 [1991 TC Memo ¶91,652]; Frazell v. Commissioner, 88...
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...Federal Tax Decisions Tax Court Memorandum Decisions Tax Court & Board of Tax Appeals Memorandum Decisions (Prior Years) 1995 TC Memo 1995-448 - TC Memo 1995-409 Jose A. Alvarez, et ux., TC Memo 1995-414, Code Sec(s). 6013; 6501; 6651; 6653; 6661; 6662, 8/24/1995 Tax Court & Board of Tax Appeals Memorandum Decisions Jose A. Alvarez, et ux. v. Commissioner, TC Memo 1995-414 , Code Sec(s) 6501. JOSE A. ALVAREZ AND WANDA ALVAREZ. Case Information: Code Sec(s): | 6501 | Docket: | Dkt. No. 2849-91. | Date Issued: | 8/24/1995. | Judge: | Opinion by Laro, J. | Tax Year(s): | Years 1982, 1983, 1984, 1985, 1986, 1987, 1989. | Disposition: | Decision for Commissioner. | | Related Proceedings at Jose A. Alvarez v. Commissioner, [S| T.C. Memo. 1995-414 [1995 RIATC Memo U95,414], Tax Ct. Dkt. No. 22719-93 | Cites: | TC Memo 1995-414, RIATC Memo P 95414, 70 CCH TCM 518. | HEADNOTE 1. Tax Court — arbitrary deficiency notice. Deficiency notice wasn't arbitrary, so burden of proof didn't shift to IRS: IRS'sYiet worth calcuJatfonssrnatched taxpayefs^net^Korth Iedger>d€f1ciertoes in taxpayer husband's income computed under^ank-deposifSsQTettiecrwere prima facieVaTld; and taxpayers kept inadequate records and stip&taled the accuracy of IRS's tracing of ledger entries to specific bank account balances. Husband's testimony that source of unreported income was a gift was unsupported. https://checkpoint-riag-com.proxy .lib.wayne.edu/app/view/toolltem?usid=c 1 1 a22674cf&fe...
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...Tax Court & Board of Tax Appeals Memorandum Decisions Jose A. Alvarez, et ux. v. Commissioner, TC Memo 1995-414 , Code Sec(s) 6501. JOSE A. ALVAREZ AND WANDA ALVAREZ. Case Information: Code Sec(s): 6501 Docket: Dkt. No. 2849-91. Date Issued: 8/24/1995. Judge: Opinion by Laro, J. Tax Year(s): Years 1982, 1983, 1984, 1985, 1986, 1987, 1989. Disposition: Decision for Commissioner. Related Proceedings at Jose A. Alvarez v. Commissioner, [S| T.C. Memo. 1995-414 [1995 RIATC Memo U95,414], Tax Ct. Dkt. No. 22719-93 Cites: TC Memo 1995-414, RIATC Memo P 95414, 70 CCH TCM 518. Petitioners resided in Bayville, New Jersey, when they petitioned the Court in docket No. 2849-91. Mr. Alvarez resided in Coral Gables, Florida, when he petitioned the Court in docket No. 22719-93. For each of their [Mr. and Mrs. Alvarez] 1982 through 1984 taxable years, petitioners timely filed a Form 1040, U.S. Individual Income Tax Return, using the status of "Married filing joint return". For each of his 1985 through 1987 and 1989 taxable years, Mr. Alvarez untimely filed a Form 1040 using the status of "Married filing separate return". Drug-Dealing Activities Involving Mr. Alvarez Mr. Alvarez was the subject of a criminal investigation conducted by a multiagency task force (Task Force). The Task Force's investigation culminated on October 3, 1985, with the arrest of Mr. Alvarez, Adolph V. Carbone, and approximately 66 other suspects. Mr. Alvarez was charged with conspiracy to distribute cocaine...
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...Tax Memo Facts: Doug Jones timely submitted his 2009 tax return and elected married filing jointly status with his wife, Darlene. Doug and Darlene did not request an extension for their 2009 tax return. Doug and Darlene owed and paid the IRS $124,000 for their 2009 tax year. Two years later, Doug amended his return and claimed married filing separate status. By changing his filing status, Doug sought a refund for an overpayment for the tax year 2009 (he paid more tax in the original joint return than he owed on a separate return). Issue: Can Doug and Darlene change their filing status in 2009 from married filing jointly to married filing separately two years after their original return was filed to receive a refund for over payment Authorities: Reg. Sec. 1.6013-1(a)(1) J.A Haigh v Commr, 97 TCM 1794, Dec. 57,858(M), TC Memo. 2009-140 Conclusion: Doug and Darlene cannot amend their 2009 return to change their filing status. When a couple files a joint return they can amend the return until their original due date. Analysis: Reg. Sec. 1.6013-1(a)(1) states “For any taxable year with respect to which a joint return has been filed, separate returns shall not be made by the spouses after the time for filing the return of either has expired”. James Haigh went to court to argue that he should be allowed to amend his return from married filing jointly; to married...
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...Tax Research Memorandum To: Lauren Smith From: Date: May 18, 2012 Re: Tax Treatment of MBA education expenses Facts You incurred $15,000 in educational expenses in the course of earning a MBA. You want to deduct these expenses as an employee business expense in your tax return since your employer does not have an education expense reimbursement program. Issue The issue is (1) whether the education was required to keep your present salary, status or job and/or the education maintains or improves skills needed in your present work, and (2) whether the education was needed to meet the minimum educational requirements of your present trade or business, and (3) whether the education is part of a program of study that will qualify you for a new trade or business. Rule It has been established that education expenses can be deducted as business expenses when the education maintains or improves skills needed in your current work but the education was not needed to meet minimum requirements and did not qualify you for a new trade or business. Publication 970 (2011) Tax Benefits for education Federal Tax Regulations, Regulation, §1.162-5., Internal Revenue Service, Expenses for education Singleton-Clarke v. Commissioner, T.C. Summary Opinion 2009-182, Allemeier v. Commissioner, T.C. Memo. 2005-207 Blair v. Commissioner, T.C. Memo. 1980-488 Sherman v. Commissioner, T.C. Memo. 1977-301 Link v. Commissioner, 90 T.C. 460, 463-464 (1988) Schneider v. Commissioner...
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...Ogunbajo's Ultimate Golf Journal January 2011 Trans # 53 Type Invoice Date 1/2/2011 Num 2 Adj Name Yanov, Tamara Yanov, Tamara Yanov, Tamara Yanov, Tamara State Board of Equ... Memo -MULTIPLE-MULTIPLE-MULTIPLECA Sales Tax Account 1200 · Accounts Re... 4020 · Clothing Sales 1120 · Inventory As... 5000 · Cost of Goo... 2200 · Sales Tax P... Debit Credit 600.54 559.94 80.00 80.00 40.60 680.54 54 Invoice 1/2/2011 3 Costini, Maria Costini, Maria Costini, Maria Costini, Maria Costini, Maria State Board of Equ... Golf Clubs: S... -MULTIPLE-MULTIPLE-MULTIPLECA Sales Tax 1200 · Accounts Re... 4030 · Equipment S... 1120 · Inventory As... 5000 · Cost of Goo... 4010 · Accessory S... 2200 · Sales Tax P... Golf Clubs: ... Golf Clubs: ... Golf Clubs: ... CA Sales Tax 1200 · Accounts Re... 4030 · Equipment S... 1120 · Inventory As... 5000 · Cost of Goo... 2200 · Sales Tax P... Golf Bags -MULTIPLE-MULTIPLEGolf Clubs: Ir... CA Sales Tax 10% Discoun... 1200 · Accounts Re... 4010 · Accessory S... 1120 · Inventory As... 5000 · Cost of Goo... 4030 · Equipment S... 2200 · Sales Tax P... 6130 · Sales Discou... 1,034.64 750.00 362.50 362.50 214.70 69.94 1,397.14 55 Invoice 1/2/2011 4 Hammar, Azar Hammar, Azar Hammar, Azar Hammar, Azar State Board of Equ... Invoice 1/2/2011 5 Palm Springs Scho... Palm Springs Scho... Palm Springs Scho... Palm Springs...
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...Checkpoint | Document Checkpoint Contents Federal Library Federal Source Materials Federal Tax Decisions American Federal Tax Reports American Federal Tax Reports (Prior Years) 1995 AFTR 2d Vol. 76 76 AFTR 2d 955815 76 AFTR 2d 955724 (60 F3d 833) WEBER v. COMM., 76 AFTR 2d 955782 (60 F3d 1104), Code Sec(s) 62; 3401, (CA4), 7/31/1995 American Federal Tax Reports WEBER v. COMM., Cite as 76 AFTR 2d 955782 (60 F3d 1104), Code Sec(s) 62; 3401, (CA4), 7/31/1995 Michael D. WEBER; Barbara L. WEBER, PETITIONERSAPPELLANTS v. COMMISSIONER of the Internal Revenue Service, RESPONDENTAPPELLEE. Case Information: [pg. 955782] Code Sec(s): 62; 3401 Court Name: U.S. Court of Appeals, Fourth Circuit, Docket No.: Docket No. 942609, Date Decided: 7/31/1995. Prior History: Tax Court, (1994) curiam. 103 TC 378, affirmed per Tax Year(s): Year 1988. Disposition: Decision for Govt. 60 F.3d 1104. Related Proceedings: Related Proceedings at Weber v. Commissioner, 103 T.C. 378 (1994) Cites: 76 AFTR 2d 955782, 60 F3d 1104, 952 USTC P 50409. HEADNOTE https://checkpointriagcom.umiss.idm.oclc.org/app/view/toolItem?usid=11f6a7l15d8cd&feature=tcheckpoint&lastCpReqId=2242675 1/17 10/16/2015 Checkpoint | Document 1. Business deductions—employee or independent contractor. 4th Cir. affirmed ruling that ordained Methodist minister was church employee and that as such...
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...BR100 Application Setup Document ADDING NEW OPERATING UNIT - FINANCIALS Author: Creation Date: Last Updated: Version: 1.0 Release: 11.5.10 Contents SA: Review Multi-Org Profile Options 1 AP: Choose Set of Books 2 PO: Define Inventory Organization Parameters 3 AP: Define Financial Options 4 AP: Define Expense Report Templates 6 AP: Define Payables Options 7 AP: Define Banks 10 AP: Define New AP Signing Limits 13 AP: Define Tax Codes 14 AP: Define Tax Groups 15 AP: Define Tax Reporting Entities 16 OIE: Define iExpense Policies 17 Enable Expense Allocations 17 Set Up Required Expense Fields 18 Define Receipt Notification Rule Set 19 Assign Receipt Notification Rule Set 20 Define Mileage Rate Schedule 21 SA: Set OIE Profile Options 23 AR: Define AR System Options 24 AR: Open...
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...Enter employees. If you have Oracle Human Resources installed, use the People window. See: Entering a New Person (Managing People Using Oracle HRMS). If you do not have Oracle Human Resources installed, use the Enter Person window. If Oracle Inventory or Oracle Purchasing is installed, you must define at least one Inventory Organization before defining Financials Options. Define payment programs. Install or upgrade Payables. Select your primary set of books. Use the System Administrator responsibility to assign your set of books to a responsibility. Define Financials options. Define Payables options. Define your payment terms. If you plan to use automatic withholding tax, define Tax Authority type suppliers. You must do this before defining tax codes and tax groups. Define bank accounts. Define Suppliers. Open your Payables accounting period....
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...his client in a personal injury case. His wife Jane Smith accompanies him during your meeting because she has some additional tax planning advice to ask of you. Role After reviewing John and Jane Smith’s points of view, it will be your turn as a tax professional to decide on the best course of action from a tax perspective on their issues. Prepare a three page memo (at least 300 words per page) to John and Jane Smith addressing the issues presented. Prepare a three page memo (at least 300 words per page) to John and Jane Smith addressing whether the issues presented above: 1. John Smith tax issues: 1. How is the $300,000 treated for purposes of Federal tax income? 2. How is the $25,000 treated for purposes of Federal tax income? 3. What is your determination regarding reducing the taxable amount of income for both (a) and (b) above? 2. Jane Smith tax issues: 1. What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for Federal income tax purposes? 2. Can John and Jane Smith utilize a 1031 tax exchange to buy a more expensive house using additional money from John`s case? 3. Does Jane have a business or hobby? Why is this distinction important? 4. Would Jane (and John) realize better tax benefits if she had a separate business for her jewelry making activities? 5. What tax benefits would John realize if he invested $15,000 in Jane`s jewelry making? 6. Can Jane depreciate her vehicle or jewelry ...
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...September 30, 2012 Mr. Don Dewey 4321 Mount Vernon Road Dover, DE 19901 Dear Mr. Dewey: This letter is in response to your inquiry regarding the benefits and feasibility of allowing your daughter to be classified as a qualified child of your eldest son for this tax year. My conclusion is based upon the facts as provided by you at the Chamber of Commerce meeting on Wednesday, September 26, 2012. FACTS You are legally married to Mary Dewey and reside in the same abode. Both you and Mary file your income tax returns jointly as married. You and Mary are anticipating an approximate Adjusted Gross Income (AGI) of $400,000 this year. In your same abode, you have two children in residence; Debra, who is currently 16 years of age, and Van, who is currently 23 years of age. Currently, Van is not a student and works part-time, with an anticipated income of $16,000 per annum. QUESTIONS PRESENTED Can Van Dewey, age 23, deduct his sister, Debra Dewey, age 16, as a qualified child, where both siblings live in their parents’ abode? What are the tax advantages and disadvantages for Don and Mary Dewey if Debra Dewey became a deduction for Van Dewey vis-à-vis remaining a deduction for them? SHORT ANSWER Mr. Van Dewey cannot claim his sister, Debra Dewey, as a qualified child, and thus receive a Qualified Child Credit or a Head of Household deduction status. ANALYSIS Under § 152(c) of the IRC, Mr. & Mrs. Don Dewey (the “Dewey’s”) can qualify for a dependency...
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...CPA Report Michelle Richardson ACC/545 Internal Control Systems September 10, 2012 Jeffrey Mitchell Memo Accounting Professionals, Inc. To: Management From: Michelle Richardson CC: Jeffrey Mitchell Date: September 10, 2012 RE: CPA Report ________________________________________________________________________ Per your request, this memo provides explanations regarding a subsidiary that has recently been set up as a corporation. This explanation includes the procedures for reporting accounting changes and error corrections, the methodology used to determine deferred taxes, and the rationale for establishing the subsidiary as a corporation. According to the AICPA (2012), “licensed CPAs are subject to regulation by their respective state boards of accountancy and strict professional ethics rules adopted by the boards to protect the public against fraud, incompetence and conflicts of interest” (para. 1). As such, the responses to the outside CPA’s in regard to the above-mentioned matters will be handled with the utmost diligence. In addition, to clarify the questions regarding the differences between reviews and audits, an audit is the “accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria” (Arens, Elder, & Beasley, 2006, p. 19). Reviews, on the other hand, are a “form of attestation in which a CPA firm issues a written report concerning historical...
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...Tax Research Memo #1 Martin Coldiron ACCT390-VIFF-F14 Annette Hoeltzer August 28, 2014 Tax Research Memo #1 Memo DATE: August 28, 2014 TO: Mr. Brent Ouray FROM: Martin Coldiron RE: Advising on filing status Facts: Brent and Kathy Ouray have been married since 1996. Starting in 2010 until current they both have been experiencing marital issues. They are presently not legally separated, but consider themselves to be estranged. Do you to be financial difficulties of Brent and Kathy they have not been able to go through with a divorce. They have three sons together that they both want to remain in their sons lives. So based on the financial concerns of both Kathy M Brent they are unable at this time to financially support to separate homes for them and the children, so they currently all still live in a single-family home in Chicago, Illinois. Brent and Kathy are both financially supporting their three sons and maintaining the upkeep of the house that they are all currently reside. While comparing Brent and Kathy’s annual income, Brent substantially earns more annually than Kathy. They both agree that even though they both support the children and maintain the home that Brent contributes more. In the current tax season Brent has stated that he would like to file a separate Federal Income Tax from Kathy and he would like to claim head of household as his status on the current year’s return. Brent feels that, if he and Kathy keep separate households while under the same...
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...A Timely Analysis of Legal Developments ASAP Recent USCIS Memo on Employer-Employee Relationship Requirements for H-1B Visa Petitions: Regulation by Memorandum? By Jorge Lopez, Shin-I Lowe and Neil Grindstaff ® In This Issue: March 2010 The USCIS recently issued a guidance memo to its adjudication officers, “Determining Employer-Employee Relationship for Adjudication of H-1B Petitions, Including Third Party Site Placements.” The Memo clarifies what constitutes a valid employer-employee relationship, in the context of petitions for H-1B visas, which are commonly used by IT staffing agencies and consulting groups for placing skilled workers at third-party worksites. Donald Neufeld, Associate Director or Service Center Operations for the United States Citizenship and Immigration Service (USCIS) recently issued a guidance memo to its adjudication officers, “Determining Employer-Employee Relationship for Adjudication of H-1B Petitions, Including Third Party Site Placements” (“Neufeld Memo” or “Memo”). The Memo clarifies what constitutes a valid employer-employee relationship, in the context of petitions for H-1B visas, which are commonly used by IT staffing agencies and consulting groups for placing skilled workers at third-party worksites.1 On February 18, the USCIS held a “Collaboration Session” in Washington, D.C., to address the growing concerns about the implications of the Neufeld Memo. Approximately 500 people (400 via teleconference) attended the two-hour session...
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...ascertained that the amount of the casualty loss from the death of the five trees is $25,000; however, she is uncertain in which year to deduct this loss. Prepare a Tax File memo and a client letter to discuss whether the casualty loss should be deducted in the calculation of Millie’s 2014 or 2015 taxable income. Partial list of research aids: Reg. § 1.165–1. Oregon Mesabi Corporation, 39 B.T.A. 1033 (1939). Dear Millie, This letter provides you with our firm’s opinion regarding the tax consequences of the casualty loss from withstanding the severe hurricane damage as determined by the Internal Revenue Service. More specifically, does the casualty loss entitle Millie a deduction for the five oak trees in 2014 or 2015? In my research, I found that Millie is entitled to claim a deduction for the casualty loss resulting from hurricane damage (2014) in 2015. I found a case that had circumstances that were almost identical to your situation. In that case the casualty loss was deductible throughout each year it was ascertain there was a casualty loss. The IRS has also taken a similar position. I am available to discuss this issue with you in greater depth at your convenience. Should you have any questions or concerns, please feel free to contact me at any time. Tax File Memo TAX FILE MEMORANDUM December 1, 2015 Subject: Casualty Loss from severe Hurricane damage Facts: Millie owns a large home on...
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