Monthly Archives: March 2011

MEDICAL EXPENSES ON A MARRIED FILING SEPARATE RETURN

When spouses for any one of a number of reasons file separate returns many tax benefits are limited or eliminated.  In addition, the spouses must separately compute taxable income, allocate tax payments and determine each spouse’s separate tax liability. Qualifying medical … Continue reading

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THE MARX BROTHERS WOULD LOVE THE CONGRESSIONAL FORM 1099 ROUTINE

Quite amusing is the hubbub over the expanded Form 1099 reporting requirements included is the Patient Protection and Affordable Care Act and break-neck efforts over its seemingly inevitable repeal.  The House voted overwhelmingly on March 3 to wipe the ridiculous … Continue reading

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INJURED SPOUSE AND INNOCENT SPOUSE NOT THE SAME

Taxpayers often confuse an Innocent Spouse with an Injured Spouse.  They are not the same.  Innocent Spouse is term loosely used to describe one who is seeking relief from joint and several liability on a jointly filed tax return.  The status must be requested … Continue reading

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FAILURE TO PAY DEBT IN FULL NOT ALWAYS TAXABLE DISCHARGE

Not every unpaid debt results in cancellation of debt income to the borrower under the IRC Section 61(a)(12). Often medical debts and credit card debts are genuinely disputed.  Hospital bills contain many errors and patients should question charges not understood.  … Continue reading

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FAILURE TO DEPOSIT EMPLOYMENT TAXES – TOUGH TIMES NOT REASONABLE CAUSE

There is a split among the federal Circuit Courts of Appeal whether there is a reasonable cause exception available to avoid the trust fund 100% penalty assessed against responsible persons. The 5th, 6th and 10th Circuits in addition to the Court of Claims … Continue reading

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