IRS heats up compliance enforcement...

...on passport holders with tax debt

In the past decade, Congress and the IRS have made numerous efforts to close the international tax gap.  This is the amount of taxes the Treasury loses each year from U.S. taxpayers abroad not reporting income, paying taxes, or filing tax returns.

In recent years, the IRS has tried to close the international tax gap with the Foreign Account Tax Compliance Act (FATCA) and a series of offshore voluntary disclosure programs—all aimed at enforcing proper reporting of foreign financial accounts and overseas income.

Read More: http://www.journalofaccountancy.com/newsletters/2017/jul/irs-compliance-enforcement-passport-holders-tax-debt.html

Questions: http://rehcpas.com/

IRS Warns That Pay On Disability Is Often Taxable: Here's How To Tell

What is taxed and what isn’t can be confusing. In the case of disability pay, whether it is taxed or not usually depends on who paid for the disability insurance coverage. Perhaps your employer paid and you were covered as a fringe benefit. In that case, when you are disabled and the coverage kicks in, the benefits you receive are taxable. However, what if you paid for your disability insurance yourself, with after-tax dollars? In that case, the payments you later receive on disability are tax-free.

Read More: https://www.forbes.com/sites/robertwood/2017/07/05/irs-warns-that-pay-on-disability-is-often-taxable-heres-how-to-tell/#309487a0648f

Questions: http://rehcpas.com/

IRS Rejects Minister Tax Write-Offs For Lack Of Profit Motive

The U.S. Tax Court has agreed with the IRS that a minister and author could not deduct business expenses. Why? He was not engaged in a trade or business for profit. To top it off, the reverend also wasn't allowed any deductions under the more liberal hobby loss rules, because he had no gross income from these activities. The case is Lewis v. Commissioner, involving a minister and author named Willie Lewis. He occasionally performed weddings, attended meetings, and conducted seminars. On his 2011 tax return, he claimed business expenses from these activities. The IRS said no, assessed more taxes, and added penalties. So Mr. Lewis went to Tax Court.

Read More: https://www.forbes.com/sites/robertwood/2017/07/06/irs-rejects-minister-tax-write-offs-for-lack-of-profit-motive/#2deb9b75673d

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