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Tax Law and Discussion   Editor: Randy Cox

MoneyCentral tax: Does the IRS owe you $1,100? If you moved after filing y

3:00 AM Jan 15th
• MoneyCentral tax: Does the IRS owe you $1,100? If you moved after filing your 2008 return and never gave the IRS your new address, some of the $123.5 million in unclaimed tax refunds might be yours. Full story [Related content: taxes , …full story

5 Important Changes for Taxpayers for 2008 | National Spending Journal - By Shoeboxed

7:09 PM Feb 5th
• Here are a few tax law changes you may want to note before filing your 2008 federal tax return:rnrn1. Expiring Tax Breaks Renewed
•rn2. Standard Deduction Increased for Most Taxpayers
•rn3. Contribution Limits Rise for IRAs and Other
•rn4. Standard Mileage Rates Adjusted for 2008
•rn5. Kiddie Tax Revisedrnrn …full story

Finding Tax Savings in a Lost Marriage: The Taxation of Alimony

4:33 PM Jul 15th
• It is very common for the IRS, on audit, to recharacterize alimony payments. For payee spouses, this often results in the IRS finding that the spouse failed to report their alimony income. For the payor spouses, this often results in the IRS disallowing tax deductions for the alimony payments. For example, in Przwoznik v. Commissioner, T.C. Summary Opinion 2008-50, the U.S. Tax Court found that “unallocated familiy support” was child support and not tax deductibe alimony. The U.S. Tax Court reached the opposite conclusion in Raga v. Commissioner, T.C. Summary Opinion 2008-46, finding that ”unallocated maintenance and child support” was alimony and therefore it had to be included in the payee spouse’s gross income. …full story

Some garnishments might violate law

4:31 PM Jul 15th
• As many people struggle to pay for necessities, they skip making debt payments. Many creditors in turn are seeking relief by taking borrowers to court. But in some cases the actions of the financial institutions in carrying out court orders are of questionable legality, according to a new report out by the Social Security Administration’s Office of the Inspector General. …full story

US tax ruling likely to hit hedge fund investors

4:28 PM Jul 15th
• Wealthy hedge fund investors are less likely to be able to deduct management fees on so-called funds of funds from their income taxes, following a recent ruling by the Internal Revenue Service, according to a report in The Wall Street Journal. Concluding that funds of funds aren't engaged in a trade or business, the IRS will now treat management fees as investment expenses, instead of business expenditures which are tax-deductible. …full story

Plea to tax count ends lawsuit kickback charges - Forbes.com

4:24 PM Jul 15th
• LOS ANGELES - The last defendant in a major federal kickback case involving class-action lawsuits against some of the nation's biggest corporations pleaded guilty Monday to a tax-related felony. Under an agreement with prosecutors, Paul T. Selzer entered his plea to a charge that he tried to obstruct the Internal Revenue Service code. …full story

Taxpayers Bear Brunt of This Bailout - TheStreet.com

4:21 PM Jul 15th
• All the benefits from the past thirty plus years, however, will likely be washed away by the federal bailout of the two firms now on the table, which critics say will eventually leave taxpayers holding the bill. It's difficult to say exactly how much homeowners have saved on lower mortgage rates from having Fannie and Freddie around. …full story

John Doe summons means Swiss banks may have lost their mystique - 14 Jul 2008

4:23 PM Jul 14th
• Just days ago, a U.S. District Court Judge Joan A. Lenard gave the IRS authority to issue a John Doe summons to Zurich-based Union Bank of Switzerland, commonly known as UBS, to turn over information about U.S. taxpayers who use Swiss bank accounts to evade U.S. taxes. Taxpayers subject to U.S. tax law are required to report all financial accounts in foreign countries when the value of the account exceeds $10,000 at any time during the calendar year. Willfully failing to report such an account can result in a penalty of up to 50 percent of the balance of the account at the time of the violation, according to a Department of Justice press release. …full story

Tax Law and Discussion