| Cancellation of Certain Student Loans |
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| The general rule is that if you are responsible for making loan payments and the loan is forgiven, you are required to include the amount of the cancelled loan in your gross income for federal income tax purposes. However, under certain circumstances, a forgiven student loan may be entitled to tax-free treatment. More... |
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| Personal Service Corporations Formed to Evade Taxes |
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| A corporation whose employees/owners provide personal services in the fields of accounting, actuarial science, architecture, consulting, engineering, health, and the performing arts is a personal service corporation. An employee/owner is defined by the Internal Revenue Service as an individual who owns, either directly or indirectly, more than 10 percent of the outstanding stock of the corporation on any day of the tax year. More... |
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| Capitalization of Motion Picture, Master Recording, and Video Expenses |
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| If you are the producer of a movie or sound recording, you already know that you spend a lot of money before your creation is ready to earn some money. The question is how you handle all of those incurred expenses for federal income tax purposes. More... |
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| Amended Returns |
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| The way to handle an error on a tax return really depends upon the type of error. The Internal Revenue Service usually corrects math errors on its own, and it requests any missing forms or schedules that you might have forgotten to include. Therefore, you should not file an amended return to correct these mistakes. On the other hand, if your mistake was an error in reporting your filing status, total income, deductions, or credits, you should filed an amended return. More... |
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| Appeal Rights |
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| If the Internal Revenue Service determined that you owe additional taxes and interest and you disagree with the position your examiner has taken on a certain issue, you may request a meeting with the interviewer's supervisor. If you still do not agree, or if the examination was conducted through correspondence instead of through a personal interview, you will get a 30-day preliminary letter from the IRS listing its proposed adjustments and informing you of the alternatives available to you. More... |
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