How can one prove a tax return was filed if the IRS says it was not?
- David Greene
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Was the return sent by certified mail, return receipt requested? If so the green card signed by someone at the IRS and a copy of thee signed and dated tax return is all the proof needed. If you did not…
How should one report non-cash contributions?
- David Greene
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Keeping proper records to support contributions claimed as a tax deduction can be tricky. If you claim cash contributions, you must have a receipt from the charitable group to whom you gave the contribution. Also, the gift must be to…
If a student loan is discharged, is the discharged amount taxable?
- David Greene
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Not in all cases. The general rule is that, if a debt you owe is discharged, the amount discharged now becomes income to you because you do not have to pay back the debt. I.e., you received money and used…
Is the taxing of individuals by the IRS illegal?
- David Greene
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I get this kind of inquiry every couple of years. Over the course of my practice, I have represented several individuals who tried to take this stand with the IRS. None of them were successful and the few who did…
How to deal with a missing W-2.
- David Greene
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You should have received your W-2 by January 31. If you did not, you should take these steps: (1) Contact your former employer and verify whether your address is correct and request a resubmission of the W-2. (2) If not…
Can I use my unreimbursed employee mileage expense as a deduction in 2020?
- David Greene
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Unfortunately, you can no longer use mileage on the job as an unreimbursed business expense when you itemize deductions. In my practice I have found that, most of the time, those expenses were disallowed in an audit because the taxpayer…
Can one withdraw money from an IRA without incurring the 10% penalty?
- David Greene
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Money can be withdrawn from an IRA at any time for any reason, but if it is withdrawn before the owner reaches 59 ½ a 10% penalty will generally be imposed. However, there are certain circumstances where the 10% penalty…
When is a theft or bad debt loss not deductible?
- David Greene
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You can claim a theft loss as a deduction only if there is no chance of recovering any of the amount stolen. Here the IRS is probably lookiong at the possibility that the owner will have to pay restitution as…
Can an employee still deduct unreimbursed business expenses?
- David Greene
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Since the new tax law came into effect, employee itemized deductions for unreimbursed business expenses, including mileage, have been suspended. However, self-employed individuals and certain employees (e.g. armed-forces reservists, certain state or local government officials, educators and performing artists) may…
What are the current rules about meal and entertainment deductions?
- David Greene
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The new tax law (TCJA) has made several changes in the deductibility of business meals and entertainment. Last week I addressed deductions for meals. This week I will discuss the deductibility of entertainment expenses. Even before the new tax law,…