Welcome to the Regan Tax Law Blog
Conservation Easements – Subordinating Mortgages
There are many tax and social benefits to gifting a conservation easement. Unfortunately, some taxpayers are in too much of a hurry to make the contribution and do not complete all of the steps necessary to receive all of the tax benefits. The U. S. Tax Court,...
Real Estate Professional – Maintaining Adequate Records
Doing well in a full time job is hard enough, but some people, for many reasons, spend significant time, energy, and money away from their “regular job” trying to build themselves a better future through real estate. They often feel like they spend every waking hour...
Relief for Businesses Using Independent Contractors: Section 530 is Still a Viable Option
This is the first article in a series dedicated to using Section 530 of the Revenue Act of 1978 as protection for businesses that have been using independent contractors, in good faith, but are now facing an IRS or State of Minnesota audit of that practice. Section...
Valuations Misstatements and the IRS Accuracy Penalty (IRC Section 6664(c))
I have been watching the tax cases dealing with building facade easements for insight into how the IRS and the courts are reacting to the significant deductions being taken by partners in real estate partnerships. These partnerships generally buy a building, develop...
Can I discharge income taxes in bankruptcy?
Yes, under the right circumstances. Income taxes (not trust-fund or withholding taxes) are dischargeable in a Chapter 7 Bankruptcy if certain conditions are met. Has it been more than three years since the original due date, including extensions, for the return? If...
Can an In-Business Corporation Compromise its Employment Tax Obligations With The IRS?
Yes. An in-business corporation can compromise its outstanding employment tax obligations with the IRS. In past years, the IRS required that an Offer in Compromise (OIC) from an in-business corporation include not only its ability to pay, but also, the amount the IRS...
Can I Recover Income Tax Refunds When I File My Returns Late?
Many individuals and businesses fail to file their income tax returns for multiple years for a variety of reasons, usually stemming from life and business pressures that made it almost impossible for them to file their returns. When they finally have the time and...
Innocent Spouse Relief- IRS Modifies Section 6015(f), Equitable Relief Rules
On January 5, 2012, in Notice 2012-8, the IRS significantly modified the rules for spouses seeking Innocent Spouse Relief under Internal Revenue Code Section 6015(f), which is also known as “Equitable Relief.” Notice 2012-8 is effective immediately and supersedes the...
Contributing a Lake Home to a Fire Department
In Scharf v. Comm'r 32 T.C. Memo 1247 (1973) acq, in result, 1974 WL 36031, the United States Tax Court decided, and the IRS had acquiesced to the decision, that a charitable contribution deduction was available for the donation of a building (albeit partially...
Historic Preservation Conservation Easements – A Good Tax Shelter?
In the early 1980s, there was an almost endless supply of tax shelters promising deductions and credits that produced benefits far in excess of the investor's contribution. These shelters were not just for wealthy, promoters pushed them on the average income earner as...