CRNG LLC Accounting and Tax

Search for Charities on IRS.gov

2010-01-31T13:43:00.003-05:00

Make sure the organization you donate to is a qualified charity by checking the IRS website. Please visit the following link: http://www.irs.gov/app/pub-78/ for a list of organizations that are eligible to receive tax deductible contributions.

IRS Warns Taxpayers to Beware of First-Time Homebuyer Credit Fraud

2009-07-30T11:00:00.002-04:00

The IRS has announced its first successful prosecution related to fraud involving the first-time homebuyer credit and warned taxpayers to beware of this type of scheme.

A tax-preparer in Jacksonville, FL recently pled guilty to falsely claiming the first-time homebuyer credit on a client's federal tax return and faces the possibility of jail-time, a fine up to $250,000, or both.

For more details, please visit: http://www.irs.gov/newsroom/article/0,,id=211399,00.html

IRS Issues New Hobby Loss Rules Manual

2009-07-13T09:58:00.003-04:00

The IRS has issued a new audit technique guide (ATG) to provide guidance to Revenue Agents and Tax Compliance Officers in pursuing the application of Internal Revenue Code (IRC) § 183, Activities Not Engaged in for Profit (sometimes referred to as the “hobby loss rule”).

The purpose of the guide is to: assist in distinguishing between a business activity (where deductions may be allowable under IRC § 162); a non-business “for profit” activity (where deductions may be allowable under IRC § 212; an activity not engaged in for profit (where deductions are strictly limited by specific rules contained in IRC § 183); and a personal activity (where deductions are generally disallowed by IRC § 262, except to the extent not otherwise allowable), provide examination techniques, supply applicable law, and provide written guidance in report writing. This guide is not designed to be all inclusive. This guide is not legal precedent and should not be relied upon as such. It is not designed to remove the discretion given to managers and examiners in the application of a variety of audit techniques or procedures appropriate to any given examination.

For more information, please visit: http://www.irs.gov/businesses/small/article/0,,id=208400,00.html#chapter01_01

GAO: IRS Should Reevaluate Tax Penalties

2009-07-07T09:17:00.003-04:00

The Government Accountability Office released a study entitled "IRS Should Reevaluate Tax Penalties" on July 6, 2009 (http://www.gao.gov/new.items/d09567.pdf)

Why GAO Did This Study:

Civil tax penalties are an important tool for encouraging compliance with tax laws. It is important that the IRS administers penalties properly and determines the effectiveness of penalties in encouraging compliance.

In response to a congressional request, GAO determined (1) whether IRS is evaluating penalties in a manner that supports sound penalty administration and voluntary compliance and, if not, how IRS may be able to do so, and (2) whether IRS’s guidance for a new penalty for failure to disclose reportable transactions was issued in a timely manner and was useful to affected parties, and whether and how IRS has assessed the penalty. GAO reviewed IRS documents and guidance, and interviewed IRS officials and tax practitioners.

What GAO Recommends:

The Commissioner of Internal Revenue should direct the Office of Servicewide Penalties (OSP) to evaluate penalty administration and penalties’ effect on voluntary compliance and develop a plan to focus its efforts. The Commissioner also should use IRS’s standard outreach methods to again alert taxpayers of the need to disclose reportable loss transactions.

First-Time Homebuyer Credit

2009-07-03T21:35:00.005-04:00

First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2009. The credit:

Applies to purchases that close after before Dec. 1, 2009.
Applies only to homes used as a taxpayer's principal residence.
Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

A credit up to $8,000 may be claimed using using Form 5405.

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.

For more information, please visit http://www.irs.gov/newsroom/article/0,,id=204671,00.html

FASB Accounting Standards CodificationTM

2009-07-02T13:59:00.000-04:00

Today the Financial Accounting Standards Board (FASB) launched the FASB Accounting Standards CodificationTM as the single source of authoritative U.S. generally accepted accounting principles (GAAP) for nongovernmental entities. The Codification is effective for interim and annual periods ending after September 15, 2009. This new system is clearly organized, user-friendly and accessible online at http://asc.fasb.org.