IRS Tax Help: Taxpayers Need to Beware of Unacceptable Tax Deductions on 2010 Tax Returns
As the tax season of 2010 is underway, taxpayers need to be very careful about what kind of tax deductions they are planning to claim.
Since the IRS is stepping up its aggressive collection efforts, it would be unwise for taxpayers to claim deductions that they cannot substantiate with evidence or claim deductions that are not compliant with the IRS tax filing regulations.
If you do find yourself in IRS trouble, there is tax help available. You can seek tax help from a tax attorney or Certified Tax Resolution Specialist to settle your IRS debt and penalties.
A recent story sets an example for taxpayers to be wary of their tax deduction claims.
CCH (http://intelliconnect.cch.com) reports:
Taxpayers Not Entitled to Non-Cash Charitable Deductions; Penalties Properly Imposed
Non-cash charitable contribution deductions claimed by three couples were properly disallowed, and penalties for improperly deducting business losses were properly imposed. The individuals were not entitled to deduct non-cash charitable deductions because they did not comply with the Code Sec. 170 reporting requirements. At the time of their donations there was no reasonable reliance exception to the substantiation requirements. The individuals were responsible for penalties for improperly deducting losses for cutting horse, dog breeding and dog shows activities. The taxpayers were sophisticated businesspeople who failed to maintain proper and separate accounting of their dog breeding and cutting horse expenses. Furthermore, they had been informed of the possible repercussions if the IRS determined that their losses were derived from hobbies activities rather than for-profit businesses. Therefore, they did not show that they acted with reasonable reliance on the advice of tax professionals.
Thousands of taxpayers get caught by the IRS for improper tax deductions every year. Don’t be one of them. The economy is tough, but the money you “save” from tax deductions is not worth the IRS penalties that you can incur.
If you are unsure about what qualifies as a proper tax deduction, you can hire a tax attorney or Certified Tax Resolution Specialist to help you. Don’t hesitate to ask for tax help–it can save you thousands of dollars in the long run.
Tax Resolution Services is a team of tax attorneys, CPAs, and Certified Tax Resolution Specialists. You can call our office at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com
More Tax Help, IRS News and Tax Relief Tips:
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Tags: CCH, IRS debt, Michael Rozbruch, tax attorney, tax deducion help, tax deduction claims, tax evasion, tax expert, tax help, tax relief, tax resolution services, tax settlement, Tax Tips
