| Evidence |
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| Under a new provision of the Internal Revenue Code, the general burden of proof is on the Internal Revenuw Service with respect to factual issues in certain situations. Under the statute, if the taxpayer is generally law-abiding, it is the responsibility of the IRS to show that the taxpayer's determination of his own liability was not correct. The burden is on the IRS if the taxpayer can show that he has complied with all the substantiation requirements, has maintained all records required by the Code, has cooperated with all IRS reasonable requests for witnesses, information, documents, meetings, and interviews, and meets certain net worth requirements. More... |
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| Deductions for Daycare Providers |
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| Normally, a taxpayer seeking to take deductions for the business use of his or her home must meet the following qualifications: the business use of part of the home must be exclusive, regular, and for a trade or business AND the business part of the home must be either the principal place of business, the place where the taxpayer meets with clients, patients, or customers, or a separate structure not attached to the home. More... |
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| Partnership Tax Year |
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| Generally, a partnership is required to use the same tax year as a majority of its owners. If one or more of the partners having the same tax year owns a majority interest in the business, the partnership must use the tax year of those partners. A majority interest is defined as an interest in more than half of the partnership's profits and capital. When the owners are individuals, their tax year is usually the calendar year. More... |
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| If You Cannot Pay Your Taxes - An Overview |
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| You prepare your tax return, and you discover that you did not have enough taxes withheld from your wages. You owe a substantial amount to the Internal Revenue Service, and you cannot make the required payment. What happens? You should file your return in a timely manner even if you cannot make the full payment. This action will prevent the imposition of late filing penalties. The IRS will send you a bill, which the formal start of the collections process. The bill will include information about the reason for the liability, the added penalties and interest, and the total amount due. More... |
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| Rent as a Business Expense |
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| Many businesses pay rent for the use of property. In general, a taxpayer can deduct rent paid as an expense only if the property rented is used in the business and the taxpayer does not have nor will he receive equity in or title to the property. More... |
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