User talk:PGattoCPA

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Revision as of 15:50, 28 April 2006

Source of 'When IRS Position Conflicts...'

Question: What was the source of the text in the discussion When Reg Conflict w/ Code & When IRS Position Conflicts w/ Reg? Is it copyrighted elsewhere, or did you write it?

Thanks!

Tim

Reply to Source of 'When IRS Position Conflicts...'

Tim:

I wrote the article.

The original interest in the subject matter was the "Tax Protestor" movement's latching onto what is called "the 861 argument". (Basically, a tortured reading of the Regulations under §861 could lead someone to believe that an individual's income is not taxable. However, that reading would be in direct conflict with §61's everything is income unless specifically excluded.)

Also, one of the discussion threads regarding the selling of a personal residence began to veer into the territory of an IRS Treasury Decision possibly being in conflict with a regulation. I though it might be good to write a short article on the subject.

Being a tax manager dealing with consolidated tax returns, the Woods and Trinova cases are very famous. There have been multiple articles written about them that I have read over the years. Compared to those articles, mine is child's play.

Also, it just bugs the heck out of me when the IRS takes a position that is not supported by their own regulations.

Peter

P.S.

A quick state audit story from the trenches. A state auditor came in for a field audit. He had questioned a filing position a company had taken and was in the process of writing up a very large audit adjustment that would result in a significant tax liability. A VP of Tax, a tax manager and the person in charge of dealing with state audits showed him the state statute (it was in the law itself) that not only supported, but mandated that the company file in that manner.

Unfazed, he waved his arms and said, "Those are only words." The three employees sat in stunned disbelief looking at each other to make sure they all heard the same thing.

Luckily, once it got past the field agent, his superiors quickly told him to not write up the adjustment.

Proprietorship NOLs

PGattoCPA,

It appears you are knowledgeable about NOLs. If in 2005 a schedule C generates a large loss (the only source of income for the taxpayer) and then elects to carryback the NOL to 2004, is there anyway to take the NOL carryback on the schedule C in 2004 to reduce self employment tax? Both years Schedule C are the same business.

Thanks,

UtahCPALady

Solicitations

Peter:

I received your message and I want to thank you for bringing this to my attention. I agree that this seems inappropriate and am contemplating the best course of action.

Thank you once again,

- Tim Doyle, TaxAlmanac Moderator 07:59, 26 April 2006 (CDT)

'When IRS Position Conflicts...'

By the way... would you consider creating an 'article' out of your 'When IRS Position Conflicts...' discussion? I think that would be a big win for TaxAlmanac and the community.

- Tim Doyle, TaxAlmanac Moderator 08:01, 26 April 2006 (CDT)

Pgatto, Thank god somebody else saw it. I guess this guy is just trying to get freebies. Can you believe somebody would put his life in jeopardy just by being cheap!!!! Regards.