Dependency Exemption:

  1. Dependency Exemption:

    The Tax Court denied the taxpayer’s dependency exemption deductions and child tax credits for his sons because the principal place of abode requirement under IRC Sec. 152(c)(1)(B) was not satisfied since the children spent more than half of the nights during the year with their mother. Even though the difference in nights spent with each parent was as low as five days according to the taxpayer, the statute requires a qualifying child to have the same place of abode for more than one-half of the tax year. Jason Phillips , TC Memo 2011-199 (Tax Ct.).

  2. Tips for Recently Married Taxpayers

    The IRS provided tax tips for soon-to-be married or just married taxpayers concerning their changing tax status for filing purposes. Often overlooked, these tips include (1) notifying the Social Security Administration, postal service, and employers, (2) filing Form 8822 (Change of Address) with the IRS, (3) checking withholding and filing a new Form W-4, if necessary, (4) determining if deductions are great enough to itemize and filing the appropriate form, and (5) choosing the filing status that is most beneficial. IRS Summertime Tax Tip 2011-20.

  3. Need a 1023?

    If you’re forming a new charter school, you will be required to file for exempt or charitable status with the IRS. You will need to fill out Form 1023. If you need assistance with this Form, please don’t hesitate to call us at 407-478-4020.

  4. Taxability of Embezzled Funds

    Gross income under IRC Sec. 61 includes income derived through illicit means including embezzlement. In this case, the taxpayer embezzled funds from a company where he worked as a general manager and used the money for personal expenses and to support a grocery store he owned with his wife. The taxpayer claimed the misappropriated checks written from his employer’s account to the grocery store should be counted as income to the grocery store and not to the taxpayer individually. The Tax Court found that because he had dominion [power over the funds], all of the funds became part of his individual gross income. William Wood , TC Memo 2011-190 (Tax Ct.).

  5. Employee gets the book thrown at them and gets hit with a tax! What?

    So Damages for Emotional Distress are taxable: Damages or settlement payments (other than punitive damages) to compensate persons for a physical injury or sickness are excludable from income under IRC Sec. 104(a)(2). Ok that’s Great. But the taxpayer in this case reached a settlement with her former employer after suffering “emotional distress” due to alleged harassment, disability discrimination, and intentional infliction of emotional distress including an instance where a coworker threw a binder at her. The Tax Court found that the emotional distress payment was taxable because there was no evidence of physical injury or suffering other than from emotional distress, and under the settlement agreement damages were not awarded on account of physical injury or physical sickness. Julie McGowen , TC Memo 2011-186 (Tax Ct.).

  6. Moving Expenses

    Moving can be expensive, but the IRS offers tips on deducting expenses if the move is related to starting a new job or a new job location. The move must meet a time test and a distance test , and taxpayers generally can consider moving expenses incurred within one year from the date they first report to a new location as closely related in time to the start of work. Taxpayers can deduct (1) lodging expenses for themselves and household members; (2) transportation expenses, including airfare, vehicle mileage, parking fees and tolls, limited to one trip per person; (3) the cost of packing, crating and transporting household goods and personal property; and (4) the cost of connecting or disconnecting utilities. Summertime Tax Tip 2011-16.

  7. IRS Facts on Amending Tax Returns:

    The IRS provides taxpayers with facts about amending the federal tax return including: when not to file amended returns, forms and schedules to use, receiving refunds or paying additional tax to limit interest and penalty charges, when to file, and processing time. Amended returns should be filed if the filing status, number of dependents, and income, deductions or credits were reported incorrectly. The normal processing time for amended returns is 8 to 12 weeks. Summertime Tax Tip 2011-12.


    Does the IRS owe you money? Unclaimed refunds happen when you qualify for a refund, but you didn’t file a return. Each year over a Billion dollars goes unclaimed and becomes the property of the U.S. Treasury. There is no penalty assessed by the IRS for filing a late return that qualifies for a refund, but you only have three years to get it done so make sure you filed your 2008, 2009 and 2010 – you might get some free money! Make sure you file that 2008 return before April 15, 2012 for a refund or you’ll loose it forever. Instructions are available on the Forms and Publications page of or by calling 800-TAX-FORM (800-829-3676).

  9. Obama signs bill to raise debt ceiling after Senate approval

    President Barack Obama signed legislation that raises the debt ceiling and cuts spending by trillions of dollars over a decade. Obama’s action followed a 74-26 vote in the Senate, with bipartisan support. The Treasury was given authority to borrow an additional $400 billion. Learn the implications of the debt-ceiling bill in an AICPA webinar today at 1 p.m. Eastern. The Washington Post (8/2),

  10. FY 2011-12 Procedural Change

    Prior to the initial and continuing disbursement of charter school capital outlay funds available by legislative appropriation, charter schools and sponsors are required to certify that statutory eligibility requirements provided in Section 1013.62, Florida Statutes, are met.

    Beginning in FY 2011-12, this certification will be achieved through an online portal similar to the Charter School Accountability Report currently required by the Office of Independent Education and Parental Choice pursuant to Section 1002.33(9)(l), Florida Statutes. Submission of the Capital Outlay Plan by other means is no longer required for the continuing disbursement to schools that remain eligible into the new fiscal year. A hard copy of the Capital Outlay Plan will be required for newly eligible schools only. Information and instructions for the online certification is forthcoming via office memorandum.

    If a charter school has closed, terminated operations, or is otherwise ineligible for capital outlay funds beginning July 1, 2011, please notify the Office of Educational Facilities by email at .