Partnership Audits

Even though it is the individual partners, not the partnership, that are responsible for reporting and paying taxes on any gains or losses recognized by the partnership, audit proceedings on partnership items are conducted on the partnership, not the individual, level.

Standard v. Itemized Deductions

One important decision that the individual taxpayer has to make when preparing his or her federal income tax return is whether to itemize deductions or to take a standard deduction. The correct choice between separately listing and adding together individual items that are deductible under the Internal Revenue Code and taking a flat statutory amount to reduce the amount of income on which you are taxed can legally reduce a taxpayer's liability.

Social Clubs

Under the Internal Revenue Code, certain organizations and programs are exempt from income taxation. One type of organization that frequently seeks tax-exempt status is the social club.

Appeal Rights

If the Internal Revenue Service determined that you owe additional taxes and interest and you disagree with the position your examiner has taken on a certain issue, you may request a meeting with the interviewer's supervisor. If you still do not agree, or if the examination was conducted through correspondence instead of through a personal interview, you will get a 30-day preliminary letter from the IRS listing its proposed adjustments and informing you of the alternatives available to you.

Small Employer Pension Plan Start-up Costs Credit

In order to encourage small businesses to establish and maintain retirement savings accounts for employees, Congress has enacted a law that gives a tax credit to eligible small businesses for some of the costs of establishing new eligible retirement plans. The credit equals half of the start-up costs incurred, not to exceed $500 in any tax year, and it may be claimed for qualified costs incurred in each of the three years beginning with the tax year in which the plan becomes effective.