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    IRS wants you!

    If you haven't subscribed to IRS E-news here is a recent post. I'm thinking the first thing that comes to mind is the unfair treatment for S Corporation shareholders and their health insurance. The convoluted thinking that the IRS Counsel came up with stating that since policies were not in Corporations name do not qualify is asinine.

    1. IRS Enlists Tax Practitioners to Make Tax Compliance Easier and to Reduce the Tax Gap
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    IRS Office of Taxpayer Burden Reduction Wants Your Ideas to Make Complying with Tax Laws Easier

    In IR-2006-93 , the IRS’ Office of Taxpayer Burden Reduction (TBR) encourages tax professionals, business owners and others to submit proposals on ways to reduce taxpayer burden by using referral Form 13285A , Reducing Tax Burden on America’s Taxpayers. More information on completing the form is available on the IRS Web site.

    IRS Partner Headliners 169 - Stakeholder Ideas Needed To Address the Tax Gap

    Earlier this year, the IRS announced in IR-2006-28 an estimate of the tax gap for tax year 2001. The overall gross tax gap – the difference between what taxpayers should have paid and what they actually paid on a timely basis – came to $345 billion. IRS enforcement activities, coupled with other late payments, recover about $55 billion of the tax gap, leaving a net tax gap of $290 billion for 2001.

    A number of critical actions and proposals have been initiated to reduce the tax gap, but more is needed. We value your feedback and suggestions. If you have an innovative recommendation on how the IRS can further impact the tax gap while imposing little burden on taxpayers, please share your idea with your Stakeholder Liaison local contact .

    #2
    I think the letters they write for unreported income, or EIC audit, or any other question are ridiculous. It is a maze to try to figure out exactly what they are asking about.
    I think more clear cut communications would be a big help.
    You have the right to remain silent. Anything you say will be misquoted, then used against you.

    Comment


      #3
      I Agree with Veritas

      Yes, I agree, the new IRS position on Scorp 2% shareholders and their health insurance is ridiculous and in my opinion flawed.

      To argue that "if the policy is not in the Scorps name, you are not self-employed" for SE health insurance deduction purposes is a real stretch and is not the direction of congressional intent for this deduction.

      I have many 1 and 2 man S-corps....health insurance is usually a convuluded potpouri of a mess. Many/most have individual, Hi-deductible policies in their own names. Employer sponsered plans for small employers are very rare anymore,,,they are the exception rather than the rule. Individual policies are usually cheaper and more flexible...

      The IRS position is unreasonable based on the current climate of healthcare, it is not what Congress intended and Congress needs to step in to fix it.

      HarveyLucas

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