| Identity Theft Scheme Against Non-Resident Aliens |
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| Identity theft is big news these days, and we all know not to give our social security or credit card numbers over the telephone to strangers. But just as we are beginning to think that we are safe from the identity scammers, the Internal Revenue Service has discovered a new scheme, which is aimed at non-resident aliens who have income from a United States source. This scheme uses fake IRS correspondence and an altered IRS form to trick the foreign person into releasing personal and financial data, and the thieves use this information to steal the individual's identity and financial assets. More... |
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| Filing a Return after a Spouse Dies |
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| In general, the surviving spouse is considered married for the entire year no matter when the death occurred, and he or she is entitled to file a joint return in the year of the spouse's death. This allows the surviving spouse to take advantage of the lower joint tax rates and to take an exemption for the deceased spouse. However, if a joint return is filed, it must include all income from both spouses for the year. More... |
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| Public Disclosure Requirements for Exempt Organizations |
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| Tax-exempt organizations other than private foundations are now required to provide copies of certain tax documents to anyone who requests them. If the request is made in person, the organization is usually obligated to provide a copy immediately, and if the request is written, the exempt organization has 30 days to comply. These requirements are in addition to the exempt organization's obligation to make their tax documents available for public inspection. More... |
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| Use Tax |
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| States that impose a sales tax on the sale of tangible personal property or services frequently impose a use tax for the privilege of using, storing, or consuming goods or services within the state. Goods become taxable upon delivery to the buyer within the taxing state and after the buyer's use of the goods begins. The use tax is a non-recurrent tax; thus, once paid, an owner can use the goods repeatedly. It is usually imposed on the purchaser, user, or consumer of goods and services. More... |
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| Partnership Anti-abuse Provisions |
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| The Internal Revenue Service has the authority to disregard the partnership form of an entity if the operations of the business are found to be inconsistent with the intent of the partnership tax statutes and the partnership form is being used for tax-avoidance purposes. According to Treasury Regulations, the intent of the partnership laws is to allow taxpayers to conduct a joint business activity through a flexible economic arrangement without incurring an entity-level tax. More... |
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