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Showing posts from August, 2006

No Tax On Injury Awards

The federal government may not tax the money plaintiffs receive as compensation for emotional distress and other intangible injuries, a federal appeals court said Tuesday.

The U.S. Court of Appeals for the D.C. Circuit struck down as unconstitutional a portion of the tax code that said only compensation for physical injuries is tax exempt.

This only applies in the District of Columbia. Nevertheless, It is possible the IRS may accept this interpretation for other states.
Like most laws containing tax provisions, the title of the newly passed Pension Protection Act of 2006 only tells part of the story. The legislation, which President Bush signed on August 17, 2006, does contain numerous provisions involving pension plans, but it also includes changes in the tax rules for charitable contributions, college savings plans, and more. Here are eight highlights from the massive piece of legislation spanning more than 900 pages.

Click here for full article

IRS Hires Collection Agencies

The American Jobs Creation Act of 2004 created section 6306 of the Internal Revenue Code allowing private collection agencies to collect taxes.

Later this year private collection agencies will start calling to cllect for the IRS. If you are contacted by a collection agency, SAY NOTHING! Do not admit to the debt and tell them to contact your tax attorney!

The private collection agencies will not be authorized to take enforcement actions such as liens, levies or seizures. Nor will they work technical issues such as offers in compromise, bankruptcies, hardship issues or litigation. They will be assigned cases in which the taxpayer has not disputed the liability.