Stop losing sleep over your tax situation. I'm Darrin Mish — a tax attorney in Tampa who's spent 32 years handling exactly this kind of problem. Here's what you need to know.
A love-hate relationship can exist between any two entities. Such seems to be the case with Congress and the IRS over certain tax issues.
The IRS is seriously pursuing taxpayers who are taking advantage of specific tax breaks that the IRS frowns on. What makes matters difficult for the taxpayer is that Congress has passed legislation encouraging those people to take advantage of those tax breaks.
These tax breaks include the conservation easement charitable deduction (section 170(h) of the Internal Revenue Code) and the research and develop (R&D) tax credit (section 41 of the Code).
As such, these two benefits may at first appear to be unrelated, there’s big concerns now because the IRS is targeting returns that take advantage of legal tax breaks. While Congress continues to show strong support for these tax breaks, it seems the IRS has taken a different stance on the matter.
The IRS does whatever is in its power to disallow these benefits by assuming such things as the taxpayer made a technical foot fault etc. The IRS could do a better job of determining the accurate amount of the deduction or credit allowed.
This could certainly ease the burden on the taxpayer.
Check out more IRS News stories by clicking that link.