The tax rules for rental properties can be complicated. Generally, all rentals are considered to be “passive activities,” and taxpayers with incomes over $150,000 are not allowed to claim their passive losses until they either sell the property or have passive income to offset the losses. In a recent audit…

Sometimes faith in what’s right pays off. This was the case for a recent adoption credit examination we defended for one of our members in Wisconsin. The Members were in the process of trying to adopt a child and had incurred $10,720 in adoption expenses that they’d claimed on their…

One of the most rewarding aspects of working at TaxResources is getting to work with our Members and learning about their lives and interests. Our Members represent a great cross section of humanity throughout the United States, and they all seem to have a unique perspective on life. It is…

The following story is about the exceptional service provided by a TaxResources team. With more than five tax professionals on the case, it is a great example of how we put the power of our organization’s skills and experience to work to solve our member’s problems each day. The member…

Audits can be time-consuming, stressful, and serious. When members first contact us for assistance, they can be panicked or confused about where to start and what to do. While our number one priority is to resolve our members’ tax issues as quickly and successfully…

When I was assigned an audit for Schedule A charitable contributions and medical expenses, I knew this would be a challenge. The member had claimed over $37,000 of medical expenses on his tax return. When I first spoke to him he explained that a large portion of the medical expenses…

High deductions for employee expenses are a frequent audit target, especially when they relate to education. The rules are very strict and it isn’t easy to qualify. But just because it isn’t easy doesn’t mean it isn’t possible, and it doesn’t hurt to have an excellent team available to defend…

My case started in November of 2010. Our member was being audited for excess mortgage interest. This was the result of using the Married Filing Separately (MFS) filing status, which limited him to deducting interest on a maximum mortgage amount of $550,000. He had filed using the MFS status because…

Determining whether you have a business or hobby can be confusing, and it is not always clear cut. It has also been the basis of many audits that sometimes result in business expenses being disallowed, which can often cause a high tax increase. This was the case for one taxpayer who…

The IRS was auditing these members for two years, but they had only purchased a membership for one of the years in advance. As a result, instead of the low membership fee that most of our members enjoy, our services were $1,885.95 for the year for which they did not…

My colleague, Vu, always performs exceptional service, but this time she truly bent over backwards for a member who was not able to provide the needed documents in a timely manner. The audit was focused on the Schedule C for self-employment and a Form 1099-A cancellation of debt. A…

Hearing this story from Audit Representative Susie E. made me think of “The Gambler,” a song released and made famous by Kenny Rogers in 1978. Over the many years she’s been representing our members in IRS office audits, Susie has learned a lot about reading a situation and how to…