Bonus Depreciation Safe Harbor for Vehicles

The Tax Cuts and Jobs Act set bonus depreciation for passenger automobiles at 100% (previously it was 50%), which translates into an additional $8,000 write-off for the year they are purchased and placed in service. As a general rule, if 100% bonus depreciation is claimed, then the remaining basis in excess of the first-year limit…

Pilot Program to Thwart Identity Theft Expanded

Identity theft of an individual’s personal information can enable a thief to erroneously obtain a taxpayer’s refund and cause delays in the processing of a legitimate tax return. Several years ago, the IRS started a pilot program permitting taxpayers in Florida and Georgia, as well as the District of Columbia—locations with the highest incidents of…

National Taxpayer Advocate’s Annual Report Focuses on Shutdown

In her 2018 annual report to Congress, National Taxpayer Advocate Nina E. Olson described the challenges to the IRS resulting from the 35-day government shutdown and recommended additional multi-year funding to replace 1960s-era information technology systems still in use today (IR-2019-11, 2/12/19). The report also includes the second edition of the “Purple Book,” which represents…

Value of Coins Seized from Taxpayers?

When the IRS executed a search warrant at the home of “plaintiffs,” agents seized 364 boxes of rolled $1 presidential coins, each containing 1,000 coins. The armored truck company that transported the coins removed them from the rolls and put the coins into counting machines. The company then wired the funds to the IRS but…