Re: More KEBSCHULLW standoff saga

On Sep 25, 8:21?am, "Paul Thomas, CPA" <paulthomascp...@xxxxxxxxxxxxx>
wrote:

What, and please be specific, is the source of the
income that is "used for the overpayment"?

lil paulie:

In your case it would be from the services you render as an IRS
prostitute.

What, and please be specific, is the type of income
that reduces taxable income, and is used for the
overpayment" and is allowed as a deduction?

That would be non-exempt income that is used to pay expenses that are
allowable as deductions, including amounts that are later determined
to be overpayments where there is refund in a subsequent tax year or
expenses that are deductible and that are recovered in a subsequent
tax year.

Under section 111(a), the reduction in taxable income attributable to
the overpayment is offset by an increase in taxable income in the
refund year. Under section 111(a), when only the regular tax is paid,
the amount of the increase in regular taxable income attributable to
the refund is the same amount as the net reduction in taxable income
attributable to the overpayment. Unfortunately, IRS instructions
sometimes produce "FRAUDULENT DOUBLE TAXATION" of the refunds.

lil' paulie:

If a tax overpayment is allowed as a deduction in a year that the
regular tax is paid and the refund of the overpayment in a subsequent
year is excluded from AMTI in a year the AMT is paid, just when is
the either the income used for the overpayment that produced a tax
benefit or the refund of the income used for the overpayment taxed
directly?


I can think of only two reasons that a CPA would support IRS's
fraudulent instructions related to section 56(b)(1)(D) or 111(a) and
and those are (1) the CPA is benefiting from the fraudulent
instructions through a fraudulent scheme of his own, or (2) the CPA's
clients are benefiting from IRS's fraudulent instructions.

So, lil paulie, in your case, which is it?


Cheers,

WDK





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Relevant Pages

  • Re: 2005 AMT Change Question
    ... >>> tax treatment of state income tax refunds is limited. ... >>> income taxes are allowed as deductions in determining regular taxable ... >>> tax overpayment when itemized deductions exceed the standard deduction. ...
    (misc.taxes)
  • Re: This is a "tax professional" giving advice?
    ... deductions are not limited by income and the income used for the tax ... overpayment does to increase taxable Social Security benefits or reduce ... reduce tax credits, etc. ... refund is received rather than the regular tax. ...
    (misc.taxes)
  • Re: 2005 AMT Change Question
    ... >>> the AMT was paid in the overpayment year and the regular tax was paid ... >>> overpayment nor was there an underpayment.. ... > tax treatment of state income tax refunds is limited. ...
    (misc.taxes)
  • Re: 2005 AMT Change Question
    ... >> tax treatment of state income tax refunds is limited. ... >> tax overpayment when itemized deductions exceed the standard deduction. ... >> overpayment when the AMT is paid. ...
    (misc.taxes)
  • Re: This is a "tax professional" giving advice?
    ... >>> be excluded from alternative minimum taxable income (BY THE NEGATIVE ... >> being deductable for AMT in the prior year, ... So the amount of state tax refund that was added to ... If no AMT was paid in the overpayment year then the regular tax ...
    (misc.taxes)