Property Owners: As If You Didn’t Have Enough Issues To Deal With Already.
Apparently, the Department of the Treasury feels that a significant number of real estate property owners have mis-reported rental income. They, as a group, have been singled out for special attention by the IRS. See the article below by Steven Katkov. Steven is an adjunct instructor who teaches Real Estate Law at the University of St Thomas. He is also the Senior Partner in the Katkov Law Group.
The Internal Revenue Service (IRS) should increase its examinations of personal tax returns that report losses from rental real estate activity, according to a new audit report released publicly today by the Treasury Inspector General for Tax Administration (TIGTA).
TIGTA’s report, “Actions are Needed in the Identification, Selection, and Examination of Individual Tax Returns with Rental Real Estate Activity,” was conducted because a Government Accountability Office report in August 2008 stated that at least 53 percent of individual taxpayers with rental real estate activity for Tax Year 2001 misreported their rental real estate activity, resulting in an estimated $12.4 billion of net misreported income. (more…)
