by | Aug 16, 2012 | Accounting & Bookkeeping, Income Taxes, Tax Tip of The Week
A reminder to employees about taking business expenses on Schedule A: Any expenses that an employer would have reimbursed are not deductible according to the Tax Court (Stidham, TC Summ. Op. 2012-61). In that case, a taxpayer listed business expenses such as overnight...
by | Aug 2, 2012 | Income Taxes, Tax Tip of The Week
According to IRS officials, identity thieves took stolen Social Security numbers and filed unauthorized refunds early in the past filing season. Taxpayers discovered their identity had been stolen only after they filed their true tax returns and had the return...
by | Jul 16, 2012 | Income Taxes, Tax Tip of The Week
In today’s bad economy I often see taxpayers who have received a form 1099-C for forgiveness of debt. Most taxpayers have been trained by the IRS to believe that if they received a 1099 of any type, they have taxable income. But there are four areas where the...
by | Jul 7, 2012 | Accounting & Bookkeeping, Current Affairs, Income Taxes, Tax Tip of The Week
After 2012, the estate tax law will revert to what was in effect before 2001 unless Congress acts. The current $5.12 million estate and gift tax exemption would fall to $1 million, while the maximum tax rate will rise to 55%…a 20 percentage-point...
by | Jun 26, 2012 | Current Affairs, Income Taxes, Tax Tip of The Week
Tax court recently overruled the IRS (Ensyc Technologies, TC Summ. OP. 2012-55) and stated that forgetting to mail the return can be a “reasonable cause” for filing late and having the penalty waived. The case revolved around an accountant who, each year, prepared the...
by | Jun 13, 2012 | Accounting & Bookkeeping, Business Profit & Cash Flow Tips, Business Success Series, Current Affairs, Income Taxes, Small Business Owners, Tax Tip of The Week
Many owners of S Companies take low salaries so that the bulk of the profits are passed to their personal returns free of Social Security and Medicare taxes. Both the IRS and the courts are consistently ruling against such arrangements. In a recent case, a CPA set up...
