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...
by | May 21, 2012 | Small Business Owners, Tax Tip of The Week
An IRS official says about 2,500 small corporations (those with assets of less than $250,000) will be audited as part of the IRS national research program. Starting in April, tax returns from 2010 will be reviewed. The IRS will use the results of these exams to update...
by | Mar 30, 2012 | Accounting & Bookkeeping, Income Taxes, Tax Tip of The Week
We’ve been working so hard on tax returns these last few weeks that we’ve neglected our poor little blog. Just a reminder, if you haven’t brought in your tax information, you need to do it, and soon! The deadline this year is April 17th. We can only guarantee...
by | Mar 1, 2012 | Current Affairs, Income Taxes, Tax Tip of The Week
One of my clients was recently selected by the IRS to have his tax return audited because he had a higher-than-average contribution deduction on his tax return. This is not me just making an assumption – this is what the IRS auditor told me. To be accurate, she said,...
by | Feb 18, 2012 | Income Taxes, Small Business Owners, Tax Tip of The Week
The tax court ruled that retirement payments made by self-employed business owners for themselves cannot be claimed as a deduction on Schedule C in order to reduce self employment tax (the business owners’ Social Security and Medicare). It is deducted from adjusted...
