One new phenomenon that gained prominence during 2011 tax season is a new form called “1099-K”. Not to belabor the point, but I’ve received so many questions from clients so I’d like to offer a complete explanation to eliminate misconceptions about …
IRS Eliminates 1099K Reconciliation
The Internal Revenue Service has eliminated the requirement regarding how credit -and debit card payments are accounted for on tax returns. The IRS would have required companies to explain the differences between the 1099K numbers and their own …
S Corporation shareholder’s compensation must be reasonable.
A recent court decision reported that an S corporation shareholder's salary should be a reasonable compensation. Despite the fact that there is no statute, rule or regulations requiring minimum compensation to be paid, the compensation should be …
S Corporation shareholder’s compensation must be reasonable.Read More
New Tax Treatment of Cell Phones for Business
Lifts Record Keeping Burden for Small Business The IRS categorization of mobile phones as listed property required business owners and their employees to keep detailed records listing exactly which phone calls were personal. Many employees needed …
“Offer in Compromise” — Method to Resolve Debt
What is an “Offer in Compromise” (OIC)? For tax payers overburdened by tax debt, the IRS provides for an “Offer in Compromise.” The IRS has the authority to settle, or “compromise” federal tax liabilities by accepting less than full payment under …
Hot Tax Tips for 2011
HOT TAX TIPS FOR 2011 1. If you donate stock directly to a charity instead of cash you can get a charitable deduction for the full value of the stock that went up in the value, and you can avoid paying any capital gains tax. The securities should be …
Common Tax Errors to Avoid
COMMON TAX ERRORS 1. If you had a baby during 2011, you must get a Social Security number for the child before filing your tax return. You will not be able to claim a child dependency exemption, child tax credit or earned income credit without a …
Tax Rule for U.S. Citizens and Resident Aliens Abroad
Tax Rule for U.S. Citizens and Resident Aliens Abroad For citizens of the United States and resident aliens living abroad, the general rule for both is the same: your worldwide income is subject to U.S. income tax regardless of where you reside. You …
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VOW to Hire Heroes Act provides tax credits
President Obama signed a new law providing a tax credit to employers who hire military veterans. Named the "VOW to Hire Heroes Act," it was designed to help the approximately 240,000 veterans of the wars in Iraq and Afghanistan who remain unemployed, …