Which tax-free and tax-favored fringe benefits are passthrough owners entitled to? Partnerships, LLCs treated as partnerships, and S corporations have distinct tax and nontax advantages. However, entrepreneurs considering these forms of business should be aware that fewer tax-free and tax-favored fringe benefits are available to owner-entrepreneurs of passthroughs than to…
Transfers to LLC were not includable in decedent’s estate Estate of Mirowski, TCMemo 2008-74 The Tax Court has held that assets the decedent transferred to a family limited liability company (LLC) shortly before she died were not includable in her gross estate under Section 2036(a). Facts. The decedent’s husband was…
Innocent spouse relief granted despite ex-husband’s objection Bishop, TC Summary Opinion 2008-33 The Tax Court agreed with the IRS and, over the objection of the taxpayer’s ex-husband, held that the taxpayer was entitled to equitable relief under Section 6015(f) from her husband’s tax underpayments. Facts. The taxpayer married in 1982,…
IRS fact sheet explains foreign earned income exclusion IRS Fact Sheet May 2008 Mike Habib, EA IRS has issued a fact sheet that explains the foreign earned income exclusion rules. Observation: Although the fact sheet is a valuable summary of the complex foreign earned income rules that apply starting with…
IRS or State Payroll Tax Audit & Employment Tax Audit The word audit can strike a very real sense of fear into the hearts of even the most courageous of men. When you own a business, there is even more at stake than a few minor penalties or fees; you…
State Sales Tax & Use Tax Audits and Examination – why you need a tax professional on your side Mike Habib, EA myIRSTaxRelief.com Among the most frightening words a business owner can hear are the words: sales tax audit. There are many reasons why this is a phrase that should…
New bill seeks to reduce worker misclassifications H.R. 5804, 4/15/08 [Taxpayer Responsibility, Accountability, and Consistency Act of 2008] Rep. James McDermott (D-Wash) has introduced legislation that would revise employee vs. independent contractor rules and increase information reporting penalties The legislation is called the “Taxpayer Responsibility, Accountability, and Consistency Act of…
<span [Audit Report No. 2008-30-095]: Fiscal year 2007 marked another period of improvement in IRS’s compliance activities, continuing an eight-year period of upward trends in such endeavors, the Treasury Inspector General for Tax Administration (TIGTA) said in a new audit. Many enforcement activities continued to increase despite a slight reduction…
Tax Problem Solver – Why You Need Professional Help Tax problems come in different forms; IRS tax problems, State tax problems, and Sales tax problems. Tax authorities are constantly increasing their tax enforcement efforts through tax collection and tax audit. When taxpayers receive the dreaded tax notice that their tax…
TIGTA study finds modest audit rate increase for C corps but marked increase for passthroughs ( S Corps) Trends in Compliance Activities Through Fiscal Year 2007, TIGTA Reference Number 2008095 A recently released TIGTA (Treasury Inspector General for Tax Administration) report reveals that despite a slight uptick in FY 2007,…