Archive for the Tax Planning Category

Two Important Factors used to Determine Reasonable Compensation for S Corporation Shareholders

http://electrodomesticosam.com/?q=student-loan-forgiveness-texas-state-employees Taxable income as calculated on the U.S. Federal Return for an S corporation flows through to its shareholders and is taxed at the individual level, not subject to self-employment tax. Because the income from the S Corporation is taxed when it is reported on the federal tax return…

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Tax Withholding Applied to Foreign Parters of a Partnership Depends on Income Classification

enter   When a U.S. Partnership is formed and has one or several foreign individual partners who do not live in the United States, the income of such partnership to the partners must be assessed as to its nature to the partners in order to determine the amount of tax withholding…

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IRS Responds to Taxpayer Expectations for More Online Services

follow In response to the ever-increasing number of taxpayers wanting online services, the IRS continues to develop online tools to interact with the taxpayers online, Commissioner John Koskinen said on April 2. Speaking at the National Press Club in Washington, D.C., Koskinen added that adequate funding is critical for…

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Ways and Means Approves Tax Extender Bills Without Revenue Offsets

http://acf.ch/wp/?m=bank-of-america-home-loan-application A divided House Ways and Means Committee approved six bipartisan tax bills on April 29. The tax incentive measures, popularly known as tax extenders because they often lapse and are restored by Congress, were taken from a comprehensive tax reform package introduced by Committee Chairman Dave Camp,…

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Do Unregulated Tax Preparers put Taxpayers at Risk?

http://cuba-clothing.com/blog/?m=payday-loans-yazoo-city-ms Did you know that nearly 80 million taxpayers use paid tax preparers, but 60% of those preparers are not regulated by the IRS?  The reason for this is because the agency is only allowed to impose requirements on tax attorneys, enrolled agents, and Certified Public Accountants? The Government Accountability…

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Tax Extenders That Expired December 31, 2013

source url There are dozens of temporary tax provisions that expired at the end of 2013.  Most of these provisions have been part of past temporary tax extension legislation.  Most recently, many temporary tax provisions were extended as part of the American Taxpayer Relief Act of 2012.  Collectively, temporary tax provisions…

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IRS Issues First Guidance on Bitcoin

While bitcoin and other virtual currencies are becoming more popular, the tax rules that apply to them have been unclear, including the basic question of whether they are treated as a currency or as property.  Well, the first step to clearing this up for federal tax purposes…

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Advantages & Disadvantages of Making an S Corp Election

Entrepreneurs often struggle with how to structure their business.  My clients often pose this question to me, as they should, while trying to make sense of the advantages and disadvantages of each corporate structure. Essentially, the most simplest structure is to be a Sole Proprietor.  But it is…

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Tax Implications for Earnings of Foreign Subsidiaries

Under the current U.S. tax rules, non-U.S. earnings are generally not subject to U.S. tax until the earnings are repatriated.   While the U.S. tax system generally taxes income of U.S. taxpayers wherever earned, profits earned from active overseas businesses, as opposed to passive overseas investments, are generally…

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International Tax Proposal included with 2015 Fiscal Year Budget Released to Congress

President Barack Obama released his fiscal year 2015 budget request to Congress on Tuesday March 4, 2014 and lawmakers will promptly ignore it. But the annual ritual highlights his policy priorities for the coming year and serves as a Democratic Party manifesto as Democrats seek to draw…

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