Tax Article Archives

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Tax Articles

IRS Penalties

When it comes to filing a tax return – or not filing one – the IRS can assess a penalty if you fail to file, fail to pay or both. Here are eight important points the IRS wants you to know about the two different penalties you may face if you do not file or…


Paying Estimated Taxes IRS Form 1040ES IRS

IRS Form 1040ES, Estimated Tax for Individuals, provides all you’ll need to pay estimated taxes. This includes instructions, worksheets, schedules and payment vouchers. Another good source for information is IRS Publication 505, Tax Withholding and Estimated Tax You may need to pay estimated taxes during the year depending on what you do for a living and what type…


Reporting Large Cash Transactions – IRS Form 8300

Businesses that receive more than $10,000 in cash in one transaction (or several related transactions) must file IRS Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. According to Program Manager Technical Advice (PMTA) 2010-012. Reg. §1.6050I-1(c)(1) and the instructions to Form 8300, “cash” means coin or currency of the United States or any…


100 Percent Exclusion of Capital Gains From Certain §1202 Stock Transactions

A substantial benefit for those individuals who have formed small to mid-sized C corporations before the end of 2010. IRC §1202 has been previously used by taxpayers to exclude one half of the capital gain they realize when they sell qualifying §1202 stock at a gain. To qualify, the stock had to be acquired as an original issue directly from a C corporation with less…


Personal Service Corporations (PSC) – the Sub Chapter S Election and Wages/Employment Taxes

As I have blogged before a Personal Service Corporation can indeed elect Sub Chapter ‘S’ corporate status and be treated as a disregarded entity for income tax purposes.  This requires the filing of IRS form 1120-S, not IRS form 1120. However if you are successfully (ie profitably) operating a personal service corporation structured as a…


Can’t Afford to Pay Your Taxes?

Many people are completely underestimating their tax liabilities this year.  It is absolutely incredible. So these are some of my suggestions for those of you in this position: Pay as much as possible now to minimize interest and penalties. Request an Offer in Compromise. Finance the full payment of your tax liability through a loan. The…