Retirement Savings Required Minimum Distributions (RMD’s)

Many people turning 70 see themselves in the prime of their life. A pervasive problem among this group is this idea of a Required Minimum Distribution (RMD) from their retirement savings accounts. Many people do not like to withdraw money

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Posted in Investment Income, IRA, Retirement

Nonprofit Formation – IRS Form 1023

Your organization can indeed be a nonprofit organization within your state but not be tax-exempt with the IRS. The only way to obtain FEDERAL 501(c)(3) tax-exempt status is to file IRS Form 1023. I've done this many times and felt compelled to blog

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Posted in Non-profit

IRS Offers in Compromise Work Under the Right Circumstances, but ….

The Offer In Compromise (OIC) is prepared on IRS Form 656 and must include a detailed statement of financial position with substantiating documentation (bank statements etc.) prepared on one of the many IRS Form 433's. To know which 433 to

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Posted in Offer In Compromise

Late Filing 1120 Penalties

For those of you just now starting to get failure to timely file notices for your Subchapter S Corporation, the only relief available to the S corporation for the failure to timely file penalty under §6699 is reasonable cause. There

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Posted in Small Business, Sub-chapter S

Reconstruction of Tax Records

Treasury Regulation 1.274-5 allows for a deduction without complete documentation if you can show that you have 'substantially complied' with adequate adequate record keeping requirements. This statute is code for ... be nice to your examiner. Basically the practice of disallowing

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Posted in IRS Appeal, IRS Audit, IRS Enforcement, IRS Examination, IRS Mediation, IRS Penalties, Tax Abuse, Tax Credit, Tax Deductible Expenses, Tax Fraud, Tax Guidance & Preparation, Tax Problems & Requests, United States Treasury

IRS Form 8941 Small Business Health Care Tax Credit

Check out IRS Form 8941, Credit for Small Employer Health Insurance Premiums (PDF) if you are interested in the small business health care tax credit. Many small employers that pay at least half of the premiums for employee health insurance

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Posted in Health Care Tax Credit, Self Employ, Small Business, Sub-chapter S, Tax Credit

2011 Per Diem Rates for Employee and Business Expenses

Revenue Procedure 2011-47 provides rules for using a per diem rate to substantiate the amount of an employee’s expenses for lodging, meals and incidental expenses that an employer reimburses. Employees and self-employed individuals who deduct un-reimbursed expenses for travel away from

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Posted in Business Expense

Surviving Spouse Estate & Gift Tax Exclusion

IRS Notice 2011-82 makes available the ability for taxpayers to pass along their unused estate & gift tax exclusion amounts to their surviving spouse if an estate tax return is filed. This new portability election allows estates of married taxpayers to

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Posted in Estate Tax, Gift Tax, Tax Deductible Expenses, Tax Filing Status, Tax Guidance & Preparation, Tax Problems & Requests, Trusts

IRS Form 1099-K Banks Not to be Penalized for Reporting Information Incorrectly

Okay this blew my mind today. The IRS is providing special relief to banks and other 'payment settlement entities' required to begin reporting payment card and third-party network transactions to the IRS on new Form 1099-K. Payers (Banks) have to

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Posted in Tax Guidance & Preparation, Tax Problems & Requests

Tax Treatment of Incentive Stock Options (ISO’s): Qualifying Disposition

Incentive Stock Options (ISO) are taxed based on how and when the stock is disposed and whether the disposition is qualifying or non-qualifying. Disposition of stock is typically when the employee sells the stock, transfers the stock to another person

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Posted in Stock Options
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