Suppose you knew you owed some tax. And suppose the IRS agreed that you owed the tax.
Now suppose you paid the tax but the IRS returned the check and told you to keep the money.
Would you:
That is essentially what the IRS told an unnamed taxpayer in a letter made public Dec. 30, 2010.
As top lines shrink and gross profit margins decline, contractors find themselves challenged not just to make money but simply to survive.
Major uncertainties have almost everyone holding on to cash and reluctant to grow. So how do you stay afloat? Here are some ideas.
The annual 990 Information Return, required by the IRS, can be an opportunity for your not-for-profit organization to market itself. With the new disclosure requirements, the 990 provides many areas for your organization to explain its mission, activities, new services, and accomplishments. As a public document, this new expanded version is often reviewed by potential donors and sponsors to decide which organizations deserve their contributions and grant support.
Many contractors regularly lay off construction workers during the winter, only to rehire – often the very same workers – when construction work picks up in the spring. Some of these new hires should qualify for a new tax credit, available only for 2010.
Since the credit is available for employees hired earlier in the year, employers should review all employees hired since early February to determine eligibility.
This is an article specifically aimed at dealers who also have a related finance company (RFC). In operating a Buy Here – Pay Here (BHPH), it is often a struggle to have customers pay the money owed on their note when their vehicle malfunctions. If your customer can pay a little each week toward the repair (which will keep the account in good standing), it may seem to make sense to roll the cost of the repair into the installment note. But if you do this, you tread on thin ice with the IRS. [Read more...]
The question of whether a worker is an independent contractor or an employee is a complex issue. The definition of an independent contractor is derived from court cases rather than from the tax code. This is the reason that it can become very “grey.” Recently, company audits by governmental agencies have increased at both the state and federal levels. [Read more...]
Don’t Lose Your Asset(s)
All dealers have had to tighten their belts over the past couple of years. As a result there are many dealers who have minimal staff performing jobs that may be incompatible from a controls standpoint. This can have a significant impact on the way you manage your business as well as the opportunity that employees have to steal from you. [Read more...]
A recent Tax Court case denied the exclusion of gain on the sale of a principal residence to a married couple because they had never lived in the home before selling it.
In 1996, David and Christine Gates hired an architect to help them remodel and enlarge their home, a home that David had purchased in 1984 and that they had shared since their 1989 marriage. The architect advised David and Christine that more stringent building and permit restrictions had been enacted since the original house was built.
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