Small Business Taxes & Management

Small Business Taxes & Management



Small Business Taxes & ManagementTM--Copyright 1999-2004, A/N Group, Inc.


Back Issues

Red BallJuly 1, 2004

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJune 15, 2004

News On The Tax Front--The latest tax news.

IRS Warns of Scheme to Steal Identity and Financial Data

IRS and State Partnership Moves Forward to Improve Compliance and Service

IRS Changes Procedure for U.S. Residency Certification

In Brief:--Tax, business, and personal finance tips.

Red BallJune 1, 2004

News On The Tax Front--The latest tax news.

Paid a Deposit Penalty on Form 941? You May be Able to Get a Refund

In Brief:--Tax, business, and personal finance tips.

Red BallMay 15, 2004

News On The Tax Front--The latest tax news.

IRS Continues On Line Launch of Business Tools

In Brief:--Tax, business, and personal finance tips.

Red BallMay 1, 2004

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallApril 15, 2004

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallApril 1, 2004

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallMarch 15, 2004

News On The Tax Front--The latest tax news.

IRS Updates the "Dirty Dozen" for 2004: Agency Warns of New Scams

IRS Provides List of 12 Most Common Mistakes on Individual Returns

In Brief:--Tax, business, and personal finance tips.

Red BallMarch 1, 2004

News On The Tax Front--The latest tax news.

IRS Gives Investors Benefit of Pending Technical Corrections on Qualified Dividends

Mutual Funds and Brokers Have 1099 Problems--Don't be surprised if you get one or more corrected 1099s.

In Brief:--Tax, business, and personal finance tips.

Red BallFebruary 15, 2004

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallFebruary 1, 2004

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJanuary 15, 2004

News On The Tax Front--The latest tax news.

Tenancy in Common or Joint Tenancy?--There are a number of tax and legal differences.

In Brief:--Tax, business, and personal finance tips.

Red BallJanuary 1, 2004

News On The Tax Front--The latest tax news.

Health Savings Accounts (HSAs)--If you're covered by a high deductible health plan, you may be able make deductible contributions to a health savings account.

In Brief:--Tax, business, and personal finance tips.

Red BallDecember 15, 2003

News On The Tax Front--The latest tax news.

Year-End Planning for Individuals

Year-End Planning for Businesses

In Brief:--Tax, business, and personal finance tips.

Red BallDecember 1, 2003

News On The Tax Front--The latest tax news.

Military Family Tax Relief Act--The law changes provides benefits for servicemen.

In Brief:--Tax, business, and personal finance tips.

Red BallNovember 15, 2003

News On The Tax Front--The latest tax news.

Maximizing Depreciation Benefits--You may be able to write off that $75,000 SUV, but are the tax benefits worth it? And you may not want to take all the benefits in the year of purchase.

In Brief:--Tax, business, and personal finance tips.

Red BallNovember 1, 2003

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallOctober 15, 2003

News On The Tax Front--The latest tax news.

New Filing Address for Returns Prepared by Professionals in 10 States

In Brief:--Tax, business, and personal finance tips.

Red BallOctober 1, 2003

News On The Tax Front--The latest tax news.

Mutual Funds--Fees, Loads, and A, B, C Shares--Here's the lowdown on mutual fund fees and some thoughts on how to maximize your return.

IRS Grants Tax Relief for Hurricane Isabel Victims--The IRS provides special breaks for those in path of Hurricane Isabel.

In Brief:--Tax, business, and personal finance tips.

Red BallSeptember 15, 2003

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallSeptember 1, 2003

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallAugust 15, 2003

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallAugust 1, 2003

News On The Tax Front--The latest tax news.

Electronic Federal Tax Payment System OnLine Gets Major Upgrade--If you use the EFTPS on-line, you'll see a major improvement.

In Brief:--Tax, business, and personal finance tips.

Red BallJuly 15, 2003

News On The Tax Front--The latest tax news.

IRS Business Return Statistics for 2000--How many businesses are out there? Their size? Here are some statistics.

In Brief:--Tax, business, and personal finance tips.

Red BallJuly 1, 2003

News On The Tax Front--The latest tax news.

Jobs and Growth Tax Relief Reconciliation Act of 2003--Part III--The final edition of our update on the new tax law. This one covers the new rules on dividends and capital gains.

In Brief:--Tax, business, and personal finance tips.

Red BallJune 15, 2003

News On The Tax Front--The latest tax news.

Jobs and Growth Tax Relief Reconciliation Act of 2003--Part II--Part 2 of a 3-part review of the new tax law.

In Brief:--Tax, business, and personal finance tips.

Red BallJune 1, 2003

News On The Tax Front--The latest tax news.

Jobs and Growth Tax Relief Reconciliation Act of 2003--Part I--Part I of a 3-part review of the new tax law.

In Brief:--Tax, business, and personal finance tips.

Red BallMay 15, 2003

News On The Tax Front--The latest tax news.

IRS Reports on Two New Scams--The IRS has identified two new schemes targeting families of those serving in the Armed Forces and e-mail users.

In Brief:--Tax, business, and personal finance tips.

Red BallMay 1, 2003

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallApril 15, 2003

News On The Tax Front--The latest tax news.

IRS Attacking Abusive Employee Leasing Arrangements--The IRS is warning taxpayers against participating in certain offshore deferred compensation arrangements involving domestic and foreign employee leasing companies.

In Brief:--Tax, business, and personal finance tips.

Red BallApril 1, 2003

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallMarch 15, 2003

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallMarch 1, 2003

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallFebruary 15, 2003

News On The Tax Front--The latest tax news.

Using the $25,000 Section 179 Expense Option for Trucks and SUVs--The usual limitations on vehicle depreciation don't apply to trucks, SUVs, etc.

In Brief:--Tax, business, and personal finance tips.

Red BallFebruary 1, 2003

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJanuary 15, 2003

News On The Tax Front--The latest tax news.

Partial Amnesty for Taxpayers Hiding Income in Offshore Accounts --Under the Offshore Voluntary Compliance Initiative, eligible taxpayers who step forward will not face civil fraud and information return penalties.

In Brief:--Tax, business, and personal finance tips.

Red BallJanuary 1, 2003

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallDecember 15, 2002

News On The Tax Front--The latest tax news.

IRS Announces Revision of Voluntary Disclosure Practice --Voluntary disclosure of substantial unreported income may help you avoid criminal prosecution.

In Brief:--Tax, business, and personal finance tips.

Red BallDecember 1, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallNovember 15, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallNovember 1, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallOctober 15, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallOctober 1, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallSeptember 15, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallSeptember 1, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallAugust 15, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallAugust 1, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJuly 15, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJuly 1, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJune 15, 2002

News On The Tax Front--The latest tax news.

Interest and Penalty Relief for Terrorist Victims--Taxpayers will not owe any interest or penalties for the amount of time that the IRS earlier extended their filing or payment deadline.

In Brief:--Tax, business, and personal finance tips.

Red BallJune 1, 2002

News On The Tax Front--The latest tax news.

IRS Warns of Identity Theft Scam--An IRS warning and some tips on how to deal with identity theft.

In Brief:--Tax, business, and personal finance tips.

Red BallMay 15, 2002

News On The Tax Front--The latest tax news.

Additional Depreciation Allowance Rules and Revenue Procedure 33--The rules for the new 30% additional depreciation.

In Brief:--Tax, business, and personal finance tips.

Red BallMay 1, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallApril 15, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallApril 1, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallMarch 15, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallMarch 1, 2002

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallFebruary 15, 2002

News On The Tax Front--The latest tax news.

IRS Warns Taxpayers of Home-Based Tax Deduction Schemes

In Brief:--Tax, business, and personal finance tips.

Red BallFebruary 1, 2002

News On The Tax Front--The latest tax news.

Victims Of Terrorism Tax Relief Act of 2001--The new law contains two important provisions. The first allows businesses to claim an extra 30% depreciation in the year an asset is placed in service. The second provides for a 5-year carryback of NOLs (up from 2). Both provisions are temporary.

Taxpayer Loses on Four Issues--Wins on One--The most important one was a big abandonment loss that was disallowed.

In Brief:--Tax, business, and personal finance tips.

Red BallJanuary 15, 2002

News On The Tax Front--The latest tax news.

IRS Issues Guidance to Restaurants on Smallwares--Restaurants can now expense table items, small appliances, etc.

In Brief:--Tax, business, and personal finance tips.

Red BallJanuary 1, 2002

News On The Tax Front--The latest tax news.

IRS Change will Allow Many More Businesses to Use Cash Method--The IRS has done a major policy change with respect to the use of the cash method of accounting. Under these new rules, many more businesses will be able to adopt the method.

In Brief:--Tax, business, and personal finance tips.

Red BallDecember 15, 2001

News On The Tax Front--The latest tax news.

IRS Issues Alert on Car Donations--Most programs are legitimate; some aren't. Don't get caught in a scam.

In Brief:--Tax, business, and personal finance tips.

Red BallDecember 1, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallNovember 15, 2001

News On The Tax Front--The latest tax news.

Undeliverable Rebate and Refund Checks--If your rebate check was undeliverable, you have until December 5 to advise the IRS.

IRS Provides Additional Relief for 9-11 Disaster Victims --Can't meet a filing deadline because of the terrorist attack? Check this notice for relief.

In Brief:--Tax, business, and personal finance tips.

Red BallNovember 1, 2001

News On The Tax Front--The latest tax news.

IRS Provides Relief from Mid-Quarter Convention--As a result of the September 11 attack, the IRS has suspended the mid-quarter convention for 2001. This could be a big benefit for many taxpayers.

IRS Allows Redesignation of Estimated Tax Payments--Because of the September 11 attack, the IRS is allowing taxpayers to redesignate estimated tax payements and apply to them to other required payments.

In Brief:--Tax, business, and personal finance tips.

Red BallOctober 15, 2001

News On The Tax Front--The latest tax news.

IRS Provides Tax Information for Donors and Charities That Provide Disaster Relief

In Brief:--Tax, business, and personal finance tips.

Red BallOctober 1, 2001

News On The Tax Front--The latest tax news.

IRS Launches Web-Based Payment Option--You may now be able to make your Electronic Federal Tax Payment System (EFTPS) deposits online using a secure web site.

Disaster Relief--World Trade Center Attack--The IRS is providing relief to victims of the World Trade Center Attack.

In Brief:--Tax, business, and personal finance tips.

Red BallSeptember 15, 2001

News On The Tax Front--The latest tax news.

IRS Notice 67--Information on Rebate Checks--Information on the rebate checks in a Q & A format.

IRS Steps Up Attack on Tax Shelters--The IRS is getting tougher on abusive tax shelters.

In Brief:--Tax, business, and personal finance tips.

Red BallSeptember 1, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallAugust 15, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallAugust 1, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJuly 15, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJuly 1, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJune 15, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJune 1, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallMay 15, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallMay 1, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallApril 15, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallApril 1, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallMarch 15, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallMarch 1, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallFebruary 15, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallFebruary 1, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJanuary 15, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallJanuary 1, 2001

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallDecember 15, 2000

News On The Tax Front--The latest tax news.

In Brief:--Tax, business, and personal finance tips.

Red BallDecember 1, 2000

News On The Tax Front--The latest tax news.

Getting Started -- Business Basics--Here's a rundown of the most important points to keep in mind when starting a small business.

In Brief:--Tax, business, and personal finance tips.

Red BallNovember 15, 2000

News On The Tax Front--The latest tax news.

Section 179 Traps--Taking the section 179 expense deduction can provide a substantial, immediate tax benefit, but there are times when you may not, or can not, make the take advantage of this provision.

Your Parents' Finances--Chances are you'll be taking care of your parents or another elderly relative at some point. Here are some tips on helping them with their finances.

In Brief:--Tax, business, and personal finance tips.

Red BallNovember 1, 2000

News On The Tax Front--The latest tax news.

Personal Service Corporation--There are several definitions for a personal service corporation, depending on the area of tax law. However, all have negative tax implications. Here's how you can recognize the problem.

Employee vs. Self-Employed --Should you go out on your own? There are many pros and cons, but taxes can play an important part. Here's how to do analyze the alternatives.

In Brief:--Tax, business, and personal finance tips.

Red BallOctober 15, 2000

News On The Tax Front--The latest tax news.

IRS Issues Regulations on Sale of Principal Residence--You can exclude up to $500,000 of the gain on the sale of a principal residence. For the most part, the rules are simple. But there are some tricks and traps and making a mistake here could prove very costly.

Optimizing Your Investment Strategy--How much do mutual fund fees affect your return? What's better an up-front sales charge or higher annual fees? Are annuities really the answer? We've done some calculations that should help you analyze your strategy.

In Brief:--Tax, business, and personal finance tips.

Red BallOctober 1, 2000

News On The Tax Front--The latest tax news.

Advance to Related Corporation is Capital Contribution--You own two corporations. One corporation advances money to the other. There can be substantial tax consequences. This is what happened to one taxpayer.

State Tax Credits--Almost every state offers tax credits for various activities such as investing in new equipment, hiring new employees, rehabilitating historic buildings, etc. The credits can be susbtantial and available for both businesses and individuals. Here's what's available in two states.

Cost Cutting--If your business is being pinched (or even if it isn't) here are a number of tips on cutting costs that shouldn't be painful or hurt employee morale.

In Brief:--Tax, business, and personal finance tips.

Red BallSeptember 15, 2000

News On The Tax Front--The latest tax news.

Business Tax Planning--The second in our two-part series on year-end tax planning.

In Brief:--Tax, business, and personal finance tips.

Red BallSeptember 1, 2000

News On The Tax Front--The latest tax news.

Year End Planning for Individuals--The first in our two-part series on year-end tax planning.

In Brief:--Tax, business, and personal finance tips.

Red Ball August 15, 2000

News On The Tax Front--The latest tax news.

Leases Have Value and Tax Consequences--There are a number of tax rules that apply to leases. Here are some of the fine points.

Buying the Stock of a Business?--Most small business acquisitions are asset deals. But the seller may only want to do a stock deal. There are some special issues to consider that are frequently overlooked.

Certificates of Deposit --They're more sophisticated and complex that in the past and there are traps for the unwary.

In Brief:--Tax, business, and personal finance tips.

Red Ball August 1, 2000

News On The Tax Front--The latest tax news.

IRS Penalties--Besides filing and paying late, there are a number of them. If you get a notice from the IRS, the penalty is identified by a code. Here are the names and explanations that go along with the most common penalty codes.

Unusual Like-Kind Exchanges--You don't have to find someone who wants to exchange his property for yours to do a like-kind exchange. There are many more options to defer a gain on property.

Customer Service--It's much cheaper to keep a customer than to find a new one. Here are some tips on how to do that.

In Brief:--Tax, business, and personal finance tips.

Red Ball July 15, 2000

News On The Tax Front--The latest tax news.

Capital Gains in 2001--The rules are changing in 2001. The rates are dropping for some taxpayers

IRS Informant Program--Think you can score big by turning someone in? Read this first.

IRA Distributions--There are six different methods for taking the minimum required distributions from an IRA. Each has different income tax consequences.

In Brief:--Tax, business, and personal finance tips.

Red Ball July 1, 2000

News On The Tax Front--The latest tax news.

Reporting Cash Received in a Business--It may not be an interesting topic, but the penalties for failure to report cash of more than $10,000 you receive in your business will subject you to stiff penalties. In this case the IRS said many small transactions had to be added together.

Meals Deduction Limited to 50% --Deductions for meals and entertainment are usually limited to 50% of the actual expense; but not always. In this ruling the taxpayer was limited to 50%, but there can be substantial tax savings if you're careful.

In Brief:--Tax, business, and personal finance tips.

Red Ball June 15, 2000

News On The Tax Front--The latest tax news.

Placed in Service--When must you start depreciation (or take the Sec. 179 expense deduction)? The answer is important and not always obvious.

Doing Business in Multiple States--How do you deal with state income taxes if you do business in more than one state? Here's a primer.

In Brief:--Tax, business, and personal finance tips.

Red Ball June 1, 2000

News On The Tax Front--The latest tax news.

Pension Plans for Self-Employed Taxpayers--A pension plan can provide substantial tax benefits to business owners and there are now more options than ever. Here's a rundown on your choices.

Extension Granted to Make Election--The tax law contains several hundred elections that can save you money. But what if you fail to act when you file your return or by some other deadline? You may be able to get relief from the IRS.

True Cost of a Loan--Discount interest, compensating balances, fees. How do they affect your effective interest rate on a business loan? Here's the math.

In Brief:--Tax, business, and personal finance tips.

Red Ball May 15, 2000

News On The Tax Front--The latest tax news.

Stock Valuation Reduction Allowed--With estate tax rates of 50% or more, any decrease in the value applied to your company, the better. Here's how a taxpayer won a reduction.

Thinking of Investing in a Small Business? --"Angels" help finance many small businesses. The result can be rewarding, but it's also risky. Here are some tips to reduce that risk.

Ignoring Employees Can Be Expensive --Ignoring employee complaints can generate lawsuits, or make them worse.

In Brief:--Tax, business, and personal finance tips.

Red BallMay 1, 2000

News On The Tax Front--The latest tax news.

Residence for Tax Purposes--If you keep significant connections to a state, the state may claim you're still a resident, even if you don't think so.

Picking a CPA--It's not as easy as throwing a dart at an open phone book. Here are some tips.

Accounting Basics--Chart of Accounts --Here's the final article in our discussion of how to set up your chart of accounts.

In Brief:--Tax, business, and personal finance tips.

Red Ball April 15, 2000

News On The Tax Front--The latest tax news.

Intercompany Charge not Deductible--If you do business through two or more companies, there's a good chance they'll be intercompany transactions.

Covenant not to Compete Valid--A covenant is an important consideration in the purchase and sale of a business for both tax and nontax reasons. But if you're looking for tax benefits, you've got to be careful.

Leveraged Buyout--It can be a great way to acquire a business, but there are pitfalls.

Basic Accounting--Chart of Accounts--The chart of accounts is simply a list of the accounts, along with a description, in the company's accounting system. What accounts do you need? Here are the basics.

In Brief:--Tax, business, and personal finance tips.

Red Ball April 1, 2000

News On The Tax Front--The latest tax news.

Capital Gains--Part III--The last in our 3-part series on capital gains and losses. Here are 11 ways to postpone or avoid tax on capital gains and make the most out of any losses.

Equipment Removal and Building Demolition Costs --The costs to remove obsolete equipment should be currently deductible, but the costs to demolish a building aren't. You may have options to avoid this trap.

IRS Allows Special Accounting Exception for Small Businesses--In a major concession to small businesses, the IRS has provided an exception to the general rule that businesses with inventory must use the accrual method of accounting.

IRS Filing Tips, Taxpayer Errors and Questions--The IRS has just published some statistics on common practitioner and taxpayer errors, questions, Tax Court issues, etc.

51% May Not be Control--Just because you own 51% of the stock doesn't mean you have control of a corporation.

In Brief:--Tax, business, and personal finance tips.

Red BallMarch 15, 2000

News On The Tax Front--The latest tax news.

Capital Gains -- Part II--Here are more important rules you should know capital gains.

S Corporation Subsidiaries--S corporations have been allowed to have subsidiaries for several years. The IRS recently issued regulations on how the rules work. Read this before making a Qualified Subchapter S Subsidiary election; you may not want to.

Accounting Basics -- Capital Stock -- Part II--This is the second in our series of basic accounting articles on capital stock.

Keeping Your Corporation Current --What happens if you don't file that corporate annual report and pay the $85? You could find your corporation unable to sue or defend itself in court.

In Brief:--Tax, business, and personal finance tips.

Red BallMarch 1, 2000

News On The Tax Front--The latest tax news.

IRS Issues Ruling on Depreciation of Exchanged Property--How do you depreciate property acquired in a like-kind exchange? The IRS has finally publishing guidance, and it should be beneficial to most taxpayers.

S Corporations -- Husband and Wife Shareholders--There's a potential trap for husband and wife shareholders in an S corporation, but there's also an easy way around it.

Capital Gains -- Part I--There's more to the rules than the 20% and the one-year rule, especially if you own a business.

Accounting Basics -- Capital Stock -- Part I --You should know the basics and, fortunately, they're not that complicated. A must read if you do your own accounting.

Series I Savings Bonds --Introduced in 1998 for many investors they're more attractive than EE bonds and even other government and corporate bonds.

In Brief:--Tax, business, and personal finance tips.

Red BallFebruary 15, 2000

News On The Tax Front--The latest tax news.

Audit Traps--What items can trigger an audit? While the IRS won't release that info, here are some thoughts from tax professionals.

Residence Qualified as Business Expense--Can you deduct your entire house as a business expense? Yes, but you've got to meet some strict rules.

New or Used?--Sometimes it makes more sense to buy used equipment; sometimes new is the only way to go. Here are some factors to consider.

Accounting Basics -- Debits and Credits --Accounting programs will handle most items. But for those times when you have to make an entry the old fashioned way, here are the basics of debits and credits.

In Brief:--Tax, business, and personal finance tips.

Red BallFebruary 1, 2000

News On The Tax Front--The latest tax news.

Individual Tax Return Tips--Part II-- This is the second and last part of our tax preparation tips for your 1999 tax return. We'll return to our regular coverage in the next issue.

In Brief:--Tax, business, and personal finance tips.

Red BallJanuary 15, 2000

News On The Tax Front--The latest tax news.

1999 Individual Return Tips--This is the first of two articles that will help you prepare your 1999 individual income tax return. It's not an instruction book but a compilation of items often overlooked or incorrectly handled.

In Brief:--Tax, business, and personal finance tips.

Red BallJanuary 1, 2000

News On The Tax Front--The latest tax news.

Information Returns--Here's a synopsis of the most frequently encountered information returns that have to be filed by small businesses.

Breaching the Fraud Threshold--What does it take to make a deduction or unreported income fraud and subject to a 75% penalty instead of just an unallowed deduction where you could get hit with the 20% negligence penalty? Here's what taxpayers in two cases did to put themselves in big trouble.

Claim All Depreciation--There's a little-known tax trap that can cost you plenty if you forget to claim all the depreciation you're entitled to.

Work Opportunity Tax Credit--You can get a credit of up to 40% of the first-year wages of an employee if he or she qualifies as a member of a targeted group.

In Brief:--Tax, business, and personal finance tips.

Red Ball December 15, 1999

News On The Tax Front--The latest tax news.

Goodwill Entertaining Not Deductible--Pure goodwill entertaining is not deductible. And there's a special rule that disallows a deduction for hunting, fishing, and boat trips, etc.

Investment Interest --You can still deduct interest, for debts other than a mortgage or home equity loan, but only if it's related to investments, and then only if you meet certain rules.

Contract Negotiation Costs Had to be Capitalized --This taxpayer was forced to capitalize the costs of negotiating long-term contracts.

Accrual Method and Hybrid Accounting--In one case the taxpayer was on the accrual method, but deducted expenses in one ywar where the benefit extended beyond the end of the tax year. In the second case the taxpayer claimed to be on the hybrid method, but the Court did not agree.

Employee Training--Employees in need of training? Here are some options with some cost-saving tips.

In Brief:--Tax, business, and personal finance tips.

Red BallDecember 1, 1999

News On The Tax Front--The latest tax news.

Reasonable Compensation--Two recent cases show how one taxpayer lost and one won substantial dollar amounts.

When is a Dividend not a Dividend?--Only the IRS could complicate such a relatively simple issue. It would be funny if the issue wasn't so important in determining the outcome of a number of tax issues.

Extended Out-of-Town Assignment Deductible--Generally, if an out-of-town assignment lasts more than one year, your living expenses at the other location are not deductible. Here's what happened to one taxpayer and how you can avoid an expensive trap.

IRS Statistics --The IRS has just released some interesting statistics on how the new, more helpful, IRS stacks up.

In Brief:--Tax, business, and personal finance tips.

Red BallNovember 15, 1999

News On The Tax Front--The latest tax news.

Tax Relief Extension Act of 1999--The new law extends a number of expired provisions including the Welfare-to-Work and Work Opportunity credits, educational assistance program, and the research and development credit. But it also repeals the use of the installment method for taxpayers using the accrual method of accounting. That could make selling your business or any asset much tougher.

Expense Documentation--What do you need to make sure the IRS won't disallow an expense? Here's a rundown.

Display Items--Depreciable or Inventory? --Demo equipment, showroom display items, etc. Can you depreciate them? Probably not. But you've got to know the rules.

1998 Roth IRA Conversions and Recharacterizations--You may still be able to undo an IRA contribution from last year, but only if you act by December 31, 1999.

In Brief:--Tax, business, and personal finance tips.

Red BallNovember 1, 1999

News On The Tax Front--The latest tax news.

Travel & Entertainment -- Foreign Travel--Having your vacation travel expenses deductible is possible, if you know the rules.

At Risk and Passive Activity Rules--If you've got an interest in an S corporation, partnership, or even a sole proprietorship, this is a must read. A mistake here could result in a big tax bill.

Welfare-to-Work Credit--If you hire employees who qualify, you can get up to half of your wage outlay back as a tax credit.

Assignment of Income--You can't avoid being taxed on income by simply giving it away to another party.

In Brief:--Tax, business, and personal finance tips.

Red BallOctober 15, 1999

News On The Tax Front--The latest tax news.

Year End Planning for Individuals--There's still time to save taxes for 1999, but you've got to act soon.

Business Tax Planning--A detailed guide to year-end tax planning for businesses.

In Brief:--Tax, business, and personal finance tips.

Red BallOctober 1, 1999

News On The Tax Front--The latest tax news.

Partnerships and LLCs--Distributions--A distribution from a partnership or LLC can be taxable or nontaxable. And property distributions are much different than cash distributons. You've got to know the rules to avoid some costly tax consequences. A must read for all partners and LLC owners.

Cars--Special Rule for Substantiating Business Use--You may not need to keep a log for vehicle use. Here's one exception to the general rule that could save you time and money.

Travel & Entertainment Tax Traps--Part II--Here are some more travel and entertainment tax traps.

Cash Balance Plans --You've heard of cash balance pension plans. Here's how they work.

In Brief:--Tax, business, and personal finance tips.

Red BallSeptember 15, 1999

News On The Tax Front--The latest tax news.

Penalty Waivers on Information Returns--Don't automatically pay that penalty notice from the IRS for not filing a 1099. You may be able to get a waiver, or a reduction in the amount.

Net Operating Losses --If your S corporation, partnership, LLC or sole proprietorship has a loss for the year, you may be able to get a refund from a prior year. Here's how to compute the amount of the loss you can carry back.

Travel and Entertainment Tax Traps --There are plenty of ways to lose a T&E deduction. Here are several, along with some ways to avoid the traps.

Partnerships and LLCs--Computing Your Basis--If you don't have sufficient basis you can't deduct passthrough losses from a partnership or LLC. Worse, distributions from the entity could be taxable income.

In Brief:--Tax, business, and personal finance tips.

Red BallSeptember 1, 1999

News On The Tax Front--The latest tax news.

Moving Expenses--Part II--This is the second of a two-part article on moving expenses. This time it's what expenses are deductible, how to reimburse employees, what to report on their W-2, etc.

Special Rules for Withholding Income Tax, FICA, and FUTA--You would think the rules for withholding income taxes, FICA and paying FUTA would be the same for all types of payments to employees. Unfortunately, they're not. Here's a rundown of the most important special situations and the tax treatments.

Deducting Accured Expenses--What might be a valid accrued expense for financial accounting purposes may not be deductible for tax purposes. The IRS has a test called "economic performance" and it can complicate year-end tax planning.

Successor Corporation Liable for Taxes --If you buy the assets of a corporation rather than the stock, you can generally avoid any liabilities the corporation had. But you may not be able to walk away from your debts by simply reincorporating. That's what the taxpayer in this case tried--and it proved very expensive.

In Brief:--Tax, business, and personal finance tips.

Red BallAugust 15, 1999

News On The Tax Front--The latest tax news.

Moving Expenses-Part I--Moving to start a new job? Or moving to start a business in another town? Or planning on reimbursing employees for moving expenses? Then check this article first.

Intercompany Loans--You do business using two or more companies. If one company makes a loan another, there can be serious tax consequences.

General Accounting Office Issues IRS Audit Statistics--There are some interesting statistics on audit percentages, length of audits, etc.

Accounting Basics--Accrued Expenses--Accrual accounting isn't that difficult. Here's a simple explanation on the basics of accruing expenses.

In Brief:--Tax, business, and personal finance tips.

Red BallAugust 1, 1999

News On The Tax Front--The latest tax news.

Setting Up a Chart of Accounts--There are a number of considerations when setting up an accounting system and breaking down income, expenses, assets and liabilities into separate accounts. One of the most important is the requirements that the IRS places on businesses. Here are the IRS rules and some accounting theory.

IRS Mistake on Depreciation Rules --There's a big mistake in Publication 527 and on the 1998 Form 4562 that could affect many taxpayers. The best part is you may be due a refund.

Reasons to File on Time--If you don't owe any money you may not be liable for a penalty for late filing, but it still could be costly. You may be giving up many benefits.

Small Business Tax Help from the IRS --Congress has mandated that the IRS help small business owners. Here are some of the ways they're doing so.

In Brief:--Tax, business, and personal finance tips.

Red BallJuly 15, 1999

News On The Tax Front--The latest tax news.

Employment Tax Deposit Rules-- If you have employees, this article is a must read, even if you have a payroll service or your accountant prepares your payroll. The rules here are important. Make a mistake and the consequences are costly. The annual effective interest rate of penalties starts at 148%--and it's not tax deductible. Finally, a new law change may allow you to avoid some penalties, but you may have only 90 days to make an election

IRS Hot Topics--The IRS has been concentrating on certain industries and specific areas within those industries. Here's a list of these areas.

Abandonment Loss Not Deductible--Abandonment losses are normally deductible in full. However, there are exceptions. Don't fall into the trap.

Demolition of Buildings--If you demolish a building on your property, the undepreciated cost can't be deducted. It's got to be added to the cost of the land. There are some ways to mitigate this costly result.

Organizing the Shop Floor--You can improve efficiency, save money and maybe even lower your insurance premiums.

In Brief:--Tax, business, and personal finance tips.

Red BallJuly 1, 1999

News On The Tax Front--The latest tax news.

Loss on Sale to Related Party Disallowed--Selling an asset to a relative or other related party at a loss won't give you any tax benefits.

Making Sure Expenses are Deductible --While receipts are vital, you'll need more than that to insure a deduction.

Getting Started--Employment Tax Basics--This is one area of tax law where mistakes can ruin the business. Even if you use a payroll service you should know the basics.

S Corporation Stock--S corporations have significant tax benefits. But there traps that can cause S corporation status to terminate. Here are some ways to protect yourself.

In Brief:--Tax, business, and personal finance tips.

Red BallJune 15, 1999

News On The Tax Front--The latest tax news.

Out-Of-Pocket Expenses May Not Be Deductible--Most businessowners assume that most expenses should be immediately deductible. Well, sometimes an out-of-pocket expense can be classified by the IRS as a loan.

Deducting Points on a Loan--In some cases points are deductible up front; sometimes the best you can do is amortize them. Only specific charges qualify as points.

Rental Deductions Disallowed--Sometimes innocent mistakes can result in disastrous tax consequences. Here's a situation where trying to fudge a little cost the taxpayers big money.

Phantom Partnerships--You may be in a partnership without even knowing it.

Home Office Deduction--How Much is it Worth?--How big a tax saving can a home office deduction generate? It depends on a number of factors. Here are some examples.

Current Yield vs. Yield To Maturity--There's an important difference.

In Brief:--Tax, business, and personal finance tips.

Red BallJune 1, 1999

News On The Tax Front--The latest tax news.

Trade-Ins--They're an everyday occurrence in business. You trade in a old truck for a new one. But not every trade-in is nontaxable. And often trading in a vehicle or other equipment could be a big tax mistake.

Deducting Mortgage Interest--Interest on a mortgage on your primary and vacation home is usually deductible. But there are a number of tricks, traps and fine points.

Pension Plan Primer--What type of pension plans are available to small businesses? Here's a quick rundown.

Can Your Employees Obligate Your Business? --Don't wait until it's too late to take action.

In Brief:--Tax, business, and personal finance tips.

Red BallMay 15, 1999

News On The Tax Front--The latest tax news.

Section 1244 Stock--S and C corporation shareholders can get special treatment if their investment turns sour, but only if you know the rules.

Group-Term Life Insurance For Employees--You can provide your employees with a fringe benefit that's deductible by you but tax free to the employee.

Estate Taxes--The Mechanics of Gifting --Here are 15 important points to review before making gifts to your children or other relatives.

Family Partnerships--You can cut your taxes by splitting income with your children and protect your assets by putting them in their names. Here's a rundown of the rules.

14 Reasons to Turn Down A Customer--Some customers you're better off without. Do any of your customers have these characteristics?

In Brief:--Tax, business, and personal finance tips.

Red BallMay 1, 1999

News On The Tax Front--The latest tax news.

Reasonable Compensation--If you do business as a C (regular) corporation, you don't want the IRS asserting your salary is excessive. The corporation could lose a deduction, but the payment would still be income.

Bad Debt Deduction Denied --Before loaning money to a friend, relative, or business associate, read this article.

Loans to Businesses--If you're loaning money to a business, there are a number of things you can do to protect yourself and make sure you can deduct the amount if you're not repaid.

Receipt of Profits Interest Not Taxable--If you're organizing a partnership or LLC, there's a big tax break available.

Hiring Executives--Hiring a displaced executive from a large company may be a mistake. Here are some questions you should ask yourself.

Postage Savings--Sounds like small potatoes, but they can add up quickly.

Tips When Negotiating a Loan--If you borrow money, the lender will have a say in your business. Here are some of the possible restrictions and what you can do about them.

In Brief:--Tax, business, and personal finance tips.

April 15, 1999

News On The Tax Front--The latest tax news.

Writing Off Acquisition Expenses--The IRS has issued new guidance. This is an important issue. Done correctly you can amortize the expenses over 60 months. Make a mistake and the deduction could be lost forever.

Critical Tax Considerations When Incorporating--The first few weeks of a corporation's life involve many important tax actions. Contributing property to the corporation is a critical step and one that can have important tax consequences. Done wrong, you could be in for a substantial tax bill.

Recordkeeping And Fraud--In this case the IRS used the taxpayers' lack of records as the primary indication of fraud.

Credit References on Suppliers--You might not think to check out suppliers. But a vendor who goes out of business can cost your company plenty.

Payroll Bank Accounts--If you don't use a payroll service, keeping a separate bank account is a smart move.

Options that can Enhance the Value of Your Lease--Real estate leases represent a big commitment. Here are some options you should fight for in a lease.

In Brief:--Tax, business, and personal finance tips.

April 1, 1999

News On The Tax Front--The latest tax news.

Employee Discounts--Part II--Giving employees a discount on products and services can have a number of benefits. Do it right and there are tax breaks too.

Company Stock in Pension Plan--Leaving your employer and have company stock? There's a special tax break that can save you plenty.

Medical Reimbursement Plan Update--The IRS is going to crack down on some medical reimbursement plans. However, if you follow the rules you'll be safe.

Note to Contractor Didn't Increase Property Basis--Here's one time when using the cash basis of accounting proved markedly disadvantageous. With a little planning you can avoid this trap.

Getting Started--Some Tips on the Basics--We've received a number of questions on the basics. Here are some of the responses.

Disaster Losses--If you suffer a casualty loss in a Presidentially declared disaster area, you may be eligible for a number of benefits.

Hiring Employees--There are certain forms that have to be filed when hiring new employees. Here's a list.

In Brief:--Tax, business, and personal finance tips.

March 15, 1999

News On The Tax Front--The latest tax news.

Employee Discounts--Part I--The best fringe benefits you can provide an employee are those that are deductible by the business but not taxable to the employee. Employee discounts are prefect, but you've got to obey some simple rules.

Salaries Associated With Merger Must be Capitalized --The IRS has won another case, forcing taxpayers to capitalize even more expenses.

Alternative Minimum Tax --It's no longer for the rich. The number of taxpayers subject to the tax is increasing rapidly each year. Here are the reasons and the items that can trigger the tax.

Before You Destroy Those Records--Thinking of destroying some records before they're subpoenaed? Read this before doing so.

In Brief:--Tax, business, and personal finance tips.

March 1, 1999

News On The Tax Front--The latest tax news.

LLCs--Selling, Buying, Accepting New Members--Taking on new owners (members) in an limited liability company isn't as easy as adding stockholders. The IRS has issued new rules on the subject.

Roth IRA Update--If you're thinking of converting a traditional IRA to a Roth, check out the new rules first.

Net Operating Losses--They can be carried back and forward to offset income in other years. And, unfortunately, getting the most benefit is much trickier than in the past.

Computing Your Basis in S Corporation--It's important for a number of reasons. For many business owners it's a mystery, but we've made it simple enough for anyone to do.

Meals Provided to Employees--Not all meals are subject to the 50% rule. And sometimes you can provide your employees with free meals that don't have to be included on their W-2.

Picking an Investment Advisor?--There are a lot of questions to ask before you select an investment advisor. Here's a checklist.

In Brief:--Tax, business, and personal finance tips.

February 15, 1999

News On The Tax Front--The latest tax news.

Individual Tax Return Tips--Part II--More tips that will help you prepare your return, save taxes, and keep out of trouble.

In Brief:--Tax, business, and personal finance tips.

February 1, 1999

News On The Tax Front--The latest tax news.

Individual Tax Return Tips--We've compiled over a 100 tips that will help you prepare your return, save taxes, and keep out of trouble.

Audit Potential--How does the IRS pick returns for audit? There are other ways, but currently one of the prime approaches is by industry. Here's a list of the top choices.

In Brief:--Tax, business, and personal finance tips.

January 15, 1999

News On The Tax Front--The latest tax news.

When to Report Income--The IRS considers the issue a very important one. And the rules aren't always obvious. Here are some of the rules for cash and accrual businesses.

Late Employment Tax Deposits--The penalties can be over 700% on an annual basis. That's expensive enough to want to avoid them at all costs.

Limited Liability Companies--We've had a number of questions on how to file returns for limited liability companies (LLCs), whether an election has to be made, etc. Here are the rules.

Travel and Entertainment, Other Business Deductions--Four recent Tax Court cases have some interesting twists on business deductions. In one case the taxpayer's attempt to secure a deduction ended in creating income and an extra $30,000 in taxes for one year.

Costs of Investigating Acquisition Must be Capitalized--You can't deduct outright the costs of investigating the acquisition of a business, but you may be able to amortize them over 5 years. But only if you plan ahead.

1998 Individual Return Tips--This is the first in a series of articles on preparing your 1998 individual return. Even if you use a professional, this article is sure to save you money--or avoid a penalty.

In Brief:--Tax, business, and personal finance tips.

January 1, 1999

News On The Tax Front--The latest tax news.

S Corporations, Partnerships and Employment Taxes--You can't escape FICA by operating as a S corporation or partnership.

Getting Started--Professional Help for First Timers--You might want to do your own accounting and taxes, but that can be a big mistake, particularly in your first year.

Regulations for Start-Up Expenses Issued--If you want to write off those start-up expenditures, you've got to make an election. Here are the new rules.

Intercompany Management Fees Reallocated--If you do business using more than one entity and there are intercompany transactions, there are rules for valuing and allocating the charges.

Gift Tax Regulations Issued --Protect your estate. You can avoid future gift and estate tax problems if you adequately disclose the value of a transfer on a gift tax return.

Forms 1099 Due--Forms 1099 are due at the end of January. Here's a review of the rules.

Business Standard Mileage Rate to Drop in 1999 --The standard mileage rate has dropped for the first time. Here's the new rule and some thoughts.

In Brief:--Tax, business, and personal finance tips.


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