September 6th, 2019 by Kim Chen
: Thanks to the Tax Cuts and Jobs Act (TCJA), a Nonresident Alien (NRA) is now permitted to be a potential current beneficiary of an Electing Small Business Trust (ESBT) [IRC Sec. 1361(c)(2)(B)(v)]. Recently, the IRS issued final regulations (TD 9868) that ensure S corporation income will continue to be subject to U.S. federal income […]
July 7th, 2019 by Kim Chen
Staples, TC Memo 2019-75 The Tax Court imposed a $1,000 frivolous argument penalty under Code Sec. 6673 on an independent contractor who argued that his independent contractor commissions were not taxable income, but loans. The Tax Court warned the taxpayer several times that the argument was frivolous and a penalty might be imposed if he […]
June 24th, 2019 by Kim Chen
It’s a great time of year for businesses to show their appreciation for employees and customers by giving them gifts or hosting holiday parties. Gifts to customers are generally deductible up to $25 per recipient per year. De minimis, noncash gifts to employees aren’t included in their taxable income yet are still deductible by you. […]
June 3rd, 2019 by Kim Chen
The dawning of 2019 means the 2018 income tax filing season will soon be upon us. After year end, it’s generally too late to take action to reduce 2018 taxes. Business owners may, therefore, want to shift their focus to assessing whether they’ll likely owe taxes or get a refund when they file their returns […]
February 11th, 2019 by Kim Chen
Many factors go into the success of a company. You’ve got to offer high-quality products or services, provide outstanding customer service, and manage your inventory or supply chain. But there’s at least one other success factor that many business owners often overlook: internal leadership training and development. Even if all your executive and management positions […]
December 12th, 2018 by Kim Chen
Information Letter 2018-0030 IRS has issued an information letter in which it provides that a state tax credit program, to which business taxpayers can make payments in exchange for credits against various business taxes, is not impacted by the recent proposed regs targeting state and local tax (SALT) limitation workarounds. Background—business expense deduction. Generally, a […]
December 4th, 2018 by Kim Chen
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that’s helpful and appropriate for your business. The IRS sometimes challenges deductions claimed for certain types of business expenses. In doing so, an […]
November 25th, 2018 by Kim Chen
Did you know that the Tax Cuts and Jobs Act (TCJA) eliminated itemized deductions for employees who incur unreimbursed expenses for company business for 2018 through 2025? Fortunately, you can set up a so-called “accountable plan” to minimize the adverse effects of this TCJA provision. Here’s how the accountable plan deal works. Playing by a […]
November 20th, 2018 by Kim Chen
The Tax Cuts and Jobs Act (TCJA) establishes a new federal income tax credit for employers that provide qualifying paid family and medical leave benefits to their employees. This credit is only available for two employer tax years — those beginning between January 1, 2018 and December 31, 2019 — unless Congress extends the deal. […]
November 16th, 2018 by Kim Chen
Congressional Research Service report—Tax Provisions That Expired in 2017 The Congressional Research Service (CRS) has updated a report on the 28 temporary tax provisions that, despite being routinely extended on a 1- or 2-year basis, were allowed to expire at the end of 2017. Two additional provisions are scheduled to expire at the end of […]
© 2024 Rogers Wood Hill Starman & Gustason / Privacy Notice / Disclaimer
