Discourage litigation. Persuade your neighbors to compromise whenever you can. -- Abraham Lincoln Last week we discussed ways to negotiate with the Internal Revenue Service (IRS) during Notice Season. One of those ways is to enter into an Offer In Compromise (OIC), a method used to negotiate with the feds to pay a lesser amount than what you … [Read more...]
The IRS is coming to get YOU! Notice Season Is Open
“You don’t pay taxes–they take taxes.”–Chris Rock Now that tax season is over, it may be spring time, but the Internal Revenue Service is like the post office, it never sleeps. And like the mob, it wants its money. Now. So, notices are flying. … [Read more...]
Did the PATH Choose you?
“Does the walker choose the path, or the path the walker?” ― Garth Nix, Sabriel In December, Congress passed the Protecting Americans from Tax Hikes Act of 2015 (PATH) which was combined with other legislation and signed in to law by President Obama. This $622 billion tax package extends expired or expiring tax breaks … [Read more...]
New Year’s Basics
The beginning is the most important part of the work -- Plato We’re knee deep in to January and you probably resolved to kick some bad habits and to adopt some new, good habits. Here are some good habits you may want to pick up for your business: Update the Record Collection We’re not talking about vinyl. If you didn’t keep … [Read more...]
From the Mail Bag – a Question of Nexus
“Trade is the oldest and most important economic nexus among nations. Indeed, trade along with war has been central to the evolution of international relations.” - Chapter Five, The Politics Of International Trade, p. 171 We love mail. We read our mail, and we always try to answer your questions with an email. However, this week, … [Read more...]
Getting Credit for Thinking Ahead
A person doesn't know how much he has to be thankful for until he has to pay taxes on it. –Author Unknown Now is always a fine time to assess your corporation’s eligibility for tax credits. You want to save money for all those nice end-of-year gifts and bonuses, right? When I went to school, and yes, as my law clerks would say I rode a woolly … [Read more...]
The Tax Treatment of LLC’s vs. S-Corps: The House Always Wins
"I wear the chain I forged in life," replied the Ghost. "I made it link by link, and yard by yard; I girded it on of my own free will, and of my own free will I wore it.” ― Charles Dickens, A Christmas Carol What is the tax benefit (if any) to forming a company as a limited liability company (LLC) rather than an S Corporation (S-Corp)? As we … [Read more...]
I Can’t Get No Tax-Satisfaction
“And that man comes on the radio, And he's tellin' me more and more, About some useless information, Supposed to fire my imagination" – M. Jagger & K. Richards Dial the help number for the Internal Revenue Service. Press a few buttons to get to the right department. Enjoy MUZAK’d classical music for the next eighty-seven … [Read more...]
Rule Number One for Beating the Government on your 1040
“You must pay taxes. But there’s no law that says you gotta leave a tip.”– Morgan Stanley advertisement Tax professionals across the country, and in fact, across the world adhere to the one tried and true method for lowering taxes – organization. Organization is everything. Organization can topple the giants of the Internal Revenue Service. … [Read more...]
7 Ways to Maximize the Tax Loss from Your Business
“Passive activity income does not include the following: Income from an activity that is not a passive activity” - unknown Recently a client came to us with a problem – the Internal Revenue Service was denying his taking a loss from a family business. Why? Because they deemed his loss as a passive activity. Losses from passive … [Read more...]
