Appeals court reverses trial court decision that disallowed discounts for gifts of family limited liability company membership interests.
There are two federal tax credits available to help taxpayers offset the cost of higher education for themselves and their dependents. These are the American Opportunity Credit and the Lifetime Learning Credit.
Watson, P.C. v. U.S., (DC IA 12/23/10) An Iowa district court has concluded that an S corporation shareholder-employee’s $24,000 salary in 2002 and 2003 was unreasonably low, and allowed the IRS to reclassify over $134,000 of dividend payments to the shareholder-employee as salary. As a result, the corporation now owes employment taxes, penalties and interest … Continued
Medical Residents now required to pay FICA tax on thier wages.
The IRS announced on January 13, 2011, that it has raised the annual gross receipts threshold at which tax-exempt organizations must file Form 990 from $25,000 to $50,000, for tax years beginning on or after January 1, 2010. Under this new rule, qualifying tax-exempt organizations whose gross annual receipts are normally $50,000 or less can … Continued
The 2010 Tax Relief Act provides significant estate, gift and generation skipping transfer (“GST”) tax relief for 2011 and 2012, at which time, the new laws will sunset.
On January 5, 2011, National Taxpayer Advocate released her annual report to Congress, identifying the need for tax reform, expressing concern over the IRS’s increasing use of hard-core enforcement actions, and highlighting the challenges the IRS faces in implementing the new health care law.
Taxpayers affected by three recently reinstated deductions need to wait until mid- to late February to file their individual tax returns, allowing the IRS time to reprogram its processing systems.
Mrs. Edwards’ estate plan highlights two important non-tax benefits of using a Revocable Trust to own and distribute assets after death.
Failure to address the problem could result in significant losses to the federal government as the questionable refunds issued to nonresident aliens are high and the probability of recovering fraudulent refunds from nonresidents living outside the U.S. very low.