Somewhere in the world of small business we've come up with clever ideas to keep the IRS from getting all of the tax dollars due to them. I'm not sure why, but we think we can outsmart the highly trained and educated IRS auditor who makes his living investigating financial rabbit trails. You should know … Continue reading Things Small Business Owners Do The IRS Calls “Negligence” and “Intentional Disregard”
Month: January 2013
Sole proprietor and Independent Contractors Prepare for Tax Season
As a sole proprietor/independent contractor, your income is the most heavily taxed of all wage earners. You will be assessed a federal tax, state tax, local tax, and a self-employment tax. The best way to lower your tax liability (the amount of tax dollars you owe to these entities) is for you to take time … Continue reading Sole proprietor and Independent Contractors Prepare for Tax Season
Early Withdrawal From Retirement Penalty – What Are the Exceptions?
For the most part, any person who withdraws funds from his or her tax-deferred 401k or IRA account before reaching age 59 1/2 will end up paying 40% or more in income taxes and penalties. You may ask the financial institution to withhold taxes, and they will do so, but only up to a certain … Continue reading Early Withdrawal From Retirement Penalty – What Are the Exceptions?
The IRS Actually Lost???
According to this Forbes article published on 1/19/2013, the IRS actually lost it's case brought on by three independent tax preparers Sabina Loving of Chicago, Illinois, John Gambino of Hoboken, N.J., and Elmer Kilian of Eagle, Wisconsin. The article titled "IRS Stopped 'Dead In Its Tracks' In Efforts To Regulate Tax Preparers" explains how the … Continue reading The IRS Actually Lost???
When Businesses Barter Is it Taxable Income?
Due to our slow moving economy, we've seen an increase in businesses bartering with one another. Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. – IRS Topic 420 So, is this exchange considered taxable … Continue reading When Businesses Barter Is it Taxable Income?
3rd-Party Debt Collectors Calling? You should know what they CANNOT Do
Here are six things 3rd-party debt collectors may not do. They may NOT... They may NOT use other people, like your neighbors, friends or family, to put pressure on you to pay your debt. If the debt collector calls any of these people the law allows them to verify information about your whereabouts and circumstances, … Continue reading 3rd-Party Debt Collectors Calling? You should know what they CANNOT Do