Are holiday gifts for your employees and clients deductible? Before you start spending this holiday season, read up on these IRS rules. As we enter the Christmas season, many business owners want to display their gratitude to customers and employees by showering them with generous gifts. During this tough economic environment, making the extra effort to display appreciation will be duly noted. Yet many business owners fail to realize that the IRS takes a different view of gift giving. They tend … [Read more...]
IRS Beefs Up Its Criminal Investigations
12% of the population thinks it's ok to cheat on taxes. The IRS is hoping to change that by putting more focus on fraud. On a regular basis, the IRS conducts its "Taxpayer Attitudinal Survey" which measures what the overall population thinks about different aspects of taxation. The question that is most interesting—and most controversial —is, "Do you think that it is ok to cheat on your tax returns?" According to the results of the survey, 12 percent of the population thinks it is in fact ok. … [Read more...]
IRS Cracking Down “Gifting real estate”
Gifting real estate is becoming quite common these days. Make sure that you're complying with IRS regulations. Mom and Dad are successful business owners who spend all of their time in New York. Junior lives in Florida, about 20 minutes away from the condominium his parents bought but never used. As a gift for his upcoming wedding, mom and dad decide to give Junior the condo. A few years later they are shocked to receive a notification from the IRS about the transfer. Don’t let this happen to … [Read more...]
How To Start Planning For The Section 3091 Provision
Do you know how Section 3091 of the Housing and Economic Recovery Act of 2008 will affect you? Over the past three years, there have been numerous proposed laws enacted that have a material impact on how you run your business. Because there has been so much legislation, it’s easy to lose track of what’s changing, what stays the same and what you need to do. The Housing and Economic Recovery Act of 2008 had far reaching implications for the country. One provision which I mentioned last year is … [Read more...]
IRS Makes It Cheaper To Pay Late
Every once in a while, we receive some good news from the IRS. Here's the latest. Every once in a while, we receive some good news from the IRS. Today is one of those days! The IRS recently announced changes to the interest rates used to calculate underpayments and overpayments on income tax payments sent to the agency. The bottom line is that underpayments will accrue interest charges at significantly lower rates than before. The new changes go into effect on Oct. 1, 2011. When the IRS … [Read more...]
How To Declare Foreign Bank Accounts To The IRS
While owning a foreign bank account is not illegal, failing to declare its existence is against the law. Nobody enjoys paying income taxes. Most business owners grumble a bit about their tax bills, find legal ways to minimize them and resign themselves to sending the government more than they would like. For some people, this isn’t enough. They look for ways to avoid paying U.S. income taxes even if it means breaking the law. A common tactic is to open a foreign bank account, conduct business … [Read more...]
Audit Red Flag To Watch Out For
If you are in the business of renting property, the IRS is going to take a very close look at your tax return beginning this year. Here is the one audit red Flag to watch out for. If you are in the business of renting property, the IRS is going to take a very close look at your tax return beginning this year and will continue to do so for the foreseeable future. In December, the Treasury Inspector General for Tax Administration (known as TIGTA) published an audit report analyzing the income … [Read more...]
IRS Makes Reporting Tax Fraud and Errors More Rewarding
In 1912, President William Howard Taft signed into law the Lloyd -- La Follette Act which protected civil servants from “unwarranted or abusive removal” and gave employees the right to furnish information to members of Congress without interference. This in effect became the first law to protect whistleblowers in the United States. Since then, numerous laws have been established to protect whistleblowers in both the government and the privates sector in areas as diverse as environmental … [Read more...]