| Personal Service Corporations Formed to Evade Taxes |
|
| A corporation whose employees/owners provide personal services in the fields of accounting, actuarial science, architecture, consulting, engineering, health, and the performing arts is a personal service corporation. An employee/owner is defined by the Internal Revenue Service as an individual who owns, either directly or indirectly, more than 10 percent of the outstanding stock of the corporation on any day of the tax year. More... |
|
|
| Personal Casualty, Disaster, and Theft Losses |
|
| A hurricane strikes, and your home is partially destroyed. The bad news is that your insurance does not cover the total cost of the damage, and you are wondering whether or not there will be any good news from the Internal Revenue Service at tax time. More... |
|
|
| Liability of Members of Limited Liability Company for Employment Taxes |
|
| Limited liability companies (LLCs), like all other employers, are required to withhold and pay over employment taxes to the federal government. States that authorize the creation of limited liability companies (LLCs) generally provide that the members (owners) of the LLC are not personally liable for the debts of the business in their capacity as members. The question then arises as to whether the Internal Revenue Service is allowed to collect any unpaid federal employment taxes owed by a LLC from the LLC members as if they were general partners of a partnership. More... |
|
|
| Small Tax Cases |
|
| If you have filed a petition in Tax Court to contest a deficiency of $50,000 or less, including additions to tax and penalties, or you claim an overpayment of that amount or less, you have the option of having your case heard under expedited and simplified procedures. These relatively informal procedures may also be used for innocent spouse determinations involving $50,000 or less or disputes continuing from pre-levy administrative due process hearings where the unpaid tax is $50,000 or less. More... |
|
|
| Research and Experimental Costs in a Business |
|
| Frequently, a business incurs costs for activities that are intended to provide information to help eliminate uncertainty about the development of a new product or the improvement of an existing product. Whether costs qualify as research and development costs depends exclusively on the nature of the activity to which the costs relate, not to the nature of the product being developed or to the level of technological advancement. More... |
|
|