| Slavery Reparation Tax Refund Scam |
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| When the IRS receives a reparations claim related to slavery, it notifies the taxpayer that the claim has no basis in law. It offers the taxpayer the opportunity to rescind the frivolous claim or to file a corrected tax return without the imposition of a penalty. However, if the taxpayer insists on pursuing the reparations claim, he or she could face a penalty of up to $500. More... |
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| Personal Service Corporations Formed to Evade Taxes |
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| 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... |
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| Deductibility of Meals Provided to Employees |
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| If you are an employer who provides meals for your workers, you may be able to deduct some or all of the cost of the meals. Generally, you are limited to a deduction of only 50 percent of the cost of those meals. However, under certain circumstances, you may be able to deduct the entire cost. More... |
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| Tax Issues of Limited Liability Companies |
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| Compared to the other forms of business organization, a limited liability company (LLC) is a fairly new statutory creation in most states. An LLC is usually formed under the law of a state when its owners (called members) file articles of incorporation as an LLC. When a business is structured as an LLC, the members have limited personal liability for the debts and actions of the company similar to the situation found in a corporation. Unlike a partnership, the members are not personally liable for the debts of the business. More... |
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| Qualified Tuition Programs |
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| A Qualified Tuition Program (QTP) permits a taxpayer to either prepay or contribute to an account set up to pay a student's qualified higher education expenses at an eligible educational institution. A QTP can be set up and maintained either by a state or an agency or instrumentality of the state. In addition, a QTP can be established by an eligible educational institution. A QTP is exempt from all federal income taxation except for any tax imposed on unrelated business income. More... |
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