by Leif Jensen | Jun 14, 2011 | General |
The hammer has fallen and the IRS has revoked the tax-exempt status of 275,000 charities that didn’t file their tax returns for three consecutive years. A list of these unfortunate organizations are published on the IRS website. Small groups with annual gross...
by Leif Jensen | Jun 14, 2011 | General |
An independent contractor who is reclassified as an employee runs into difficulties. The contributions he made to his SEP account are declared nondeductible and has been hit with a penalty, by the Tax Court. As an employee, he cannot contribute to a SEP (he would be...
by Leif Jensen | Jun 14, 2011 | General |
The Internal Revenue Service, continues to move aggressively to collect more taxes from small businesses. They are telling companies being audited to turn over exact copies of the electronic records (QuickBooks, Peachtree, etc. files) kept in their business-software...
by Leif Jensen | Jun 14, 2011 | General |
The IRS is getting ready for competency testing of unlicensed tax preparers. These are preparers of individual returns who aren’t lawyers, CPAs or enrolled agents. According to new IRS regulations unlicensed preparers who’ve already registered with IRS have until the...
by Leif Jensen | Jun 14, 2011 | General |
There is a new backup withholding easing for payment networks such as PayPal. If a payee doesn’t give a valid tax ID number, 28% backup withholding will be required after 2011, but only if the payee has more than 200 transactions. The rules for 1099s are different. ...
by Leif Jensen | Jun 6, 2011 | General |
The first person to collect Social Security benefits was Ernest Ackerman. He received a whopping payment of 17 cents in January 1937. Social Security began collecting money January 14, 1937. This was a one-time, lump-sum pay-out—which was the only form of benefits...
