IRS Regulations on Adequate Records for Travel and Entertainment
Documentary evidence, such as receipts, paid bills, or similar evidences sufficient to support an expenditure is required for these items.
IRS AUDIT – WHAT RECORDS TO KEEP
IRS regulations state that records required to be maintained by the IRS must be accurate, but no particular form is required. However, other IRS guidelines specify these.
IRS AUDIT – WHAT THE IRS LOOKS FOR
The second question (the first being: “Why me?”) everyone asks after they open the IRS envelope and read the “audit invitation” is: “What are they going to be looking for?”
IRS AUDIT – WHY TO KEEP RECORDS
In short, anything that has a bearing on your income tax return and affects your tax liability in any way must be available for inspection when requested by the IRS.
SHOULD I FORM A C-CORP?
When it comes to choosing the form of your business, some tax pros feel that C corporations have become “the forgotten entity” among entrepreneurs.
SHOULD I FORM AN S-CORP?
Let’s explore the pros and cons of setting up an S corporation.
SHOULD I FORM AN LLC?
LLCs are a bit of a hybrid of other forms of business. Like C corporations and S corporations, LLCs can provide you with some protection against personal liability. But for tax purposes, LLCs are treated more like partnerships.
SHOULD I FORM A PARTNERSHIP?
Here are five factors to keep in mind if you’re thinking about doing business as a partnership.
HOW TO PROVE DEDUCTIONS WITH NO RECORDS
The regulations provide an exception to the normal substantiation requirements where the taxpayer can establish that at one time he possessed adequate records and that his inability to produce them is attributable to fire, flood, or other casualty beyond his control.
CLIENT INFO – TRAVEL EXPENSES
Section 162 allows a deduction for all the ordinary and necessary expenses paid or incurred in carrying on a trade or business.
Entities – Selection & Comparison
Entities - Selection
Pick the business entity that’s right for you. There are several common variables that many entrepreneurs give at least some thought to when considering what legal form their business should take.
S CORPORATION SHAREHOLDERS SELF EMPLOYMENT TAX
Tax Court rules that S Corp Owners Must pay Social Security and Medicare tax on profits.
Entities - Comparison
The Advantages and Disadvantages of Various Entities Compared to LLC’s
S CORPORATION – HEALTH INSURANCE RULES FOR SHAREHOLDERS
The type of entity may greatly affect where this insurance premium expense may be deducted on the individual’s personal income tax return.
Special Tax Situations
HOW MUCH RENTAL LOSS CAN YOU DEDUCT ON YOUR TAX RETURN
How much rental loss can you deduct on your tax return?
HOW TO GET A TAX BREAK IF YOU RAISE HORSES
We successfully argued that in the matter when the IRS declared a client’s horse farm to be a “hobby” rather than a business and disallowed his farm losses, that he was in compliance with statutory law and case law.
FRAUDULENT CONVEYANCE TO AVOID OR HINDER THE IRS
Under the law of fraudulent conveyance a transfer made by a debtor is fraud perpetrated against the creditor whether the claims of the creditor were made before or after the transfer if the debtor made the transfer in either of these ways.
INCOME FROM CANCELLATION OF INDEBTEDNESS
Taxpayers, other than C corporations, are permitted to exclude income attributable to cancellation of qualified real property business indebtedness.
RENTALS – REPAIRS VS. IMPROVEMENTS
Rental Property – Repairs vs. Improvements – What is the difference?
For Business Owners
EMPLOYEE OR INDEPENDENT CONTRACTOR
An employer must generally withhold federal income taxes, withhold and pay social security and Medicare taxes, and pay unemployment tax on wages paid to an employee. An employer does not generally have to withhold or pay any taxes on payments to independent contractors.
HOW TO GET A FEIN
Private businesses in any of the 50 states can fill out Form SS-4 online and get an ID number quickly.
MILEAGE DEDUCTION RULES PER THE UNITED STATES TAX COURT
The amount of business mileage allowed as a deduction to a salesman was substantially reduced because of his failure to substantiate expenses by keeping a daily record.
What the IRS Watches For
TAX EVASION, FAILURE TO FILE RETURNS
Tax crimes involving transferring ownership of assets to trusts, falsely encumbering assets, moving money to offshore accounts, and using multiple bank accounts.