New IRS 1099-K Rules on Payment Processor Payments

Spending Proposals IRS budget increase will result in more audits and more information reporting requirements for banks.

The Second Round of Paycheck Protection Program loans is available to help individuals and businesses affected by COVID.

Taxation of non-qualified stock options of private companies

COVID-19 SBA Paycheck Protection Loans for the Self-Employed

Summary and computation of Trust Fund Recovery Penalty

The recently enacted tax reform bill has made significant changes to the taxation of business.  This post summarizes some of the more substantial changes.

Employer-owned life insurance policies issued after August 17, 2016 are subject to taxation by the IRS unless they qualify for an exception.

The IRS was prepared to require tax filers to indicate on line 61 whether they and their family had health coverage during 2016. If not, taxpayers are subject to a penalty.

The IRS along with the DOJ has been aggressively pursuing offshore account holders to disclose their overseas bank accounts before it's too late.  There are significant penalties for holding accounts in certain foreign banks.  However, in an effort to encourage account holders to disclose their accounts, the IRS started the Offshore Voluntary Disclosure Program (OVDP)  and the streamlined procedures enable taxpayer to meet their tax obligations while limiting the potential penalties for continued non-compliance.

More and more consumers are buying all kinds of stuff online--over the internet from companies such as Amazon.  Many of these sales transactions occur without the payment of sales taxes, as the selling company likely has no physical presence in the state of the purchaser.   Many brick-and-mortar companies argued that they were at a disadvantage as they were forced to compel customers to pay more (often times 8% or more) to cover the state sales tax.  

What to do when the IRS comes to collect.

The "Cadillac Tax" is a 40% penalty (excise tax) on health insurance plans and a provision of the Affordable Care Act that takes effect on January 1, 2018.

The idea that there’s no such thing as a free lunch could eventually ring true for employees who get complimentary meals at work, as the Internal Revenue Service and Department of the Treasury have taken a step closer to potentially taxing such meals. Last year, the IRS suggested in its Priority Guidance Plan that it was exploring modifying sections of the Tax Code concerning employer-provided meals that it believed were problematic.

The trust fund recovery penalty allows the IRS to collect the unpaid withholding taxes from the assets of the owners and operators of businesses. It penalizes those who had control over the decision to divert the payroll money from the IRS to other creditors of the business. The trust fund recovery penalty is equal to the income taxes, social security taxes, and Medicare taxes withheld from employee paychecks. 

General Information on Trademark Law

The IRS has announced updated procedures for taxpayers to file overdue FBAR (Foreign Bank Account Report) foreign account disclosures.  

Most states maintain some sort of successor liability provision in their tax statutes. 

When an  S election is not filed, the corporation is treated as a C Corporation and its losses/gains are taxed to the corporation.  

Partnerships can grant profits interests or capital interests for services.  LLCs taxed as partnerships are proliferating.