An accounting firm is liable for its clients’ unpaid employment taxes, a court rules. A business hired the accountants to fully manage its payroll and accounts payable, such as depositing taxes, preparing returns and issuing checks to workers and vendors. When the client had financial problems and fell behind on depositing withheld taxes, it told [...]
Read More Accounting Firm is Liable for Clients Unpaid Taxes, D.C., Erwin, Income Tax Planning, Income Tax Preparation, IRS, IRS Help, N.C., Tallahassee Tax Service, TallyTaxMan, withheld taxesA loss on abandoning an option to buy real estate is an ordinary loss, the Tax Court says in the case of a man who was in the business of buying, intending to subdivide and develop it. But after an unsuccessful search for partners, he gave up the option. Since he would of had ordinary [...]
Read More 2013-6, abandoning, Abandoning to Buy Real Estate is an Ordinary Loss, Income Tax Planning, Income Tax Preparation, IRS, real estate, Sutton, Tallahassee Tax Service, TallyTaxMan, Tax Court, TC Summ. OpA settlement award for bad tax advice is taxable, IRS attorneys say. A couple who participated in an abusive tax shelter sued the accounting firm that promoted the transaction to them for malpractice due to improper tax advice. The parties settles the lawsuit, and the couple excluded the payment they received, claiming the amount was [...]
Read More A Settlement Award for Bad Tax Advice is Taxable, abusive tax shelter, accounting firm, AGI, bad tax advice, improper tax advice, Income Tax Planning, Income Tax Preparation, IRS, nontaxable return of capital, Schedule A, Service, Tallahassee Tax Service, TallyTaxMan, TaxGuidance is leaking out on the penalty tax that uninsured people will soon owe. The levy takes effect in 2014, and will start being collected on tax returns for 2014 that are filed with IRS in 2015. The fee is the greater $95 or 1% of income above the amount that triggers the requirement to [...]
Read More 2014, 2015, Income Tax Planning, Income Tax Preparation, IRS, IRS' Proposed Reglations, Tallahassee Tax Service, TallyTaxMan, Tax, tax return, uninsured childrenDon’t believe the talk that the 2013 tax hikes nail only the highest earners. Lower- and middle-incomers are hit because of the payroll tax cut’s repeal. The effect of the expiration of the two-percentage-point drop in employees’ share of Social Security tax is being felt this month, as many workers see lower paychecks. An employee [...]
Read More 2013, 2013 tax talk, Don't Believe The 2013 Tax Talk, Income Tax Planning, Income Tax Preparation, New Tax Laws, payroll tax cut repeal, payroll tax increase, Tallahassee Tax Service, TallyTaxManFilers will have a simplified option for claiming the home office deduction, beginning with returns for 2013, which will e filed in 2014. Their write-off can be based on a standard rate of $5 per square foot of space used for business, with a maximum deduction of $1,500. This way, they avoid allocating actual [...]
Read More 2013, 2014, Filers Will Have a Simplified Option, form 8829, Income Tax Planning, Income Tax Preparation, Tallahassee Tax Service, TallyTaxMan, tax filersReplacing private disability pay with social security is bad for you tax health. A disabled worker got tax free benefits under an insurance policy. However, he also was required to apply for Social Security disability and turn over the benefits to the insurer. The Tax Court ruled that he owes tax on the Social Security [...]
Read More 2013, Brady, Income Tax Planning, Income Tax Preparation, insurance policy, private disability pay, Social Security, Tallahassee Tax Service, TallyTaxMan, Tax Court, tax health, TC Memo. 2013-1