Business Tax Issues

Any Tax Attorneys out there?

jlahorne — Sun, 22 Nov 2009 03:36:24 GMT

I've got a bit of a problem (hypo). I'm enrolled in a Masters in Accounting program and the school waived Fed Inc Tax and Corp Tax for me because I took them a long time ago in law school (I never practiced). Problem is, I have a class coming up next semester where Corp Tax is a prereq and I hear that you really need to know your stuff. So I cracked open my old Corp Tax book to relearn the stuff. Unfortunately I don't know the answers to some of the problems and I can't verify them.

I was hoping someone could help me answer them. I'll post them in a followup because It's kind of long.

Thanks

They are asking for my taxes

old meatcutter — Fri, 13 Nov 2009 18:37:36 GMT

I am suing for Age Discrimination and workers comp termination.

They are asking for my tax returns for the last seven years.

I objected but they are still asking for them as they are saying

"To see if I am lieing" Can they do this because I feel my taxes are personal and it is irrelvent to my case.

Thank you for your help.

Reporting

guapo523 — Thu, 05 Nov 2009 21:44:41 GMT

Do I subtract sales tax from revenues and report that as sales? or do I pay income on sales tax collected?

Thanks

foreign Business man

buhamad — Fri, 30 Oct 2009 22:20:47 GMT

Hello Sir

I am from KUWAIT & I have Business in USA { Aircraft Design Center } I incorporate it from the A1A Incorporation in NewYork but my problem is I can not finding the person or company to manage my business in USA .

Or on behalf of us or represent us in NewYork . Regards Mr Mohamed Buhamad

Business change over

KyleT — Wed, 28 Oct 2009 21:58:05 GMT

I own a franchise business as a sole prop. On July I created an S-Corp. The franchise corp says it will be Dec 1, 2009 for my sole prop gets changed over to my S-Corp. My question is, how should I claim my tax for 2009? Can I claim tax on my S-Corp from July on?

Tax Advice for Non-Profit Corporation

samjam — Mon, 26 Oct 2009 17:15:49 GMT

Hello All-

Thanks in advance for helping me out.

My situation: In 2007 I incorporated a business under the laws of New Jersey. It was classified as a non-profit corporation but I never applied for 501c3 status. A few weeks/months after incorporation, I got an HSBC small business account for the business and I put in $300 some odd dollars. $50-$100 of my own money and a $200 check from a friend, made out to the company, but it was for money he owed me personally. After that, I completely forgot about the corporation (because of other life issues). We never fundraised, we never earned any money, never hired employees and did NO work whatsoever. Sometime in 2008 I closed the small business checking account and withdrew the money.

Stupidly, I never filed any state or federal tax returns for 07-09. Partly because I didn't think I owed anything (because while the corporation is active, it was defunct in my mind because we didn't earn anything) and partly because I forgot it even existed until recently.

My question is three-fold: (1) Should I file late tax returns state and federal even if we've done no business since incorporating (2) will I owe any taxes/penalties/interest and my last question is longer:

I started law school in 2006 and am finishing this December. I'm applying for the NJ Bar and one of the questions is this:

“Have you or any business, corporation, or other entity in which you hold more than a 20% equity
interest ever failed to pay employer’s withholding taxes or ever failed to remit sales, excise, or
other taxes to the appropriate taxing authority?”

Should I write Yes or No? I don't think I "failed to PAY other taxes," rather I failed to file a return (believing I didn't owe anything). If I write YES, do you think they will not accept me into the bar? Other than that, i've been completely financially responsible (paying debts on time, having a good credit score, etc).

Thanks for the help!

Trustee Tax Management

Jeho — Wed, 21 Oct 2009 07:33:51 GMT

Hello,

My associate and I are going to createa trust entity who will be the only one owner of an LLC (where my assoicate and I will be main managers).

Concerning Tax management, Trustee can be taxed as sole proprietor regarding the LLC?

Thans you

Mr. MARTIN Sydney

Sales Tax

Eugene2 — Thu, 22 Oct 2009 20:39:27 GMT

I live in Missouri and thinking of starting an online business. My question is where can I find information on Sales Tax issues? Like if my web site is offering advertising for 5 dollars a week, do I have to charge sales tax on this as well as city taxes and income? Where can I find this info or would it be best to contact an attorney?

TRUST FUND RECOVERY PENALTY

mark59 — Tue, 20 Oct 2009 18:59:28 GMT

My Corporation ownes 941 taxes totalling 29k. I have paid it down and now owe $9.5k. I am somwehat current in the last quarter (3rd) only because I paid off all the taxes 2 weeks ago and filed the returns. This 4th Q I am in good shape. I go in this Friday for a dreaded 4180 interview with a revenue officer. Now I am resigned to getting a 100% penalty. Will the penalty apply to the 29k or to the remaining 9.5k that I still owe. I am trying to go for an installment agreement (short term) by presenting to the revenue officer a plan to reduce expenses and show that the coming Christmas season results to a significant cash flow improvement.

Also this is my 2nd 4180 interview as my case was originally assigned to another revenue officer who worked out an installment agreement with me for the original 29k but somehow abruptly retired and the installment agreement went nowhere. The new revenue officer would not even consider discussing what transpired with the former revenue officer.

In addition, I was required too fill out a 433B & 433A but my personal finances are to say the least, in the gutter ( ie no equity liquid and realty)

Is there such a thing as a W-9 under an as assumed name?

actjfc — Mon, 19 Oct 2009 02:36:04 GMT

I have a small LLC company, and I would like to develop a branch business under an assumed name. In my State (Illinois), there is no problem, I just have to apply for it. However, I do not understand how do I provide the Federal W-9 Form to a client? What name should be in it, the original or the assumed name? It will seem confuse for the client if I do business and accept checks under an assumed name, and provide a W-9 with another name. Please, your comments about this situation are highly appreciated. Thanks!

Employee pmt for special project -1099 or regular payroll?

nncohio — Thu, 15 Oct 2009 12:25:51 GMT

An employee was recently paid to do a special project (landscaping-related) that is not part of her regular job (director of a church preschool). There were no taxes withheld (did not go through payroll at all) and the amount exceeds $600 slightly. Can or should a 1099 be issued for this special work, or should we try to make adjustments to withhold the missing taxes at the next payroll run? Thank you for any advice.

non-profit support groups

Middle Class Mom — Fri, 09 Oct 2009 03:55:10 GMT

In Pennsylvania

We have a non-profit support (medical illness) group, who collects donations-if able to pay- for the group’s expenses. We have a checking account with the support groups name on the checks, but registered with the bank with the treasurer and one additional officer’s SS#. We collect about $20.00 a month in donations.

I was asked to volunteer to be the treasurer.

With the current set up, I’m not sure having my and another persons SS# on the account is the best route because I wonder how this $ affects our personal-individual taxes or how we file them? Though the interest, if any, accrued on the account would be minimal. But it makes the names and SS# on the account responsible.

Should we have an EIN number? If we do obtain one, do we have to file for tax exemption status for the State and the IRS ?

IRS says 2004 W2's weren't filed- Bookkeeper didn't followup

Mel Knowles — Tue, 06 Oct 2009 03:47:18 GMT

In 2008, after not receiving my $600 tax rebate, I went to the local IRS Office to find out why. There I was informed that I was being penalized for non-filing of W2's for my business for the tax period Dec 2004. I told them that was the first I'd heard of it and they said several notices had been sent and one with a return receipt signed. The notices were sent to the bookkeeper who was handling my tax affairs during the period in question. When I approached the bookkeeper with the information, she denied any knowledge of the notices or of receiving them even though one had been signed for by her office.

The bookkeeper agreed to resend the supposed non-filed W2's in October of 2008. Even though the forms were resubmitted, the IRS says they weren't submitted in a timely fashion and have denied my appeal for dismissal of penalties and interest that has risen to over $8000 at this time.

Although the bookkeeper has stated that she will try to find more information to aid the my case, she hasn't made any effort to do so.

I feel that she was remiss in not informing me of the IRS notices from the beginning and for her to have denied even receiving a notice that was signed for either by her or one of her employees. I think the responsibility for my problems lie with her and I want her to be responsible for resolving the problems and paying the penalty and interest if necessary.

Am I correct in this?

State Personal Property Tax

clppnw920 — Thu, 01 Oct 2009 17:25:04 GMT

I was a partner in a LLC that has closed. The LLC has received tax bills for vehicles that the LLC owned. The equipment has sense been either sold or turn back in to the lein holder. What will happen if the tax is not paid? Can they come after the partners personally for this tax?

sale of business - tax questions?

Joe Bob — Thu, 16 Apr 2009 18:31:07 GMT

sold business. received $30k, put it in my biz acct.

what sort of strategies should i utilize, if any, to help alleviate my tax burden?

I was thinking of gifting $11k at my wife.

any great ideas?

(not trying to shaft Uncle Sam...just trying to be smart)

Non-Citizen Investor Taxation

LAS74 — Sun, 20 Sep 2009 20:14:38 GMT

I am starting a business, and I have investors internationally that are interested in investing in my company in exchange for shares in the company, with the intetion of selling the shares back to me at a higher price later on. I am looking for a tax attorney, but in thee meantime, I figured I would ask this queestion until I select my attorney.

That said, if this were the case, are they subject to paying taxes on the sale of those shares? Further they are not looking for dividends, only a return on their initial investment within 5 years, when I would buy the shares back. Any thoughts, and ultimately would a C-Corp or a LLC be the bet option, and which would minimize their tax liability, if any at all?

Sec. 127 and Sec. 132

mark f — Wed, 26 Aug 2009 20:50:35 GMT

Can an employee currently employed as a Tax Accountant exclude from income the reimbursement of tuition expenses for their MST above the $5,250 allowed in §127? Would any amount above the $5,250 be excluded as a working condition fringe under §132? The employer does not require completion of the MST and the employee plans to stay in the tax department after completing the degree. My understanding of §132, is that since the employee is taking the class to “maintain or improve” their skills, it would be excluded. Is this correct?

Partnership- basis limitation

mark f — Wed, 16 Sep 2009 04:48:10 GMT

Can a loss carryover under Sec.704(d) be utilized if a partner transfers his interest to his son? Will the son be able to utilize this loss if the son acquires additional outside basis?

Do I (my business) have to pay FUTA tax if I am employee

Joelwart — Fri, 11 Sep 2009 14:24:21 GMT

My wife and I are self-employed Psychotherapists. I have always paid taxes through a Schedule C. I have a C Corp and I am going to pay myself and my wife a regular employee paycheck. If my wife and myself are the only employees, and neither of us will be able to collect unemployment, do I (my business) still have to pay FUTA and SUTA tax?

What if my boss isn't paying payroll taxes?

taxquesition — Fri, 11 Sep 2009 05:50:45 GMT

I am wondering if my boss is paying my taxes basically, and what exactly am I liable for if he isn't.

Brief explantion...I have had several paychecks now, that my boss saying he has been having problems with his payroll company and in the process of changing payroll companys, and he has just wrote company checks out for paychecks. He is taking out roughly 25% for taxes so he can square it up with a payroll company. I don't have any type of of hourly breakdown/deduction stubs for these checks, just copys of the checks.

I am not 100% sure how payroll companys work, but from what I understand is they will hold the employer's taxes that has been withold from the employees and then tell the employer what he needs to owe. Recently through the company accountant, I heard that there was problems with the payroll because my boss wasn't paying the withheld taxes and payroll finally said we can't take responibility for this and gave him all the past withholdings they were holding from January.

Which finally leads me to my quesition really....can I, the employee be responible for this? If he hasn't paid my taxes to Uncle Sam, do they care or will they still ask me to pay the whole amount now? Because I would think he would have to give me some kind of W2 stating my withholdings. And if so, what happens when it comes tax time and a company doesnt supply you with a W2?

Basically I am still not 100% sure whats going on behind the scenes, and really don't want to comfront my boss at the moment, I am just trying to get some bases covered before it comes tax time.

Thanks!

Am I responsible for unpaid payroll taxes

kai100 — Fri, 04 Sep 2009 06:48:52 GMT

I work for a company as a operations manager in California. I also have a duty of prepare and process payroll checks for the past 2 and a half years. When I took over this task back in Feb 2007, the owner wasn't always there to sign the payroll checks when they're due, so he would tell me to sign his name for him. Payroll taxes for each pay period is above $2500 so to my understanding, it has to be paid electronically or directly through the bank. This is also the case from time to time with 941, 940, and other forms required by the states and federal that I signed them and other times the owner would. Sometimes I would leave the forms on his desk and the owner would not sign them til last day until he would instruct me to sign his name again. I'd like to also add that i'm not a check signor of the company. The owners are the only person who has access to the business accounts( there are 2 owners one of whom walked out in 2007 but never file a proper paperwork with the state that he had left). The owners also owed back taxes from year 2000-2002 and year 2006-current. When I say taxes i mean payroll taxes. He has been talking to many lawyers about it since 2007 and hoping that he would be able to negotiate with the IRS. Soon the IRS is also going to find out that he never filed business tax returns nor his person tax returns since he opened the company (about 12 years now).

Yesterday I heard an employee telling me that the owner was telling him that the reason that the payroll taxes were not paid was my fault from the year 2007 to current and his other partner (50% share between 2 partners) was in charge in payroll from 2000-2002 and 2006. Basically he is saying that he is relying on either his partner then or me for the current period to pay these payroll taxes.

Another fact, If the IRS was to look at his bank account, they would be able to see that the owner would use this business account as his personal bank account to pay for his cars, house, grocery, cables, phones, food, leisures, and online shopping every month. There are also series of cash withdrawal made by him every month in which the amount can easily range from 5000 to $10,000 per month. Also in the past year, he was able to cash the checks that he received from his customers the very same day he got them in the mail because he knew someone from the inside and these checks that were cashed were not reflected in the bank statement. So if IRS were to look at his bank statement for the past year, they won't be able to see these as the company receivables. Should I inform the IRS of this? Now he's being levied by the IRS and will have a meeting with them on Sept 21, 2009.

If the above case was blamed to me from 2007 to current, Will I be liable for those payroll taxes? By the way, I have witnesses that saw me email the owner to warn him that he needs to pay those taxes and cut down his expenses but he never listened. This was over a year and a half ago when the business started to slow down. Will the fact that he has been talking to lawyers for the past 2 years be a proof that he knew about the payroll taxes that he owed all along but failed to pay and continuing to do so. Also, should I call the IRS agent and offer him additional infomation just to prove myself?

Thanks in advance for your inputs

Kai

Tax Id help

in0la — Thu, 10 Sep 2009 21:06:13 GMT

Well my step father decided to start a home business and started out by getting a state tax id but then he just quit without making or spending any money. The state sent an estimated tax $6,200 when he didn't pay that they added another $2,049 penalties. I guess my question is can they really do this? and is there is way around it?
Any advise on this subject would be greatly appreciated.

Trust Fund Recovery Penalty

sandstone80 — Sun, 06 Sep 2009 18:55:32 GMT

In March of this year a levy was placed on my personal and business checking accounts due to non-payment of 941 taxes. At that time I owed around $130,000. Over the phone with the IRS I arranged to make lump sum payments as well as paying a set weekly amount. They stated that it would go to a Revenue Officer. As of August the amount that I owed was approximately $50,000. In August a revenue officer came out. Although an installment agreement was made I am doing everything I can to pay the balance off so as not to have a lien placed against me. My question is: will I be hit with a trust fund recovery penalty if I pay the balance off? Is the TFRP only used as a way to get the balance due?

Business tax implications

joannpalla — Fri, 28 Aug 2009 01:31:32 GMT

I'm divorcing my spouse and I just came to find out that our business is listed as a partnership.Obviously I'm partner on paper only.My husband is not cooperating with turning documents over.My attorney is less than aggressive and I don't think she feels the business has any "value".To try and get as much info as I possibly can I called the dept.of revenue and the IRS.I was able to find out certificate status yearly update for the LLC organization and copies of business tax returns are being sent.I found out there have been no employees claimed since 2005! There is also no income reported in the next state where he is licensed and works.Other than the business our home are really the only marital assests.Should I contact a tax attorney? Is it possible the home could be lost? He's been heard saying to a family member I better keep my mouth shut and not ask again for papers,because he"take me down with too"

Home Office Deduction (Carryover Expenses)

mark f — Mon, 17 Aug 2009 02:03:58 GMT

Facts: TP has claimed the home office deduction for a couple of years. There is a build up of carryover expenses. During 2008 TP quit doing business from his home. TP continued to do the same line of business for the remainder of the year but it was conducted at a loctation in which they signed a rental agreement. Are the carryover expenses lost forever? Is there anyway this TP can claim these expenses? TP will never claim the home office deduction in regards to this business since it is now conducted on business rental property. Is there anything in tax code that allows a TP to recapture these expenses since the home office deduction will no longer be claimed for this business?