The Business Net - Business Coaching - Accounting

The IRS Wants More of Your Money!

The Ground Rules in Playing the Tax Game with IRS Have Been Changed

If you have a business with deductible expenses and you want to keep these deductions, you must have solid documentation of all business expenses.

Here is what is happened already:

Over the past several years the IRS has addedmany new forms to track your financial activities.
Many of these new forms, prepared by banks, brokerages, title companies, and other financial institutions, are filed electronically.
IRS computers cross-match the information from these forms to various income tax returns. A process made more efficient by electronically filed tax returns.
Computer capabilities have dramatically increased enabling the computers to process more return information to determine audit potential.

Tax Planning Overview: Taxes Are Negotiated – Not "Fixed"

Effective Tax Negotiations Requirements

Tax is an expensive cost in our business and personal lives. Tax negotiations require an understanding of tax laws and rules. The most effective negotiations require pre-planning of financial actions and proper deal structures.

What is "Reasonable Compensation"?

Reasonable Compensation is a current high priority issue for the IRS concerning all corporations, especially S corporations

Wage Compensation for Corporation Officers

Corporate officers are specifically included within the definition of employee for FICA (Federal Insurance Contribution Tax Act), FUTA (Federal Unemployment Tax Act), and federal income tax withholding under the Internal Revenue Code. When corporate officers perform services for the corporation, and receive or are entitled to receive payments, their compensation is generally considered wages. Sub-chapter S corporations should treat payments for services to officers as wages, and not as distributions of cash and property or loans to shareholder or limited liability company members.

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