IRS Rules for Providing K-1′s Electronically: Rev. Proc. 2012-17
Certain entities, such as partnerships, are required annually to file K-1s with the IRS and provide a copy to their partners. The IRS estimates that partnerships filed almost 26 million K-1s
View ArticleCalculating Adjusted Basis in an S-Corporation
It seems to me that a relatively significant problem for most Sub chapter S Corporations is accounting for the capital accounts of each and every single shareholder. The company must
View ArticleUS Treasury SS-8 Determination of Worker Status for Purposes of Federal...
In my dealings with the US Treasury Department regarding worker classification disputes I have learned that although in reality there may be shades of gray distinguishing between what constitutes an
View ArticleSelf Employed Health Insurance Insurance Deduction: Worksheet v. IRS...
If you qualify to take the deduction, use the Self-Employed Health Insurance Deduction Worksheet to figure the amount you can deduct. However use IRS Publication 535 instead if any of the following
View ArticleS Corp Late Filing Penalty Excused IRC 6699 Ensyc Technologies v. Commissioner
Considering the scope of the reasonable cause language to the Code Sec. 6699 penalty for late filing of an S corporation return, the Tax Court determined that the failure to timely file
View ArticleWithholding Tax for Social Security Goes to 6.2% of Wages
Contrary to the manufactured ‘news’ dribbling out of the main stream media to sell advertising, last week the IRS published updated employer’s withholding guidance clearly stating that employers are to...
View ArticleHow to calculate stock and loan basis in an S Corp for tax purposes
If you are a shareholder of an S corporation you are responsible for keeping track of your own basis (investment value) in the S corporation of which you own shares. Tracking shareholder basis
View ArticleIRS Notice 2008-1 Health Insurance Costs of 2% Shareholder-Employees
Under IRS Notice 2008-1, if you are an owner of more than 2% of an S corporation and you have a health insurance policy in your name with premiums paid by the
View ArticleIRS Form 7004 Automatic Extension of Time To File Certain Business Income...
If your corporation, partnership or estate operates on a calendar year basis the tax return is due March 15th which is coming up! If you need additional time to file
View ArticleTax Treatment of IRC 351 Nonrecognition Transactions aka Corporate...
Check out the following 5 lessons I learned this week regarding IRC 351 nonrecognition transactions: 1. The basis assigned to stock received generally is the same as the basis in
View ArticleTransfers of Property to a Corporation Internal Revenue Code Section 351
According to IRC 1001 you generally recognize a gain or a loss when you sell or dispose of property. However, there are a number of exceptions, specifically transfers of property
View ArticleColorado Individual and Business Taxpayers Impacted by Storms Receive IRS Relief
According to the IRS: “certain taxpayers in the counties of Adams, Boulder, Larimer and Weld will receive tax relief, and other locations may be added in coming days following additional
View ArticleAccumulated Adjustment Accounts and the Subchapter S Corp: IRS Form 1120-S...
Now that the corporate tax extension deadline is past and we all prepared, signed and filed our 2012 1120-S IRS forms (yeah right!) I write to report some of my
View ArticleAccumulated Adjustment Account (AAA) Schedule M-2 Does NOT have to...
A taxpayer came to me looking for a second opinion on how his company’s 2011 and 2012 IRS Form 1120-S were prepared, signed and filed because the retained earnings reported on Schedule
View ArticleGeneral Rules for S-Corporation Distributions A Random Walk Down IRC 1368
Unless you elect different treatment, for shareholder income tax purposes S corporation distributions are applied in the following order: 1. To reduce the Accumulated Adjustment Account (AAA)...
View ArticleTax Treatment of IRC 351 Nonrecognition Transactions aka Corporate...
Check out the following 5 lessons I learned this week regarding IRC 351 nonrecognition transactions: 1. The basis assigned to stock received generally is the same as the basis in the property...
View ArticleTransfers of Property to a Corporation Internal Revenue Code Section 351
According to IRC 1001 you generally recognize a gain or a loss when you sell or dispose of property. However, there are a number of exceptions, specifically transfers of property to a corporation. For...
View ArticleColorado Individual and Business Taxpayers Impacted by Storms Receive IRS Relief
According to the IRS: “certain taxpayers in the counties of Adams, Boulder, Larimer and Weld will receive tax relief, and other locations may be added in coming days following additional damage...
View ArticleAccumulated Adjustment Accounts and the Subchapter S Corp: IRS Form 1120-S...
Now that the corporate tax extension deadline is past and we all prepared, signed and filed our 2012 1120-S IRS forms (yeah right!) I write to report some of my codified thoughts on Schedule M-3,...
View ArticleAccumulated Adjustment Account (AAA) Schedule M-2 Does NOT have to...
A taxpayer came to me looking for a second opinion on how his company’s 2011 and 2012 IRS Form 1120-S were prepared, signed and filed because the retained earnings reported on Schedule L was ($100,000)...
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