Taxation
| Taxation of Payments Made to Volunteers |
|
| As a volunteer worker in the Peace Corps or similar agencies, you most likely will receive certain payments in the form of allowances or reimbursements. The Internal Revenue Service has provided guidance as to the taxability of these payments. More... |
|
|
| Tax Court |
|
| The main purpose of the Tax Court is to give the taxpayer an opportunity to be heard before he or she is compelled to pay any tax within the Court's jurisdiction, including income, estate, gift, self-employment, or special excise taxes. When a taxpayer receives a notice of deficiency from the Internal Revenue Service, he or she may decline to pay the tax and may petition the Tax Court to review the deficiency. The Tax Court is the only judicial body from which a taxpayer may obtain relief without the payment of taxes. More... |
|
|
| SIMPLE IRA Plans |
|
| In order to reduce the costs of administering an individual retirement arrangement (IRA), Congress created the SIMPLE IRA plan, a Savings Incentive Match Plan for Employees of Small Employers. The establishment of a SIMPLE IRA allows employees to choose to defer a portion of their salaries into the plan for retirement. More... |
|
|
| Deductions for Daycare Providers |
|
| Normally, a taxpayer seeking to take deductions for the business use of his or her home must meet the following qualifications: the business use of part of the home must be exclusive, regular, and for a trade or business AND the business part of the home must be either the principal place of business, the place where the taxpayer meets with clients, patients, or customers, or a separate structure not attached to the home. More... |
|
|
| Preparing for an Audit |
|
| Substantiation is the key to a successful audit of your small business tax return. The Internal Revenue Service has the right to look at any records used to prepare the return, so get ready to bring them in. But do not bring in a crate of receipts for the auditor to wade through. This is one situation where neatness really does count. The more receipts and paperwork the auditor has to search through, the more errors he or she can find. When the examiner asks about automobile deductions, your ability to produce a file labeled "car" not only builds the appearance of credibility but also prevents the auditor from finding potentially problematic items in your crate. In addition, going through all that paperwork to organize it refreshes your memory concerning the year in question. More... |
|
|