How to start a Michigan LLC
Many entrepreneurs in Michigan wonder "How can I legally form my new Michigan business?" We talked about how to choose if you should form an LLC or a Corporation in a previous post, and it's critical you talk to someone like...
IRS Fringe Benefit Guide
The Taxable Fringe Benefits Guide was created by the IRS office of Federal, State and Local Governments (FSLG) to provide governmental entities with a basic reference guide to Federal tax rules relating to employee fringe benefits and reporting. As a supplement...
Audit statute for net operating losses
Did you know that audits of net operating losses (NOLs) and other carryforwards can extend beyond the usual statute of limitations? Certain amounts generated in prior years and carried over to the current year's return can impact taxable income calculations....
Protecting your child from identity theft
Just as identity theft seems to reach its peak, a troubling trend has emerged: identity thieves are increasingly targeting children. This type of crime often goes unnoticed for years since young children typically do not use their Social Security numbers...
Understanding related party debt forgiveness
Many times a debt between related parties is reduced or forgiven. This raises many questions: Are there tax consequences as a result of this? Does the lender have a tax loss to report? Does the borrower have a gain on...
Unincorporated business election for married couples
An unincorporated business jointly owned by a married couple is typically treated as a partnership for Federal tax purposes. However, under the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28), starting from tax years after December...
A summary of partner distributions and preference payments
A partnership distribution refers to the transfer of cash or property from a partnership to a partner related to their interest in partnership capital or income. Excluded from distributions are loans to partners, payments for services or property use (like...
Proper reporting of embezzled income to the IRS
To properly report embezzled income to the IRS, employers must document the losses for deduction purposes and meet filing requirements under Section 6721 and Section 6722. Reporting the embezzled income on Form 1099-MISC as non-employee compensation is necessary for each...
Revocation of passport for unpaid taxes
The IRS has reminded taxpayers that Code Sec. 7345 allows the agency to certify to the U.S. State Department if an individual has seriously delinquent tax debt, which could impact obtaining or keeping a U.S. passport. The IRS has not...
Does your non-profit meet IRS requirements?
A recent report by the National Taxpayer Advocate uncovered that while the IRS approves 94 percent of the applications it receives from charities for tax-exempt status, approximately 25 percent do not meet the requirements. The Treasury Department’s regulations generally require 501(c)(3) organizations...