Executive's Tax & Management Report articles from April 2002

Executive's Tax & Management Report archives from April 2002

New law creates refund opportunity--with more tax savings to come.
April 7, 2002... On March 9, President Bush signed the Job Creation and Worker Assistance Act of 2002. The good news: Thanks to the new law, your business (or you personally, if you are self-employed) may be in line for a tax refund. The bad news: An...

Dial up for a filing extension.
April 7, 2002... If you are not going to be able to make the April 15 filing deadline, you can get a filing extension by simply picking up the phone and dialing 1-888-796-1074. You may want to use IRS Form 4868 as a worksheet to prepare for the call, but you...

Tax facts.
April 7, 2002... Based on 1999 filing, less than 48,000 estates nationwide owed an estate tax. In Alaska, only five estate tax returns were filed in 1999 showing an estate tax owed.

IRS releases revised tax forms.
April 7, 2002... The IRS has released revised 2001 tax forms for taxpayers affected by the new depreciation changes (see page 1). The revised forms, with accompanying instructions, have been posted on the IRS's Web site at www.irs.gov. The forms and...

Eight tax law changes business owners should know about. (More On The New Tax Law).
April 7, 2002... The centerpiece of the newly enacted lob Creation and Worker Assistance Act is the new 30 percent depreciation allowance (see article on page 1). However, the new law contains several other important tax provisions affecting businesses and...

How to sidestep the penalty tax on stockpiled profits. (Closely Held Corporations).
April 7, 2002... The tax code contains several little taxes that suddenly sneak up on you when you are not looking. A prime example is the accumulated earnings tax: Your corporation is prosperous, you are stockpiling profits for a rainy day and suddenly the IRS...

Tax-saving tip.
April 7, 2002... * Have you checked Form 6251? Regular tax rates are steadily dropping, and that means that every year there's a greater chance you'll be subject to the alternative minimum tax. (See Form 6251, which is also known as the AMT form for...

Can businesses expect increased IRS audits this year? (Tax Procedures).
April 7, 2002... Enron's recent accounting debacle has changed the way in which the IRS views the tax accounting methods of many American businesses. The company's use of "fuzzy accounting" standards may cause the IRS to come down harder on small to midsized...

Q&A. (A Tax Question).
April 7, 2002... Q I own a textile company that employs nearly 200 workers, and I am interested in deducting the dividends my company has already paid. Is this possible? If not, what options do I have to ensure that my company will be able to deduct dividends...

Treasury reviews proposals to limit company stock in 401(k) plans. (Investments).
April 7, 2002... The collapse of Enron has spotlighted the risks for employees when their retirement plan accounts are invested in company stock. If the company goes belly-up, the employees not only lose their jobs, but they lose their retirement nest eggs as...

Employers may take a credit for a portion of their employees' tips. (Tax Procedures).
April 7, 2002... Generally, tips received by employees are considered income for federal income and employment tax purposes. However, the treatment and reporting of tips involves special rules, since employees receive this income from customers rather than...

Location of "tax home" is key to travel deductions.
April 21, 2002... It's not uncommon these days for executives to work long distances from their homes. For example, an executive may want to raise a family in a small town far from the hurly-burly of the city. Or an executive may take a new job in a distant city...

Top tax return errors.
April 21, 2002... The IRS regularly publishes a list of the most common mistakes made on each year's tax returns. The list for the 2002 filing season included some of the usual culprits: * Illegible or missing Social Security numbers * Names of...

Tax fact.
April 21, 2002... Systems of taxation need not be ideal. But the fact that the Constitution does not demand pure reason and is satisfied by practical reason does not justify unreason.

IRS relaxes proof rules for 9/11 charitable gifts. (Personal Deductions).
April 21, 2002... If you are one of the millions of individuals who made generous gifts to charities after the September 11 tragedy, you will be interested in a new announcement from the IRS. Because of the unprecedented outpouring of donations in the wake of...

Gifts to and from family businesses may have unpleasant tax consequences. (Closely Held Businesses).
April 21, 2002... Family-owned businesses sometimes operate like a shared pocketbook with some family members putting money or property into the business while others take it out. So, the business becomes a vehicle to shift wealth among family members. That...

IRS won't refund money stolen from you to pay taxes. (Tax Procedures).
April 21, 2002... If someone steals money from you or your company and the thief uses the funds to pay tax debts, don't look to the IRS for help. That's the clear message of a new federal court decision. When a bank depositor used money stolen from the bank to...

New law provides special relief for New York "Liberty Zone". (New Legislation).
April 21, 2002... The new Job Creation and Worker Assistance Act creates a "Liberty" Zone" in lower Manhattan and provides special tax incentives to help with the reconstruction of the area in the wake of the September 11 terrorist attack. Relief provisions...

The eldercare/employee balance. (Compensation & Benefits).
April 21, 2002... For many baby boomers, managing the care of their aging parents or a disabled family member while trying to fulfill work responsibilities poses a challenge that affects both their personal and professional lives. A Shared Problem for...

Can you discipline an employee for failing to satisfy FMLA requirements? (Compensation & Benefits).
April 21, 2002... If an employee fails to give either proper notice or appropriate medical certification under the Family and Medical Leave Act (FMLA), can he or she be disciplined? Atlanta attorney Rhonda Klein offers some insight. Proper Notice and...

Q&A. (A Tax Question).
April 21, 2002... Q My husband and I recently filed for an extension on our 2001 tax return, allowing us some additional time to think about the possible sale of our home. I have worked from my home office for the past seven years. Each year, my husband and I...

Worker's compensation retaliation: a popular employee claim. (Compensation & Benefits).
April 21, 2002... As an employer, you most likely have not had to worry about workers' compensation lawsuits. But many employers are beginning to realize that workers' compensation does not protect them from all claims involving workplace injuries. ...

Tax notices need to be dealt with immediately. (Tax Tips).
April 21, 2002... Don't panic if a letter from the Internal Revenue Service arrives. Many tax notices can be dealt with simply and painlessly. Each year, the IRS sends out millions of notices. Most of these inform taxpayers about common filing mistakes that...