Executive's Tax & Management Report articles from April 2004

Executive's Tax & Management Report archives from April 2004

Don't overlook state and local taxes--Part 1.
April 1, 2004... Most executives' financial plans rightfully focus on the federal tax system because they have the most tax effect on their financial plans. While the overall federal tax burden has been shrinking due to rate reductions over the past few years,...

IRS nixes deductions for S corp losses.(Business Deductions)
April 1, 2004... The owners of three S corporations learned that the funds they loaned to their businesses must be "actual economic outlays" and "at risk" in order to claim deductions for depreciation losses. It was a hard lesson. The Internal Revenue Service...

Like-kind exchanges--traps for the unwary.(Tax Strategies)
April 1, 2004... Almost everyone who has any dealings in real estate is aware of the benefits of Internal Revenue Code (IRC) Section 1031, which allows for the exchange of "like-kind" properties. Brief History The original provisions of IRC Section...

Abusive trusts top "Dirty Dozen" list.(Dealing With The IRS)
April 1, 2004... Abusive trusts and the "claim of right" doctrine top the Internal Revenue Service's (IRS's) 2004 "Dirty Dozen" tax scam list. The IRS releases the annual list as an alert to taxpayers, educating them about recent scams and urging them to steer...

Buyer beware of abusive life insurance policies.(Retirement Planning)
April 1, 2004... A recent survey found that lack of information deters many Americans from developing a retirement plan. That lack of information and the fear of the stock market may prevent them from investing for their future, according to the Nationwide...

OT reform still a top priority for DOL.(Compensation & Benefits, Over-Time, Department of Labor)
April 1, 2004... Executives are keeping a watchful eye on a US Department of Labor (DOL) proposal that would require employers to pay overtime to 1.3 million additional low-wage workers. About one year ago, the DOL announced its long-awaited revisions to...

A new twist on tuition reimbursements.(Compensation & Benefits)
April 1, 2004... The benefits package that your company offers to employees likely includes a variety of nonwage payments made on a tax-free basis. For example, certain safety or length-of-service awards, reimbursements for business-related expenses or medical...

Owner must claim wage income reported by company.(Personal Taxes)
April 1, 2004... The Internal Revenue Service (IRS) determined that a company owner owed federal income tax for 1998 because he had received additional wage income that was reported as wages by his company. NEW CASE ** Tony J. Cavender argued that the...

Time is running out for claiming a 2000 tax refund.(Executive's Briefcase)(Brief Article)
April 1, 2004... The clock is ticking for taxpayers who didn't file a federal income tax return for 2000. They have until April 15, 2004, to file a return and claim a refund. The IRS has more than $2.5 billion in unclaimed refunds from 2000, and it estimates...

Track your 2003 refund online.(Executive's Briefcase)(Brief Article)
April 1, 2004... Wondering when your federal income tax refund will arrive? You can check the status of your refund online by visiting the IRS's new 1040 Central tax tool at www.irs.gov. Simply click on the "Where's My Refund?" link. In addition to the...

Time to beef up retention efforts.(Executive's Briefcase)(Brief Article)
April 1, 2004... Two-thirds of employees plan to change jobs as the economy picks up and nearly 40 percent expect to leave their current employer with a year, according to a new survey by TrueCareers (www.truecareers.com). Transitioning to a higher-level,...

Guidance issued for computing depreciation deductions under MACRS.(Executive's Briefcase)(Brief Article)
April 1, 2004... The Treasury Department and the IRS have released proposed and temporary regulations that provide guidance for computing depreciation deductions under the Modified Accelerated Cost Recovery System (MACRS) in Internal Revenue Code (IRC) Section...

Women's share of executive positions declines, while minorities gain ground.(Executive's Briefcase)(Peopleclick Research Institute)(Brief Article)
April 1, 2004... If your company does work for the federal government, then you might be interested in the Census 2000 Special EEO (Equal Employment Opportunity) Tabulation. The analysis will provide the basis for affirmative action compliance and diversity...

Privatization on the rise since passage of Sarbanes-Oxley Act.(Executive's Briefcase)
April 1, 2004... The number of US public companies to announce privatization plans has continued to rise steadily since the Sarbanes-Oxley Act was passed in mid-2002, according to Grant Thornton LLP. Privatization transaction announcements increased 30 percent...

Tax-rate changes prompt changes in reporting requirements.(Tax Procedures)
April 1, 2004... The Internal Revenue Service (IRS) recently announced changes to reporting requirements for certain 2002 forms because of changes in the tax rates and holding period rules for qualified dividends [Ann. 2004-11]. For entities with 2002-2003...