Executive's Tax & Management Report articles from August 2003

Executive's Tax & Management Report archives from August 2003

Acquisition might knock out COBRA exception.
August 7, 2003... If you're a small employer with less than 20 employees, you're not required to provide COBRA continuation coverage in the event of a layoff or other qualifying event. However, if your company acquires another company or is acquired by another...

E-file still available for taxpayers with extensions.(Brief Article)
August 7, 2003... An estimated 8.5 million taxpayers requested an automatic extension to file their 2002 federal tax returns. With that August 15 filing deadline quickly approaching, the IRS expects nearly 3 million taxpayers to request an additional extension...

Corporate officer faces penalties for unreported income.(Business Deductions)
August 7, 2003... A company president was found liable for nearly $5,800 in accuracy-related penalties for failing to report more than $98,000 in income and for claiming Schedule C deductions for which the IRS said he was not entitled. NEW CASE In Robert E....

Company owes FICA and FUTA tax.(Business Deductions)
August 7, 2003... When the Tax Court imposed penalties on a corporate officer for unreported income, it also agreed with the IRS that the officer should be classified as an employee of the company and that the company owed FICA and FUTA tax. Robert...

Tax question.(Brief Article)
August 7, 2003... Q Our company started using the IRS' new tax withholding rates last month. Our employees are happy to be getting more take-home pay, but they're not happy that they had money withheld from their paychecks at higher tax rates in the first half...

IRS proposes to clarify rules for the deduction and capitalization of intangible assets.(Dealing With The IRS)
August 7, 2003... In response to significant uncertainty and controversy with respect to the treatment of costs incurred in acquiring, creating, or enhancing intangible assets, the Internal Revenue Service is developing regulatory guidance to add some clarity...

Liberty zone tax relief extended.(Dealing With The IRS)
August 7, 2003... If your company was eligible for tax relief offered in the wake of the terrorist attacks, but you never took advantage of that relief, there's still time to do so. Revenue Procedure 2003-50 amplifies and modifies Revenue Procedure 2002-33...

Six strategies for effective leadership retreats.(Management Strategies)
August 7, 2003... Bringing together a group of talented managers for a strategic retreat is an investment in your organization's success. When done right, retreats provide a powerful environment to gain alignment, make decisions, and increase commitment. When...

Are your entertainment expenses tax-deductible?(Management Strategies)(Brief Article)
August 7, 2003... If you've scheduled a company picnic or a business retreat, then you might be interested to know that at least some of the associated costs may be tax-deductible. Company-Wide Activities The IRS says you can deduct the expense of...

Barriers reduced for retirement packages.(Compensation & Benefits)(Brief Article)
August 7, 2003... If your business is struggling to provide an employee retirement plan, then you might be interested in a recent IRS announcement aimed at making complex retirement plan rules more user-friendly and reducing barriers that discourage some...

Some small corporations incorrectly report and pay alternative minimum tax.(Executive's Briefcase)(Brief Article)
August 7, 2003... Some small corporations have been reporting and paying alternative minimum tax (AMT) for which they are not liable. Certain small corporations became exempt from AMT at the end of 1997, yet some continue to pay it, according to the IRS. A...

IRS simplifies method for requesting relief for late elections.(Executive's Briefcase)(Brief Article)
August 7, 2003... The IRS recently announced a simplified method for taxpayers to request relief for late S Corporation, Electing Small Business Trust (ESBT), Qualified Subchapter S Trust (QSST), or Qualified Subchapter S Subsidiary (QSub) elections [Rev. Proc....

Fair market value determines deduction.
August 21, 2003... When claiming noncash charitable deductions, you must keep detailed records and be able to substantiate the fair market value of the donated items. That's what one couple learned when the IRS determined a $21,486 deficiency in their 1996...

New ruling relieves partnership like-kind exchange concern.(Dealing With The IRS)
August 21, 2003... The tax law allows gain to be deferred when investment or business use property is exchanged for like-kind investment of other business use property. To avoid recognizing any gain, the taxpayer must not receive any cash and must trade into...

IRS releases list of priorities for 2003-2004.(Tax Procedures)
August 21, 2003... The Treasury Department and the IRS have released their annual list of tax issues that they plan to address through regulations, rulings, revenue procedures, notices, and other forms of guidance over the next year. The 2003-2004 Priority...

Five industry-specific issues tapped for resolution program.(Tax Procedures)
August 21, 2003... The IRS recently selected five tax issues for resolution under this year's Industry Issue Resolution (IIR) Program. Part of the IRS' efforts to resolve issues through prefiling guidance rather than post-filing examination, the goal of the IIR...

Proposed regulations target S corporation ESOPs.(Corporations)
August 21, 2003... The IRS has issued temporary and proposed regulations to shut down abusive arrangements involving certain employee stock ownership plans (ESOPs) holding stock in S corporations. The regulations, issued under Section 409(p), will go into effect...

Revenue ruling issued on social club losses.(Business Taxes)
August 21, 2003... If a country club reports a loss from goods and services it provides to members, can the loss be offset against income generated from nonmembers? No, says the IRS. The loss must be carried forward to the next succeeding taxable year as expenses...

Update proposed for 401(k) rules.(Compensation & Benefits)
August 21, 2003... If your company sponsors a 401(k) plan for employees, you will soon have one set of comprehensive regulations to reference. That's because the Treasury and the IRS have released proposed regulations that would replace and update the existing...

Update retirement plan to retain tax-favored status.(Executive's Briefcase)(Brief Article)
August 21, 2003... If your business is among the 750,000 small- and mid-sized businesses that use "off-the-shelf" retirement plan documents, you must formally adopt updates by September 30, 2003, to maintain your plan's tax-favored status. The deadline is a...

Successful restructuring in the early 1990s paid off years later.(Executive's briefcase)
August 21, 2003... Companies that successfully attained their financial goals through restructuring during the recession of the early 1990s provided significantly higher total returns to shareholders over the next five years than companies whose restructuring...

Tax question.(Executive's Briefcase)(Brief Article)
August 21, 2003... Q I understand that businesses can reduce their estimated tax payments due to changes under the new tax law. But how are my individual estimated tax payments affected? Can I reduce my own payments? A Yes. Self-employed individuals and those...

IRS beefs up online services for businesses.(Dealing With The IRS)
August 21, 2003... Businesses can now apply for an employer identification number (EIN) online and take advantage of recent upgrades to the Internet version of the Electronic Federal Tax Payment System (EFTPS). If you don't have an EIN yet, there's no need to...