Executive's Tax & Management Report articles from February 2002

Executive's Tax & Management Report archives from February 2002

IRS issues "new" new rules for split-dollar life insurance policies: revised rules take some of the sting out of tax crackdown.
February 7, 2002... Split-dollar life insurance has long been a popular way for companies to help their executives buy ordinary life insurance at a reduced cost. But early last year, the IRS created a storm of controversy when it proposed new rules that would have...

"Audits from hell".
February 7, 2002... At one time, the IRS subjected around 50,000 taxpayers each year to what were known as "audits from hell." The taxpayers were required to go face-to-face with IRS agents who demanded documentary proof to back up each and every line on a...

Taxwise ways to tap your retirement plan when times are tough. (Retirement Plans).
February 7, 2002... Fewer customers and clients, reduced bonuses and commissions, layoffs--many executives and their families are feeling the economic pinch. If you are in need of cash to tide you over until times get better, you may want to consider tapping your...

How to prevent your sideline business from being labeled a "hobby". (Third In A Series).
February 7, 2002... Dale Rinehart, an airplane pilot, ran up thousands of dollars in losses from a horse breeding business. The Tax Court recently ruled that Rinehart could write off his losses [Rinehart, T.C. Memo 2002-9]. In another recent Tax Court case, Austin...

When do you have to report cash receipts to the IRS? (Tax Procedures).
February 7, 2002... The tax code generally requires your business to file a report with the IRS when it receives more than $10,000 in cash in a retail sale. In a recent ruling the IRS took a look at whether this requirement is triggered in various scenarios [ILM...

Q & A: a tax question for your editor.
February 7, 2002... Q&A Q I inherited a house in January 2001 and I sold it in October. I have a capital gain of about $40,000. Can I use the $250,000 exemption for home sales? A No, not unless you inherited the house from your deceased spouse. As a...

How your corporate minutes can help you save taxes. (Closely Held Corporations).
February 7, 2002... Small corporations generally are not too formal in their day-to-day operations. Formality could even interfere with effective functioning of the business. Directors, officers and shareholders are usually the same few people. They are in contact...

Your tax return is your responsibility.
February 21, 2002... With tax return season upon us, here's a good tip to keep in mind: Even if you have an accountant or tax return professional preparing your return, your return and tax payments are your responsibility. The tax code allows you to avoid late...

Some taxpayers get an extra day to do their taxes.
February 21, 2002... The IRS has announced that taxpayers in four states and part of a fifth will have an extra day to file their income tax returns this year. Reason: The tax return due date, April 15, is also Patriots' Day in Maine and Massachusetts. Although IRS...

Tax fact.
February 21, 2002... Calendar year individual taxpayers who filed their 1998 federal income tax returns by April 15, 1999, have until April 15, 2002, to amend their returns.

IRS sets up new timing rules for some business deductions. (Business Expenses).
February 21, 2002... To deduct or not to deduct--that is the question the IRS will be attempting to answer in upcoming regulations. If a business expense helps your company for only the current year, it's deductible in full in the current year. But suppose your...

Can you deduct payments for your children's religious education? (Charitable Deductions).
February 21, 2002... Contributions made to a church or synagogue are, of course, tax deductible. A deduction generally is also allowed for contributions to schools affiliated with a religious denomination. However, if your child attends the school,can you deduct...

IRS updates key figures for new business cars.
February 21, 2002... You can claim depreciation deductions for a car used in connection with your business. However, the tax code imposes dollar caps on how much you can deduct each year you own the car. The dollar caps are indexed annually for inflation. The...

IRS makes it easier to pull tax-sheltered dollars out of a family business. (Closely Held Corporations).
February 21, 2002... Typical situation: John and Mary Blake have built a successful company, XYZ Inc., and now their children have joined the business. John is about ready to call it quits but Mary wants to stay on the job for two or three more years. NEW...

Avoid the "Dirty Dozen" tax scams. (Tax Return).
February 21, 2002... The IRS has issued a nationwide alert to taxpayers warning them not to fall victim to one of the "Dirty Dozen" tax scams. The schemes take several shapes, ranging from false claims of slavery reparations to illegal ways of "untaxing" yourself....

New resources for business owners.
February 21, 2002... The following are recommended resources for business owners: Highlights of tax law changes for individuals and businesses that are effective 2001, 2002, and later years: http://ftp.fedworld.gov/pub/irs-pdf/p553.pdf Free advice for...

Cut your 2001 tax bill and save money in 2002. (Tax Strategies).
February 21, 2002... It's not too late to reduce your 2001 tax bill. "Good financial and tax planning should be a year-round activity, but for many taxpayers it takes an approaching April 15 filing deadline before they seriously focus on taxes," says John...

Q&A. (A Tax Question For Your Editor).
February 21, 2002... Q As an employer, how would I go about reducing my company's unemployment tax liability this year? A You can reduce your company's unemployment: tax liability by making a voluntary contribution to your state unemployment insurance (UI)...

Military leave reemployment rights. (Compensation and Benefits).
February 21, 2002... As the federal government continues to call on military forces in its effort to fight terrorism, many employers face the challenge of filling the slots left open by employees now serving in the armed services. When those men and women return,...