Executive's Tax & Management Report articles from February 2005

Executive's Tax & Management Report archives from February 2005

Recent changes affecting 2004 tax deductions.
February 1, 2005... Whether you prepare your own taxes or pay someone to do it, you should be aware of recent tax law changes that could affect your 2004 income tax return. Following is an overview of some of the changes. Education Incentives The maximum...

IRS: failure to examine return is no excuse.(Tax Procedures)(Internal Revenue Service)
February 1, 2005... If you depend solely on your tax return preparer to complete and review your income tax return, then you could be making a costly mistake. The IRS says it is the taxpayer's responsibility to examine his/ her return for accuracy before signing...

Code Sec. 529 college savings plan essentials.(Education Expenses)
February 1, 2005... Taxpayers have invested more than $45 billion in state-sponsored Code Sec. 529 college savings plans, and this amount is predicted to grow to $400 billion by 2010. Code Sec. 529 plans were created by federal legislation in 1996 and enhanced by...

$1 million limit on deductible compensation.(Compensation & Benefits)
February 1, 2005... An employer is generally permitted a deduction for salaries paid to its employees. However, this deduction is limited to "reasonable compensation" paid to the employees. Code Sec. 162 provides that a "reasonable allowance for salaries or...

Internet tax ban extended until 2007.(Tax Legislation)
February 1, 2005... If you sell your products and services online, you don't have to worry about collecting sales tax in multiple states for at least a couple more years. That's because Congress approved, and President Bush recently signed, the Internet Tax...

What's new in executive compensation?(Compensation & Benefits)
February 1, 2005... Legislative and accounting changes last year prompted some of the biggest shifts ever seen in executive compensation, according to an analysis by Hewitt Associates (www.hewitt.com). Hewitt's analysis, released one day before the Financial...

Tax deposit rules simplified.(Executives' Briefcase)(Brief Article)
February 1, 2005... As you may have noticed in the Federal Action Tax Calendar in the January issue of EXECUTIVE'S TAX & MANAGEMENT REPORT, the IRS has increased the minimum threshold for employers that are required to make a quarterly deposit for FUTA taxes....

Accounting method change procedure revised.(Executives' Briefcase)(Brief Article)
February 1, 2005... A new revenue procedure explains the administrative procedures that taxpayers must follow to obtain automatic consent to change their method of accounting for the second tax year ending on or after December 31, 2003. Rev. Proc. 2005-9 is...

Busier is sometimes better.(Executives' Briefcase)(Brief Article)
February 1, 2005... Looking to increase job satisfaction among your employees? Dramatically cutting down on their workload may not be the answer, according to a recent study by Sirota Consulting (www.sirota.com). Survey results indicate that employees who have...

Tax shelter settlement reached.(Executives' Briefcase)(Brief Article)
February 1, 2005... The IRS recently accepted a settlement offer from Hercules Incorporated regarding a listed tax shelter transaction, known as a contingent liability transaction, which was designed to shelter capital gains. Here's how it works. In a typical...

IRS targets ESOP schemes.(Executives' Briefcase)
February 1, 2005... If you work for an S corporation with an employee stock ownership plan (ESOP), new income and excise taxes may apply if the ESOP existed on March 14, 2001. In a recent letter to about 1,700 businesses and retirement plan sponsors, the IRS...

How to build an engaged team.(Management Strategies)
February 1, 2005... If employees in your company don't participate in meetings and their eyes glaze over with each new assignment, then it might be time to help managers understand the importance of increasing employee engagement. Lack of engagement impacts...

Corporate tax management trends.(Management Strategies)
February 1, 2005... Although most corporate tax departments still answer to their chief financial officer (CFO), tax directors around the world are seeing increased direction from the chief executive officer (CEO), according to a recent study by Ernst & Young...