Executive's Tax & Management Report articles from March 2002

Executive's Tax & Management Report archives from March 2002

Sometimes the IRS has to take you at your word. (Tax Return).
March 1, 2002... A new court decision contains a message both for taxpayers who file their returns early and for those who file at the last minute: If you belong to the first group and the IRS misplaces your return, the IRS may have to accept your word that you...

Last-minute reminder for businesses.
March 1, 2002... If your corporation is a calendar-year taxpayer, there is a key deadline coming up. Unless you file for an extension, your corporate return for 2001 is due March 15. If your corporation uses the accrual method of accounting, March 15 is...

Tax fact.
March 1, 2002... 5,400,000,000 = The number of hours it takes Americans to comply with the federal tax filing requirements.

Don't let the confusing "rate reduction credit" confuse you. (Tax Return).
March 1, 2002... Late last year, we warned that the tax rebate checks and the related "rate reduction credit" might cause big tax return headaches (see December 21 issue). It now looks like that's exactly what is happening. As of the middle of February, with...

IRS reevaluates frequent flyer miles. (Compensation and Benefits).
March 1, 2002... Frequent flyer miles have long been both a popular perk for traveling executives and a source of tax controversy. The basic tax question is: When employees pick up frequent flyer miles on employer-paid business trips, do they owe tax when their...

Tax court gives a business a break when it sells damaged assets. (Tax-Free Income).
March 1, 2002... The tax code cuts you some slack when property is damaged or destroyed. If you don't receive anything for the property, you may be entitled to a casualty loss deduction. If you do received cash for the damaged property, the cash is tax-free if...

How to maximize your vacation home deductions without red-flagging your return. (Fourth In A Series).
March 1, 2002... Many owners of vacation homes use rental income to help offset the cost of ownership. On top of that, vacation homeowners can claim deductions for property taxes, mortgage interest, and, in some cases, maintenance and depreciation. But...

Is a former employee entitled to payment for unused leave? (Compensation & Benefits).
March 1, 2002... If you terminate an employee is he or she entitled to payment for unused vacation, sick, and/or other forms of leave? The answer depends on your policy--and in some instances on state law. As an employer, you may adopt a policy that states that...

Tax-saving options available to high-income individuals. (Tax-Saving Tips).
March 1, 2002... As a high-income or high-net worth taxpayer, you have various options to reduce your annual tax bill. The following tax strategies can help you with your tax and financial planning: * Contribute directors' fees to retirement accounts....

Q&A. (Tax Question).
March 1, 2002... Q My company donated six chairs and two tables from our office space to a local charity just prior to the year's end. As an employer, I realize that the company can deduct these noncash donations on its taxes. However, I would like to know what...

Employer bound by vague severance language. (Managing Your Business).
March 1, 2002... If your company offers a severance pay plan, you may want to review it carefully to be sure it states exactly when an employee is entitled to severance pay and when severance pay can be withheld. In a new case, an employee laid claim to...

Not all business meals and entertainment are subject to tough deduction limit.
March 21, 2002... As a general rule, you and your company can deduct only 50 percent of what you spend on business meals and entertainment. So, for example, if you travel out of town on business, only 50 percent of your meal expenses on the trip are deductible....

New law has big impact on 2001 returns.
March 21, 2002... The Job Creation and Worker Assistant Act of 2002, signed into law by President Bush on March 6, creates a big new break for businesses: A bonus first-year depreciation allowance--over and above the regular depreciation deduction--for new...

Tax fact.
March 21, 2002... Americans like "sin" taxes, such as those on cigarettes and alcohol. But the estate tax is the opposite case: It is an anti-sin or a virtue tax. It is a tax on intergenerational altruism, on thrift.

IRS waves the white flag in fringe benefit battle. (Compensation & Benefits).
March 21, 2002... After a series of defeats in court over the last couple of years, the IRS has announced that it is conceding a key fringe benefit issue. The IRS had tried to limit corporate deductions for fringe benefits to the amount taxed as compensation to...

Get the most tax mileage out of your automobile deductions. (Fifth In A Series).
March 21, 2002... You can write off all of your automobile expenses if you use your car exclusively for business reasons. But, let's face it, very few cars are used only for business driving. For example, even if you use your car solely to commute to your office...

IRS says no to double-dipping on tax breaks for health care coverage. (Compensation & Benefits).
March 21, 2002... As an employer, you have a number of options for providing health benefits to your employees on a tax-favored basis. For example, you can allow your employees to pay the cost of health care coverage with pretax dollars through a cafeteria plan...

Debit cards--the next payday innovation? (Compensation & Benefits).
March 21, 2002... Traditionally, you can offer employees two choices of how they would like to receive their pay: a printed paycheck or direct deposit into their bank accounts by electronic funds transfer. But if a new trend catches on, you may soon be asking...

The Streamlined Sales Tax likely to affect all American businesses. (New Legislation).
March 21, 2002... Each and every American business will be profoundly affected if the Streamlined Sales Tax Project (SSTP or the Project) achieves its ultimate goals. As it now stands, the Project's recommendations would affect any business that purchases...

Q&A. (A Tax Question).
March 21, 2002... Q In May 2001, my company replaced some office equipment, specifically, two of its five fax machines and a photocopier. I would like to write off these office equipment purchases. How should I report this on our tax return? A Because you...

OCSE releases latest new-hire reporting requirements. (New Legislation).
March 21, 2002... The Office of Child Support Enforcement (OCSE) has released the states' revised new-hire reporting requirements. Currently, federal law requires all states and U.S. territories to have a formal system for employers to report their newly hired...