Executive's Tax & Management Report articles from March 2004

Executive's Tax & Management Report archives from March 2004

Compromise rejected when taxpayers can pay up.
March 1, 2004... Under certain circumstances, the Internal Revenue Service (IRS) will settle tax liabilities by accepting less than full payment from a taxpayer. Among the reasons for rejection of such an offer in compromise, however, is the IRS's belief that...

S corp ESOPs are now listed transactions.(employee stock ownership plan)(S Corporations)(Brief Article)
March 1, 2004... S corporations that offer an employee stock ownership plan (ESOP) will face closer scrutiny since the Treasury and the IRS are taking steps to shut down abusive transactions involving such plans. Revenue Ruling 2004-4 makes S corporation ESOPs...

An offer of "pennies on the dollar" might cost you big bucks.(Brief Article)
March 1, 2004... The IRS is warning taxpayers to be wary of advisors who claim that tax debts can be settled for "pennies on the dollar" through the Offer in Compromise (OIC) program. Some promoters are inappropriately advising indebted taxpayers to file...

Buying and selling equity interests in "disregarded" entities.(Corporate Taxes)
March 1, 2004... Among the many oddities in our tax laws is the ability to take a business entity--validly created under state law--and pretend that it does not exist. These so-called "disregarded entities" can pass the muster oof state law liability protection...

How to get more bonus depreciation.(Business Deductions)
March 1, 2004... The Internal Revenue Service (IRS) issued regulations in September 2003, providing rules for claiming the 30 percent or 50 percent bonus depreciation. These rules give taxpayers more opportunities to claim bonus depreciation than most...

The 2003 tax act impact on the choice of charitable trusts.(Family Tax Angles)
March 1, 2004... Enactment of the 2003 tax act raises the question of how taxpayers can best utilize the new tax rules to enhance their tax savings and at the same time put into place a valuable estate-planning tool. The charitable remainder trust (CRT) is...

Are travel reimbursements subject to employment taxes?(Travel & Entertainment)
March 1, 2004... If your company reimburses employees for local transportation expenses they incur while using their own vehicles for business travel, then you might be interested in new guidance from the Internal Revenue Service (IRS). In Revenue Ruling...

Accountable plan checklist.
March 1, 2004... Amounts paid through a reimbursement or other expense allowance arrangement must meet certain requirements for the amounts to be excluded from the employee's gross income and exempt from the withholding and payment of employment taxes. The...

IRS pushes electronic options for paying taxes and filing returns.(Tax Procedures)(Internal Revenue Service)
March 1, 2004... The Internal Revenue Service (IRS) has stepped up its efforts to encourage businesses and individual taxpayers to pay and file their taxes electronically. In addition to touting its electronic filing program for tax returns again this tax...

Tax cut repeal would hit high-income earners the hardest.(Executive's Briefcase)(Brief Article)
March 1, 2004... The Bush administration is pushing for permanent tax relief, but some Democratic presidential candidates have suggested repealing at least some of the tax relief signed into law within the last three years. Deloitte & Touche (www.deloitte.com)...

Budgets are top concern when making travel plans.(Executive's Briefcase)(Brief Article)
March 1, 2004... Seventy-six percent of US business travelers expect their travel to increase or remain at the same level during the first half of 2004, and an increasing number of business travelers are expected to use low-cost carriers, according to a recent...

Number of partnerships and partners are on the rise.(Executive's Briefcase)(Brief Article)
March 1, 2004... The total number of partnerships and partners, as well as total assets and total net income, increased for 2001, according to the recently released Fall 2003 Statistics of Income Bulletin. The number of partnerships increased by 3.6 percent...

New tax form proposed for large and midsize business taxpayers.(Executive's Briefcase)(Brief Article)
March 1, 2004... Certain corporate taxpayers may have to file a new form with their federal tax return starting with tax years ending on or after December 31, 2004. That's because the Treasury and the IRS have released a new proposed draft form, Schedule M-3,...

More Honda vehicles certified for clean-fuel vehicle deduction.(Executive's Briefcase)(Brief Article)
March 1, 2004... If you bought a new 2003 or 2004 Honda Insight or a 2004 Honda Civic Hybrid last year and started driving it before December 31, you may Claim a deduction of up to $2,000 on your 2003 tax return. If you bought and started using one of those new...

Alimony payments aren't always deductible.(Divorce & Taxes)
March 1, 2004... The Internal Revenue Service (IRS) said Donald Richard Lowe owed $975 in federal income tax for 2000 because he wasn't entitled to deduct as alimony certain payments made to his ex-wife, Nancy. Donald Lowe took the case to court, but the court...

Will you have to withhold taxes from contractor payments?(Dealing With The IRS)(alternative minimum tax)
March 1, 2004... If National Taxpayer Advocate Nina E. Olson has her way, Congress will enact a withholding requirement on payments to certain categories of independent contractors. Her recommendation stems from a $132 billion tax gap attributable to...