Executive's Tax & Management Report articles from March 2006

Executive's Tax & Management Report archives from March 2006

Minimizing the tax consequences of AMT.
March 1, 2006... In the last few years, a rapidly increasing number of taxpayers have become liable for the alternative minimum tax (AMT). In tax year 2004, approximately three million taxpayers paid AMT. This number could swell to 35 million in the year 2010...

Sale of an LLC interest can result in ordinary income to the member.(Limited Liability Company)
March 1, 2006... Following the issuance of the "check-the-box" regulations effective in January 1997, the limited liability company, or LLC, became the entity of choice for many new businesses. The LLC has the advantage of coupling the liability protection of a...

Taxpayer advocate still pushing for simplification.(TAX PROCEDURES)
March 1, 2006... The complexity of the tax code causes honest taxpayers to make mistakes and others to find loopholes, prompting increased enforcement and additional legislation, which then adds to the complexity, National Taxpayer Advocate Nina E. Olson wrote...

How to avoid tax-filing headaches.(TAX RETURNS)
March 1, 2006... From missing forms to selecting a reputable tax return preparer to getting your refund quickly, there are so many causes for tax-filing headaches. Through a series of tips and various online resources, the IRS is hoping to help ease your pain....

Two new tax scams make "Dirty Dozen" list.(DEALING WITH THE IRS)
March 1, 2006... The IRS has identified two new tax scams that now top its annual "Dirty Dozen" list of the most notorious tax scams. The new scams are called "zero wages" and "Form 843 tax abatement," and both involve filers using IRS forms to claim that...

Contractor claims tax payments were misapplied.(DEALING WITH THE IRS)
March 1, 2006... A general contractor said he wrote 14 checks to pay various tax liabilities that he and his company owed. However, the IRS maintained that it received only half of the checks, that it rightly applied the payments to company tax liabilities, and...

Is fiancee's child a dependent?(PERSONAL TAXES)
March 1, 2006... Whether a taxpayer can claim a dependency exemption deduction depends on whether there is proof that the taxpayer lived with and provided more than half of the support for the child during the relevant year. NEW CASE Maria Rosa Bland and...

Pay-for-performance is key to investor satisfaction.(Executive's Briefcase)
March 1, 2006... Are investors satisfied with executive compensation practices in your company? Chances are they aren't, according to a recent study by Watson Wyatt Worldwide (www.watsonwyatt.com), a human capital consulting firm. Most institutional investors...

Manufacturers support permanent R&D credit.(reports of Research and development tax credit)
March 1, 2006... The National Association of Manufacturers (NAM) is pushing for making the research and development credit permanent, as well as tax cuts outlined in President Bush's State of the Union address. "With incentives far more generous and...

Bonuses continue to be a popular incentive.(Executive's Briefcase)
March 1, 2006... About three-quarters of employers plan to offer bonuses in 2006 that are equal to or greater than those paid last year, according to a recent survey by Mercer Human Resource Consulting (www.mercerhr.com). Based on 2005 performance, 43...

"Presenteeism" impacts productivity.(Executive's Briefcase)
March 1, 2006... Nearly half of employers indicated that "presenteeism"--where employees come to work even though they are sick--is a problem in their organization, according to the 2005 CCH Unscheduled Absence Survey. CCH, the publisher of EXECUTWE'S TAX...

Roth IRA contribution guidelines issued.(Executive's Briefcase)
March 1, 2006... If you want to contribute to a Roth IRA, you can do so at any time during the year or by the original due date of your return for that year (excluding extensions), according to the IRS. Roth IRA contributions are not reported on your tax...

It's not too late to file 2004 return.(Executive's Briefcase)
March 1, 2006... Although taxpayers are in the midst of filing their 2005 income tax returns, the IRS recently issued a reminder that anyone who was required to file a 2004 return but didn't should do so as soon as possible. If you owe taxes for 2004, you...

Tips to prevent identity theft.(TIMELY TIPS)
March 1, 2006... You've heard the horror stories about identity theft, but are you taking steps to protect yourself from becoming a victim? A few simple measures can save countless hours and thousands of dollars, according to ShredStation...