Executive's Tax & Management Report articles from May 2002

Executive's Tax & Management Report archives from May 2002

IRS issues guidelines for new depreciation allowance.(Internal Revenue Service)
May 21, 2002... If you don't want to claim the new 30 percent bonus depreciation allowance for newly purchased equipment and machinery, you don't have to file an amended return. Your originally filed return can stand as is. However, if you want to take...

The search for a few good taxpayers.(Internal Revenue Service's Taxpayer Advisory Panels)(Brief Article)
May 21, 2002... The IRS is setting up Taxpayer Advocacy Panels in all 50 states to provide recommendations for improving IRS service. Panel applicants should have... * An interest in good government * A personal commitment to volunteer approximately...

Cut your tax bill while supporting your parents and charity. (Family Tax Planning).(Brief Article)
May 21, 2002... In a new ruling, the IRS has put its stamp of approval on a charitable remainder trust (CRT) arrangement that allows you to... * Provide financial support to your parents (or other elderly family members), * Help out your favorite...

Two types of CRTs.(charitable remainder trusts)(Brief Article)
May 21, 2002... Charitable remainder trusts fall into one of two basic categories Unitrusts or Annuity trusts. They operate in much the same way, except for the method of computing the annual payout that an income beneficiary receives. An annuity...

Divorce or separation: which parent gets the dependency exemption? (Personal Deductions).(Brief Article)
May 21, 2002... The tax code contains a special set of rules that govern dependency exemptions when a couple divorces. The problem is that these rules are rather arbitrary and are designed to minimize IRS involvement in marital disputes. But sometimes the...

Should your spouse be on payroll? (Compensation & Benefits).(taxation of benefits in small family businesses)
May 21, 2002... If your spouse works for your small business but he or she isn't paid, you may want to consider adding him or her to your payroll. Why ? Changes in the Economic Growth and Tax Relief Reconciliation Act have increased the maximum contribution to...

Form 5500, Schedule F: no filing required. (Compensation & Benefits).(Fringe Benefit Plan Annual Information Return)(Brief Article)
May 21, 2002... Until recently, employers who maintained certain fringe benefit plans were required each year to file Schedule F ("Fringe Benefit Plan Annual Information Return") of Form 5500 [Notice 2002-24, IRB 2002-16; 4/22/02]. Employers were required to...

Liability risks posed in counseling. (Compensation & Benefits).(employee assistance programs and the American with Disabilities Act)
May 21, 2002... The employee assistance program (EAP) originated 50 years ago to rehabilitate employees whose performance was undermined by alcoholism. Today, its services have expanded to assist employees with various personal problems that can potentially...

Paying employees who are training for higher positions. (Compensation & Benefits).(Brief Article)
May 21, 2002... Do you require your employees to be involved in training courses or sessions as part of their jobs? If that training is directly related to their positions, those courses may be considered paid time for your employees. The term "directly...

Work sharing: an alternative to layoffs? (Managing Your Business).(Department of Labor's Short-Time Compensation Plan)(Brief Article)
May 21, 2002... Due to times of national recession and localized industry downturns, you may be searching for ways to weather what many employers and employees alike hope to be a temporary setback. Perhaps, to avoid laying off some of your employees you have...