Executive's Tax & Management Report articles from May 2004

Executive's Tax & Management Report archives from May 2004

Don't overlook state and local taxes--part II.
May 1, 2004... Last month, we discussed how state income taxes affect executives' financial plans. This month, we focus on state transfer taxes (estate, gift, and generation-skipping taxes), real property tax, and sales and use taxes. Transfer Taxes ...

Taxpayers can't claim theft losses stemming from corporate misconduct.(Brief Article)
May 1, 2004... If the market value of your stock declined due to corporate misconduct, you can't deduct the drop in value as a theft loss, according to the Treasury Department and the IRS [Notice 2004-27]. In general, a taxpayer is allowed to deduct...

Weighing in on the withholding proposal.(Point Of View)(taxation of independent contractors)
May 1, 2004... As you read in the March issue of Executive's Tax & Management Report, National Taxpayer Advocate Nina E. Olson advocates a federal withholding requirement on payments to certain categories of independent contractors. The proposal is aimed at...

Sympathetic court can't waive addition to tax.(Family Tax Planning)(individual retirement accounts)
May 1, 2004... Even an inadvertent early withdrawal from an individual retirement account (IRA) can result in a 10 percent addition to tax--unless the taxpayer takes immediate steps to fix the situation. NEW CASE * The Internal Revenue Service (IRS) said...

Don't be duped by frivolous refund claims on stock options.(Dealing With The IRS)
May 1, 2004... Some unscrupulous promoters are advising taxpayers that they can avoid income tax or alternative minimum tax (AMT) from the exercise of stock options. However, taking those highly questionable--and, in most cases, meritless--positions on...

Quarterly update of priority guidance plan released.(Dealing With The IRS)
May 1, 2004... The second quarterly update of the 2003-2004 Priority Guidance Plan includes the original 268 projects slated for the plan year beginning July 1, 2003, and ending June 30, 2004, as well as 34 items of additional guidance, some of which have...

Couple can't claim deduction for college student.(Family Tax Angles)
May 1, 2004... If your child is in college, can you still claim a dependency exemption deduction for him or her? The answer depends on your child's income and age. NEW CASE * Gil G. Santilla and Patrocenia C. Santilla filed a joint federal income tax...

How much money are computer viruses costing you?(Managing Your Business)
May 1, 2004... Despite increased spending to protect organizations from computer viruses, recent surveys indicate that computer viruses are still costly and disruptive to businesses. Rising Problem Eighty-eight percent of respondents in the Ninth...

Court: IRS properly disallowed NOL carryover claim.(Business Taxes)(Net Operating Loss)
May 1, 2004... A business hit by an economic downturn may incur significant financial losses, prompting the business to claim a net operating loss (NOL). Generally, taxpayers who sustain NOLs must carry such losses back three years before carrying the losses...

Courts taking frivolous cases seriously.(Personal Taxes)
May 1, 2004... Taxpayers who pursued frivolous cases to delay tax collections paid an average penalty of $5,509 last year, according to the Internal Revenue Service (IRS). That's an increase of nearly $2,200 in the average penalty assessed from 2001 until...

Are your employees satisfied with their compensation package?(Executive's Briefcase)(Brief Article)
May 1, 2004... Are your employees satisfied with their compensation package? Sixty-three percent of employees are satisfied with their pay, but only 45 percent think that their organization's pay policy is fair, according to a new survey. In addition, 27...

Companies use internal and external resources to optimize benefits administration.(Executive's Briefcase)(Brief Article)
May 1, 2004... Companies Use Internal and External Resources to Optimize Benefits Administration. Most companies use a combination of internal and external resources to administer their retirement and health care plans and they are largely satisfied with...

Accounting method change procedures issued.(Executive's Briefcase)(Brief Article)
May 1, 2004... Accounting Method Change Procedures Issued. Taxpayers must use certain administrative procedures to obtain automatic consent to change to their method of accounting under the recently issued final regulations on capitalizing costs incurred in...

Plan ahead for next tax season.(Executive's Briefcase)(Brief Article)
May 1, 2004... Plan Ahead for Next Tax Season. With the April 15 deadline for filing your personal income taxes behind you, thinking of next year's deadline might be the furthest thing from your mind. However, it's never too early to plan ahead. You can...

Value of personal flights continues to decline.(Compensation & Benefits)(Brief Article)
May 1, 2004... If you use your employer's aircraft for nonbusiness travel, the value of the flight is considered a taxable fringe benefit. Similar to the personal use of a company car, personal use of an employer-owned or provided aircraft must be reported as...