Executive's Tax & Management Report articles from October 2002

Executive's Tax & Management Report archives from October 2002

Tax fact.
October 7, 2002... By the end of August 2002, the IRS had recorded 1,664 disclosures in its tax shelter disclosure initiative that ended earlier this year. More than 1,200 taxpayers disclosed their questionable transactions, Field agents will work with the...

Cost segregation and depreciation acceleration.
October 7, 2002... Federal income tax rules enacted in March 2002 give businesses much faster write-offs of depreciable assets. But in order to benefit from these rules, it is more important than ever to classify assets properly. This article discusses how your...

2003 standard business mileage rate drops slightly.
October 7, 2002... Effective January 1, 2003, the standard mileage rate for the use of a car for business purposes is 36 cents per mile for all business miles driven. That figure is slightly less than the current rate of 36.5 cents. The standard mileage rate...

Set up effective internal accounting controls. (Management Strategies).
October 7, 2002... With all of the attention on accounting scandals these days, now is a good time to take a fresh look at your company's internal accounting controls. These controls are designed to promote and protect sound management practices, both general and...

IRS issues new income statistics. (Management Strategies).
October 7, 2002... The IRS has announced the release of its summer 2002 issue of the Statistics of Income Bulletin [IR-2002-98]. Among other topics, the bulletin includes an in-depth look at profits for nonfarm sole proprietorships for tax year (TY) 2000, which...

IRS helps some of the people, some of the time. (Executive's Briefcase).
October 7, 2002... IRS Helps Some of the People, Some of the Time. In recent years, the IRS has been actively promoting its "customer service side," offering assistance to taxpayers and tax professionals alike. But just how is the effort working out? According to...

Employee assistance program might minimize productivity loss. (Executive's Briefcase).
October 7, 2002... Employee Assistance Program Might Minimize Productivity Loss. If your company doesn't already offer an employee assistance program (EAP), then you might want to reconsider. The impact of current events continues to keep American workers in a...

Employees can help curb health-care costs. (Executive's Briefcase).
October 7, 2002... Employees Can Help Curb Health-Care Costs. Double-digit increases in the cost of health care have had companies scrambling to reduce employee health-care benefits. According to Watson Wyatt, an international consulting firm, prices have jumped...

Preparers' credentials affect their privileges before IRS. (Dealing With The IRS).
October 7, 2002... You've just received a notice that you must appear before the IRS for an audit of your personal tax return. You're familiar with the tax law, but you prefer to have a professional represent you in the audit. If you hired someone to prepare...

Hybrid vehicles certified for clean fuel deduction. (Personal Tax Deductions).
October 7, 2002... The IRS has certified the first hybrid gas-electric vehicles as being eligible for the clean-burning fuel deduction under Section 179A [IR-2002-93 and IR 2002-97]. In making the announcement, the IRS commended the "swift action" under a new...

Credit card-based T&E program passes muster with IRS. (Business Expenses).
October 7, 2002... Typically, the IRS views credit card receipts as insufficient substantiation of business expenses to qualify reimbursements as excludable from employees' income. In fact, last year the Service cited inadequate substantiation as a reason it...

Tax question.
October 7, 2002... Q My wife and I run a manufacturing business out of a 50-year-old building in a once-booming industrial area. Now, the surrounding factory buildings are being revamped as artists' lofts and galleries. We want to relocate our business to a new...

Are roof repairs on a rental home deductible? (Personal Tax Deductions).
October 7, 2002... If you own rental property, you know that you will incur upkeep costs over the years. What you may not know is that the tax treatment of such costs depends on the type of work done. Incidental repairs are generally considered deductible...

Seven industry-specific issues chosen for resolution program. (Tax Procedures).
October 7, 2002... This year, the IRS considered 38 proposals before selecting seven issues for its fledgling Industry Issue Resolution (IIR) Program. Launched last year, and deemed a success by the IRS, the program is now an official component of the Service's...

Restructuring leads to FMLA violation. (Managing Your Business).
October 7, 2002... Employees who take time off under the Family and Medical Leave Act (FMLA) have no greater protections from layoffs caused by business necessity than employees who stay on the job. However, the timing of a layoff could lead a court to believe...

Deduct travel expenses to temporary work sites.
October 21, 2002... If you or your employees are temporarily assigned to work in a location a far distance from your usual workplace, you may be able to deduct your related business travel expenses. IRC Sec. 162(a)(2) generally permits a deduction for business...

Is your SSN listed correctly on your W-2?
October 21, 2002... Before sending your income tax return to the IRS, make sure your Social Security number (SSN) is listed correctly on both your tax return and your Form W-2. Even if your return is flawless, an incorrect SSN on a W-2 means the IRS doesn't have...

Accountants' advice not considered privileged. (Tax Procedures).
October 21, 2002... Legal correspondence between you and your attorney is protected by the attorney-client privilege, but letters between you and your accountants regarding tax advice are not protected from disclosure, according to a U.S. District Court...

High-income taxpayers targeted for audits. (Dealing With The IRS).
October 21, 2002... The IRS is redirecting its compliance efforts and realigning audit resources to focus on key areas of noncompliance with the tax laws. The IRS plans to concentrate less on wage earners (as it has done in the past) and more on those earning...

Business background checks take on increasing importance. (Executive's Briefcase).
October 21, 2002... "With a greater emphasis on security today, background checking is taken much more seriously as a workplace security and employee-protection issue," says Eric Boden, president and CEO of HireRight. "Companies are reevaluating their...

Will You Pay Less Income Tax in 2003? (Executive's Briefcase).
October 21, 2002... Indexing for inflation will provide some tax relief next year to taxpayers currently in the 27-percent and higher tax brackets, according to CCH INCORPORATED. The company recently released estimated income ranges for each 2003 tax bracket. ...

2002: fewer pay cuts/freezes than expected, but more layoffs. (Executive's Briefcase).
October 21, 2002... After September 11, 2001, corporate America expected to find a dramatic increase in pay cuts and pay freezes. But layoffs and hiring freezes were actually more common in 2002, according to a survey conducted by WorldatWork (www....

Employers Fail to Explain the Link Between Pay and Performance. (Executive's Briefcase).
October 21, 2002... How well do your employees understand your business objectives? Less than half of employees in a recent survey say that they understand the steps their companies are taking to reach new business goals--a 20 percent drop since 2000, according to...

More taxes due for personal use of company aircraft. (Personal Taxes).
October 21, 2002... If you use a company aircraft for a nonbusiness trip, the value of the personal flight--like the personal use of a company car--must be included in your income and is subject to federal income tax withholding, FICA, and FUTA. Just as you can...

Passing property using intra-family techniques. (Family Tax Angles).
October 21, 2002... If you own a family business, you may be concerned about finding the best way to pass your asset to the next generation. Typically, such transfers start with the transferor (business owner) and end with the transferee (child). However, such...

Choose between private annuities and self-canceling installment notes.
October 21, 2002... If you're not sure whether private annuities or self-canceling installment notes (SCINs) are right for your financial situation, you might be interested in the answers to the following questions: 1. When are private annuities appropriate?...

Consistency is key to equal pay. (Compensation & Benefits).
October 21, 2002... While you're handling layoffs, retirements, and resignations, be sure to avoid possible pay equity violations in the process. You must fairly compensate employees who take over departing workers' assignments--or risk violating the Equal Pay Act...

Receipt of individual and corporate taxes declines. (Tax Trends).
October 21, 2002... Federal tax cuts and the weak economy are taking their toll on the federal government's budget. The government ran a deficit of about $202 billion in the first 11 months of fiscal year 2002, compared with a surplus of $92 billion in the same...