“Reasonable” compensation: Hot button for IRS auditors

  • March 31, 2009

In order to be tax deductible, compensation must be a reasonable payment for services. Smaller companies, whose employees frequently hold significant ownership interests, are particularly vulnerable to IRS attack on their compensation deductions.

Payroll and Cobra Provisions of the Economic Stimulus Plan

  • March 28, 2009

As published on the AICPA's Economic Crisis Resource Center: Several provisions of the economic stimulus plan may have a significant impact on your company or clients’ business, including the “Making Work Pay” tax credit and a host of COBRA requirements and provisions, ranging from a special 60-day election period and an additional plan enrollment option for COBRA recipients. Read the article for a summary of the provisions that may affect your business.

AICPA Develops Website Devoted to the Economic Crisis

  • March 28, 2009

The AICPA has developed a website to help deal with issues we are faced with during the economic crisis. The About Us section explains the intent of the website.

Dependency Status For A Child Of Divorced Or Separated Parents

  • March 11, 2009

The February 2009 issue of the AICPA's Tax Advisor gives a great overview of some of the pitfalls and challenges dealing with dependents of divorced parents.

All-Electric Tesla Roadster…0-60 In 3.9 Seconds And Saves Tax Dollars

  • March 10, 2009

If you purchase an all-electric Tesla Roadster (base price $109,000) you can receive up to a $7,500 tax credit under the American Recovery and Reinvestment Act of 2009. Read about this and other Green Energy Tax incentives in the new tax act summerized in the latest Journal of Accountancy article.

American Recovery and Reinvestment Tax Act of 2009 extends/creates business tax breaks

  • March 2, 2009

The American Recovery and Reinvestment Tax Act of 2009 (ARRTA) provides more than $75 billion worth of tax benefits for business for 2009 and 2010, in addition to numerous individual tax breaks. This article highlights some of the valuable tax breaks for businesses in the new law.

Individual tax incentives abound in American Recovery and Reinvestment Tax Act of 2009

  • March 2, 2009

The American Recovery and Reinvestment Tax Act of 2009 (ARRTA) is loaded with various tax incentives for individuals for 2009 and 2010. Among the individual tax breaks in the new law are incentives for homeownership, help for the unemployed and employed, as well as education assistance and tax breaks for taxpayers with children. This article provides an overview of the major individual tax incentives provided by the ARRTA.

Individual Tax Breaks in the Stimulus Package

  • February 23, 2009

With its new and expanded tax benefits for individuals, the American Recovery and Reinvestment Act of 2009 seeks to get more money into the pockets of American consumers. College students and their families, homebuyers, and buyers of new cars are among the potential beneficiaries, but so too are low-income Americans, with the act’s continuation and expansion of such tax breaks as a higher eligibility limit for the earned income tax credit.

Reminder: Support Your Auto Expenses

  • February 23, 2009

Auto expenses are a very common deduction for business owners and employees who must travel. Often the taxpayer does not know the exact amounts necessary to calculate the proper deduction and the tax preparer must estimate the mileage, business percentage, and ultimate auto deduction with the client’s help. Tax preparers should remind their clients to have proper substantiation or, if the IRS examines the return, the deduction will more than likely be denied.