"Corporate Taxes" Posts
Substance Over Form
By The burden is on the taxpayer to find the opportunities, interpret the Code, adapt his or her behavior accordingly and finally file the appropriate forms with the IRS.
The Internal Revenue Service recognizes that taxpayers have the right to arrange their affairs to minimize tax liability. Lawmakers create tax opportunities within the Internal Revenue Code (the Code) for several reasons including the stimulation of the economy through business owners. However, the burden is on the taxpayer to find the opportunities, interpret the Code, adapt his or her behavior accordingly and finally file the appropriate forms with the IRS. With the …
The Devil You Don’t Know…
The underreporting of income carries civil penalties of 20% to 75% on the portion of the underpayment resulting from the severity of misconduct.
The day Al Capone was convicted of tax evasion represented a proud moment for accountants everywhere. The Chicago gangster of the 1920s was known in the Prohibition era for evading the authorities for years, although his illegal activities also included gambling, liquor, prostitution and even murder. Unable to make any other substantial case against Capone, the government finally proved its tax evasion case. He was sentenced to 11 years in Federal prison, fined $50,000 and charged $7,692 …
Cashing Out Effectively
Using transactional tax planning to transfer ownership of your business the right way.
For a business owner, the decision to transfer ownership of a business is arguably the biggest decision that a person will ever face. Whether the owner is deciding between various offers from an outside party or determining which family member is the best choice to take the business successfully into the next generation, the decision-making process can be arduous from beginning to end and include factors known and unknown.
Owners worry if the buyer is the right person or right fit for the company and the employees. …
The U.S. Tax Court
The best defense is a strong offense. Taxpayers involved in transactions that necessitate a business valuation must be appropriately prepared to withstand an IRS challenge.
Over the past few years, U.S. judges have substantially increased their knowledge of valuation methodology and application. This is especially true of Tax Court judges. In 2005, the Honorable David Laro, a U.S. Tax Court judge, co-authored a book with the “father of business valuation, ” the highly respected Dr. Shannon Pratt, on the subject of business valuation and taxes. More frequently, Tax Court judges are applying their valuation knowledge to better scrutinize taxpayer testimony …
How To Avoid Canada Revenue Agency Tax Traps
Increase your knowledge about the commonly used tax traps utilized by the Canada Revenue Agency to help you better avoid them.
As someone who specializes in Canadian tax law, I believe there are various tax traps utilized by the Canada Revenue Agency (CRA) of which owners and managers of small- and medium-size Canadian businesses should be aware. Let’s look at several of them.
PROSECUTION
The laws of the land give the CRA an exceptionally wide range of powers and privileges. As such, the deck is heavily stacked in its favor from the outset. According to the Income Tax Act, taxpayers …
Should I Stay Or Should I Go…To China?
It is vital that owners work with their tax professionals to determine whether the cost savings outweigh benefits of domestic production.
When business owners think of ways they can save money on their taxes, one of the first ideas that often comes to mind is establishing some sort of “offshore” account. In other words, filtering income through a foreign country to avoid paying taxes. This technique has been so glamorized over the years that many business owners now believe it is a legitimate tax avoidance strategy. In the popular 1993 film The Firm, Gene Hackman plays the role of a …
What your accountant forgot to tell you
By Too many accountants confuse business owners with the cost of tax compliance for additional entities without understanding the long term legal benefits and protections that are provided to the owner’s business and personal assets.
Quick, what type of entity structure do you use for your business? C-Corporation? S-Corporation? Is it the best one for you? Whose advice did you seek to help make this vital business decision? Do you realize the potential personal risks of running your business?
Perhaps the most important decision you make as a business owner, a decision that should be made only after consultation with a …
Corporate taxes
Tax Services Director Erin Hollis reviews small business tax planning.
In the complex and ever-changing world of tax planning, one thing is clear: Business owners need help. Tax planning involves more than ensuring we don’t pay more than our fair share or – better yet – the legal minimum. Proper tax planning should involve a comprehensive analysis, involvement by the business owner to tailor the strategies to personal and corporate needs, and a systematic plan to put everything in place.
What types of credits and deductions are generally available for business owners?
- Domestic production activities deduction for manufacturers.
- Deductions for
