TaxConnections

 
 

Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please enter your input in search

Archive for January 6, 2021

A Second Class Of Stock May Not Jeopardize Your S Election

A Second Class of Stock May Not Jeopardize Your S Election

On Christmas Eve, while Santa was packing up his sleigh, the Internal Revenue Service (“IRS”) released a Private Letter Ruling related to S election status. As noted in a previous Insight Blog, corporations may jeopardize their S election by failing to timely submit Form 2553, failing to obtain spousal consent, or, in this case, creating a second class of stock. Here, however, despite the creation of a second class of stock, the IRS determined that the termination of the taxpayer’s S election was inadvertent and, therefore, still valid.

S Election Terminations, Generally

Generally, a small business corporation may terminate its S election in a number of manners.[1] For example, a majority of the corporation’s shareholders may elect to voluntarily revoke the election.[2] Further, a corporation may cease to be a small business corporation (e.g., having more than 100 shareholders) or the corporation’s passive investment income may exceed 25 percent of gross receipts for three consecutive taxable years and the corporation has accumulated earnings and profits.[3]

Read more

Can I Dispute Or Stop An IRS Tax Lien?

Can I Dispute Or Stop An IRS Tax Lien?

The IRS has placed a lien on your property or financial assets.  What is your next move? How do you handle this situation?  And, most importantly, can you dispute or stop a tax lien?

Finding out there is a tax lien on your property – whether real estate, personal property, or financial assets – is incredibly stressful.  An IRS tax lien is a serious matter and should not be taken lightly.  They will use every tactic in their book to get back the taxes, and each action will have a serious impact on your earnings and reputation.

Read more

What You Need To Know About Important Illinois Tax Updates

What You Need To Know About Important Illinois Tax Updates

As we begin 2021 and approach the legislative season, it’s clear there will be numerous changes that will impact tax compliance. This is spurred on by both the pandemic’s economic fallout and changes necessitated by our increasingly digital economy.

In this article, we examine several updates regarding tax compliance in Illinois and what they mean for any retailer doing business in the state.

Marketplace Facilitation in Illinois

After the 2018 Wayfair decision, Illinois enacted marketplace facilitation legislation, following in the footsteps of many other states. However, unlike other states, this legislation is creating friction with other pieces of tax law specific to Illinois.

Read more

IRS Releases 2020 Progress Update; Annual Report Details Unprecedented Year

IRS Releases 2020 Progress Update; Annual Report Details Unprecedented Year

The Internal Revenue Service today released its 2020 annual report describing the agency’s work delivering taxpayer service and compliance efforts during COVID-19 while spotlighting actions taken by IRS employees to help people during the challenging year.

Internal Revenue Service Progress Update/Fiscal Year 2020 – Putting Taxpayers First PDF” outlines how the agency overcame difficulties during the pandemic to deliver Economic Impact Payments in record time. At the same time, IRS employees made adjustments to complete a successful filing season despite office closures and the latest tax deadline ever.

Read more