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Archive for Kat Jennings

S Corporation Compensation And Medical Insurance Issues

When computing compensation for employees and shareholders, S corporations may run into a variety of issues. The information below may help to clarify some of these concerns.

 

Reasonable Compensation

S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee. The amount of reasonable compensation will never exceed the amount received by the shareholder either directly or indirectly.

The instructions to the Form 1120S, U.S. Income Tax Return for an S Corporation, state “Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation.”

Several court cases support the authority of the IRS to reclassify other forms of payments to a shareholder-employee as a wage expense which are subject to employment taxes.

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U.S. Tax Cut And Jobs Act – Accounting For The Impacts Of The Act Will Increase Risk Of Financial Statement Errors

On December 22, 2017, President Trump signed tax legislation known as the Tax Cuts and Jobs Act (the Act). The Act is the most dramatic change in corporate tax rules in over 30 years.

Accounting for the impacts of the Act will increase the risk of financial statement errors. Whether issues arise from complexity in the new laws or from the application of ASC 740 to your tax technical conclusions, you need to simplify your ASC 740 process in order to be successful, and mitigate that risk.

CHANGE IS COMING

Your spreadsheet process may have been “good enough” to get through previous financial statement audits. But with all the modifications that are going to be required as a result of tax reform, the risk of calculation errors increases significantly.

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Tax Professionals – Proposed Presidential Executive Orders Researched For You With Our Compliments

Tax Advisors- you would never know what was hidden in these regulations unless you conduct extensive research which we did for you! We will give you our twenty-five hours of research with links to the Code of Federal Regulations to our members.

Based on a preliminary review, these proposals could be very far reaching and effect a wide range of your clients. These proposals deserve your immediate attention and review!

You should study this very important information to make comments or request a public hearing on areas that may impact you and your clients. If you want to comment or request a public hearing you must do so before May 14, 2018.

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Tax Advisor’s Guide On President Trump’s Executive Orders: URGENT! RESPOND BEFORE MAY 14, 2018

Tax Advisors would never know what was hidden in these regulations unless they conduct extensive research which we did for our members. We provide tax advisors our hours of research with links to the Code of Federal Regulations.

Based on a preliminary review, these proposals could be very far reaching and effect a wide range of our member’s clients. These proposals deserve your immediate attention and review.  You should study this very important information to make comments or request a public hearing on areas that may impact your clients. If you want to comment or request a public hearing you must do so before May 14, 2018.

Request your complimentary copy at this link: https://www.taxconnections.com/tax-advisors-reference-guide-on-president-trumps-executive-orders

 

TaxConnections Tax Professionals – Can You Help With This Question Of The Week?

TaxConnections Tax Professionals – Can You Help With This Question Of The Week?

When making a PARTIAL sale of an MLP, can designating recently purchased unit Lots as the ones to be sold reduce income tax?

I have searched and searched but have been unable to find this answer. I am unfamiliar with the accounting for MLP sales, and have a situation with a PARTIAL sale of an MLP, where it was designated the most recently purchased unit Lot be sold, which is documented by the broker’s statement. The K-1 figured the Ordinary Income based on the FIFO method using the first Lots purchased which are about 18 yrs. old. Read more

TaxConnections Tax Professionals – Can You Help With This Question Of The Week?

Answer Tax Question, Ask Tax Advisor, Ask Tax Expert, ask tax question, Tax Blog, Tax Question, TaxConnections

TaxConnections Tax Professionals – Can You Help With This Question Of The Week?

Is future income from a promissory note all taxable in the year the note was issued?

When we sold our business we signed a promissory note with the buyers for a portion of the purchase price with a 15 year payback at 6% interest. Our accountant told us that we must pay taxes on the full amount of the note even though we will receive the income over 15 years. Seems unfair to have taxation BEFORE compensation. Is this right? Read more

Tax Advisor’s – Please Help Answer Tax Question Of The Week!

Tax Advisor’s – Your Thoughts On This Question Of The Week?

Could long term capital carryover loss eliminate or reduce depreciation recapture?
Sold during 2017 strip mall in 50% partnership after holding for 15 years.
Currently up against 4/17/2018 dead line with following tax issue.

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Corporate Tax Executives: Hiring Trends You Need To Know

When you have been searching for tax executives for 30+ years you see hiring trends long before tax organizations realize what is happening. For tax executives who have worked with me over many years to build their tax organizations, I am going to share what we are seeing in the market right now so you are better prepared.

There is an explosion of tax opportunities about to reach the market of the likes I have not seen since TRA 1986 under President Reagan. Read more

Tax Advisor’s – Please Help Answer Tax Question Of The Week!

Answer Tax Question, Ask Tax Advisor, Ask Tax Expert, ask tax question, Tax Blog, Tax Question, TaxConnections

Tax Advisor’s – Your Thoughts On This Question Of The Week?

Do US citizens with U.K. personal pensions have to pay tax on the 25% portion that is not taxable in the U.K? The tax treaty suggests two different outcomes. Article 17.2 – yes and article 17.1 a and b – No.

I have seen some are now suggesting as these are periodic payments rather than the US definition of a lump sum then the relevant article is 17 1b and the US savings clause does also not apply and these payments are not taxable.

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Tax Counsel M&A – Santa Clara/San Jose, California

Tax Counsel, Santa Clara, San Jose, California, Tax Job, TaxConnections

TaxConnections has been retained by a corporation to conduct a search for a Tax Counsel in the Santa Clara/San Jose, California area. We would genuinely appreciate your taking the time to review this opportunity and kindly refer this to anyone you know who may be interested in learning more. Our internationally recognized client is searching for a tax lawyer whose primary responsibilities center around M&A transactions.

The Tax Counsel will advise on corporate business operations regarding U.S. tax consequences of domestic and international business operations including: international business restructurings, reorganizations and acquisitions and the integration of these transactions. Read more

Tax Manager/Partnerships (Pleasanton, CA)

The Tax Manager role requires partnership, S corp and individual tax consulting experience and the skills to effectively diagnose clients’ needs in order to develop and implement solutions. Primary responsibilities involve providing tax compliance, tax accounting, tax research and planning on partnerships, s corps and individual tax return for sophisticated clientele. We will build upon your technical strengths in order to expand your expertise in partnership, s corp and individual taxation. Read more

Tax Manager – Mergers & Acquisitions (San Francisco, CA)

Mergers & Acquisitions, M&A, Tax Manager, Tax Jobs, Silicon Valley, CA, Moss Adams, TaxConnections

As a member of our team, you’ll be involved with working closely with private equity firms, public and privately held companies, advising them on tax structuring matters, financial and tax due diligence, and assistance with closing M&A transactions.

Responsibilities:

  • Develops, grows and serves as a firm technical resource for the U.S. income tax aspects of financial due diligence and mergers and acquisitions (M&A)
  • Leverages technical knowledge and experience to provide effective project management and practice development; delivering timely and responsive services and products that meet and/or exceed client expectations

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