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New Michigan Legislation Repeals the Flow-Through Entity Withholding Requirement

Flow-through entities (“S” corporations and most limited liability companies) are no longer required to withhold Michigan income tax on members’ distributive shares. (See Michigan Public Act 158 of 2016). This change is effective for tax years beginning on or after July 1, 2016.

The prior withholding requirements continue in effect for tax years that began before July 1, 2016. Under the prior requirements, flow-through entities had to withhold Michigan income tax from each individual nonresident owner’s reasonably anticipated distributive share of the entities’ taxable income. Accordingly, this change is friendly to Michigan businesses with out-of-state owners. Read More ›

Categories: Employment Tax & Withholding

Lower Application Fee for 1023-EZ Charity Filers

Lower Application Fee for 1023-EZ Charity FilersIn 2014, the IRS introduced a new streamlined tax-exempt application that gave certain charitable organizations the opportunity to bypass the longer Form 1023 tax exempt application.  Some organizations now can apply for tax-exempt status through the Form 1023-EZ. Benefits of Form 1023-EZ include its shorter length and fewer questions regarding the details of a charity's specific operations. However, there are some restrictions as to whether a charitable organization qualifies to submit a Form 1023-EZ.  The IRS has provided an Eligibility Worksheet (pages 11-20 of the Form 1023-EZ instructions) that taxpayers can complete in order to determine if a charity is eligible to use Form 1023-EZ. Read More ›

Categories: News & Events, Tax-Exempt Organizations

Nonprofit vs. Tax Exempt

When working with charities and other nonprofit organizations, two terms are frequently used interchangeably that actually do not mean the same thing.  Watch this video to learn the difference between nonprofit and tax exempt.

Categories: Nonprofit, Tax-Exempt Organizations

Why You Must File a Form 990

Generally a Form 990 must be filed by nearly all tax exempt organizations. If you do not know the specific exception as to why you wouldn't have to file a Form 990 then you must file. If you do not file this form on time there could be some very significant financial penalties. Furthermore, the IRS has a revocation program, which means that if you do not file the Form 990 for a certain number of years, then the IRS will automatically, without telling you, terminate your organizations tax exempt status. Learn more in the short video clip below.

Categories: Nonprofit

Tax Planning for Family Businesses

Was your tax bill higher than what you had wanted it to be this year? It may be time to consider either changing your business structure or your business operations to be more tax efficient. Learn some quick tips from Attorney Mike Zahrt in the short video below.

Categories: Compliance, Tax

Do I have to Pay a Fee for Filing My Taxes Late?

Taxes DueWhat penalties accrue if you don't make the deadline to file your taxes? If you are due a refund, there is no penalty if you file a late tax return; however, if you owe tax you will most likely owe interest and penalties on the tax you pay late. The IRS breaks down two penalties that may apply in this short article titled "Things You Should Know about Filing Late and Paying Penalties."

If you have questions about your taxes please contact one of Foster Swift's knowledgeable tax attorneys.

Categories: Compliance, News & Events, Tax

Michigan Sales and Use Tax Audits: What You Need to Know

Sales and Use taxes are basically a 6 percent tax on the sale, use and consumption or storage of tangible personal property in the state of Michigan. Michigan has ramped up its enforcement of these two taxes. In short, Michigan is getting less revenue from its traditional tax basis so the state is really looking to enforce compliance with the sales and use tax more than what they used to. What does that mean for you? It means that you might get audited. Learn more about what you should do if you get audited in the video below.

Categories: Sales Tax, Use Tax

Payroll & HR Professionals Beware: IRS alerts of Phishing Scheme

A new phishing email scheme that purports to be from company executives and requests personal information on employees was identified by the IRS. This email scheme, known as "spoofing," will contain for example the actual name of the CEO. The "CEO" sends an email to payroll or HR and requests a list of employees and information including social security numbers. For more information on this scheme, click here.

Foster Swift has also covered schemes regarding fake charities and discussed how to protect yourself from identity theft.

Categories: News & Events

Fake Charities Are on the IRS “Dirty Dozen List of Tax Scams” for 2016

Charity DonationsEach year the IRS alerts taxpayers about potential tax scams, and publishes its list of the “Dirty Dozen” problem areas. In its 2016 list, the IRS warns taxpayers about fake charities, identified as “groups masquerading as charitable organizations to attract donations from unsuspecting contributors.”

According to IRS Commissioner John Koskinen, “Fake charities set up by scam artists to steal your money or personal information are a recurring problem. Taxpayers should take the time to research organizations before giving their hard-earned money.” Read More ›

Categories: News & Events, Tax-Exempt Organizations

IRS Releases Tips to Help Protect Financial Accounts

Do you believe you are a victim of identity theft? The IRS recently released tips for using credit bureaus to help protect your financial accounts. If you believe you are a victim of identity theft, the IRS suggests that you contact one of the three major credit bureaus to place a "fraud alert" on your credit account.

The three main credit bureaus are:

For more information on the types of fraud alerts that are available and how to place an alert, click here.

Categories: News & Events