Showing 53 posts in Tax.
Motivating Your Employees
Owners have a great reason to work hard to grow their business—they’ll make more money. Do your employees have the same motivation? If not, you should consider improving your business’s compensation strategy.
Typical compensation strategies often motivate employees to do just enough to keep their jobs. An example is the strategy of combining a competitive base salary with a discretionary annual bonus program. Although the resulting competitive pay should help to attract and retain employees, it will often fail to align your employees’ goals with the goals of the business. Read More ›
Categories: Employee Benefits, Tax
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IRS Releases Tax Tips for Deducting Gifts to Charity
The holiday season is well underway and if you plan on donating money or property to a charity this year, you are going to want to know these six tips before you give. The IRS recommends that you should keep these in mind:
- Give to qualified charities.
- Keep a record of all cash gifts.
- Household goods must be in good condition.
- Get an acknowledgement form from a charity for each deductible donation of $250 or more.
- Deduct contributions in the year you make them.
- Special rules apply if you give a car, boat or airplane to charity.
Learn more about these IRS tips here.
Categories: Tax, Tax-Exempt Organizations
New Law Allows Michigan Taxpayers to Appeal Tax Disputes without Paying First
On June 16, 2015, Gov. Rick Snyder signed into law Enrolled Senate Bill 100, which eliminates the requirement that taxpayers pay contested taxes, penalties and interest before appealing their liability to the Michigan Court of Claims. The bill was introduced by Senators Brandenburg, Horn, Zorn, Emmons, Colbeck, Schmidt, Hansen, Casperson, Nofs and Booher.
Prior to the enactment of this law, a taxpayer had two options to appeal an adverse tax assessment or decision:
- the taxpayer could appeal the case to the Michigan Tax Tribunal without paying disputed amounts; or
- the taxpayer could appeal the case to the Michigan Court of Claims, but only after paying the taxes, penalties, and interest assessed, even if those amounts were being contested.
Categories: News & Events, Tax, Tax Disputes
Do You Need More Time For Your Taxes?
The April 15 deadline to file taxes is almost here. Are you concerned about meeting the deadline? The IRS released an article titled "Five Things to Know if You Need More Time to File Your Taxes." The article was released on April 13, 2015.
Categories: Income Tax, News & Events, Tax
IRS Releases Tax Tips for Farmers
It's tax time, and the deadline to file is quickly approaching. If you have yet to file, be sure to check out the article titled "Ten Tax Tips for Farmers". The article was released by the IRS on March 25. Read the article here.
Categories: News & Events, Tax
One Reason You Might Want To File Your Tax Return Early This Year: Identity Theft
Now is the time of year when people start to receive W-2s from their employers and start to think about filing individual tax returns. Many people, however, wait until the last day to file their individual tax return. Some people have very good reasons to wait, while others may just have a habit of procrastination.
There is at least one good reason to file your individual tax return well before April 15. The Internal Revenue Service has recently released information regarding tax-related identity fraud. Identity thieves can steal your personal information and use it for their gain. Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. Read More ›
Categories: Tax
Auditing the Auditor: Microsoft Files for Information about Tax Law Firm
Microsoft Corporation is seeking transparency. On Nov. 24 the company filed a complaint in federal court under the Freedom of Information Act, demanding that the Internal Revenue Service disclose information about its contract with a law firm tied to audits of the software maker.
At issue in Microsoft Corp. v. Internal Revenue Service (Case 14-cv-01982, U.S. District Court, District of Columbia) is Microsoft’s request for access to the complete government contract between the IRS and Quinn Emanuel Urquhart & Sullivan LLP, the firm contracted by the IRS to examine federal income tax returns for years 2004 through 2009.
Microsoft submitted a public records request on Sept. 22 seeking information on the $2.2 million contract entered into in May, according to the filing. To date, the IRS hasn’t disclosed and is unlawfully withholding the records, according to Microsoft. Read More ›
Categories: Corporate Income Tax, Tax
Michigan Treasury Highlights Individual Income Tax Developments for 2014
The Michigan Department of Treasury has issued a release (available here (We have identified that the following link is no longer active, and it has been removed)) that highlights new developments affecting Michigan's individual income taxes for tax year 2014. The release notes the changes that Treasury has made to several forms, including Michigan Form MI-1040 and Schedule 1 (Additions and Subtractions). The release also notes that certain credit, deduction, and exemption amounts have been adjusted for inflation for tax year 2014. Finally, the release includes a number of reminders and announcements, including a reminder regarding the option to pay individual income taxes electronically. Please contact a member of Foster Swift's State and Local Tax (SALT) Practice Group if you have questions regarding Michigan taxes.
Categories: Income Tax, News & Events, Tax
501(c)(3) Organizations: What am I Required to Disclose When People Ask?
Tax-exempt organizations are exempt from many taxes, including federal income taxes. However, in exchange for exemption from income tax for charitable activities and for receiving tax-deductible contributions, Congress requires 501(c)(3) organizations to disclose the following information to the public upon request: Read More ›
Categories: Income Tax, Tax, Tax-Exempt Organizations
Seventh Circuit Reverses District Court; Turns Away Constitutional Challenge to Minister's Housing Allowance
The principle that individuals have the right to worship as they see fit has been fundamental in the United States since the country's founding. However, while the government may be prohibited from establishing a religion or interfering with the free exercise thereof, that does not mean that government has no role in religion. Throughout history, organized religions have enjoyed special legal status, including in the Internal Revenue Code (the "Code").
The parsonage allowance, codified in Section 107 of the Code, has two parts. Section 107(1) grants a tax exemption on the rental value of a home directly provided to a minister as part of his or her compensation. Section 107(2) excludes from gross income rental allowances paid to a minister as part of his or her compensation.
In November 2013, the U.S. District Court for the Western District of Wisconsin declared Section 107(2) of the Code unconstitutional because it violates the Establishment Clause of the First Amendment. The decision was appealed to the U.S. Court of Appeals for the Seventh Circuit. Read More ›
Categories: Income Tax, News & Events, Tax
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