S-corporations, sometime when you were setting up your business, you chose, or someone advised you to choose S-corporation as your business form. One advantage is they avoid the “double taxation” of the C-corporation; the government does not usually tax S-corporations. The S-corporation passes income through to you, a shareholder, and you pay the taxes on your share. Another advantage is that only part of the income passes through to you as self-employment income, reducing the amount of self-employment tax you pay. It is that second advantage where the audit risk lies. Get greedy and the IRS will slaughter you. (more…)
Archive for the ‘General Business’ Category
Hogs Will Be Slaughtered
Monday, June 20th, 2011US Congress Will Punt-Legislative Update June 2011
Friday, June 17th, 2011Last year I spent a lot of time writing about how the US Congress had done nothing with respect to resolving tax issues. Why is it important for Congress to pass tax law? It is very hard to do tax planning before the end of the year, when you do not know what taxes you have to pay. In 2010, the extenders package, AKA the 2010 Tax Relief Act, finally passed and was signed on December 17 of 2010-which meant the average taxpayer had very little time to engage in tax planning for 2010. Furthermore many of the provisions in that act expire at the end of this year or the next. In otherwords the 111th Congress punted and left these issues to be resolved after the next presidential election. Why should the 112 Congress be any different? (more…)
Get socked with a big tax penalty in one easy lesson
Monday, January 31st, 2011You wanna get socked with a tax penalty in addition to paying extra taxes? Its easy. Just don’t keep any records. As a recent tax court case reveals you not only could get your deductions denied, but also have the fraud penalty imposed. (more…)
New NLRB Poster Requirement May Be Coming
Tuesday, December 21st, 2010The National Labor Relations Board (NLRB) announced that most private employers may soon have to display a poster in their work places that informs employees of their right to form and/or join a union. At the moment it is a proposed ruling, which is undergoing a 60-day comment period.
IF the proposed ruling goes into effect after the comment period, failure to display the poster would be treated as an “unfair labor practice.” In general, it would be treated as evidence of unfair labor practices if a case is initiated against an employer. It does not generate enforcement action on its own. The poster would be available or it could be downloaded for free from the NLRB. If a significant number of employees do not speak English the employer would be required to display a poster in their language. If an employer normally electronically conveys posters, and electronic version would be required in addition to the physical one in the workplace.
The National Labor Relations Act applies to most private employers as the threshhold number of employees is 1. The Act does not apply to workers who are covered by the Railway Labor Act, agricultural employees, domestic employees, supervisors, federal, state or local government workers, independent contractors and some close relatives of individual employers.
If you would like to read more about poster requirements, especially as they relate to Arizona employers, please check out http://artandbusinessconsulting.com/arizona-employer-requirements.htm#AZ_Employer_Information. The information presented on this page is not all inclusive, nor does it provide, nor is it intended to provide complete or full description, discussion, or analysis of any law, topic, or issue. ABC strongly advises businesses to comply with all employment laws that they are subject to, and consult with an employment lawyer or other employment law specialist when necessary — ABC is not engage to practice law, nor is ABC an HR Specialist.
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