Know the ins and outs of ‘reasonable compensation’

Owners of incorporated businesses know that there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. Thus, if funds are paid as dividends, they’re taxed twice, once to the […]

Some contributions eligible for state tax credit and federal deduction

Many states offer various tax credits for donating to certain qualified charitable organizations, but it has been unclear how to treat those donations for federal tax purposes. The IRS in August issued final regulations that try to make sure people are not double dipping, that is, getting a tax credit and a tax deduction for […]

Mark your calendars for these key tax deadlines

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. October […]

Fundamental tax truths for C corporations

The flat 21 percent federal income tax rate for C corporations under the Tax Cuts and Jobs Act (TCJA) has been great news for these entities and their owners. But some fundamental tax truths for C corporations largely remain the same: C corporations are subject to double taxation. Double taxation occurs when corporate income is taxed […]

New partnerships rules could result in more audits

Rules governing partnerships have changed, and as a result, the number of IRS audits is expected to increase. The rules changes, which went into effect Jan. 1, 2018, were implemented in large part to reduce administrative hurdles for the IRS. What they have done, however, is altered the rights of partners in partnerships, including LLCs […]