Passing up on LLC status May Save Millions in Tax

You can find an article here about a hypothetical use of a corporation to avoid substantial taxes:

via This (Hypothetical) Founder Saved $3 Million In Federal Taxes | TechCrunch.

I think that the article does a good job of demonstrating a major benefit that the tax code still holds only for corporations and is not available to those who jump on the LLC bandwagon.  Your specific business plan and exit strategy may dictate that a different entity may provide more benefits to you than you may if you simply make the knee jerk reaction of grabbing another LLC.

Tax Payment Options — IRS Installment Agreements up to $50,000

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Tax Payment Options when the register is empty.

Tax Payment Options — IRS Installment Agreements up to $50,000

 

The IRS SB/SE Division released Tax Payment Options interim procedural guidance SBSE-05-0112-0264 on the Installment Payment Fresh Start II. . Installment Agreements are arrangements between the taxpayer and the Internal Revenue Service which allows taxpayers to pay their liabilities over time. Streamlined Installment Agreements may now be allowed for up to $50,000 and 72 months.  Give us a call if you think you may qualify for tax payment options at 907-375-9226.

Alaska Law Offices, Inc.

http://www.irs.gov/pub/foia/ig/sbse/ipu-cpr_sbse-05-0112-0264.pdf

 

Shareholder Liable for Corporations Taxes

U.S. Tax Court held in T.C. Memo. 2013-32 that the taxpayer George Schussel, was subject to transferee liability, because he caused his corporation to evade income taxes. Just another way to pierce the corporate veil. Get good tax advice and don’t be a shareholder liable for your corporation’s taxes.

Give us a call if you are facing an IRS audit or allegations that you evaded taxes.

907-375-9226

Alaska Law Offices, Inc.

 

Offers In Compromise to Pay Payroll Taxes

Few taxpayers realize, back payroll taxes can be negotiated down using the IRS Offer in Compromise program just like other taxes. The advantages of this include:

1. A More favorable repayment schedule.

2. You can direct payments to the Trust Fund Penalty Taxes.

3. You can avoid paying the Trust Fund Penalty personally.

4. The Offer in Compromise is NOT Considered by your Revenue Officer.

5. No interest on repayment.

6. Collection hold in place.

Offers in Compromise are an excellent tool to pay outstanding payroll tax liabilities.

Activity Grouping: The Impact of Recent Developments

Since the passive activity loss rules of Sec. 469 were enacted in 1986, practitioners have wrestled with the concept. They are often faced with an arduous task in obtaining the relevant facts to ensure their clients’ compliance with the rules. Clients’ participation levels in various activities usually require annual examination, and material participation can sometimes be difficult to discern, especially with LLC members or limited liability partnership partners. The activity grouping rules of Regs. Sec. 1.469-4, which were Continue reading “Activity Grouping: The Impact of Recent Developments”

The Tax Times: The Internet Sales Tax Exemption About To Expire?

The Tax Times: The Internet Sales Tax Exemption About To Expire?.

Oh how the world would change if the internet shippers have to remit and pay state and local sales taxes to the cities and states of their customers. All of the UPS and Fedex shipping that has been subsidized by the uncollected and unpaid taxes will likely slow down. The states and municipalities will finally start seeing a recovery after two decades of declining tax base.

Comparing Limited Liability Company and S-Corp

Comparing the benefits and burdens of Limited Liability Company (LLC) and S-Corp is important, they are not the same. Before you blindly jump into one or the other you should know what you’re getting and what you’re giving up.  This post will introduce some of the important considerations in entity selection.

Available Alternatives.

There are a number of forms of business entity available under state law – sole proprietorships, partnerships, corporations and LLCs.  Federal law applies different tax Continue reading “Comparing Limited Liability Company and S-Corp”