One of the most generous tax deductions available to businesses, as well as not-for-profits, is the ability to deduct an employee's pay. For the most part, this is not controversial. After all, all but the smallest companies need to have employees to help with the running of the business's affairs. So, the IRS and other authorities will generally allow compensation to be deducted as a necessary business expense, so long as the employees in question are legitimately on the company's payroll. However, these matters can become more complicated as businesses grow and their top leaders demand higher pay.
Many people in White Plains and other parts of New York may wish to set up a not-for-profit corporation and then apply for an exemption from income taxes and, by extension, other state taxes as well. This is most often referred to as 501(c)(3) status.
Although this blog has touched on the subject before, it may be helpful to review the possible consequences of family loans.
Many people in White Plains and the other communities around New York City have hobbies. In most cases, people probably think of a hobby as something that a person spends money on in order to get a non-financial benefit, like relaxation or personal satisfaction.
Many New Yorkers may already know that there are a lot of generous tax benefits associated with home ownership. In addition to being able to deduct interest from mortgages, for instance, the sale of a home can also be exempt from capital gains tax, at least up to a certain amount.
Particularly for some smaller to mid-sized businesses in the greater New York area, it may be easier to pay certain bills under the table, that is, in cash or otherwise outside the business's normal accounting system.
As previous posts here have discussed, many people in White Plains and the other New York suburbs may find themselves the target of an IRS audit or other collection action. Following an audit, even a well-meaning person may find himself faced with a large tax bill that would be hard to afford. After all, New Yorkers can and do make honest mistakes on their taxes. Moreover, tax laws and regulations, and even the legal positions of the IRS about the same laws and regulations, change over time. Sometimes, the IRS or even an individual examiner takes an aggressive position on which there is plenty of room for disagreement.
One of the most popular deductions that White Plains residents may prefer to take on their taxes is the charitable deduction. This deduction allows those who contribute to qualified not-for-profits, often a 501(c)(3) corporation, to strike that amount from their adjusted gross income as an itemized deduction.
When facing tax problems, it is important for tax payers to understand how tax fraud is looked at and treated by the IRS. Any tax controversy can be overwhelming to the tax payer so it is helpful to understand what is considered negligence and what might be considered fraud.
Tax problems can be overwhelming for most people who are facing them. When everyday people are facing a tax controversy or tax dispute, it is important to know what can be done and where those facing tax issues can turn. The possible consequences associated with tax controversies should not be taken lightly. Tax payers who find themselves caught up in them may face the challenges associated with tax issues on a daily basis.