Category Archives: Business Tax

Special Tax Benefits Still Available in 40 Designated Empowerment Zones

Eligible businesses can still claim Empowerment Zone tax benefits through the end of this year. Empowerment Zones are certain urban and rural areas where employers and other taxpayers qualify for special tax benefits. The Department of Housing and Urban Development and the Department of Agriculture designated 40 economically distressed locations as empowerment zones. Find a… Read More »

Filing a Business Tax Return

Information about Filing a Business Tax Return Filing a tax return and reporting taxable income is more than just checking a few boxes and signing your name to a form. This may seem obvious, but you must report all taxable income on your tax return. Do you know what types of income are considered taxable… Read More »

Choosing a Business Tax Return Preparer

When it comes to preparing the tax return for your business, you may want to choose a professional to help you. Here are some tips. Go to the Directory of Federal Tax Return Preparers on to start your search on the preparer’s qualifications. Avoid businesses which delegate the work to someone with less experience… Read More »

Is it a business or a hobby for IRS Purposes?

What is a business for tax purposes? Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit. In order to make this determination, taxpayers should consider the following factors: Does the time and effort put into the activity indicate an intention to make a profit?… Read More »

What is a Tip for IRS Purposes?

Tips are optional or extra payments that employees receive from customers. Tips include cash tips received directly from customers, tips employees receive directly from customers through an electronic settlement or payment, including credit cards, debit cards, gift cards, or any other electronic payment method, and the value of any non-cash tips such as tickets or… Read More »

Employers Submitting W-2 in 2017

A new federal law, aimed at making it easier for the IRS to detect and prevent refund fraud, will accelerate the W-2 filing deadline for employers to Jan. 31. For similar reasons, the new law also requires the IRS to hold refunds involving two key refundable tax credits until at least Feb. 15. Here are… Read More »

IRS Fast Track Settlement

The joint Large Business and International (LB&I) Division/Appeals Fast Track Settlement program (FTS) offers a customer-driven approach to resolving tax disputes at the earliest possible stage in the examination process. This program is designed to: Provide an independent Appeals review of the dispute in an environment where all parties to the dispute have a “voice” in the… Read More »

Business Filing and Paying Taxes Late with IRS

Now, let’s talk about when businesses file and pay late. Not only does the failure to-pay and failure-to-file penalty up to 47.5 percent apply, but there’s also the failure to make Federal Tax Deposit Penalty.   Filing Form 941 and Form 940 with IRS Employers who file the Form 941 owing over $2,500 for the… Read More »

Taxation of traders and how do day traders pay tax

Unlike investors, securities traders are deemed to be conducting a trade or business, so their trading expenses are deductible as ordinary and necessary business expenses under IRC Sec.î 162. Thus, the difference brings along many differences of how a day trader will pay tax on their trading gains and be able to deduct trading losses.… Read More »