Category: Taxes

No GAAP yet for Bit Coins

Bit Coins are increasingly in the news.  Denise Lugo of Bloomberg BNA describes “Bit Coins” as: a type of virtual currency, which loosely put, is created when a complex mathematical algorithm is solved using high power computers.  It seems like overnight bit coins have become legitimate.” Ms. Lugo also summarized the FASB’s recent position at a …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/no-gaap-yet-for-bit-coins/

California Franchise Tax Board Provides Tax Relief for Short Sales

The California Franchise Tax Board (“FTB”) issued a letter summarizing their position regarding the tax impact of short sales.  The FTB followed suit with the IRS’ position, meaning there will not be any California state tax impact for a majority of taxpayers in this position (See my previous blog post regarding the IRS’s position).  The FTB …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/california-franchise-tax-board-provides-tax-relief-for-short-sales/

Your Loan to A Start Up May Be Treated as a Gift

When starting a business, it is common for entrepreneurs to seek initial funding from family and friends.  Since the holidays are creeping upon us, this means spending time with family members and loved ones.  During the festivities, discussions surrounding what people have been doing or planning on doing are bound to surface.  You may get …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/12/your-loan-to-a-start-up-may-be-treated-as-a-gift/

Most S-Corporations should pay greater attention to shareholder/employee compensation

The IRS continues to pursue S-Corporations that do not pay employment/payroll taxes on what the IRS considers to be reasonable compensation. Following other cases on this subject, in Sean Mcalary Ltd, Inc., vs. Commissioner Of Internal Revenue, T.C. Summary Opinion 2013-62 (August 12, 2013), the Tax Court generally ruled in favor of the IRS. The …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/11/most-s-corporations-should-pay-greater-attention-to-shareholderemployee-compensation/

IRS fumbles around $125 Billion in the last decade for incorrect EITC

The Earned Income Tax Credit (EITC) is a refundable tax credit that allows those completing a tax form to get a refund in excess of any tax that might have been paid. The Internal Revenue Service (IRS) is responsible for administering the EITC. Congress originally approved the EITC legislation in 1975. In an August 28 …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/10/irs-fumbles-around-125-billion-in-the-last-decade-for-incorrect-eitc/

IRS Tax Filing Delay is for Them, Not You

The government shutdown has led to the IRS’ recent announcement that it will delay the start of the 2014 tax filing season at least a week and likely more.  The tax season was scheduled to begin on January 21, 2014.  This delay provides the IRS with needed time to program and test tax-processing systems, efforts …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/10/irs-tax-filing-delay-is-for-them-not-you/

President Obama proposes still more tax increases

With debt ceiling talks getting more attention, the issue of tax increases will again be on the table. If you thought last year’s massive tax increase satisfied the “tax the rich” proponents, you are wrong again. Here is a summary of the tax increases President Obama included in his 2014 budget. Although these tax increases …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/09/president-obama-proposes-still-more-tax-increases/

Tax Treatment for Employee Litigation Settlements

The IRS recently issued Chief Counsel Advice (CCA) Memorandum 20133501F, which addresses the appropriate tax treatment for litigation settlements with current or former employees.  The guidance was as follows: “When are attorney’s fees paid by an employer as part of a settlement agreement with a former employee subject to employment taxes? In the absence of a …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/09/tax-treatment-for-employee-litigation-settlements/

IRS officially recognizes same sex marriages

On August 29, 2013, the Internal Revenue Service (IRS) issued Revenue Ruling 2013-17. Consistent with the U.S. Supreme Court ruling in Windsor, the IRS concludes: “…individuals of the same sex will be considered to be lawfully married under the Code as long as they were married in a state whose laws authorize the marriage of two …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/09/irs-officially-recognizes-same-sex-marriages/

Swiss Banks No Longer a Haven?

Since 2009, the U.S. Department of Justice has charged more than 30 banking professionals and 68 U.S. accountholders with violations arising from their offshore banking activities, with ongoing investigations proceeding against 14 additional Swiss-based financial institutions.  In an effort to improve this process, the U.S. Department of Justice and the Swiss Federal Department of Finance jointly announced …

Continue reading

Permanent link to this article: https://betweenthenumbers.net/2013/08/swiss-banks-no-longer-a-haven/