Tax Question: Help on Closing Down LLC

Question:  When a company decides to close and they have about $15,000 in inventory that the owners will keep, do the owners need to do anything special for their taxes other than their normal tax return?  The company is an LLC. Continue reading…

CBPP Report: Ten Myths and Realities on Estate Taxation

The Center on Budget and Policy Priorities issue a report on ten myths and realities on estate taxation.  There is interesting data such as only the richest 2 in 1,000 estates actually pay estate taxes or the estates that do pay estate tax typically pay less than 1/6 of the value of the estate tax.

The Center on Budget and Policy Priorities  conducts research and analysis at the federal and state levels on public programs and fiscal policy.

IRS S Corporation Late Filing Tax Penalty

If the S-Corporation tax return is filed late, the IRS will add a tax penalty.

S-Corporation tax returns are generally due on March 15.  If an extension is filed, the S-Corporation tax return is due on September 15.  When the tax return is filed late the IRS will add a tax penalty based on the number of months late.  The tax penalty can be removed under certain circumstances.  Learn More on how to remove tax penalty or penalty abatement.  Continue reading…

Tax Question – Qualifying Child for Health Savings Account

Question: My wife and I have a question about our HSA. We have my kids on her insurance. They are her step kids, and HSA, and BCBS said it was okay. But come to find our we can not use our HSA account for the kids unless she claims them as dependents. Someone that my wife talked too said that there is a law that says we can. Can you help clarify this for us? Continue reading…

Tax Help Question on Volunteering

Question:  My father is retired and volunteers about 40 hours per week at the church doing maintenance. He was told my a business owner to open an LLC and get a letter from the church for his work to used as a tax deduction. Is this really plausable since they LLC wouldn’t be generating income? How would this effect his personal taxes? Is there a way to actually do this? Thank you. Continue reading…

Tax Question – Copy of Tax Return

Question: Our attorney requested a copy of a tax return related to a lawsuit.  It has been three months now with no response from the IRS.  The trial is around the corner and the attorney seems confused as to why the IRS has not responded.  I did know if this was normal for the IRS, if there was special procedures to obtain such paperwork which the attorney is not aware of, or something else you might know of that we haven’t even thought of yet.  Continue reading…