Leveraged partnerships have been one of the few remaining techniques to dispose of unwanted businesses. A recent Tax Court decision has raised questions about the continued viability of this technique. Even more disturbing is the court’s view of the role of opinions in corporate business transactions.
The tax law often looks to the economic substance of [...]

Written by: Jessica Dorsett, CPA
In our accounting classes, we learn about fixed assets.  Problem is the book examples were way too theoretical and simple.  It’s important to start out simple when learning, I get it, I was there and you have to start out slow.  However, in real life, it’s NEVER cut and dry.  Here [...]

If you work in two different states, you will file a tax return in both the states. One state is your Home Tax State with the other state being where you were/are a  part year resident. Or as I get a lot of  here in Kansas City, You live in one state and work in another. [...]

There are three major financial statements – the profit & loss, the balance sheet, and the statement of cash flow.  The balance sheet is what drives the cash flow of the business. 
The balance sheet is an important financial-analysis and reporting tool that outlines the assets, liabilities and equity of the company at the end of [...]

You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.
Check the Individuals section of IRS.gov or consult the instructions for Form 1040, 1040A, or 1040EZ for specific details that may affect your need to file a [...]

On April 19, 2010, the IRS released a draft of Schedule UTP, Uncertain Tax Position Statement. The Schedule is to be included with the tax returns of corporations with assets equal to or greater than $10 million and which issued an audited financial statement for the tax year.
The Schedule is deceptively simple. For the current [...]

Businesspeople generally like clear answers to simple questions. That is why they tend to have little patience for tax law, where the answer is often “It depends….”

For example, the question “Are severance payments subject to FICA taxes?” ought to have a simple “Yes” or “No” answer. Unfortunately, as two recent court decisions illustrate, the answer [...]

The American Jobs and Close Tax Loopholes Act of 2010 (aka Tax Extenders Bill) passed the House on May 28, 2010 quickly. In fact, so quickly that there wasn’t a lot of time for the lobbying groups to rally protests.
The bill extended unemployment compensation, various tax deductions and credits, changed the way interest charge was [...]

The IRS has been making changes to the Electronic Filing Mandate that originated in H.R. 3548 as  predicted when it first came out.
At this point in time they are saying for this next tax season they “anticipate” asking requiring preparers who do 100 or more returns to file electronically and then lower that threshold to [...]

Written by: Jessica Dorsett, CPA
Congress passed the HIRE Act into law March 2010.  This is a credit of 6.2% of the qualifying social security wages (essentially the employer’s portion of the tax) for the remainder of 2010 on qualifying new employees.  If a payroll company prepares your payroll, please check with them to make sure [...]