Tax Quiz: March
Test your tax knowledge with these questions from the experts at the National Association of Tax Professionals.
To help keep your tax knowledge sharp during the busy season, we'll add a tax question or two every week. Our latest are on owners who rent, and the limits on reporting some unusual income.
A tipped employee is taxed only on the amount of tips he/she actually keeps. Our waiter must maintain records of tip-outs along with his other tip income (cash tips, charged tips, split tips, tip pool, etc.). Since he has over-reported his tips to his employer, he needs to provide a corrected Form 4070 to his employer, who then needs to issue him a corrected Form W-2.
This association can be considered a social club under Section 501(c)(7), but first must file Form 1024 requesting tax-exempt status and be approved for this status before claiming the club is an exempt organization. Once this is done, the club files Form 990, 990-EZ or 990-N.
The IRS has the authority to waive the tax if the taxpayer can establish that the shortfall between the required distribution and the amount actually distributed was due to reasonable error and steps are being taken to remedy the shortfall [IRC Sec. 4974(d); Reg. 54.4974-2, Q-7]. To request a waiver, the taxpayer should attach a statement of explanation and complete Form 5329 according to the instructions for Part VIII.
Consolidation in the accounting industry has resulted in more accounting firms juggling multiple locations. Maureen Schwartz, executive director of BKR International, provides a top 10 list of challenges as well as guidance for multiple-office practice management.
A step-by-step guide for victims of ID theft (and their advisors)
Philadelphia firm Drucker & Scaccetti creates a warrior mindset
Constant vigilance is the price of fighting online fraud
A WalletHub survey reveals what your clients really think about taxes and more
Greatland Corporation has compiled a list of misconceptions when it comes to tax-reporting requirements. Failing to understand the real truth behind these myths can cost a business extra money to file again or, even worse, to pay steep fines if reporting is not done in compliance with regulations.
The firms with the highest 2015 revenue growth from our Top 100 Firms/Regional Leaders list
Millennials have a very different set of priorities when deciding where they want to work than previous generations. Employers need to ensure they are tailoring their organizations in order to find and keep millennial talent. Here are some suggestions from Henner Schliebs, VP and head of finance audience marketing at SAP.
The 12 most egregious tax scams of the year
While some farms may raise cattle, poultry or fish and others grow fruits or vegetables, all will report their farm income on Schedule F, Profit or Loss from Farming. If your clients own a farm or ranch, here are 10 tax tips from the IRS.