General Business, Management & HR Issues
Five tips for choosing the right charity for your donations
How can you know which of the many charities out there is the right one for you? Where will your hard-earned dollars do the most good? Guidestar, a nonprofit group that helps donors investigate charitable groups, gives five tips to help you determine which charity deserves your donation.
Affordable Care Act: What to expect in 2013 and 2014
The Affordable Care Act, along with the Healthcare and Education Reconciliation Act, represents the most significant regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965. Some significant tax provisions will take place in 2013 and 2014.
Chance of IRS audit increases with income level
The odds of having your income tax return audited by the IRS depends on how much money you make. The average odds are approximately 1 in 100. But for Americans in higher tax brackets, the chances go up, with the wealthiest taxpayers having a 1 in 4 chance of hearing from the IRS.
Wealth Advice, Retirement & Estate Planning
Confidence in comfortable retirement at all-time low
Saving for retirement continues to take a back seat as many Americans still struggling through the economic crisis jockey to make ends meet and hold on to their jobs. A fourth of respondents in a new study are "not comfortable at all" that they will have enough to retire comfortably.
Roth or traditional IRA: Which is best for you?
Both Roth and traditional IRAs have pros and cons. Which is best for you? A lot depends on your income level now, as well as what it will be after you retire. Perhaps a mix of the two would be best for you. The decision takes thought and planning.
Divorce: Financial survival skills
If you are contemplating divorce, decisions you make now can financially impact your life – as well as the lives of your family members – for some time into the future. That's why it is so important to obtain the advice of financial professionals before proceeding.
Washington Tax Update
If you have a family-owned business, consider employing your children. You may teach them responsibility and gain some tax savings along the way. Regardless of the form of business organization, you may be able to convert some of your high-taxed income into tax-free or low-taxed income by employing your children.
In a recent letter, the IRS Office of Chief Counsel reviewed a limited liability company document and opined on the appropriate signatures required to appoint someone to act as a power of attorney for the company. The limited liability company (LLC) described in the letter is taxed as a partnership for federal tax purposes. Although partners generally have the authority to bind partnerships, the question of who has the authority to bind an LLC is more complex.
Many people change their residences to take advantage of lower tax rates. In fact, many states entice retirees with lower income tax or inheritance tax. Others lure businesses with tax exemptions and holidays. In a recent case, the Court of Appeals for the Third Circuit had to decide whether a married couple and their adult children were residents of the United States or the U.S. Virgin Islands.
The IRS has reaffirmed in a recently released Information Letter that no prohibition exists against a charitable organization using an Internet fundraising platform to raise funds. Website or email solicitations should comply with the same rules that apply to other solicitations.
When does a tax evader gain a judge's sympathy? Perhaps when the evader is a 79-year-old widow.
The technical information here is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the information contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS.
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