Taxation and IRS
STATUTE OF LIMITATIONS ON IRS/STATE TAX DEBT
Generally, there is a 3-year statute of limitations for the federal Internal Revenue Service to audit a tax return and a 10-year statute of limitations for the IRS collecting tax. States right, however, may be very different. The State of California, for example, has NO statute of limitations on the collection of back taxes. Under [...]
CROSS-BORDER LEASING, LILO LEASES AND ILLEGITIMATE ACCOUNTING/TAX SHELTERS
When a company earns a lot of profits, they pay a lot of taxes. The most notable way to decrease the tax burden on a company is to find losses offsetting such profits or gains. Offsetting losses to reduce a companies tax obligation may be illegal or illegal, and may accrue in the form of [...]
LEGAL DAMAGES AND TAXATION
Here are some general concepts about whether damages received in recovery of employment Discrimination or civil rights legal claim are subject to income tax. John Zodrow of Denver, a former accountant and attorney, compiled this information but it is merely a starting point for the reader. Consult the IRS, your tax professional or tax attorney [...]
COLORADO PROFESSIONAL CORPORATIONS
A “professional corporation” is generally a corporation which is in business for the purpose of providing some type of professional service. Examples might include doctors, engineers, dentists, architects, lawyers, or accountants. A professional corporation may be taxed by the Internal Revenue Service as either a traditional C-corporation, or as a S-corporation (pass-through). John Zodrow, a [...]
ALLOCATION OF NON-PROFIT INDIRECT COSTS FOR GRANT-WRITING
The following are some basic accounting principles used by the federal government and other who provide grant opportunities, such as requests for proposals, to determine appropriate allocation of indirect costs for non-profit grants and determination of indirect cost rates. John Zodrow, a former accountant and attorney, provides this material as general information. It is readily available [...]
401K RETIREMENT PLAN HARDSHIP WITHDRAWALS
A hardship withdrawal is just what it sounds like – a withdrawal from your 401(k) account to help cover the costs of a serious financial emergency. But even if your plan allows these withdrawals, and not all plans do, you should probably think of it as a last resort. Hardship withdrawals are allowed by law, [...]