11/27/2020: Understanding Joe Biden’s Machiavellian Tax Plan (Part 2 of 10) Is Joe Biden an enfeebled old codger [or] a wily prevaricating politician possessing the ferocity of a lion and the guile of a fox. By allowing President Trump’s [Tax Cuts and Jobs Act of 2017] to phase out incrementally, Biden et al., can raise taxes on the middle class, without the opprobrium of having raised taxes on the middle class.
11/26/2020: Understanding Joe Biden’s Machiavellian Tax Plan (Part 1 of 10). The Federal Capital Gains Tax Rate presently maxes out at 23.8%. Conversely Joe’s duplicitous tax proposal ups the ante to a whopping 44%. *This increase intends to defund Small Tech [startups] and safeguard Big Tech’s monopoly. Apparently Ol’ Niccoló was right when he said: Never attempt to win by force what can be won by deception.
11/25/2020: Chicago’s illustrious Mayor Ms. Lori Lightfoot rang the bell and slapped privileged property owners with a $1.6 Billion Dollar property tax levy. Let’s hope her fellow traveling comrade, Mayor Bill de Blasio doesn’t follow suit.
11/20/2020: Today's Tip for People Getting Divorced: If a corporation redeems stock owned by a spouse (or former spouse) and the transferor spouse’s receipt of property in respect of such redeemed stock is not treated as a constructive distribution to the other spouse, then the form of stock redemption will (or more apropos) should be respected for federal income tax purposes.
11/16/2020: A FEDERAL TAX LIEN is a legal claim against a taxpayer’s current and future property, such as a house or car, and rights to property, such as wages and bank accounts.
11/13/2020: If Subcontractors or Independent Contractors are working for your Company – you need to make sure they won’t be classified as “employees” for payroll withholding and workers’ compensation audit purposes [or] you could be left holding the bag, e.g. back taxes, penalties, interest, benefits and overtime wages.
11/12/2020: The IRS typically has 10 years from the date of assessment to collect delinquent taxes and penalties. Warning: there are exceptions to this rule and as such, a little knowledge is a dangerous thing. The 10-year statutory limit is referred to as the collection statute expiration date.
11/10/2020: Getting an FHA Mortgage When You Owe Taxes: Federal Tax Liens may remain unpaid provided the lien holder subordinates the tax lien to the FHA-insured mortgage. If regular payments are to be made (installment agreement) said payments must be included in qualifying ratios. US Department of Housing and Urban Development (HUD) 4155.1 Chapter 4, Section A.
11/09/2020: Understanding the Experience Modification Factor (EMF) The EMF adjusts the employer's Workers' Comp premium to reflect the difference between his loss experience and the average experience that is expected for its classifications and size. If an employer has better experience than is expected for an average employer in the same industry with the similar payroll, the employer receives a premium credit.
11/06/2020: New York Tax Law §1803 [says] A person commits criminal tax fraud in the fourth degree when he or she commits a tax fraud act or acts and, with the intent to evade any tax due under this chapter, or to defraud the state or any subdivision thereof, the person pays the state and/or a political subdivision of the state (whether by means of underpayment or receipt of refund or both), in a period of not more than one year in excess of three thousand dollars less than the tax liability that is due. Criminal tax fraud in the fourth degree is a class E felony.
11/05/2020: IRC §7201 [says] Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined* not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.
Contractors are solely responsible for any and all taxes, Social Security contributions or payments, disability insurance, unemployment taxes, and other payroll type taxes applicable to such compensation.
Our program satisfies IRS, DOL and EEO requirements.
11/02/2020: Under the “innocent spouse rule” a taxpayer may not be held personally responsible for their ex-spouse’s failure to pay taxes while they were married and filing joint returns, provided you can prove you didn't know [and had no reasonable basis to know] that your ex-spouse was misrepresenting information on your joint tax return. Additional rules apply.
10/28/2020: NYSIF Auditors carefully examine your company's payroll because Workers’ Comp premiums are based (in part) on employee compensation. If glaring discrepancies go unanswered, or are answered unsatisfactorily a formal investigation will begin. FYI. Auditors regularly discover insurance fraud and tax evasion, leading to fines, prosecution and criminal convictions.
10/27/2020: Understanding Experience Modification Rates (EMR). A Workers Compensation experience modifier applies a pricing credit or debit to adjust the rates and price of a W/C policy. These experience modifiers provide the insurance carrier with an objective method of rewarding or correcting a business based on its premium and claims.
10/26/2020 Bad News for Small Business Owners: Are you willfully failing to remit State and Local taxes? Yes! Then you may already be in serious trouble [and] subject to large $ fines and a stiff prison sentence. New York Tax Law Section 1801(a)(5)
10/23/2020: The statute of limitations for IRS assessments typically expires 3 years after the due date, or the date on which the return was filed (whichever is later). That being said, there’s no statute of limitations for: (i) false or fraudulent returns (ii) willfully attempting to evade tax, and (iii) failing to file a return.
10/22/2020: From kid gloves to brass knuckles. The unofficial détente is officially over and enforcement action has begun. Both the IRS and State have resumed collections, albeit on a limited basis [and] long neglected Kafka-like cases are being hastily returned to the calendar.
10/21/2020: IRS Prepares for Enforcement Action: If taxes are not paid the law requires that enforcement action be taken, which includes bank levy, wage garnishment, property seizures and sundry other draconian instruments of displeasure.
10/20/2020: Foreign Bank Accounts filing requirements: Calendar-year FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) filings have been extended to 31 October 2020.
10/19/2020: Turning Employees into Independent Contractors isn’t as easy as it sounds. That being said Rev. Proc. 2020-1 (2 January 2020) allows companies to receive an expedited Private Letter Ruling from the IRS. Alternatively, interested applicants may circumvent this process by meeting stringent IRS requirements.
10/16/2020: New York Sales Taxes are not dischargeable in Chapter 7 bankruptcy but may be discharged under Chapter 13 (if full paid) over the life of the Chapter 13 Plan.
10/15/2020: Five States have extended the Corporate Filing Deadline to 16 November 2020. These States are: Delaware, New Jersey, Vermont, Maine and Kansas. FYI at least Eleven other States will consider granting relief on a case-by-case basis.
10/14/2020: The New York State Department of Taxation and Finance has resumed enforcement (on a limited basis). Accordingly, if you have unpaid State taxes, you need to take immediate action.
10/13/2020: Now that so many people are working from home Companies are asking if they can convert their expensive employees into “cost effective” economical independent contractors.