Let’s Look At The Balance Sheet

balance sheet

In a recent article from Entrepreneur Magazine's "Street Smarts" section, Norm Brodsky discussed a topic of much interest to me. He calls it "Balance-Sheet Blues." He discusses a friend of his who's struggling to save his company. In the article Norm says his friend's problem "can be traced to a common failing ignorance of the balance sheet." He says this ignorance can prove fatal to a business. … [Read more...]

Hidden Trap: Filing A 941-X For An Overpayment

filing-941-x

When you request a credit or refund of an overpayment using Form 941-X, the IRS first checks your EIN for outstanding taxes, penalties or refunds. Even if there are none, it may decide to examine your request. In other words, there is a real chance the credit you requested may not be available, or may be only partially available, for current period 941 liabilities. If this occurs, the IRS will … [Read more...]

YOU vs. IRS: Depreciation – Cost “Allocation” v. Reality

You vs. IRS

S took depreciation deductions for his buildings (rental properties) but not land. The basis (depreciable cost) of each building was based on allocation of value to the buildings v. the land made by his tax preparer. The IRS disputed the allocations and reduced the deductions, claiming too little value was allocated to the land. Held: For the IRS. The IRS made its own allocations between … [Read more...]

YOU vs. IRS: Who Pays If You Make A Mistake?

You vs. IRS

In terms of employment taxes, this depends on whether you are a "responsible person"." Although this case involves a company owner/president, if you are a responsible person, you could find yourself in a similar fix. The case: G was the president and treasurer  of a corporation primarily run by him, his wife, their son and a bookkeeper. G and his wife owned half the stock and the firm employed … [Read more...]