We are proud to sponsor the good works of CalNonprofits at its 2016 Convention on Thursday, October 6th in Los Angeles, CA. This annual meeting sets the focus for California non-profits for the coming year. Among this year’s full agenda are discussions regarding predictions for the November elections’ impact on non-profits, funding and the privacy of donors.
• From a traditional IRA or Roth IRA
• Transferred directly from the IRA Trustee to the charitable organization
• Made on or after the IRA owner has reached age 70 ½
• Contributed to a qualified charitable organization, as defined by IRC Section 170(b)(1)(a)
There are several tax benefits of QCDs, the most notable of which is that the distribution is not included in your Adjusted Gross Income (AGI). This can provide a significant benefit over taking a distribution personally and then making a charitable contribution personally, which results in higher AGI and then (in […]
Since compensation is subject to employment taxes (i.e., primarily Social Security and Medicare taxes) and distributions to shareholders are not, many S corporation owners reduce their compensation and increase their shareholder distributions in an attempt to avoid the employment taxes. In some cases this is justifiable, and in some it is not. The IRS is well aware of this issue; in fact, one of the IRS’s hottest audit triggers for S corporations is insufficient compensation paid to employee-shareholders.
The Journal of Accountancy recently published an article that provides nine steps to help S corporations reduce the likelihood of an IRS examination for unreasonable owner compensation. Read the article here.
Effective as of the 2nd calendar quarter beginning April 1, 2016, the Internal Revenue Service has increased the interest rates by 1% for all non-corporate and corporate taxpayers.
For taxpayers other than corporations (individuals, trusts, etc.), the overpayment and underpayment rates have increased from 3% to 4%.
The corporate underpayment penalty has increased from 2% to 3% and the interest rate on corporate overpayments exceeding $10,000 has increased from 0.5% to 1.5%. The underpayment penalty for large corporations has also increased, from 5% to 6%.
These rate increases are due to the increase in federal short-term rates that took effect February 1, 2016.
California rates will remain unchanged throughout the 2nd quarter (June 30, 2016).
More details regarding the rate increase can be found on the IRS […]
San Francisco Partner Diana Sosa lent her expertise last week to a workshop hosted by United Policyholders for victims of last year’s Butte Fire whose homes were damaged or destroyed. Diana addressed concerns regarding this year’s income tax filing based on issues around insurance and whether or not fire survivors plan to rebuild on their property. Thank you for your dedication to the community, Diana!
See here for article by local publication Calaveras Enterprise covering the event.