Accountable Plans and the IRS

In a 2010-2012 audit initiative, the IRS found many businesses were either not familiar with the accountable plan rules, or were not following them. It seems likely, therefore, that the IRS is going to apply more scrutiny to the issue of accountable plans when auditing businesses and their owners.

An accountable plan is a business plan for expense reimbursement or advances that satisfies the following requirements:

(1) Reimbursements/advances are only made for deductible business expenses incurred in the performance of employee duties;

(2) Reimbursements/advances are substantiated through an expense report, diary, log, trip sheets, or similar record such as a detailed receipt;

(3) Excess advances are returned to the business (except for cases where an allowance doesn’t exceed per diem rates); and

(4) Substantiation and returns of […]

2012-2013 Tax & Financial Planning Guide

We are once again providing the 2012-2013 Tax & Financial Planning Guide as an online resource which will give you access to updated information throughout the year. Feel free to forward it to friends and family who you think might find it interesting or helpful. We hope this Guide will prove to be a convenient reference tool for you throughout the year. If you have any questions after reviewing the information presented, please do not hesitate to give us a call. Click here for a downloadable version.

By |June 18th, 2013|Categories: Business Tax, Individual Tax, Nonprofit Organizations|Tags: , , , , |Comments Off on 2012-2013 Tax & Financial Planning Guide

IRS Reminds Taxpayers to Report 2010 Roth Conversions on 2012 Returns

Taxpayers who converted amounts to Roth IRAs or designated Roth accounts in 2010 and chose to defer the tax (under a special rule that applied only to 2010 conversion) must report half of the resulting taxable income on their 2012 returns. See IRS reminder here.

By |June 17th, 2013|Categories: Individual Tax, Retirement Planning|Tags: , , , , |Comments Off on IRS Reminds Taxpayers to Report 2010 Roth Conversions on 2012 Returns

California New Jobs Credit update

The Franchise Tax Board (FTB) has announced that as of December 29, 2012, $138,439,924 in total New Jobs Credit was generated on personal income tax and business entity tax returns filed and processed. The credit available to be claimed by all taxpayers is capped at $400,000,000. A tax credit of $3,000 per additional full-time employee hired is allowed for qualified small businesses with 20 or fewer employees.

By |May 7th, 2013|Categories: Business Tax|Tags: , , , , |Comments Off on California New Jobs Credit update
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