In a common partnership, you will find a) general partners - running the business and responsible for the debts and b) limited partners - similar to investors where the money at risk is the amount contributed and not being involved in the day to day. The general partners will be subject to the self-employment tax
To close the year 2024, we bring to your attention a case on the news (NYTimes) a mind blowing case where a tax preparer through a network of franchises ATAX stole more than $145 million from the IRS. Back in April 2024, the IRS make the case public and issued a press release (see link
Since the pandemic, there is a higher mobility on the working force and even companies switching headquarters to more tax friendly environments. As a member of the Philadelphia Tax Reform Commission, we considered extremely relevant the comparison of State and Local taxes in different territories. Taxes is one of the factors for business and individual
On December 26, 2024, a panel of judges reversed the previous lift of the nationwide block (which was released three days earlier). As a result, at the post, there is a preliminary injunction in place so no BOI reporting is legally required. Keep in mind that this is still in the preliminary injunction phase, so
On December 23rd, the US Court of Appeals - Fifth circuit reinstated the BOI (Beneficial Ownership information) filing requirement. The reinstatement made a few changes to the reporting deadlines which in many cases is now January 13th 2025 (instead of January 1st, 2025). As a result, you are now required again to file the BOI
You need to be extremely careful on how you get in business with. You might end up being liable for ghost income, funds stolen from your partners and many other issues. In the Maggard v. Commissioner, (TC Memo 2024-77), James Maggard co-founded an engineering consulting partnership, the initial co-partner left buying him out, and then,
Purchasing equipment before year-end can provide significant tax benefits due to depreciation rules. Depreciation allows businesses to deduct the cost of equipment over its useful life, but special provisions may allow for accelerated deductions. The main points to consider are: Eligibility for Deduction: To qualify, the equipment must be purchased and placed in service (ready
We have numerous blog posts on the difference between a) employees and b) independent contractors based on the IRS, Department of Labor (DoL) and State authorities at the time the post was released. However, in January 2024, the DoL released new rules (or go back to the previous rules pre-Trump) on "... how to analyze
At this point, our readers should be aware that there are certain industries that are more subject to examinations like restaurants and retail industries, especially if cash intensive and low controls in place. You can see numerous tax evasion schemes related to restaurants in the news, United States Attorney's Office of each State and the
In the IRS IR-2024-262, the IRS estimated that there is a tax gap of around $696 billion for 2022. Even if the IRS mentioned in their communication that 85% of taxpayers are compliant, the 15% remaining is broken down in the following three areas (extracted directly from IRS communications): "... Non-filing, which means tax not
