What Business Owners Could Learn from Pediatric Impressions Home Health Care Case
In Pediatric Impressions Home Health, Inc. v. Commissioner (T.C. Memo. 2022-35), the Tax Court held, on April 12, 2022, that a corporation engaged in the business of providing at-home private duty nursing services to children with special needs misclassified...
Is Your Income Subject to Self-Employment Taxes?
If you own an unincorporated business, you likely pay at least three different federal taxes. In addition to federal income taxes, you must pay Social Security and Medicare taxes, also called the self-employment tax. Self-employment taxes are not insubstantial....
Do You Know When Partners and LLCs Members Do Not Pay Self-Employment Tax?
Does a member of a limited liability company (LLC) or a partner in a partnership have to pay self-employment taxes (Social Security and Medicare tax) on the member’s or partner’s share of the entity’s income? The answer is not always clear. If you are a general...
A Massive New FinCEN Filing Requirement is Coming
Do you own a corporation, limited liability company (LLC), limited partnership, limited liability partnership, limited liability limited partnership, or business trust? Or are you planning to form one of these entities? If so, be alert! There is a new federal filing...
Avoid the Common Mistakes New Business Owners Make
There is much to learn for the new business owner from Gregg M. Kellett’s court experience (Gregg M. Kellett, T.C. Memo. 2022-62). In 2013, while working for the Bloomberg Industry Group, Kellett purchased the vizala.com domain name and formed Vizala, LLC of which he...
The IRS Wants to Know about your Crypto
Cryptocurrency such as bitcoin is all the rage these days. Crypto is not legal money. It is property, similar to gold. Like gold, its use can result in taxable income. The IRS is concerned that you and millions of Americans are using crypto without paying tax on the...
An Installment Agreement Could be a Taxpayer Best Option
The Internal Revenue Service send notices to taxpayers in many situations after filing a tax return or when they did not file. Unfortunately, many taxpayers ignore the notices resulting in some severe consequences. Taxpayers must answer to correspondence from the...
Rental Property Owners Could Avoid the Net Investment Income Tax
The net investment income tax (NIIT) is a 3.8 percent tax that taxpayers pay in addition to what they pay according to the tax table rates when they own rental property. You pay the NIIT only if your modified adjusted gross income (MAGI) exceeds $200,000 if...
Do Not Delay! Contact a Tax Professional. Part 2
The Internal Revenue Service send notices to taxpayers in many situations after they filed a tax return or when they did not file. Unfortunately, many taxpayers ignore the notices to their detriment. Taxpayers must answer to correspondence from the Internal Revenue...