As part of the “Fresh start” initiative by the IRS to encourage more corporate and individual tax compliance, a new voluntary program has been announced to encourage employers to properly classify employees as such, rather than as independent contractors. Under the program, employers can obtain substantial relief from federal payroll taxes they would have owed in the past, if they prospectively classify their hires as employees. To be eligible, an applicant must: [Read more…] about IRS INTRODUCES COMPLIANCE PROGRAM FOR EMPLOYEE CLASSIFICATION
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Hurricane Irene Damages are Tax Deductable
Are you among the thousands with property damage caused by Hurricane Irene? Casualty losses relating to your home, household items and vehicles may be deducted on your Federal income tax return, less the amount reimbursed by insurance. If the property was not completely destroyed, the amount deductable is the lesser of: [Read more…] about Hurricane Irene Damages are Tax Deductable
Attorneys Beware:IRS Targeting You!
The IRS recently signaled an increase in scrutiny of attorneys, releasing a comprehensive Attorneys Audit Technique Guide (ATG) for IRS auditors when reviewing attorneys’ returns. The guide pinpoints potential problem areas, as well as procedures, that IRS agents must focus upon when auditing attorney returns. Key areas include: [Read more…] about Attorneys Beware:IRS Targeting You!
Reduce your NJ Unemployment Rates!
All New Jersey employers received this week a Notice of Employer Contribution Rates. It clearly states, “This is not a bill”, but rather a summary of the manner in which the NJ Department of Labor calculates your employer contribution rate for unemployment and disability. Furthermore, this form enables you to determine whether a voluntary contribution would save you, or your clients, money in the subsequent year. A voluntary contribution increases the reserve balance and may reduce your contribution rate. [Read more…] about Reduce your NJ Unemployment Rates!
NJ Office of Taxpayer Advocate Taking Sales & Use Tax Cases
Beginning, Aug. 1, 2011, the Office of the Taxpayer Advocate (OTA) will start considering cases involving sales and use tax. Previously, the OTA had only considered cases that involved gross income tax. To be deemed eligible for OTA assistance, the following conditions must be met:
- You face a threat of immediate adverse action for a disputed liability, or believe that you did not receive adequate notification of the Division’s actions or that the Division’s actions are unwarranted, unfair, or illegal.
- You have experienced a delay of more than 120 days to resolve a tax account problem or in receiving a response to an inquiry to the Division.
- You are experiencing undue hardship or are about to experience undue hardship, which is defined as undue economic harm resulting from the way in which the tax laws, regulations or policies are being administered by the Division of Taxation. Personal or economic inconvenience is not considered undue hardship. [Read more…] about NJ Office of Taxpayer Advocate Taking Sales & Use Tax Cases
Tax Fraud in NJ Divorce Case Reported to IRS
What began as a motion in a divorce case by defendant Chinelo Onyiuke to relocate her children to Maryland resulted in the discovery of fictitious child care expenses deducted on her ex-husband’s personal tax returns. David and Chinelo were divorced in May 2007 with two children. In June 2009, Chinelo filed a motion to relocate with her children to Maryland for both financial and personal reasons. [Read more…] about Tax Fraud in NJ Divorce Case Reported to IRS