Get it in writing

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A taxpayer who pays alimony to an ex-spouse per a written divorce or separation agreement can generally deduct the agreed-upon alimony on his or her tax return. In one case, a taxpayer made an oral agreement to pay his ex-wife substantially more than he was required to pay per the written agreement, out of his desire “to do the right thing.” However, when he deducted the higher amount on his tax return, the IRS denied the portion that exceeded the written agreement, stating that an oral modification didn’t qualify as alimony.

Ensuring a Smooth Family Business Transition

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You spend years building a family business, but when it’s time to turn it over to the next generation, there can be squabbles over company value and succession that cause turmoil, while gift and estate taxes eat away at company coffers. As the baby boomers head into retirement, they are expected to hand over control of businesses worth trillions of dollars in the aggregate. A significant number of those companies are not prepared for a smooth transition into new ownership or the second generation of leadership, are you?  We can help ensure that the transfer goes smoothly and create a plan that helps minimize related taxes and enhance your retirement nest egg. Every day, our experts offer customized advice to companies like yours. Contact our office today for more information and insights on all your family business concerns.

What Do the Tangible Property Rules Mean to You?

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Businesses often wrestle with understanding what items should be deducted versus what should be expensed. That task got a little more complicated this year when the Internal Revenue Service finalized new tangible property rules. They affect every business that has tangible property (buildings, machinery, equipment, furniture, vehicles, etc…) so they’re pretty far reaching. And they add a new layer of complexity to your tax planning.

 

We can help you address the new requirements, which may include determining whether you need to complete additional paperwork to request a change in accounting method. Be sure to contact us to learn about handling this and any other tax law changes that may affect your business.

IRS Reaching Out Sooner on Payroll Tax Concerns

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If your business falls behind in paying its payroll taxes, you may be contacted sooner rather than later by an Internal Revenue Service revenue officer. This may even be the case if you are using a third-party payroll service or if the deposits you are making have just decreased over time. The contacts, which may include visits to your business, are part of the IRS Federal Tax Deposit Alert process, which aims to spot payroll tax problems before they become insurmountable—and incur significant interest and penalties.

If you do receive an IRS contact, be sure to get in touch with our office. We can help you understand what prompted the contact, explain your possible responses and work with you in your communications with the IRS. No matter what tax issues you’re facing, be sure to turn to us for the advice you need.