| Relief From Retirement Plan Rollover Time Requirements |
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| Under the Internal Revenue Code, a taxpayer is entitled to withdraw assets from one qualified employer retirement plan or traditional Individual Retirement Arrangement (IRA) and place them in another qualified plan so long as the transfer occurs within 60 days of the taxpayer's receipt of the distribution. The Internal Revenue Service and various courts have stringently enforced the 60-day rule even when it was clear that the taxpayer intended to completed the rollover and acted in good faith but that the failure to complete the transfer was beyond his or her control. More... |
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| Self-Employment Taxes |
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| If you work for yourself, you are usually required to pay a self-employment tax, which is a combination of Social Security and Medicare taxes. It is very much like the Social Security and Medicare taxes withheld from the wages of most employees. More... |
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| Taxation of Strike or Lockout Benefits |
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| Generally strike or lockout benefits that a taxpayer receives from a union out of regular union dues are taxable as a form of compensation. These taxable benefits include cash and the fair market value of other property received. However, if a taxpayer has made a voluntary contribution to a strike fund, any benefits that he or she may receive from the fund are tax-free up to the amount of the contribution. The remainder of the benefits will be taxable as wages. More... |
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| Deductibility of Legal and Litigation-related Expenses for a Business |
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| If a taxpayer incurs legal expenses in connection with a business transaction or primarily to preserve an existing business, its reputation, or its goodwill, then the legal expenses are generally deductible. The Internal Revenue Service will use the same tests for deductibility as for other business deductions, which precludes a current deduction for a legal expense incurred in the acquisition of goodwill or any other capital asset. In order for legal fees to be deductible, there does not have to be litigation, and the success of the taxpayer does not affect the deductibility of legal expenses. More... |
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| Corporation Sole Tax Scams |
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| Corporation Sole statutes permit the incorporation of religious leaders in order to ensure the continuation of ownership of property held for the benefit of a legitimate religious organization. Generally, religious leaders such as bishops or parsons take advantage of corporation sole statutes. Creditors of a Corporation Sole may not look to the assets of the person holding the office nor may creditors of the officeholder look to the assets of the Corporation Sole. Not all states permit the Corporation Sole form of corporate structure. More... |
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