| Below-Market Interest Loans |
|
| The Internal Revenue Service looks very suspiciously at loans that carry little or no interest. These loans, called below-market interest loans, can either be demand loans with interest payable at less than the statutorily prescribed applicable federal rate, or term loans where the amount of the loan exceeds the present value of all payments due under the loans. More... |
|
|
| Section 527 Political Groups |
|
| A political organization subject to Section 527 of the Internal Revenue Code (usually called a 527 organization) is a party, committee, association, fund, or any other type of organization run primarily to directly or indirectly accept contributions and/or make expenditures for an exempt function. The exempt function of a political organization is influencing or attempting to influence the nomination, election, or any other type of selection of an individual to any public office or to an office in a political organization. More... |
|
|
| Auditor's Examination of a Business |
|
| When you are audited, the IRS examiner looks at more than your tax return. He or she compares you, the taxpayer, with the amounts reported on your tax return. If the audit is conducted in your office or home, the examiner will look all around at the surroundings to get a feel for whether the tax return reflects your life style. The auditor is looking for the "economic reality" of your situation. More... |
|
|
| Deductions for Daycare Providers |
|
| Normally, a taxpayer seeking to take deductions for the business use of his or her home must meet the following qualifications: the business use of part of the home must be exclusive, regular, and for a trade or business AND the business part of the home must be either the principal place of business, the place where the taxpayer meets with clients, patients, or customers, or a separate structure not attached to the home. More... |
|
|
| Enrolled Agents |
|
| Most people know that both certified public accountants and attorneys prepare taxes and are entitled to represent them in front of the Internal Revenue Service. But fewer taxpayers are familiar with the role of the enrolled agent in income tax preparation. More... |
|
|