| Identity Theft Scheme Involving E-mails |
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| You get an email from the Internal Revenue Service informing you that you are under investigation for tax fraud and are subject to criminal prosecution. Once you have started breathing again, you read further and get to the good news. According to the e-mail, there is an IRS website that can help your investigation if you provide certain personal and financial information. You go the website, which is certainly official looking, and think about entering the requested data, including your social security and drivers license numbers, and bank and credit card information. But then you see a grammatical error in the website text, and a bell goes off in your head. Fortunately, you contact your local IRS office before doing anything else.More... |
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| Excess Passive Income in an S Corporation |
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| Generally, an S corporation pays no federal income taxes. Any income or loss is usually passed through to shareholders in proportion to the ownership interests on a per-share, per-day basis, and the shareholders report their portion of the entity's income or loss on their individual tax returns. However, additional taxes may be assessed against S corporations with excess passive income. 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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| What to Do If You Have Not Received a Form W-2 |
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| You are familiar enough with the tax laws to know that you should receive a "Wage and Tax Statement" (also known as a Form W-2), from every one of the employers that you worked for during the year. You need it to prepare your federal, state, and local income tax returns because it contains a summary of your taxable and non-taxable wages along with all the taxes, both income and social security, that have been withheld. More... |
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| Partnership Income or Loss |
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| Even though a partnership is not a taxable entity for federal income tax purposes, it is treated as a separate entity from its partners for the purpose of computing and characterizing partnership income. The partnership has an obligation to file an information-only tax return, which gives a complete tax accounting of partnership operations for the tax year.More... |
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