If an Illinois company doing business in Washington State has its way, the Supreme Court may be forced to decide at what point retroactive taxation provisions becomes unenforceable. The case at issue involves an Illinois company, Dot Foods, and its business transactions in Washington.
A recent report by the Institute of Taxation and Economic Policy is calling a number of Fortune 500 companies to task. The report alleges that a number of these companies paid nothing in taxes in recent years.
The phrase "fundamental rights" likely evokes images of civil rights marches and women's rights protests. The term is not likely to create images of tax forms, but maybe it should.
The answer depends heavily on the classification of the award. The tax consequences vary based on whether the damages cover lost wages, pain and suffering or a physical injury.
Currently, no limits exist to the amount a U.S. taxpayer can accumulate in an individual retirement account. A recent report from the Government Accountability Office found that roughly 9,000 individuals have more than $5 million saved in IRAs. The value of a 314 accounts tops $25 million. However, the vast majority of IRAs contain less than $1 million.
Often in a marriage, one spouse handles the majority of the finances and gets the taxes done each year. The other spouse may just sign on the line. If a later audit shows that a spouse or former spouse failed to report income or overstated deductions, you could jointly owe additional tax, interest and penalties.
Technology employers have been known to offer the benefit of free meals to encourage collaboration and also longer hours. While not all employers go to the extent of free meals, most do offer coffee, tea and the occasional gift card as perks to improve performance.
This is a follow-up to a post we did last winter on correspondence audits.
Let's resume the discussion of tax penalty abatement that we began a few weeks ago.
Last week we began discussing the rather complicated topic of employment taxes.