Could Travel Per Diems Simplify Employee Expense Reimbursements?
If your Maine small business reimburses employees for actual travel expenses, then you know the process of submitting and approving expense reports for business travel can be an administrative hassle. Fortunately, the IRS offers simplified alternatives that can save...
How to Maximize Tax Breaks for Work-Related Education Costs
Since school is back in session, we think it’s a good time for a refresher on tax breaks for work-related education expenditures. Here's what Maine taxpayers need to know. American Opportunity Credit The American Opportunity credit equals 100% of the first $2,000 of...
Chancery Bases Fair Value Calculation on Income-Based Model
Dunmire v. Farmers & Merchants Bancorp of W. Pa., 2016 Del. Ch. LEXIS 167 (Nov. 10, 2016) In a statutory appraisal action, the Delaware Court of Chancery rejected the deal price as evidence of fair value, citing a suboptimal sales process. Only an income-based...
Are You Ready for the New IRS Partnership Audit Rules?
For partnerships and limited liability companies (LLCs) that are treated as partnerships for tax purposes, legislation enacted in 2015 established a new IRS audit regime. To help partners prepare for the changes that are effective starting with the 2018 tax year,...
IRS Guidance on Leave-Sharing Programs to Help Hurricane Victims
As we’ve been discussing, the IRS recently announced special tax relief for leave-based donation programs set up by employers to assist victims of Hurricane Harvey and Tropical Storm Harvey. Basics of Employer Programs This means an employer can allow its employees to...
Help from the IRS for Hurricane Irma Victims
In response to Hurricane Irma victims in parts of Florida, U.S. Virgin Islands, and other areas, the IRS is offering extra time to complete tax-related responsibilities. Affected individuals now have until January 31, 2018, to file certain individual and business tax...
Compromised Asset Appraisals Undo Like-Kind Tax Plan
Exelon Corp. v. Commissioner, 2016 U.S. Tax Ct. LEXIS 26 (Sept. 19, 2016) A Section 1031 case that Judge Laro adjudicated cautions experts about allowing the hiring attorney to assume control over the appraisal. In ruling for the government, the judge found the...
Inadequate Records Lead to Unfavorable Results for Taxpayers
Although the Federal tax law allows deductions for many items, such as legitimate business expenses and charitable donations, you must maintain adequate records to support them. If your tax return is audited, missing or incomplete records could lead to additional...
Work Opportunity Tax Credit: What Business Owners Need to Know
A federal income tax credit called the Work Opportunity tax credit (WOTC) is available to businesses that hire members of certain "targeted" groups. Here's how your business may be able to benefit from this potentially lucrative tax break. The Basics Businesses are...
How the IRS Proves Fraud and Why It Can Be Devastating
A tax assessment by the IRS is generally presumed to be correct, but a taxpayer can overcome the presumption with proof. However, that situation is reversed when the IRS asserts fraud. In those instances, the IRS must prove, by clear and convincing evidence that fraud...