Update on S-Corporation Failure to File Penalty

I had previously discussed this issue in my 1/22/09 post entitled “S-Corporation Failure to File Penalty”, but there have been so many comments and updates since January that I felt I should post a formal update.  It is an important issue now that the the first few rounds of IRS abatement request responses have been [...]

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Office In Home and Mileage Deductions

There is often a lot of confusion surrounding an office in home and the mileage deduction and the difference between commuting and business miles.  I have heard many accountants over the years selling the deductions like in an infomercial, claiming that by simply setting up an office in the home used exclusively for the business [...]

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Travel Expenses and Business Planning Trips

It is the that time of year again, when most people are on vacation – or at least they wish they were.  With the current heat wave in Portland, many would probably go for an Alaskan cruise right about now.  Whether it is colder weather you are looking for or a tropical paradise, if you [...]

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Oregon Business Tax Increase Update

As many of you may already know, there was a bit of drama last Wednesday in the Oregon Senate when House Bill 3405, which increases taxes on corporations and businesses in Oregon, was derailed by just one vote.  However, Thursday the vote changed and bill passed the Senate,  and now it is on its way [...]

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Loans from S-Corporation Shareholders

If you were to loan me $20k today, would you insist on loan documents, regular payments, and interest?  Of course you would!  Such requirements and documentation would seem to be common sense, so why do many shareholders fail treat the loans to their S-Corporations the same way?
An S-Corporation is a separate legal entity, and any [...]

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LLC vs. S-Corporation, Round 1

When setting up a business and deciding on entity type, most people are looking for 1) liability protection and 2) tax savings – specifically lowering self-employment tax liability.  For small businesses, the two best options are the LLC or the S-Corporation, and many tax or legal professionals seem to advocate for one team or the [...]

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Tax Return Adjusting Entries

When you get your corporate, LLC, partnership, or other business tax return from your CPA or tax preparer, do they give you adjusting entries to import or manually input into your accounting system?  Do they review your QuickBooks file and advise you on how to record the transactions in a more effective manner?
Adjusting journal entries [...]

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City of Portland Tax Extension Reminder

We are at the 11th hour for filing tax returns today – hopefully you have filed already or have sent in an extension.
Just a quick, last-minute reminder for those of you who have not yet filed the 2008 return for your corporation, LLC, partnership, or sole proprietorship business and do business in the City of [...]

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Self Rental Recharacterization

We have had passive activity rules for over 20 years and passive income recharacterization rules for close to 15 years, and it is surprising that there is still a lot of confusion and bad advice out there.  In paticular, self-rental income and recharacterization are a prime example – especially for business owners who lease real [...]

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S-Corporation Failure to File Penalty

Back in December of 2007, the 110th Congress passed HR4351 or the “AMT Relief Act of 2007″, which was the aftermath of the showdown regarding alternative minimum tax that I posted about at the time.  The bill had a lot of small print regarding new revenue raisers – one in particular: Sec 223 regarding failure [...]

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