Calendar-Year Corporate returns and Partnership returns (Federal Forms 1120, 1120S, and 1065) are due September 15^th! This deadline is the absolute and final deadline to file returns for both corporations and partnerships, as no additional extensions are available. Late returns will be subject to the following penalties:

C-Corp (Form 1120) - Minimum penalty for late filing if a return is more than 60 days late is lesser of $135 or 100% of the…

Beginning in 2002, the IRS required that innocent spouse requests be filed within two years after the IRS first takes collection action against the requesting spouse. This time limit was designed to encourage prompt resolution while evidence remained available.

In late July 2011, the IRS announced that it will eliminate the 2 year time limit to help to more innocent spouses. Specifically,

1. The IRS will no longer apply the two-year limit to…

Employers are ultimately responsible for the payment of income tax withheld, and both the employer and employee portions of Social Security and Medicare taxes, even if they outsource their payroll responsibilities to a third party. Outsourcing payroll to a third party can help ensure that filing deadlines and deposit requirements are met and greatly streamline business operations. However, it's the employer's ultimate responsibility to pay these taxes, even if the failure to…

One of the advantages of operating your own business is hiring family members. However, the employment tax requirements for family employees may vary from those that apply to other employees.

How spouses earn Social Security benefits:

A spouse is considered an employee if there is an employer/employee type of relationship, i.e., the first spouse substantially controls the business in terms of management…

President Obama signed into law on April 14th a bill to repeal expanded Form 1099 information reporting requirements for certain business payments and rental property expense payments. It repeals the following:

1. The requirement to report payments to companies for merchandise purchased in the aggregate of $600 or more (originally effective for 2012),

2. The requirement for rental…

As a small business owner, you have the opportunity to deduct certain expenses from your taxes. Don’t let yourself get carried away though; there are some expenses that are not deductible, regardless of the situation. Just as a reminder, below are some common expenses that CANNOT be deducted as a business expense.

1. Clothing—Unless it is protective gear, or a uniform not to be worn during non-working hours, clothing cannot be…