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As an employer, one of your more important jobs is to properly determine if the individuals who work for you are employees or independent contractors. You probably know that employees bring with them a host of obligations for you as an employer. Payroll taxes and...
Last week, we looked at the factors the Tax Court uses to determine if compensation paid to employee/owners of a company qualify as “reasonable.” In a case involving a concrete contractor, the court found that the five-factor test supported the company’s assertion...
When a company pays employees, it is presumed to some degree, that it pays them only enough to prevent them from leaving and going to work elsewhere. This equation changes when the company is controlled by the individual being paid. The IRS often suspects owners are...
There’s now little doubt that federal income taxes will change in one way or another under the new administration. But what about state taxes? One possible proposal to watch out for in Ohio is a move to a flat income tax. Ohio State Senator Bill Coley says he plans to...
During the Regan administration, certain incidents raised questions that had overtones of the Watergate Scandal, involving “what did the President know and when did he know it?” Certain members of the administration noted that the president was not informed of some...
In a ruling that could have far-reaching consequences for businesses selling products in Ohio, the state’s supreme court decided that Ohio could tax out-of-state businesses that have no contacts with the state beyond selling $500,000 in goods here. The commercial...
It is no secret that the Internal Revenue Service (IRS) is a large and complex organization. Even so, it is not as intricate as the tax laws they monitor and enforce. If you have ever had to actively engage in legal action regarding tax laws, you have probably quickly...
Captive insurance is a device used by some small businesses in Ohio to provide a form of self-insurance. The “captive” insurance company is a captive of the entity it insures. For instance, a factory or manufacturing plant may create a captive insurer to protect it...
The Small Business Administration (SBA) has weighed in on the side of small businesses in an effort to seek additional clarification from the Internal Revenue Service regarding the ending of the valuation discount under section 2704 of the Internal Revenue Code. The...
The IRS has seen its share of problems in the last few years. It has had its budget cut, which has compromised its ability to audit and pursue delinquent tax filings. It has been tied up in the “targeting” scandal, accused of going after 501(c)(3) organizations based...