It's a good idea to perform certain tasks with your financial records at the end of the year. Some of the tasks are just good financial housekeeping; others are required by the government.
Fortunately, you can spread the tasks over the period from December to February.
You may have discovered a lawsuit award or settlement while performing a bank deposit analysis, in your Accurint report, through the 1099 MISC, as a related return pick up from the examination of an attorney or in the interview. Based on the facts and circumstances as well as how the award/settlement was reflected on the return, you may have an issue.
The August 1996 change in IRC § 104(a)(2) clarified that the underlying claim had to be due to a personal physical injury or sickness to be exempt from income taxation, that punitive damages are never tax exempt even if from a physical injury, and that emotional distress is not tax exempt unless the underlying claim was due to personal physical injury with the exception of medical expenses paid to treat said emotional distress and not previously deducted.
Payroll and Self-Employment Tax Considerations
Questions may arise concerning pursuit of employment taxes on cases involving employment-related issues, and self-employment taxes on cases involving payments to self-employed persons related to their trade or business.
The employment taxes that may apply include the taxes imposed under the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and the Collection of Income Tax at Source on Wages (income tax withholding). If the taxpayer is a railroad employer, the Railroad Retirement Tax Act (RRTA) may apply. FICA taxes, FUTA taxes, and income tax withholding are imposed on “wages” as defined in the Internal Revenue Code.
Taxability of Lawsuit Payments
General rule relative to taxability of amounts received from lawsuit settlements is IRC §61 that states that all income is taxable from whatever source derived, unless exempted by another section of the Code.
Terminology/Definitions:Types of Claims:Tort:
Lawsuits, Awards, and Settlements Audit, a week-long "Guide" on should a tax document be received for receiving an award/settlement
This guide focuses on the treatment of lawsuit, settlements and awards proceeds received after August 21, 1996, the date of enactment of the Small Business Job Protection Act of 1996 (SBJPA) which revised IRC § 104(a)(2). Additional research may be warranted for issues involving proceeds received prior to August 21, 1996 or received under a written binding agreement, court decree, or mediation award in effect on (or issued on or before) September 13, 1995.
Because a business entity cannot suffer a personal injury within the meaning of IRC § 104(a)(2), P & X Markets, Inc. v. Commissioner, 106 T.C. 441 (1996), aff’d in unpublished order, P & X Markets, Inc. v. Commissioner, 139 F. 3d 907 (9th Cir. 1988), this guide applies to recoveries by individuals only.
One of the largest myths that a credit restoration firm has to contend with is the myth of credit inquiries shopping windows. First of all, a shopping window for inquiries allows one to shop for a certain product over a certain timeframe in the same industry with the ending result equating to one inquiry. This allows a smart consumer to look around for the best deal and not to have to contend with dozens of new inquiries.
Of course whenever there is anything that is smart on the consumer’s end the "powers to be" seem to have a different agenda. So here starts the rumor mill; how many days, weeks, or months do these "so called" shopping windows last? See, this is where the trick comes in the play. Whatever timeframe you just answered is wrong. The real question is which scoring calculation or algorithm even allows shopping windows to begin with?
Nearly all commonly used scoring models have zero allowances for shopping windows at all. In fact the shopping window rumor really took off when the FICO’s Nexgen scoring model was created in 1997, which allowed someone 45 days to shop within the same industry. Problem is nobody has heard of Nexgen because the algorithm was never adopted by the lenders, and still isn’t used today. The only shopping window scoring model that has any relevance today is the Classic 04 model, which gives you 14 days and is only one of the three algorithms used when pulling a full tri-merge credit report.
Long story short, when you’re applying for credit, your scores are going down.
The NestEggg Group, Inc. in conjunction with EgggsAct Tax, Inc. and NestEggg Investment Advisors, LLC is now setting up appointments ( "All" appointments should be scheduled for no later than the 15th of November, 2016) to begin the process for your end of the year tax planning for the following deadlines:
Limited Liability Companies
Starting the middle of next week, we will be releasing an update that covers a number of new additions to your software. Please be aware that none of these updates will fundamentally alter the way your current functionality operates. The enhancements are as follows:
Undo Harvest: In addition to the existing functionality, allowing you to simply undo the harvest notification when accidentally selected, you will now be able to undo an actual harvest in the system. Please note that if you have already entered a dry weight for the harvest you will need to perform an Undo Cure prior to backing out of the initial wet weight.
Undo Cure: You will now be able to undo the entry of a dry weight during the harvest/cure process. Please note that the initial entry of a wet weight will remain unless the function of an Undo Harvest is also completed after the cure reversion. This can be performed as long as the derivative material in your inventory has not been altered.
Millions of taxpayers ask for an extra six months to file their taxes every year. If you are one of them, then you should know that Monday, Oct. 17 is the extension deadline in 2016. This is so because Oct. 15 falls on a Saturday. If you have not yet filed, here are some things to keep in mind about the extension deadline and your taxes:
• Try IRS Free File or e-file. You can still e-file your tax return for free through IRS Free File. The program is available only on IRS.gov through Oct. 17. IRS e-file is easy, safe and the most accurate way to file your taxes.
• Use Direct Deposit. If you are due a refund, the fastest way to get it is to combine direct deposit and e-file. Direct deposit has a proven track record; eight out of 10 taxpayers who get a refund choose it.
• Use IRS Online Payment Options. If you owe taxes, the best way to pay them is with IRS Direct Pay. It’s the simple, quick and free way to pay from your checking or savings account. You also have other online payment options. Check them out by clicking on the “Payments” tab on the IRS.gov home page.
• Refunds. As you prepare to file your 2015 return, keep in mind next year’s taxes. IRS is urging taxpayers to check their tax withholding as the year winds down. New factors may delay tax refunds in 2017. For more on what you can do now, see our Aug. 31 news release.
• Don’t Overlook Tax Benefits. Be sure to claim all the tax breaks you are entitled to. These may include the Earned Income Tax Credit and the Saver’s Credit. The American Opportunity Tax Credit can help offset college costs.
What's the difference between a "hard pull" and a "soft pull"
Having your credit pulled can be quite detrimental to your FICO score. However, what also comes into play are "Hard" Inquiries and "Soft" Inquiries.
Hard inquiries occur only when "you are applying for more debt." Soft Inquires, on the other hand, are all other inquiries. Can you guess where the largest quantity of soft inquiries comes from? Surprisingly, they come from your current creditors performing routine checkups. You may not know this because it’s in the minute writing you didn’t read when signing your contract with them. Your creditors frequently pull your credit for continued risk assessment; this way, they know if they should offer you a credit limit increase, slap you with a credit limit decrease, or if things look really grim, just end your shopping spree altogether with a closed account. Another popular soft inquiry that will appear is when you check your credit report online. A soft inquiry will not cause a point deduction on your credit report.
A hard inquiry on the other hand is going to occur when you apply for anything from a gas card to a mortgage loan. Additionally, if you apply to have your limit increased on your credit card, that would be "hard" versus your creditor doing it on their own accord.
When qualifying for a mortgage, every point counts, especially the 2-5 point deductions that the average hard inquiry creates. In most situations, these inquiries are right in our wheelhouse, as they are rarely performed according to the letter of the law.
What's in your businesses name? A lot is to consider, especially when it comes to your success. The right name can make your company the talk of the town. The wrong can have a chain reaction to failure. In an ideal world, your name should convey the know-how, value and individuality of the products and/or services you offer.
The marijuana industry is no different, in fact , names can play more on historical jargon from the ages and deepening on your customer and their region will help make your struggle to shake the “stoner” stereotype of its regulars, and the businesses that encompass the industry are leading the charge against it.