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Monthly Archives: January 2011
Tax Code Complexity
The first problem identified in the report is the complexity of the Internal Revenue Code. At 3.8 million words, the tax code is over 11,000 single spaced pages and, reading at 300 words per minute, it would take a person almost 9 complete days to read the entire thing. The Taxpayer Advocate Service estimates that taxpayers spend 6.1 billion hours a year doing their taxes, which equates to over 3 million Americans working full-time ? greater than the number of teachers, professors and librarians combined. This time spent on taxes translates to a cost of $163 billion, based on hourly wage rates. Not only does the long and complex tax code cost time and money, it also results in incorrect filings by taxpayers: many make honest mistakes because of the cryptic wording, while others are able to navigate loopholes to greatly reduce their taxes. An estimated 60% of individuals employ tax preparers to do their taxes for them, adding to the cost imposed on taxpayers. The Taxpayer Advocate recommends a vast reduction in tax expenditures ? deductions or exemptions built into the tax code ? while also lowering the overall tax rates to reduce the burden on most Americans.
Posted in Business Taxation
Federal Reserve Board: Beige Book
Reports from the twelve Federal Reserve Districts suggest that economic activity continued to expand moderately from November through December. Conditions were said to be improving in the Boston, New York, Philadelphia, and Richmond Districts. Activity increased modestly to moderately in the Cleveland, Atlanta, Chicago, St. Louis, Kansas City, and Dallas Districts. The economy of the Minneapolis District “continued its moderate recovery,” while that of the San Francisco District “firmed further” in the reporting period leading up to the close of 2010. Conditions were generally said to be better in Districts’ manufacturing, retail, and nonfinancial services sectors than in financial services or real estate.
Posted in Business Advisory
National Taxpayer Advocate’s 2010 Annual Report to Congress
Internal Revenue Code (IRC) Continue reading
Posted in Business Taxation
Tax Cuts, Unemployment Insurance and Jobs
On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which provides vital tax relief and investments in our workers that will create jobs and accelerate economic growth. How it impacts … Continue reading
Posted in Business Taxation
2011 ? The Year of Fiduciary & the Beginning of Fee Transparency
Most benefit plan administrators do not fully understand the fiduciary responsibility they are held to under ERISA.
Posted in Employee Benefit Plans
Why I chose to work with an outside advisor …
I want to have fun again running my business. I want to feel the same happiness and excitement as when I first dreamed up the idea of owning my own business. I want my family, my employees, my banker and … Continue reading
Posted in Business Advisory
What Qualifies as Deductible Business Expenses
Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit. What Can I Deduct? To be deductible, a business expense must be both ordinary … Continue reading
Posted in Business Taxation
Valuation in Business Disputes
Most Shareholder Agreements or Buy-Sell Agreements are Poorly Designed Often rely upon old Value Unclear Definition of Value Standard No Definition of Whether Discounts Apply Vague Process for Getting Values and Resolving a Final Value Lack of Clear Process Can … Continue reading
Posted in Business Valuations
Excessive Owner Compensation – C Corporation
The IRS permits a business to deduct as a business expense, a “reasonable” salary, as compensation for services performed by employees and business owners. For obvious reasons, the owner’s salary if deemed to be excessive in relationship to services performed, … Continue reading
Posted in Business Taxation
Recovery Status Map
Tracking the business cycle across U.S. states and metropolitan areas.
Continue reading
Posted in Business Advisory
