Could the Tech Industry's Delectable Food Policies Take a Tax Hit?
If you've seen the movie, The Internship, you know that some tech companies offer employees free food. Recently, there's been speculation that the tax benefit of providing such perks could be in jeopardy. This was after the IRS stated it would update guidance related to employer-supplied meals. Without free snacks and meals, the landscape of the tech industry could change. Here are the tax rules and the IRS statement.
Answers to Your Questions about Corporate Tax Inversions
Corporate tax inversions are not new, but they're gaining popularity among some well-known brands. They have recently appeared in the headlines after Burger King announced its intention to buy Tim Hortons, a Canadian chain of more than 3,600 restaurants that sells coffee, donuts and other items. Here are the answers to some frequently asked questions about corporate inversions.
Toeing the Fine Line Between Employees and Independent Contractors
For California labor law purposes, approximately 2,300 delivery drivers in one case should have been classified as employees, not independent contractors, according to the Ninth Circuit Court of Appeals. The ruling has important implications for employers, especially at companies that use contractors in multiple states. This article reviews the factors to consider when classifying workers -- and why it matters.
Protect Yourself Against the Latest Phone Scams
Phone scams aren't new. But the perpetrators are getting more sophisticated. Callers may claim to represent the IRS, a bank or a credit card company in order to steal money or personal information. The most heartless thieves even troll social media sites to prey on unsuspecting grandparents. Here are some recent scams and ways to protect yourself from becoming the next victim.
New IRS Guidance on Changing Accounting Method for Retail Inventory
Many stores use the retail inventory method to approximate ending inventory without taking physical inventory counts. The IRS recently issued final regulations on certain changes within this method and then followed up with procedures for obtaining automatic IRS approval to comply with the changes. This article provides an overview of the retail inventory method and explains the latest IRS guidance.
How Much Does it Cost to Raise a Child? Plenty
Back in 1960, parents could expect to spend just over $25,000 to raise a child from birth through age 17. Those were the good old days! See how the cost of raising a child has increased, according to an annual report released by the U.S. Department of Agriculture. (Hint: Inflation isn't the only reason for child-rearing costs going up.)
New FCC Text-to-911 Rules: Obstacles and Reminders
Emergency texting can enhance public safety in certain situations, such as home intrusions and for people with disabilities. The Federal Communications Commission passed new rules, requiring mobile providers and some messaging services to allow emergency texts. But full text-to-911 capability won't be available everywhere for several more years due to implementation obstacles. Read this article to find out if 911 texting is available where you live and work.
Can You Squeeze in a Home Office Deduction?
Working from home has benefits. Not only can you skip the commute, you might be eligible to deduct home office expenses on your tax return. Normally, you must use part of your home "regularly and exclusively" for business to qualify. But what if you live in a studio apartment? The U.S. Tax Court recently addressed that issue. This article explains the case, as well as the rules to qualify for home office deductions.
Retirement Planning: Foresee to Provide for the Future
Remember the Aesop's Fable about the ants and the grasshopper? While the ants actively stockpile food, the grasshopper parties the summer away and starves in winter. In terms of retirement savings, are you an ant or a grasshopper? A recent Federal Reserve survey found that many Americans aren't saving for retirement. Here are some planning tips, as well as some surprising statistics on U.S. household finances.
IRS ‘Taxpayer Bill of Rights’ Is Now in Six Languages
The IRS just announced that its "Taxpayer Bill of Rights" has now been translated into five languages in addition to English. The document was adopted by the tax agency in June. It was compiled to help taxpayers understand their rights and to compile them in one place. Previously, taxpayers' rights were scattered throughout the Internal Revenue Code. This article shows the 10 provisions of the Bill of Rights.
Who Will Have Access to Your 'Digital Assets' When You Die?
Without proper estate planning, your "digital assets" may cause problems for your loved ones, executors and other fiduciaries when you die. Unfortunately, many people's plans -- and most state laws -- haven't kept up with the times. In July, the Uniform Law Commission passed a model digital asset law that might help bring continuity to this complicated issue involving access to e-mail accounts, social media profiles, online photos archives and more.
DOs and DON’Ts for Deducting Meals, Entertainment and Travel
Meals, entertainment, auto and travel expenses are IRS hot buttons. You're allowed to deduct "ordinary and necessary" expenses incurred in operating a business, but you must keep detailed records to substantiate those expenses. If not, they might be disallowed, as illustrated by one recent Tax Court decision. Here are some best practices for substantiating these items on your business or personal tax return.