The Small Business Tax Help Blog

Archive for May, 2009

Question: Is there any credit in the ‘09 stimulus check for self employed people or just employees with less tax taken?

As I see it the 2009 stimulus is less money taken out for taxes of your paycheck each week. But, I’m self-employed with no employees. What do I get out of the deal? After all the “American Dream” of owning your own business must have some kind of credit, correct? Or, is what I get out of this deal the big shaft?

Answer: There will be a credit on the 2009 return that you will file next year ($400 if single/$800 if married).

Delano board certifies increase of 2.78% for 2010 property tax levy

The Delano School Board, Monday, Dec. 21, certified a property tax levy of $5,451,285.18 for taxes payable in 2010 - an increase of $147,380.63 (2.78 percent) over the $5,303,904.55 tax levy for taxes payable in 2009.

Investing in Small Business: The Powell Perspective: October 2, 2009

Question: If I sponsor a local junior football side how do I stand tax and accounts wise?

I have been asked if I would be interested in sponsoring a local junior football clubs kit (in England) for about £500 next season. They would have the name of my small local business on their shirts would this have any tax benefits to me? I have just started my business and need a quick idea of whether this would be classed as advertising (or what) for my business. Don’t want to get involved in anything too complicated but has anyone any idea of how I stand (tax wise etc) if I do this. You are my first port of call before I take professional advise elsewhere. Thanks.

Answer: You can list this as a business expense. And claim tax relief for the entire £500.

Hometown Happenings 0108

Community happenings

Trump Network business starter kit- part 1-Jackie Tsai

State speech laced with rebukes

ALBANY — With his political career in question, Gov. David A. Paterson used his second State of the State message Wednesday to lecture state lawmakers on their role in helping to bring New York State to the brink of bankruptcy and to urge new controls on “monied interests” that dominate the Capitol’s work.

(Green Business Opportunities) (Solar Golf Carts/Cars)

Question: Change my EIN to a non-profit?

I started a new Non-Profit corporation, but while filling out the IRS online application for an EIN I chose “corporation” instead of “non-profit”. The letter with the EIN states that we have to file form 1120. Do I need to take any steps to change the official status to that of a Non-Profit, which files form 990?

Thanks!

Answer: If you have not received IRS exemption determination, it may be treated by the IRS as a regular for-profit entity, which means that it would need to file annual returns, for example for 1120 for corporations. It may be exempt from filing, though, if it is merely a club. The IRS explains that, when applying for the Employer Identification Number, the club may check the line for "banking purposes only"
Please visit www.irs.gov/instructions/iss4/ch02.html for further clarification.

Charity fears losing non-profit status

Q: I am on the board of a charity group here in Harvey County. A few months ago we learned of the risk of losing our non-profit status because of new IRS regulations.  I just learned that apparently we still dropped the ball and have not completed the paperwork to comply with these regulations. Is there anything we can do at this point?

Question: Is it legal for a nursing home to bill under multiple tax id numbers?

My grandfather is in a nursing home which is part of a larger company which owns multiple nursing homes in the state of Illinois. We received a bill yesterday which originated from a nursing home that he had never been to. I called this nursing home was informed that the company, in order to speed up their billing process, will process batches of bills under a single tax ID number that may or may not correspond to the nursing home at which the services are being provided.

Is this a legal business practice? My grandfather’s application for public aid is still pending, once it goes through could this billing practice lead to problems with public aid benefits/payments?

Answer: It is illegal if it is done to defraud. We had a case like this here in Texas a few years ago. A woman had several fake nursing homes. She used the tax ID numbers to bill Medicaid and Medicare. She got caught by a news investigation after she had bilked the government for millions.

If you have any suspicions contact the Medicare Fraud Hotline at 1-800-447-8477.

http://www.medicare.gov/fraudabuse/HowToReport.asp

Illinois Seeks Foreign Buyers for Pension Debt as Deficit Looms

Jan. 7 (Bloomberg) -- Illinois , the second-lowest-rated U.S. state, is seeking to attract investors from Asia and Europe today and tomorrow as it sells $3.47 billion in taxable bonds to fund its annual payment to the employee pension fund.

Obama's ACORN Takes Tax Payer Money (FRAUD)