California LLC Tax and Franchise Fee
I fielded a series of California LLC questions yesterday that I am sure come up quite frequently for people beginning new ventures and selecting an appropriate California entity for that venture. How is the California Franchise Tax Calculated? California LLCs are subject to a $800 annual tax. The annual tax is due on the 15th...
New Credit Card Reporting Requirement Will Impact Small Businesses
There’s a new 1099 reporting form that looks like it may have a big impact by capturing unreported income earned by small businesses., Form 1099-K, Merchant Card and Third Party Network Payments. The form is the result of compliance reporting requirements for some credit card and PayPal payments. By requiring compliance reporting by credit card companies...
The IRS Is Interested in Google’s Offshore Profits
Moving your business offshore to avoid US tax exposure is an option, but doing so comes with significant risks, including increased scrutiny by the IRS. IRS Auditing How Google Shifted Profits By Jesse Drucker The U.S. Internal Revenue Service is auditing how Google Inc. (GOOG)avoided federal income taxes by shifting profit into offshore subsidiaries, according to a person with knowledge...
IRS Announces Voluntary Worker Classification Settlement Program (“VCSP”)
Past Payroll Tax Relief Provided to Employers Who Reclassify Their Workers The Internal Revenue Service launched a new program on September 21, 2011 giving many employers an affordable option to resolve past and present worker classification issues by voluntarily reclassifying their independent contractor or nonemployee workers as employees. The Vountary Classification Settlement Program (“VCSP”) is part of...
U.S. tax-evasion probe turns to Israeli banks
See the article here. Though the deadline for participation in the 2011 Offshore Voluntary Disclosure Program passed September 9, 2011, and the unofficial deadline passed last friday, keep in mind that the standard Voluntary Disclosure Program remains in effect. Please give us a call at 415-781-4000 if you have concerns. (Reuters) – The U.S. pursuit of offshore...
UPDATE – Additional San Francisco Superior Court Funding
The drama continues - AOC Agrees to Advocate for Local Revenue Solutions, Restoration of Trial Court Funding SAN FRANCISCO — An emergency funding compromise reached with the Administrative Office of the Courts (AOC) would significantly reduce the San Francisco Superior Court’s staff layoffs from 177 to 75 and allow the Court to keep 11 civil...
IRS 2011 Offshore Voluntary Disclosure Initiative – Cost of Disclosure vs. Non-Disclosure
Are you Feeling Lucky? You may be on the fence as to whether you want to raise your hand and tell the IRS you’ve been moving money around overseas for the past 20 years. You may also be considering rolling the dice and betting that you won’t be caught. Of course, one risk you’re running...
Short Sales and Deficiency Judgments Under the New Rules in California
On July 11, 2011, the governor signed a new law that prohibits second and third mortgage holders from pursuing deficiency judgments after they have agreed to a short sale. This amends California Code of Civil Procedure Section 580e which prohibited the same practice by holders of first mortgages. Deficiency Judgments If a lender forecloses on...
The Draconian – Why Do Taxes Matter
My step-brother Jeff Jones, of Jones & Company and the affiliated Draco Capital Management, publishes a newsletter called The Draconian. I am a fan of his work and I encourage you to check it out. Today he posted an insightful article, Why Do Taxes Matter, focusing on our current economic direction. What I like most about this...
“The civil justice system in San Francisco is collapsing”
SEE UPDATE AUGUST 31, 2011 HERE SEE UPDATE JULY 26, 2011 HERE As a follow up to my recent blog regarding the crisis facing our courts, check out today’s press release confirming the impact of state budget cuts on San Francisco’s courts and employees. http://www.sfbar.org/forms/court-press/court-cuts-071811.pdf NEWS RELEASE Superior Court of California COUNTY OF SAN FRANCISCO...
How Do I Know If I Have a Passive Activity Loss?
What is a Loss From a Passive Activity Many people think that owning rental property is one of the best ways to hold an appreciating asset while generating losses for tax purposes. This is true in some circumstances, but many investors are in for a rude shock after they purchase the property and attempt to...
Covenants Not to Compete
When a business is sold, it is common practice for the buyer to require that the seller refrain from competing in the same field. This requires a non competition clause in the contract for sale. These covenants are enforceable if they are reasonable. Courts are hesitant to take away a person’s ability to make a...
