| Tax-Exempt Status of Labor, Agricultural, and Horticultural Organizations |
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| Labor, agricultural, and horticultural organizations meeting certain requirements may be eligible for tax-exempt status under Internal Revenue Code Section 501(c)(5). However, even if a group of this type is entitled to exempt status, contributions made to it are not deductible as charitable donations on the donor's federal income tax return unless the payments are ordinary and necessary expenses in the conduct of the donor's trade or business. More... |
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| Use of Faxes for Taxpayer Submissions |
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| The world of communications has drastically changed since the first tax laws were enacted by Congress. Until recently, contacts between the Internal Revenue Service and taxpayers have been by mail, phone, or personal interviews, or a combination of them all. But now almost all businesses use the fax machine as an integral part of their operations, and the IRS, based on requests from taxpayers and practitioners, has approved the use of faxes in certain circumstances for issues related to income, employment, excise, estate, gift, and generation skipping tax, as well as tax exempt and employee plan determinations. More... |
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| What to Do If You Have Not Received a Form W-2 |
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| You are familiar enough with the tax laws to know that you should receive a "Wage and Tax Statement" (also known as a Form W-2), from every one of the employers that you worked for during the year. You need it to prepare your federal, state, and local income tax returns because it contains a summary of your taxable and non-taxable wages along with all the taxes, both income and social security, that have been withheld. More... |
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| Fringe Benefit Valuation Rules |
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| Under the Internal Revenue Code, you may exclude the value of certain specifically listed fringe benefits from the gross income of your employees. However, if a fringe benefit is not excluded, you must determine the value of that benefit for inclusion in the employees' taxable compensation. More... |
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| Abusive Life Insurance Policies in Retirement Plans |
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| A certain type of tax-qualified retirement plan (a section 412(i) plan) is funded completely through a life insurance contract or an annuity. The employer is entitled to tax deductions for contributions that are used by the plan to pay premiums on an insurance contract covering an employee. The plan may hold the contract until the employee dies, or it may distribute or sell the contract to the employee at a certain time, such as when the employee retires. More... |
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