C corporations pay a tax on their profits and then if dividends are paid out, the shareholder pays a separate tax on those dividends too. Combined taxes on both can often be higher than the tax paid in a personal tax on the same profits if flowed through a Sub S company structure. So why

Owners of small businesses face a question: Should the business continue to function as an S corporation, or should the entity revoke its election under Subchapter S of the Code? Despite a number of statutory constraints, conventional wisdom has generally favored an S corporation classification. An S corporation is a pass-through entity whose shareholders are subject

Many considered Dec. 31, 2013, the final date for year-end tax planning, but there are numerous planning actions that you can take in 2014 retroactive to 2013.  • Conventional and Roth IRA contributions for 2013 can be made until the April 15 return due date for the payment to be attributed to 2013. • Contributions

The rules have changed for taxpayers who plan to itemize 2013 medical deductions. Most people may now deduct only the amount of the total unreimbursed allowable medical expenses that exceeds 10% of adjusted gross income. There is a temporary exemption for individuals age 65 and older, and their spouses, who may continue to deduct total medical expenses

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Despite higher tax rates, S corporations retain advantages over C corporations. Given that the highest federal individual tax rate is now higher than the corporate rate, it may seem like operating a business through a C corporation rather than a flow-through entity would present a preferable alternative for owners of small, growing businesses. They may

Delayed start date for 2014 tax filing season. In October 2013, the IRS said that the start date of the 2014 tax filing season would be delayed past the original Jan. 21, 2014 start date because of the government shutdown. However, at that time, it did not provide a specific delayed start date. It has now

Standard mileage rates down. The optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) has decreased by 0.5¢ to 56¢ per mile for business travel after 2013. The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense also has

New “get transcript” service. Early in 2014, there will be a new online request option onirs.gov that will allow individual taxpayers with a Social Security number to instantly view and print a copy of their tax transcripts. The online tool can also be used to request that a transcript by mailed to the taxpayer’s address of record.

Increased fees for installment agreements and offers in compromise. The IRS has issued final regulations increasing fees for an installment agreement (an agreement with the IRS to pay taxes in installments) and an offer in compromise (an offer to the IRS to settle one’s tax debt for less than what the IRS says is owed). Specifically,