April 2009 1-877-834-8211

Corporate Shield

IN THIS ISSUE


Good Help Is Hard To Find

Start the youth of America off right by showing them the worthwhile opportunities that result in a job well done. They will have pride and ownership as a contributing member of society, and did I mention that your company can write off their wages. As with anything involving the IRS, you are required to meet a few guidelines. Make sure the salary the corporation is paying the children is reasonable for the job they are doing. If you already have an employee doing similar work, then use that as a guideline for what they should get paid. If you are creating a new position, then do a comparative study based on the type of work and the business you are in.

Children under 18 can earn up to $4,400 per year without owing federal tax. The main benefit that results from hiring your children is the ability to move money out of your corporation to your children who can then shelter most of that money income tax free. Working children can put $2,000 of their income into a Roth IRA each year. A Roth IRA allows your children to contribute and grow their money tax free. This ability presented by the IRS becomes even more important as the prospect of our children collecting Social Security becomes nonexistent. Don't turn your child's work experience into their first IRS experience. Make sure you follow the guidelines presented by the IRS or check with your accounting professional.

  • How Long Should You Keep Tax Records?
  • One-Day Seminar Schedule 
  • S Corporations Face Close IRS Scurtiny
  • Your Rights as a Tax Payer

How Long Should You Keep Tax Records?


After filing your 2008 tax return, you may be wondering how long to keep your tax records. Unless fraud, evasion or a substantial understatement of income is involved, the IRS generally has only three years in which to question your return. If the IRS asks, you must be able to prove the validity of your tax return, which includes providing the underlying supporting data. How long you keep your paperwork depends directly on the statute of limitations, but here are some guidelines.

Your copy of the tax return. Consider keeping it forever since you never know when this document will come in handy. Remember that in many cases, the IRS destroys original returns after four or five years. It's always best to have your copy to fall back on.

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 Your Rights As a Tax Payer?
No, I'm not being facetious, you have rights as a taxpayer, really. It's called the Taxpayer Bill of Rights. Go to the IRS website.  It won't be right out there in the open, you'll have to search for it. I've included a short list taken from this infamous document.
  • IRS agents must always identify themselves.
  • You have the right to request the examination take place at a reasonable time and place that is convenient for both you and the IRS.
  • You have the right to conduct examinations by mail.

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One Day Seminars

S Corporations Face Close IRS Scrutiny  

The S corporation is a popular form of business ownership. One reason for this is that S corporations avoid the double taxation that applies to regular C corporations, while still offering protection from personal liability.

However, as the popularity of S corporations continues to rise, they are facing greater scrutiny from the IRS. In particular, the IRS has focused its attention on three issues.

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Email: info@compassincorporated.com
Voice: 1-877-834-8211
Web:
http://www.compassincorporated.com/

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