The IRS issued question-and-answer guidance for distinguishing between tips and service charges for FICA tax and other purposes.
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Reporting & Filing Requirements
Section 530 Relief for Worker Classification Controversies
This article reviews the common law principles and authoritative guidance available to distinguish when workers are employees and the Section 530 safe-harbor provisions.
President Signs Payroll Tax Cut Extension Bill; New Form 941 Released
President Barack Obama signed into law the Middle Class Tax Relief and Job Creation Act of 2012 and the IRS released a revised Form 941to reflect the extended payroll tax cut.
Congress Passes Payroll Tax Cut Extension
On Feb. 17, the House of Representatives and the Senate both passed a bill that will extend the reduced 4.2% Social Security tax rate through the end of the year.
Religious and Family Member FICA and FUTA Exceptions Extended to Disregarded Entities
The IRS issued temporary and proposed regulations that extend the religious and family member FICA and FUTA tax exceptions to disregarded entities.
Congress Passes Temporary Payroll Tax Cut Extension
The Senate and the House of Representatives on December 23 both agreed by unanimous consent to extend the reduced rate, and President Barack Obama signed the bill the same day.
Foreign Disregarded Entities May Face U.S. FICA Tax Issue
This item shows how restructuring international businesses to operate through entities disregarded for U.S. federal income tax purposes may also affect the employment tax treatment of the organization’s individual employees.
Lack of Control Does Not Except Owners from Trust Fund Recovery Penalty
The owners of a company who had delegated payroll functions to a separate payroll company they owned but did not operate were liable for trust fund recovery penalties because they were responsible persons both before and after the withholding taxes that were the basis of the penalties accrued.
Medical Residents Subject to FICA
The Supreme Court held that individuals in medical residency programs at teaching hospitals are subject to FICA on the stipends they receive for the work they perform while participating in the medical residency programs.
President Proposes 3-Year AMT Patch, Partial Relief on 1099s, Crackdown on Misclassification
President Barack Obama released his proposed budget for fiscal 2012, containing several tax proposals.
Planning for the New Medicare Taxes
The recently passed 2010 health care reform legislation added two additional Medicare taxes intended to help pay for the new legislation. This item looks at the details of both the 3.8% investment income tax and the 0.9% hospital insurance tax increase and reviews some of the effects they will have on estimated taxes and tax planning.
Classification as a Statutory Employee
Statutory employee status may be beneficial for both an employee and his or her employer; however, an employee must meet specific requirements to qualify as a statutory employee. This article discusses the rules regarding statutory employee status set out in the Code and the regulations and how these rules have been interpreted by the IRS and the courts.
IRS Issues Regs. on New Indoor Tanning Tax
On June 11, the IRS issued final, temporary, and proposed regulations to provide guidance on the new 10% indoor tanning services excise tax (T.D. 9486; REG-112841-10).
IRS Issues Regulations on New Indoor Tanning Tax
The IRS issued final, temporary and proposed regulations to provide guidance on the new 10% indoor tanning services excise tax
IRS Will Process Medical Residents’ FICA Refund Claims for Periods Before April 1, 2005
The IRS has announced that it will accept that medical residents are exempt from FICA taxes under the student exception in Sec. 3121(b)(10) for periods ending before April 1, 2005.
Correcting Employment Tax Errors
Correcting an employment tax error that is discovered in the year in which the error occurs is generally a simple process. However, employers often discover such errors after the close of the calendar year in which they paid the wages to an employee. The adjustment process to correct those errors is confusing and often leads to further mistakes.
Volunteer Board President “Responsible Person” for Payroll Taxes
Taxpayer who served (without compensation) as the president of a daycare center was responsible person under Sec. 6672.
IRS Intensifies Focus on Worker Classification
As the IRS intensifies its scrutiny of worker classification, businesses may want to take a fresh look at how their policies, procedures, and documentation around engaging independent contractors might withstand IRS review.
IRS Develops New Form for Misclassified Workers
The IRS has developed a new form for employees who have been misclassified as independent contractors to report their share of uncollected Social Security and Medicare taxes: Form 8919, Uncollected Social Security and Medicare Tax on Wages.
Late Legislation Affects AMT, Mortgage Foreclosures, FUTA
Congress passed several pieces of legislation that affecting 2007 tax returns.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
