These are questions that come up on a routine basis, but are they deductible? Question: Are business gifts deductible and how much? Answer: If you give business gifts in the course of your trade or business you can deduct all or part of the costs subject to the following limitation: You can deduct no more than $25 for business gifts you give directly or indirectly to any one person during your tax year.
1. If you and your spouse both give gifts to the same person, both of you are treated as one taxpayer.
2. Incidental costs such as engraving, packing or shipping do not have to be included in the $25 limit.
3. Gifts costing $4.00 or less that have your business name permanently engraved on the item, and which you distribute on a regular basis is excluded from $25 per person limit.
You need to have records that prove the business purpose of the gift as well as the details of the amount spent.
Fresh Start Tax is one of the premier tax resolution firms in the country. We deal with all types of cases, individuals, business and high dollar corporate entities. We have a staff that specializes in every type of case. Some of our specialties include the following:
Immediate Tax Resolution and Representation
Offers in Compromise and Settlement
Back Taxes/ Unfiled or Never filed tax returns
Bank or Wage Levy Garnishments
Letters of Intent of Notice to Levy
IRS Tax Audits
Hardship, part pay agreements
State Sales Tax problems and Resolution
Our company resume:
Our staff has over 140 years of professional tax representation experience
On staff are Board Certified Tax Attorney’s, CPA’s, former IRS Agents, Managers and Instructors
Former State Department of Revenue Manager and Instructor
We are extremely moral and ethical in all of our business dealings
We have the highest rating by the Better Business Bureau
Guidance on Expanded Adoption Credit Available for Tax-Year 2010
The Internal Revenue Service today issued guidance on the expanded adoption credit included in the Affordable Care Act. The IRS also released a draft version of the form that eligible taxpayers will use to claim the newly-expanded adoption credit on 2010 tax returns filed next year.
The Affordable Care Act raises the maximum adoption credit to $13,170 per child, up from $12,150 in 2009. It also makes the credit refundable, meaning that eligible taxpayers can get it even if they owe no tax for that year. In general, the credit is based on the reasonable and necessary expenses related to a legal adoption, including adoption fees, court costs, attorney’s fees and travel expenses. Income limits and other special rules apply.
In addition to filling out Form 8839, Qualified Adoption Expenses, eligible taxpayers must include with their 2010 tax returns one or more adoption-related documents, detailed in the guidance issued today.
The documentation requirements, designed to ensure that taxpayers properly claim the credit, mean that taxpayers claiming the credit will have to file paper tax returns. Normally, it takes six to eight weeks to get a refund claimed on a complete and accurate paper return where all required documents are attached. The IRS encourages taxpayers to use direct deposit to speed their refund.
Taxpayers claiming the credit will still be able to use IRS Free File to prepare their returns, but the returns must be printed out and sent to the IRS, along with all required documentation.
Signing the Return of a Deceased Spouse Question: My husband passed away last year, and I will be filing a joint return. Are there any special return notations required to indicate my husband is deceased? Answer: If you are a surviving spouse filing a joint return and no personal representative has been appointed, you should sign the return and write in the signature area, “filing as surviving spouse.”
The final return should have the word “Deceased,” the decedent’s name, and the date of death written across the top of the return.
Fresh Start Tax is comprised of Former IRS Agents, Managers and Instructors. The staff also includes CPA’s, tax attorneys and former Managers with the Department of Revenue. Our company are experts in the field of tax and tax resolution. Licensed to practice in all 50 States, we are fast, affordable and put a premium on communication with our clients. Our firm has the highest rating given out by the Better Business Bureau. We have a combined 140 years Federal and State experience.
The State Of Florida, Department of Revenue, audits Aircraft Dealers on a regular basis. The State has Industry guide lines that it follows for all of their audits that can be found at the State Website. One of our professional team members was the manager of the State of Florida, Department of Revenue Regional Office. Her expertise can guide you through your audit helping you achieve the very best possible results.
What Types of Records Will I Need to Provide for the State of Florida Tax audit?
When you are notified of intent to audit, you will also be told what records you will need to provide. The types of records may include, but are not limited to:
General ledgers and journals
Cash receipt and disbursement journals
Purchase and sales journals
Sales tax exemption or resale certificates
Florida tax returns
Federal tax returns
Depreciation schedules
Property records
Other documentation to verify amounts entered on tax returns
You must keep your records for three years since an audit can extend back that far. The Department may audit for periods longer than three years if you did not file, or filed a substantially incorrect return or payment.
What Are My Rights During an Audit for the State of Florida?
The Florida Taxpayer’s Bill of Rights provides protection for taxpayers’ privacy and property during their interactions with Revenue employees. Your rights include:
The right to fair treatment.
The right to get available information and prompt, accurate responses to your questions.
The right to have the Department begin and complete its audit in a timely manner after we notify you of our intent to audit.
The right to get simple, nontechnical statements which explain the reason for audit selection and the procedures, remedies, and rights available during audit, appeals, and collection proceedings.
Before you read this, make sure your feelings are real. Act and govern yourself accordingly.
Are you aware of fraud, waste, mismanagement, and abuse in the IRS programs and operations, report it to the TIGTA’s Hot line!
What kinds of things should you report?
Allegations of violations that impact the integrity of Federal tax administration and IRS programs.
This includes allegations of misconduct by IRS employees.
Allegations of improprieties, false claims and fraud by outside contractors attempting to defraud the IRS by utilizing deceptive contract methods.
Allegations of identity theft where any individual (s) impersonated the IRS or an IRS employee or used words, letters, symbols, or IRS emblems to illegally obtain personal, confidential or private financial information.
Examples of specific allegations that should be reported include, but are not limited to: attempts by taxpayers to bribe IRS personnel; extortion or misuse of position by IRS personnel; assaults and/or threats by taxpayers against IRS employees; schemes involving the use of computer technology or mail that impersonate the IRS or IRS personnel; misconduct by tax practitioners (falsification of qualifications, theft of IRS tax remittances and theft of IRS tax refunds)
Your complaint will be kept confidential if it is received on the phone, through the mail, or in person. We cannot guarantee confidentiality if you send your complaint via the online form or e-mail.
Laws protect you from reprisals (any action taken against you because you filed this complaint).
You can submit your complaint by these methods:
By Online Form or Email (TIGTA Hotline Complaints Unit):
Remember: if you submit your complaint via the online form or email, it is possible – though unlikely – that others could read it since the internet is not secure.
By Phone:
Call toll free: 1-800-366-4484
By Fax:
(202) 927-7018
By Mail:
Treasury Inspector General for Tax Administration
Hotline
P.O. Box 589
Ben Franklin Station
Washington, DC 20044-0589
