Blog

Posts by Andrew Jackson, Esq.

Are Business Credit Card Rewards Taxable?

By
April 13th, 2022

Posted in Business & Corporate Law

Business credit cards have many benefits and are great for keeping business and personal expenses separate. Also, most of them come with benefits such as cash back, gift cards, consumer protections, or travel rewards based on your spending. Fortunately, these rewards are generally considered rebates and are not income for IRS tax purposes.


Continue Reading »
Share Button

Understanding Death Taxes

By
February 14th, 2022

Posted in Asset Protection,Probate & Guardianship,Tax Law & IRS Defense,Wills, Trusts & Estate Planning

Many people worry about filing or paying taxes to IRS or the federal government at death. The truth of the matter is that very few need to be concerned. According to IRS data, just 0.15% of decedents needed to file an estate tax return (Form 706) in 2019, and only 0.07% will pay any estate tax. That’s lower than the historical 1% to 2% share. Note there are some states that also have an estate or inheritance tax. Florida is not one of those states.


Continue Reading »
Share Button

Important Deadlines for Taxpayers in 2022

By ,
January 21st, 2022

Posted in Business & Corporate Law,Tax Law & IRS Defense

Calendaring important IRS and tax authority deadlines can help you avoid stress. To avoid paying penalties and other tax consequences, calendar tax deadlines and plan for tax filings with your accountant and other members of your professional team. Below are few examples of important tax deadlines:


Continue Reading »
Share Button

Attention Businesses: Know What the Law Says about Receiving Cash Payments Over $10,000

By
December 17th, 2021

Posted in Business & Corporate Law

Has your business received cash or currency exceeding $10,000 in one transaction or related transactions within a year’s time from a client or customer? If so, the IRS requires you to file Form 8300 within 15 days of receiving the payment. If any additional payments are made during the course of a year, you must report those as well and file additional forms. Transactions that require Form 8300 include:


Continue Reading »
Share Button

Trust Fund Recovery Penalty for Business Employment Taxes to IRS

By
October 8th, 2021

Posted in Business & Corporate Law,Tax Law & IRS Defense

The Trust Fund Recovery Penalty (“TFRP”) was created to encourage prompt payment of withheld income and employment taxes such as social security taxes, railroad retirement taxes, or collected excise taxes. Typically, the employee’s money is held “in trust” until the business owner or responsible party makes a tax deposit to the IRS for the amount owed, e.g. tax withheld on IRS Form 941 Employer’s Quarterly Federal Tax Return.

Problems arise when a business owner or person responsible for collecting or paying withholds these taxes from employees but does not pay the same over to IRS. Some businesses may ignore payment because they are struggling to make ends meet or choose to spend the withheld money elsewhere. Other businesses are simply unaware of the tax obligation or the person responsible takes action contrary to what the business is aware of. Either way, the IRS will seek payment from the business and also look to apply personal liability for the TFRP to certain people who are responsible for payment and willfully do not make payment.


Continue Reading »
Share Button

Florida Sales Tax Rates on Commercial Leases May Reduce to 2% in 2022

By ,
August 13th, 2021

Posted in Business & Corporate Law,Real Estate Law,Tax Law & IRS Defense

A legislative bill was recently enacted that may reduce the sales tax rate on commercial leases to 2%. The timing of the decrease depends on the economic recovery of the unemployment compensation trust fund. Once this balance has reached its pre-pandemic level, the sales tax rate will adjust. You may need to periodically consult with your accountant to determine the current tax rate since it is contingent upon the amount in the employment compensation trust fund.


Continue Reading »
Share Button

Tenants By Entireties Planning for Married Couples

By ,
June 11th, 2021

Posted in Asset Protection,Wills, Trusts & Estate Planning

If you have assets in Florida, you need to know the best way to avoid exposure and keep them protected from potential creditors. Tenants by Entireties (or Tenancy by the Entireties or “TBE”) is a great option for creditor protection for married couples because it is relatively simple to setup or form. In other words, there is little legal work or expense. By a married couple holding property as Tenants by Entireties, a creditor of one spouse alone cannot levy or invade a jointly owned Tenants by Entireties asset.


Continue Reading »
Share Button

The IRS Collection Process

By ,
April 9th, 2021

Posted in Asset Protection,Tax Law & IRS Defense

If you do not pay in full when you file your taxes, you will receive a bill notice from the IRS. This bill begins the collection process, which continues until your account is satisfied or until the IRS may no longer legally collect the tax, for example if the collection period has expired. The first notice you receive will be a bill that explains the balance due and demands payment in full. It will include the amount of the tax, plus any accrued penalties and interest, which will continue to accrue.


Continue Reading »
Share Button