July 1, 2020 – San Francisco, California. Safe Harbor CPAs, a team of accountants in San Francisco, California, is proud to announce a new post on goals to be the best CPA firm in the city. The post reiterates the firm’s commitment to servicing its clients and putting their interests first.
Taxpayers who wish to withdraw funds from a retirement account such as an IRA before they reach the age of 59½, can do so without their distributions becoming subject to the additional 10 percent tax. One option is to have their distributions made in substantially equal periodic payments, as outlined in Sec. 72(t) of the […]
San Francisco Tax Preparation / CPA: FAQ: Are Social Security survivor benefits received by children taxable income?
When an individual dies, certain family members may be eligible for Social Security benefits. In certain cases, the recipient of Social Security survivor benefits may incur a tax liability. Family members Family members who can collect benefits include children if they are unmarried and are younger than 18 years old; or between 18 and 19 […]
October 5 Employers. Employers deposit Social Security, Medicare, and withheld income tax for September 28, 29, and 30. October 7 Employers. Employers deposit Social Security, Medicare, and withheld income tax for October 1, 2, 3, and 4. October 11 Employees who work for tips. Employees who received $20 or more in tips during September must […]
San Francisco Tax Preparation / CPA: IRS announces voluntary classification settlement program for employers
The IRS has announced a new program to bring employers that have misclassified employees as independent contractors into compliance. The Voluntary Classification Settlement Program (VCSP) offers a reduced penalty framework and audit protection exchange for employers voluntarily reclassifying their workers for federal employment tax purposes. Worker classification The distinction between employee and independent contractor has […]
The IRS has announced in its recent Notice 2011-72, that it will not tax employees’ personal use of their employer-provided cell phones. In other words, all usage is nontaxable as long as the employer provided the phone primarily for noncompensatory business reasons. Likewise, employer reimbursements to their employees for using personal cell phones for business […]
On August 31, 2011 an IRS webinar on the Fresh Start Initiative discussed revised lien processes intended to help individual taxpayers remain in compliance despite economic hardships. The new processes increase the threshold at which the IRS will file a lien against a delinquent taxpayer’s funds from $5,000 to $10,000. The Fresh Start Initiative, announced […]
San Francisco Tax Preparation / CPA: Offshore disclosure initiatives show IRS progress on international tax evasion
The IRS’s 2011 Voluntary Disclosure Initiative has made more in-roads to combating international tax evasion, securing 12,000 disclosures this year. The IRS has received 30,000 voluntary disclosures since it launched its first disclosure program in 2009 and collected a total of $2.7 billion. Disclosure initiatives The IRS initiative targets U.S. taxpayers with undisclosed income or […]
San Francisco Tax Preparation / CPA: CA – Acquired S corporation prohibited from making separate IRC §338 election
An S corporation and its shareholders were prohibited from making a separate IRC §338 election for California corporation franchise and income tax purposes during the tax year at issue. The taxpayer was attempting to prevent the classification of the sale of the S corporation’s stock to the purchasing corporation as a sale of its assets […]
San Francisco Tax Preparation / CPA: 2011 year-end tax planning for individuals in a changing landscape
2011 year end tax planning for individuals lacks some of the drama of recent years but can be no less rewarding. Last year, individual taxpayers were facing looming tax increases as the calendar changed from 2010 to 2011; particularly, increased tax rates on wages, interest and other ordinary income, and higher rates on long-term capital […]