The Tax Preparation Blog

Archive for June, 2010

Policy Forum: Are you proud of the Singapore Table-Tennis’s team winning the World Championship?

OPINION The Singapore Table-Tennis team stunned the world when it beat reigning champions China 3-1 in the World Team Table-Tennis Championship. The team comprised of Feng Tianwei, Wang Yuegu and Sun Bei Bei who are all born in China. While the state media has been trumpeting the achievements of the trio, the response from Singaporeans is more muted with [...]

Question: back taxes and a unlicensed business?

my BF did a small side job with his dad’s unlicensed business back in 2004. The business was under the table, and his dad insisted that the check for the work done be put in my BF’s name to be cashed. I am preparing his back taxes and received a statement for his 2004 income which contained a 1099-misc for this side job. His dad claims he cant remember…which is crap.

If I file a Schedule SE, then I am claiming my BF was the sole proprietor of this illegal business (which he was not.) Can I file this as “other income” on his 1040 (or will that somehow be seen as avoiding taxes?) Is there anyway to have his dad be held responsible, or will this all come back on my BF for agreeing to cash a check in his name? What should I do?
They actually did a job for a School District and the school district issued the 1099-misc to the IRS. I doubt his dad has ever had anything to do with paying taxes…

Answer: A 1099 indicates that he was an Independent Contractor/Sub Contractor.
His dad turned it into the IRS and evidently did not issue a 1099 at the time.
Penalties and interest are legal.

It does not indicate that he owned the business.

It’s just unreported income/other income and is taxable.

Unleashing the Wind Tiger

Until China’s wind sector started its turbocharged acceleration three or four years ago, India had been the clear leader in wind in Asia and amongst developing countries. A wind pioneer, year after year it has ranked in the top five nations in terms of new installations. India added a respectable 1576 MW during the financial year ending 31 March 2010 (compared with 1917 MW added in Germany and …

Deferred Compensation: The Perfect Sale

Question: do i need to file the reward money(cash) from Credit Card’s reward program as income tax?

is there any irs document talk about that? Also, does the credit card company need to submit the tax information about they give out the money to the reward member?
can’t find the details about “non-deductible expense” in irs.gov for these kinds of situation. I would like to see some more information for this.

thank you

Answer: It’s a reduction of a non-deductible expense so it isn’t classified as income on a personal return.

If the credit card is used by a business, any reward program funds must first be used to reduce the interest expense claimed so that effectively makes it taxable as if it was income.

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TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $8.07 Designed for sole proprietors, self-employed, consultants, 1099 contractors, and single-owner LLCs. Expanded interview walks you through entering business income and expenses to help you maximize business and personal deductions, home office deductions, depreciation and more. Create W-2 and 1099-MISC forms for your employees and contractors. The Intuit TurboTax Home & Business Tax Year 2010 Softwa…

KEO has help for low-income homes

LIHU‘E — Kaua‘i Economic Opportunity has emergency federal fundsavailable to assist households which have had or are in danger ofhaving their electricity turned off.

Surviving an IRS Tax Audit : IRS Audit: Items Not Needed

TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $8.07 Designed for sole proprietors, self-employed, consultants, 1099 contractors, and single-owner LLCs. Expanded interview walks you through entering business income and expenses to help you maximize business and personal deductions, home office deductions, depreciation and more. Create W-2 and 1099-MISC forms for your employees and contractors. The Intuit TurboTax Home & Business Tax Year 2010 Softwa…

TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

TurboTax Basic Federal + e-File 2010 – [Old Version] $4.99 TurboTax Basic was designed to make doing your simple taxes easy, by guiding you step by step through your federal tax return. TurboTax guarantees its calculations are 100% accurate, or you’ll be paid any IRS penalties plus interest. TurboTax also double checks your return to help you get the deductions and credits you deserve. Everything you need to easily do your simple tax return. Does th…

Ninetowns Reports Second Half and Full Year 2009 Financial Results

Ninetowns Internet Technology Group Company Limited (Nasdaq: NINE) (“Ninetowns” or the “Company”), one of China’s leading providers of online solutions for international trade, today reports its financial results for the six-month period and full year ended December 31, 2009. read more

Haven’t filed a 2008 tax return? Here’s what to do