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Revenue or Sales
Revenue or Sales When recording or showing your revenues or sales on your Income Statement, make sure that you accounted for: Occurrence Make sure there are no fictitious customers Completeness Make sure your company recorded ALL sales or revenues. Check for overstatement of sales or revenues by vouching and understatement of sales and revenues by…
Inventory
How Cost of Gods Sold Affects Income & Tax Bracket An increase in the Beginning Inventory decreases?income for the year. An increase in the Ending Inventory increases?income for the year. An increase in Beginning Inventory means that you will pay tax on the sale of that inventory?later?(when you sell it). An increase in the Ending…
Assets | Bookkeeping | Business | C-Corp | Revenue | Tax Planning | Tax Problems?
What Affects OIC
On February 23rd, the U.S. Tax Court filed T.C. Memo. 2022-5 deciding whether the Office of Appeals abused its discretion in rejecting an offer-in-compromise (OIC) . The United States Tax Court found no abuse of discretion and granted summary judgment in favor of the IRS. Why? The petitioner submitted form 12153 timely requesting Collection Due…
Expenses | Income | Liabilities | Tax | Tax Planning | Tax Problems?
When a husband says, “We are partners,” what does he REALLY mean?
The husband ran a successful medical practice earning over $650,000 in gross income. He employed his wife as a sales representative and paid her a little over $30,000/year. The couple had four small children. The wife didn’t participate in her husband’s meeting over finances and management.
The IRS found that the medical practice underreported its income by over $100,000. Over $40,000 tax liability notice of deficiency was mailed to the couple. The couple also faced a significant penalty for the underreporting/ underpayment.
Business | Economy | Income | Tax | Tax Planning | Tax Problems?
Investment Strategy
Investment Strategy. Options. Important. This post is NOT investment advice. Investments in Etrade options are NOT FDIC-insured and may lose value all the way to $0. Buying puts/shorting a stock has severe or unlimited risks. Day trading option has very big leverage and serious potential to profit (or to lose money). One of my favorite…
Cryptocurrency Profit and Tax to the IRS
Cryptocurrency Profit and Tax to the IRS The IRS has increased the number of audits they perform regarding foreign accounts. As you may already know, if you don?t report your foreign accounts, you will be subject to very severe penalties from the IRS. ? Not disclosing or abusing your cryptocurrency tax techniques can be tied…
