How is the LLC income reported? The IRS considers the single member LLC to be a “disregarded” entity. That means, it is reported for tax purposes exactly the same as a sole proprietor with no additional reporting requirements. That’s still a part of the GOOD, ease of reporting income. A multiple member LLC comes under the […]
Category: General
LLC Operating Income is taxed how?
How is the LLC operating income taxed? The tax side is way different… BAD. A single member LLC is a “disregarded” entity. Thus, the LLC would not do a separate tax return as would a corporation. The owner (now you know to say member) would account for the income exactly as a sole proprietor on a […]
How Do You Know if the Electronic Efile was Accepted?
As an Authorized ERO (Electronic Return Originator), we receive notification from the IRS on a Form 9325. IRS Publication 1345 is periodically updated but no changes have been made in over 4 years. The latest IRS Revenue Procedures (rev procs) refer to it: “The ERO must, at the request of the taxpayer, provide the Declaration […]
Read More… from How Do You Know if the Electronic Efile was Accepted?
Office in Home Deduction
HOME OFFICE DEDUCTION Do you have an area of the home you use exclusively for business? If so, the following information is needed: Square footage of area used exclusively for business Total square footage (excluding garage) Electric, gas (not water) Maid service if it includes the office Home insurance or Renters insurance Portion of DSL used for business If you […]
Hello World!
Welcome to IRSTaxTalk.com, our blogging website. Please visit our main website www.USATaxHelp.com Thank you and please feel free to comment. […]
If I’m doing business as an LCC, what am I called?
Owners of LLC’s are called members. The person in charge is called the manager or managing member (if it is a multiple member LLC). […]
Read More… from If I’m doing business as an LCC, what am I called?
How Long to Keep Records
How Long Do I Keep Records Our standard answers… 3 years is the Statute of Limitations for audit purposes (from the due date of the return or the filing, whichever is later). 4 years for Employee Records 6 years if there is a 25% understatement of income (accidental, misinterpretation of tax law, bookkeeping error, involved in one […]
Independent Contractor or Employee
Click here for discussion of Independent Contractors (or not) versus Employee […]
Cash vs. Accrual Basis
In the Simpliest Terms……. CASH BASIS REVENUE means you declare it when you RECEIVE the money. ACCRUAL BASIS REVENUE means you declare it when you EARN the money (usually that is when the invoice is generated whether you receive a portion of the money or none at all at the time the invoice is generated). CASH BASIS EXPENSE means you expense it when you PAY it. […]