Tax Law

Can you go to jail if you lie on your taxes? It is a federal crime to commit tax fraud and you can be fined substantial penalties and face jail time. Lying on your tax return means you committed tax fraud. The consequences of committing tax fraud vary from case to case. Read more on … Read more

What is use tax WV? West Virginia’s use tax is a 6% tax on the use of tangible personal property or services in West Virginia where West Virginia sales tax has not been paid. Read more on tax.wv.gov It is critical to understand the state’s regulations for sales and use taxes if you own a … Read more

Do 501c4 organizations have to disclose donors? Every 501(c)(4) organization with annual gross receipts over $50,000 must file a Form 990 or Form 990-EZ with the IRS annually. 2 This means that organizations DO NOT need to share their donors’ names, addresses, or other identifying information with the public. Read more on afjactioncampaign.org Nonprofit organizations … Read more

Do subsidiaries have their own EIN? A subsidiary of a corporation and its parent corporation also have separate tax identification numbers for federal tax purposes. Also known as Employer Identification Numbers, the Internal Revenue Service issues these nine-digit numbers to identify business entities. Read more on smallbusiness.chron.com When a business creates a subsidiary, it effectively … Read more

Does Colorado require Form 990? Read more on www.harborcompliance.com There are specific legal conditions that must be fulfilled in order to operate a nonprofit organization in Colorado. The submission of Form 990, a tax form that contains data on the organization’s finances, is one of the most significant of these. In this post, we’ll look … Read more

Can you make an S election mid year? Allowing an LLC to make a midyear S election makes sense because a newly electing S corporation can begin its first S year at any allowable date. If an entity elects to change its classification, it cannot do so again during the 60 months after the effective … Read more

Does Vermont have automatic extension? Act 175 (H. 954) of 2020 allows for automatic extension of the Vermont income tax filing deadline for both individual and corporate taxpayers upon extension at the federal level and gives corporations one additional month to file. Read more on tax.vermont.gov The state of Vermont is located in the country’s … Read more

Does Indiana allow the 300 charitable deduction? Thanks to the federal coronavirus relief legislation, taxpayers are now able to take advantage of a new deduction for donating to Hear Indiana! Individual filers can deduct up to $300 even if they don’t itemize, which is good news for many! Read more on www.hearindiana.org The history of … Read more

Does New York accept out of state resale certificates? Exemption certificates of other states or countries are not valid to claim exemption from New York State and local sales and use tax. Read more on www.tax.ny.gov Especially if you conduct business across state borders, it’s crucial for business owners to be aware of the rules … Read more

What qualifies as an exemption? Individual taxpayers can claim an exemption from tax withholding on their paychecks if they had no income tax liability in the previous tax year and expect the same in the current tax year. That’s not really a tax break, though – if you make more money than you expect, you … Read more