Health Savings Account – By John R. Bullis

Kim Pilant John's Articles

The Health Savings Accounts (HSAs) give great tax savings for folks under age 65. When you turn age 65 and are eligible for Medicare, you can not make contributions to your HSA. Whatever is in the account at age 65 is not lost. You can still use it to pay (or reimburse yourself if you paid) doctor, dentist, eye glasses …

What is Happening With the IRS? – By John R. Bullis

Kim Pilant John's Articles

IRS audit rate is relatively low. Individual returns had about one out of 167 returns audited. Most of those were done by mail with just one or two issues to be resolved. The audit rate for C corporations (regular corporations that pay their own tax) was about 1% in 2017 for C corporations that had assets of $5,000,000 or more. …

Document Non-Cash Charitable Contributions – By John R. Bullis

Kim Pilant John's Articles

Mr. and Mrs. Moore lived in Ohio and their individual income tax returns for 2013, 2014 and 2015 were selected for audit by IRS. The audit report showed the taxpayers failed to report cancellation of indebtedness income; failed to report wages; failed to report retirement income and failed to keep detailed records of the non-cash contributions. IRS also assessed a …

Son Defrauds Parents – By John R. Bullis

Kim Pilant John's Articles

Shirley and Roger Bailey owned Rig-Up Electrical Services, Inc in Arkansas. They were considering retirement in 2007 and left their son Jeffrey in charge of managing the company. In 2008 Jeffrey started a new company called Rig-Up Services, LLC and wanted to buy the assets of the parent’s company. Jeffrey hired Roy Johnson as the chief financial officer of the …

What Is Obstructive Conduct with IRS? – By John R. Bullis

Kim Pilant John's Articles

IRS investigated Carlo Marinello’s activities for years 2004 through 2009. In 2012 IRS charged him with violating several criminal tax statutes under Code Section 7212(a). That Section makes it a felony to corruptly or by force obstruct or impede the due administration of the Internal Revenue Code. IRS claimed Marinello failed to keep corporate books and records, failed to provide …

Royalty Income Was Ordinary, Not Capital Gain – By John R. Bullis

Kim Pilant John's Articles

Spiridon Spireas is a pharmaceutical scientist who invented some drug delivery techniques. He signed a licensing agreement with Mutual Pharmaceutical Company in 1998 so he did not have to develop the technology alone. The development of a practical liquisolid formulation and clinical testing as well as getting FDA approval and doing the marketing all was done per the agreement. Sales …

Business Entertainment Deductions Reduced – By John R. Bullis

Kim Pilant John's Articles

Effective Jan. 1, 2018, the new Tax Cuts and Jobs Act reduced business expense deductions for many types of business entertainment activities to zero. Now, business meals associated with entertainment with clients or prospects are not deductible. Some of the business meals you used to build your business, get new clients or meet with prospective customers are no longer an …