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Employment Taxes

As a taxpayer who runs a business, you have a million things to worry about. Customers, inventory, advertising, competition, and keeping good employees are just a few. On top of it all, the government imposes strict requirements on the collection and payment of employment taxes.

Liability of Members of Limited Liability Company for Employment Taxes

Limited liability companies (LLCs), like all other employers, are required to withhold and pay over employment taxes to the federal government. States that authorize the creation of limited liability companies (LLCs) generally provide that the members (owners) of the LLC are not personally liable for the debts of the business in their capacity as members. The question then arises as to whether the Internal Revenue Service is allowed to collect any unpaid federal employment taxes owed by a LLC from the LLC members as if they were general partners of a partnership.

Renting Residential and Vacation Property

Generally, if you own a house or an apartment that you rent to others, you are entitled to deduct certain expenses such as repairs, maintenance, utilities, insurance, interest, taxes, and depreciation to reduce the amount of taxable rental income. If you do not use the dwelling unit as your home and are renting it to make a profit, your deductible rental expenses may exceed your gross rental income (with certain limitations, of course.) However, if you use the house or apartment as your home or vacation home, stricter limitations apply to the amount of deductible losses.

Mailing a Tax Return

Even though more and more taxpayers are filing their returns electronically each year, there are still millions of individuals who elect to file paper returns. You complete the appropriate forms, include any required attachments, stuff the whole package into an envelope, and march down to the local post office to complete the process.

Enrolled Actuaries

An enrolled actuary is an individual who has satisfied established standards and qualifications and who has been approved to perform the actuarial services required under the Employee Retirement Income Security Act of 1974 (ERISA). These services include the application of the principles of probability and compound interest to determine the present value of payments to be made after certain specified conditions are fulfilled or certain specified events have occurred.