Risky Underwriting Habits. Habit 2- Assuming a Borrower’s Company is not a Fraudulent or Synthetic Entity.
Diligence in underwriting can be the difference between a successful lending relationship and one that ends up in default. This is the second installment in a series of 6 regarding improving underwriting habits to protect the lenders collateral. Bad Habit #2. Assuming a Company is not a Fraudulent or Synthetic Company. Synthetic identity theft, a […]
Risky Underwriting Habits. Habit 1- Assuming a Federal Tax Lien Will Be Filed
Diligence in underwriting can be the difference between a successful lending relationship and one that ends up in default. This is the first installment in a series of 6 regarding improving underwriting habits to protect the lenders collateral. Bad Habit #1. Assuming a Federal Tax Lien Will Be Filed If a Tax Debt Exists. The […]
Failing to Report Gifts from Overseas under Form 3520 Can Result in Large Penalties
Background. The law is well settled that the recipient of a gift or bequest is not required to pay income taxes when he or she receives the gift or bequest. For example, if John receives a gift of $200,000 from his good friend Jane, John will not owe any income taxes as a result of […]
The Strickland Decision:
The Strickland Decision: The Strickland Decision and Internal Revenue Ruling 78-161 give a retired service member the ability/right to adjust military retirement income reported on Form 1099-R. Defense Finance and Accounting issued a letter detailing the understanding of the law. Tax benefits will only apply to those who are rated less than 50% disabled or […]
IRS Issues Notice 2014-21 to Provide Help With Unanswered Questions Regarding Blockchain Transactions and Bitcoin
Bitcoin price surge is not just about Facebook’s crypto push
Bitcoin is up an eye-popping 245% in 2019 so far. And based on many business news headlines of the past week, you’d think bitcoin’s surge is all thanks to Facebook (FB). But bitcoin was already up nearly 200% before June 18, when Facebook announced its plans to launch a cryptocurrency called Libra next year and a digital […]
Brooklyn Tax Preparer Pleads Guilty to Preparing Fraudulent Tax Returns for Clients and Himself
According to DoJ, a Brooklyn New York, tax preparer pleaded guilty on June 25, 2019 to pleaded guilty to two counts of aiding in the preparation of false income tax returns for clients, and one count of filing a false income tax return for himself. According to court documents, Emerson Gamory, 53, prepared tax returns […]
How to Prevent a Tax Hit When Selling a Rental Property
1) Take Advantage of Section 1031 of the Tax Code What It Is: IRS Section 1031 “Like-kind” Exchange Who It’s For: Anyone can reinvest the proceeds of selling investment real estate (i.e.rental property) in new real estate What You Get: The ability to defer some or all taxes on the capital gain Real estate investors […]
Business Process Outsourcing Unit – BPOU- Foreign Companies Outsourcing Business Processes to the USA
Business Process Outsourcing Unit – BPOU Business Process Outsourcing is a process of hiring another company to handle business activities for you. A BPO is different from the aspects of an IT outsourcing as an IT outsourcing unit focuses on hiring a third-party company or service provider to do IT-related activities, such as application development […]
What do the W-2, Box 12 codes mean?
The W2 Box 12 codes are: A — Uncollected Social Security or RRTA tax on tips. Include this tax on Form 1040 Schedule 4 line 58. B — Uncollected Medicare tax on tips. Include this tax on Form 1040 Schedule 4 line 58. C — Taxable costs of group-term life insurance over $50,000 (included in […]