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Tricia A. Sprankle Archive

Business Partner Pitfalls: Fiduciary Duty in a Close Corporation

Amy has the experience and connections. Betty has the money. Together they open a little shop. The grand opening of A&B is a dream come true. They have properly incorporated, hired a CPA, drafted a business plan, carefully selected employees, obtained insurance, and got a great deal with suppliers. When...     go to full article »»

Posted on December 12, 2007 |

Stock Exchange: Traps for the Unwary Sole Proprietor

Converting a sole proprietorship into a corporation seems like a simple matter of filing Articles of Incorporation, issuing stock certificates and adopting By-laws. No need to pay the lawyers or CPAs more money, right? You risk some serious tax consequences by failing to plan your transaction appropriately. A conversion from...     go to full article »»

Posted on November 6, 2007 |

No Kidding -- More Kiddie Tax

The Small Business and Work Opportunity Tax Act of 2007 was signed into law on May 25, 2007. Included int eh Act are various small business tax incentives and a few revenue raisers such as new and enhanced penalties and broadening of the kiddie tax. Previously, a child subject to...     go to full article »»

Posted on June 12, 2007 |

A Tip on Tip Reporting: Filing Deadline for Food and Beverage Industry

The Internal Revenue Service released a publication further explaining the Attributed Tip Income Program (ATIP), a voluntary alternative tip reporting program for the food and beverage industry. For calendar year 2007 only, employers are allowed until June 30,2007 (rather than Feb. 28, 2007 when they timely filed Form 8027 information...     go to full article »»

Posted on May 31, 2007 |

Business Practice Tip: re: Your Business Tax Records

The Tax Court upheld IRS practice of using bank deposit reconstruction to determine self-employed internet entrepreneur’s unreported income. Bank deposits are prima facie evidence of income. The taxpayer failed to keep adequate records of his business receipts and other income. All bank deposits were considered regular taxable income without regard...     go to full article »»

Posted on January 12, 2006 |

How To Stop Identity Theft In 30 Minutes

Your credit card bill just arrived in the mail and you notice a $500 charge for a lawnmower from a home improvement store in Illinois. Wait a minute...you don't have a lawn and you certainly don't live in Illinois! It's identity theft. Quick! What do you do next? Step 1...     go to full article »»

Posted on September 16, 2005 |

Roth IRA Timing Rules

For 2005, a taxpayer can make a Roth IRA contribution equal to the lesser of (1) $4,000 (up to $4,500 if he is age 50 or older), or 100% of the compensation that痴 includible in his gross income for that year. The maximum Roth IRA contribution is reduced by amounts...     go to full article »»

Posted on September 16, 2005 |

Consensual Relationships and the Discrimination That Follows

When a married supervisor conducts longstanding, concurrent affairs with three female subordinates at work and grants them professional favors over more deserving candidates, does it constitute unlawful sexual harassment? In Miller v. Department of Corrections, the California Supreme Court has held that it does, despite a longstanding reluctance by courts...     go to full article »»

Posted on September 16, 2005 |

Businesses Need Estate Planning Too!

Small business owners should consider what will happen to the business in the event of the death of a shareholder. Typically, corporations will use a Key Man Insurance policy to fund either a Buy-Sell Agreement or Cross-Purchase Agreement among the shareholders. The following are benefits and concerns for each type...     go to full article »»

Posted on September 23, 2004 |