| Partnership Tax Year |
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| Generally, a partnership is required to use the same tax year as a majority of its owners. If one or more of the partners having the same tax year owns a majority interest in the business, the partnership must use the tax year of those partners. A majority interest is defined as an interest in more than half of the partnership's profits and capital. When the owners are individuals, their tax year is usually the calendar year. More... |
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| Social Welfare Organizations |
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| An organization that operates only to promote social welfare may qualify for tax-exempt status under Internal Revenue Code Section 501(c)(4). The organization must be operated exclusively to promote social welfare, which means that it must work primarily to further the common good and general welfare of the community, such as by bringing about civic betterment and social improvements. No part of the organization's net earnings may benefit any private shareholder or individual, and if the organization provides an excess benefit to certain persons, the Internal Revenue Service may impose an excise tax on the group. More... |
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| Enforcement Against Nonfilers |
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| It is the obligation of all citizens and residents to comply with the requirements of the tax laws by filing returns and paying taxes. The Internal Revenue Service takes the position that taxpayers who fail to file income tax returns and who stop paying taxes pose a serious threat to the economy of the nation. Therefore, the IRS is using its Criminal Investigation personnel for outreach, education, and enforcement of the tax laws if they have been violated. More... |
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| Household Employees |
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| A few years ago, there were a number of scandals involving federal nominees or officials who had failed to pay "nanny" taxes on their employees. Despite the fact that many household employees request "under the table" payments in cash and that many employers do not want to bothered with the paperwork or additional expense, employers who do not make the required withholdings and payments may be subject to interest and penalties assessed by the Internal Revenue Service. More... |
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| Taxation of Personal Service Corporations |
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| Although most corporations are entitled to calculate their tax using graduated rates, there is an exception for "qualified personal service" corporations, which are subject to a flat tax rate of 35 percent. A corporation is a qualified personal service corporation if it meets certain tests. More... |
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