The next few months may provide a last chance opportunity for taxpayers who itemize deductions to deduct state and local sales taxes in lieu of state and local income taxes. That's because, the option to deduct sales taxes is set to expire at the end of 2005. Accordingly, individuals who are … [Read more...]

On Social Security Online, Automatic Increases, Contribution and Benefit Base, (http://www.ssa.gov/OACT/COLA/cbb.html ), the Social Security Administration has announced that the wage base for computing the Social Security tax (OASDI) in 2006 rises to $94,200 from $90,000 in 2005, an increase of … [Read more...]

In response to the recent dramatic gas price increases, IRS has announced that the optional standard mileage rate has increased 8¢ to 48.5¢ a mile for all business miles driven between Sept. 1 and Dec. 31, 2005, up from 40.5¢ for the first eight months of 2005. The rate for computing deductible … [Read more...]

If your medical practice corporation has elected S status, this is for you: "IRS LAUNCHES STUDY OF S CORPORATION REPORTING COMPLIANCE IRS officials have announced the launch of a study to assess the reporting compliance of S corporations. The study, carried out under the National Research … [Read more...]

Many physician shareholders in S corporations incur expenses out of their own pocket that do not get or have not yet been reimbursed by the corporation. If "ordinary and necessary" to the corporation's business, the corporation deducts these expenses on its tax return. A recent tax case addressed … [Read more...]