| Basis of Stock in an S Corporation |
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| In a C corporation, a shareholder's basis in his or her stock is generally its cost. However, in an S corporation, items of income taxed to shareholders increase their basis, while distributions decrease their basis. More... |
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| Cemetery Companies |
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| An organization that operates solely for the purpose of disposing of human bodies by burial or cremation may be entitled to tax-exempt status under Internal Revenue Code Section 501(c)(13). A cemetery company is not permitted to engage in any business not necessarily incident to that purpose, such as operating a mortuary. However, an organization that sells monuments, markers, vaults, and flowers solely for use in the cemetery will not lose its tax-exempt status. More... |
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| Rent as a Business Expense |
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| Many businesses pay rent for the use of property. In general, a taxpayer can deduct rent paid as an expense only if the property rented is used in the business and the taxpayer does not have nor will he receive equity in or title to the property.More... |
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| History of the Internal Revenue Service |
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| Believe it or not, the Internal Revenue Service did not come over to this country on the Mayflower with the Pilgrims. The agency's history goes back to 1862 when Congress and President Lincoln created the position of the Commissioner of the Internal Revenue and enacted the first income tax to pay for the Civil War. After that tax was repealed on the ground that it was a direct tax and not apportioned among the states on the basis of population, Congress revived the income tax in 1894, but the Supreme Court determined that it was unconstitutional.More... |
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| Tax Preparer Penalties |
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| Civil PenaltiesMore... |
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