What To Do With Your EIN When Hiring New Employees
Recently we were asked if a single-member limited liability company (LLC) has to get a new EIN after it hired an employee. Again we provide the typical lawyer’s answer, which is “it depends.” The Internal Revenue Service (IRS) rules regarding this situation are as follows: Single Member LLCs with Employees. For wages paid on or […]
Changing Your EIN When Your Business Name Changes
A client recently changed the name of their business and asked whether they must obtain a new Employer Identification Number (EIN) from the Internal Revenue Service (IRS). First, check whether your type of entity needs a new EIN if it changes its name. If a new EIN is not necessary, then the business must change […]
Residential Purchase Volume Increases Due, in Part, to Tax Credit Soon to Expire
The Pending Home Sales Index (PHSI) is an index created by the National Association of Realtors (“NAR”) to measure housing contract activity, which is released the first week of each month. PHSI analyzes the relationship between existing home sale contracts and transaction closings over the last four years. As of September 2009, contract activity for pending […]
Tax Form 982 and Mortgage Forgiveness Debt Relief Act
Homeowners whose mortgage debt is partly or entirely forgiven during the calendar years of 2007 through 2012 are able to claim tax relief by filling out the newly-revised Form 982, filing it with the Internal Revenue Service, and submitting it with their year-end federal tax returns. Normally, when a bank gives a homeowner debt forgiveness […]
Income Tax Considerations Involved in a Short Sale or Foreclosure
If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the canceled amount as income for tax purposes. You should determine whether you will qualify for an exemption before your contemplated short sale or foreclosure closes. You may become obligated to the IRS instead […]
IRS Prosecutes First-Time Homebuyer Credit Cheats
The Internal Revenue Service announced on July 29, 2009, its first successful prosecution related to fraud involving the first-time homebuyer credit (FTHC). On its website, the IRS warned taxpayers to beware of this type of scheme. On Thursday, July 23, 2009, tax preparer James Otto Price III, from Jacksonville, Florida, pled guilty to falsely claiming […]