House Ways and Means Committee want change

There will be some tax changes in 2008.
Please follow this link.
http://www.nytimes.com/2007/10/25/business/
25tax.html?ei=5065&en=31231402be1b4a0a&ex=
1193976000&partner=
MYWAY&pagewanted=print

Just copy and past the link into your browser.

Tax Season Ends

Tax season officially ends today. This is October 15, 2007. The next season starts in just three months. The news for now is that the IRS is stepping up audits for all tax payers. There will again be line by line audits done countrywide. These audits will be line by line audits to determine all of the deductions and all of the income. There will be as of this writing 13,000 in the US.

The IRS has also stepped up the audit of Sub Chapter S Corporations. The specific target SUBS corps will be those that do not have payroll. If you own a SubS corp and do not have payroll your chance of being audited is extremely high. One rule of thumb is to pay each member of the SubS payroll of at least 35-40% of the taxable income before the deduction of this payroll. For example if your gross income is $100,000 your payroll to the owners should be $35,000 to $40,000.

This is real payroll with real withholding. My recommendation is to use a payroll company to do the filing for you. Use a firm like ADP. If you need a referral please call my office.