Accounting methods determine timing of income and deduction
Article Abstract:
The IRS mandates that rent-to-own (RTO) contracts should be considered as installment sales for federal income tax purposes. The agency avers that, in instances when RTO contracts are categorized as rental transactions, the lessor companies are required to calculate depreciation through the MACRS life with respect to the rental property, instead of the income forecast technique. Given that this shift in accounting methods could raise taxes of the RTO industry by as much as $1 billion, accountants should make sure that the best possible acceptable accounting method is selected. The two most common accounting methods are the cash method and the accrual method. The former is used by taxpayers generating income from the performance of services while the latter is used by those deriving income primarily from merchandise sale. Accountants must consider the income tax law as well as the nature of the trade or business in selecting an accounting method.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1996
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How IRS will determine who is an employee
Article Abstract:
The IRS presents a list of 20 factors designed to serve as guides for assessing whether or not an individual is considered an employee for tax purposes. Factors include: worker receipt of instructions, provision of training, integration of the worker into business operations, personal rendering of services, personnel management, continuity of relationship, established work hours, full-time schedule, performance of work on company premises, set order of work sequence, frequency of reporting to others, payment by time rather than job, provision of tools by employer, realization of loss or profit, service performed for more than one company at a time, service made available to the general public, right to discharge, and right to fire.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1987
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How to Complain to the IRS
Article Abstract:
Even though the Internal Revenue Service (IRS) is highly automated, and processes about 171 million tax returns, most without any problems, there are still hundreds of thousands of people who have tax problems and get caught up in seemingly endless bureaucratic red tape. What most people do not know about, however, is the existence of problem-resolution officers (PROs), IRS employees whose job is to help taxpayers untangle all the problems they encounter. Usually they are remarkably effective at solving all the problems encountered by taxpayers. But if no results are forthcoming from an often uncooperative IRS, the most direct route for problem resolution may often be a court of law or direct contact with a member of Congress.
Publication Name: Money
Subject: Business
ISSN: 0149-4953
Year: 1984
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