The straight line

IRS Ruling on Payroll Taxes and Retirees

The IRS says that a retiree who had been provided medical benefits by his prior employer owes FICA taxes on any cash payments received in lieu of continuing medical benefits. The payment is considered to be salary – and thus subject to payroll taxes because it relates to a benefit from a prior employment relationship.

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Helping Americans “Feed the Pig”

Encourage your clients and customers to ‘feed’ their piggy banks! ’Feed the Pig™‘ is a national multi-media public-service announcement campaign with a dedicated Web site, www.FeedthePig.org, that provides free financial information and tools to help people take control of their finances and build long-term financial security.

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IRS Form 990C vs. 1120 vs. 1120C

For the 2006 filing year, the Internal Revenue Service changed the cooperative tax reporting form from 990C to 1120C. Almost immediately, problems arose. The IRS was not set up to accept tax deposits for form 1120C so the deposits were recorded as 1120. The IRS assured us that they would automatically reclassify 1120 payments to 1120C for all taxpayers that had previously filed form 990C.

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