The straight line

Concerned about global warming and other environmental challenges, many businesses are going “green.” Besides being socially responsible, employers may derive some tax benefits.

In general, you must keep records that support items shown on your individual tax return until the statute of limitations runs out -- generally three years from the due date of the return, or the date you filed, whichever is later. In most cases, the IRS can audit your return for three years. You can also file an amended return on Form 1040X during this time period if you missed a deduction, overlooked a credit or misreported income.

Gardiner Thomsen is a member of several associations that help us provide our clients with the highest quality of service.

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.

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.

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.