Tag Archives: IRS

Pete’s Posts

March 2012 The IRS allows you to make a gift of $13,000 per year without gift tax consequences (subject to certain limitations). However, any gift in excess of that amount must be reported on a Form 709 (Gift Tax Return). Recently, the IRS has started an initiative to enforce the laws regarding unreported gifts, especially […]

Income Taxes

Is Severance Considered Compensation?

There has been some discussion regarding the designation of severance pay for tax purposes. Is it considered compensation? The Supreme Court of the United States is hearing a case to determine if a severance payment made to an employee upon termination of employment should be considered compensation subject to FICA and Medicare taxes. If found […]

Income Taxes, Risk Management

IRS Changes for Automatic Gratuities

“Gratuity included” may be a thing of the past for many restaurants. It is a common practice for a restaurant to add an 18% gratuity for parties over 6 people. Starting in January 2014, these automatic gratuities will be treated as wages paid by the restaurant to the server and subject to payroll taxes. According […]

Income Taxes, Risk Management