Hurricane Sandy Relief Resurces

Small Tax-Exempt Organizations

Small tax-exempt organizations affected by Hurricane Sandy have until February 1, 2013 to apply for reinstatement of their exempt status.   

Who Qualifies?  The organization’s principal place of business or its records must be located in the covered disaster area. Organizations located outside the affected areas must still apply for transitional relief by December 31, 2012.

Employer-Sponsored Retirement Plans

The Internal Revenue Service announced that 401(k)s and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Sandy and members of their families.

Source: http:///www.irs.gov

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Year end tax saving tips

Year-end tax savings tips

We all want to save in taxes and there are few suggestions:

• Pay the 2013 property taxes due in December 2012.
• Take advantage of all Tax Provisions that expire by year-end this year instead of next year.
• Realize capital gains by year end.
• Bunch all medical deductions, if you can, in one year.
• Selling capital assets this year.
• Etc...

Why this can be beneficial?

It will all depend on your income, the new tax changes, and the expiring provisions coming into next year.  They are talks about a raise in the tax rates, expiration and elimination of some tax provisions, and higher income thresholds. Everything is on the table for congress next month and there is speculation of a compromise.

Hire an Accountant or a Tax Attorney to see how these could impact your taxes.

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IRS factors to consider by courts in determining whether an individual is an employee or an independent contractor

The IRS defines an "employee" for employment tax purposes as "any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee."   The facts that provide evidence can fall in three major categories: Behavioral Control; Financial Control; and Types of Relationship.

What fators weight more than others?

Under common law rules, prior court cases had placed emphasis on the direct control and the method and manner in which the work is to be done.

Few of the many factors the IRS consider are:

1- the degree of control exercised by the principal;

2-whch party invests in the work facilities used by the worker;

3-the opportunity of the individual for profit or loss;

4-whether the principal can discharge the individual

5-whether the work is part of the principal's regular business;

6-the permanency of the relationship;

7-whether the worker is paid by the job or by the time;

8-the relationship the parties believed they were creating;

9-the provision of employee benefits;

10-training provided by the employer;

11-set hours of work;

12-doing work on the employer's premises;

13-furnishing tools and materials;

14-worker not making his/her services available to the general public on a regular and consistent basis;

15-requiring the worker to submit oral or written reports;

16-requiring the worker to provide the job on a sequence or order set by the employer;

17-a requirement that the work be performed personally;and

18-any other factors that the court determine relevant and based on the evidence presented under the circumstances.

The Texas Workforce Commission (TWC) have their own set of rules in their determination.  For a clear understanding of the man factors, you must consult the TWC, IRS regulations.

Source(s): various IRCs like Sec 3121 and  Sec. 3003.

May want to consult your tax attorney. 

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