Published on January 11
Expenses incurred entertaining customers, clients, and employees are often deductible under 26 U.S.C. § 274. Because the rules are quite detailed and contain a collection of exceptions and specific treatments of specific forms of entertainment, including foreign travel, conventions, and cruises, it is particularly important that taxpayers consult with a reputable lawyer or accountant to insure compliance.
Deductible Entertainment
Entertainment is defined by the IRS as any activity that provides amusement or recreation. Entertainment can also include meals. Expenses related to the entertainment such as taxes, tip, cover charge, parking, or room rental fees also qualify as part of the cost of …
Added in Employment, Helpful Business Info, Taxation
Published on January 7
A Not-For-Profit Corporation Is Not Automatically a Tax Exempt Organization.
There is often confusion between a not-for-profit corporation and a tax exempt organization. They are not necessarily one in the same. A not-for-profit corporation is organized under the law of a state for non-profit purposes. A tax exempt organization is a designation granted by the Internal Revenue Service of the Federal Government.
What is a Tax Exempt Organization?
A tax exempt organization is an entity granted immunity from taxation by the Federal Government in accordance with §501 of the Internal Revenue Code of the United States (26 U.S.C. §501). There are numerous types …
Added in Corporations, Taxation
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