Washington Tax Letter: IRS Asks for Curb on Interest-Free Loans and Other Tax "Loopholes"
Article Abstract:
The Internal Revenue Service (IRS) is moving to better examine tax shelter abuse. The IRS wants to close two loopholes: (1) the device used by high income taxpayers who shift the tax burden to lower income taxpayers by utilizing interest-free loans and (2) the method of corporations escaping taxes on eighty-five per cent of dividends on stock which they borrow to maintain in domestic corporations. Other IRS actions include: enlargement of staff, an improved computer system and a research study of taxpayer cheating. Cases reviewed concern income reporting fraud, negligence and frivolous return matters.
Publication Name: The Professional Report
Subject: Business, general
ISSN: 0890-9288
Year: 1984
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How to Follow the Prudent Man's Standard If You Manage Your Company's Retirement Plan
Article Abstract:
Often company retirement plans are managed by the owners of closely held corporations. These individuals are plan fiduciaries who try to save administrative costs and Keep close watch on the plans. The law seeks to protect pension plan beneficiaries by requiring a particular level of performance from fiduciaries. Fiduciaries must provide benefits and pay for plan administration. The standard they must maintain is termed the 'prudent man standard'. The components of the standard and ways to insure it being followed are described.
Publication Name: The Professional Report
Subject: Business, general
ISSN: 0890-9288
Year: 1984
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Company Retirement or Compensation Plans Can Shelter Investment Income from Taxes
Article Abstract:
Tax shelter opportunities for high-bracket business owners are detailed. Three plans are included: the salary reduction plan, the employee savings plan, and the deferred compensation arrangement. Specific considerations with each plan are listed. These plans can affect other retirement and compensation plans that a company previously had voluntary contributions to a company pension plan also provide tax-deferred earnings.
Publication Name: The Professional Report
Subject: Business, general
ISSN: 0890-9288
Year: 1984
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