| Overview of Section 401k Plans |
| A section 401(k) plan is a type of deferred compensation plan that permits an employee to have his employer set aside a portion of his or her wages in the plan on a pre-tax basis. Upon making an election to participate in a 401(k) plan, the contributed wages are not subject to income tax withholding at the time of the deferral. Thus, they are not taxable wages at that time. However, they are subject to Social Security, Medicare, and federal unemployment taxes. More... |
| Partnership Income or Loss |
| Even though a partnership is not a taxable entity for federal income tax purposes, it is treated as a separate entity from its partners for the purpose of computing and characterizing partnership income. The partnership has an obligation to file an information-only tax return, which gives a complete tax accounting of partnership operations for the tax year.More... |
| Abusive Tax Schemes Involving Indian Tribal Governments |
| Federally recognized tribes are sovereign legal entities, similar to state governments, with all the rights and attributes of a sovereign entity such as a state. They have a constitutionally guaranteed status as sovereign entities. An Indian tribe, as an income producing entity, is not subject to income taxation. However, income earned, if not otherwise exempt from income taxation, must included in the gross income of the Indian tribal member when distributed or constructively received by the tribal member.More... |
| Exclusion of Meals Furnished by an Employer from Gross Income |
| In general, the value of meals provided by or on behalf of an employer to an employee, the employee's spouse, or his or her dependents is not included in the employee's gross income if two conditions are met. First, the meals must be furnished on the premises of the employer, and second, the meals must be furnished for the convenience of the employer. The exclusion only applies to meals furnished by an employer and not to cash reimbursements for meals.More... |
| Business Leagues and Trade Organizations |
| In order to qualify for tax-exempt status under Internal Revenue Code Section 501(c)(6), an association must show that it is devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. The organization seeking tax-exempt status as a nonprofit business league, chamber of commerce, real estate board, or professional football league must do more than indicate the name of the organization or the object of the local statute under which it is created.More... |
Frank M. Polasky, Attorney, PLC
Attorney at Law
