Glossary: Partnership
A partnership is a business with two or more owners who conduct business and are not incorporated.
Glossary: Form K-1
Form K-1 is a reporting form issued by partnerships, S-Corporations, estates and trusts. Form K-1 reports an individual shareholder’s or beneficiary’s share of the entity’s income and deductions for the year.
Glossary: C-Corporation
A C-corporation is a tax term referring to one of two ways a corporation can be taxed.
Glossary: Payroll Taxes
Payroll tax refers to taxes an employer pays when the employer has employees.
Glossary: ROBS Transactions
In the tax world, the term “ROBS” stands for “Rollover for Business Startup.” In a ROBS transaction, a person uses existing retirement account money to fund the startup of a new business, and if done right, the transaction is tax-free.
Glossary: RTRP
RTRP stands for Registered Tax Return Preparer, a program/designation the IRS tried to get off the ground a few years ago. The RTRP program would have required unlicensed tax preparers to pass an open-book exam before they could prepare tax returns. The IRS ended up losing a court battle, and the RTRP program was shelved.
Glossary: Cost of Goods Sold
Cost of goods sold refers to a deduction from gross income for the cost of producing or acquiring items sold by a business.
Glossary: Sales Tax
Sales tax refers to a tax levied by a state on the sale of certain goods and services. Different states have different tax rates and different rules on what is subject to sales tax.
Glossary: Annual Filing Season Program
The Annual Filing Season Program (AFSP) is a voluntary IRS program to recognize certain tax preparers who are not EAs, CPAs or attorneys.
Glossary: ACA Surtaxes
ACA surtaxes can refer to one of two new taxes created by the Affordable Care Act. 1) A 0.9% surtax on wages above $200,000 for a single person, and $250,000 for a married person, and 2) A 3,8% surtax on investment income for people whose income is above $200,000 if single and $250,000 if married.