- January 26th, 2013
- John Dillard
- Income Tax Preparation of Corporate & Personal Income Taxes
A large part of our practice centers around helping our clients get to where they want to go. Much of that has to do with putting ourselves in the place of our clients and indeed serving them the way we would want to be served. The below is a sample letter we might send a client to assist with and properly guide them through the tax preparation process:
Got your corporate data today…to complete return I need ASAP:
What the face amount of the Life Insurance as tax law will not allow us to deduct more than the equivalent of a 50K face Life Insurance policy.
Please be reminded that tax law will not allow us to deduct the $6,000 of Medical Insurance Premiums paid on behalf of owners of an S Corporation unless they also have an W-2 at least equal to this full amount.
Please be reminded that:
Tax Law requires all active employee owners to take a fair and reasonable salary given position and profit. The best indication of what this amount would be what an owner would have to pay an independent party to perform their official duties.
Please be reminded that I still need the data for the personal return.
“Dare to Attempt Something so Great for the Kingdom of God, that it is Doomed to Failure Lest God be in it!”