Thursday, December 7, 2006

TELEPHONE TAX -S Corporations and Partnerships

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Apparently each partnership and S corporation will receive its own refund and not have to pass the credit amount through to its partners/shareholder(s) via Schedules K-1. Even without that complication an individual could conceivably have a credit/refund due from all of the following:
His personal phone bill, $30 to $60 depending on the number of exemptions
A business (ScheduleC)
A farm (ScheduleF)
Rental property (Schedule E)
The IRS recently released a draft of new F-8913, but it doesn't appear to contemplate all these different sources of credits. Nor does it allow for the simplified method of computing either the individual credit or the various business credits.Perhaps the IRS will allow, or require, more than one F-8913 to be attached to a personal return. It will interesting to see if and how F-8913 is revised to incorporate all these possibilities.

This information is not intended to be advice to the recipient.In compliance with Treasury Department Circular 230, unless stated to the contrary, any Federal Tax advice contained in this correspondence was not intended or written to be used and cannot be used for the purposes of avoiding penalties.