The Federal Tax Credits Blog

Posts Tagged ‘tax’

Question: Accounting for Tax Refunds according to GAAP?

Hi Everyone,

I’m just wondering how a C-Corporation would properly record receiving a tax refund according to GAAP. I’ve heard some say that returned taxes should be included as the income statement as revenue, and others say that it should be recorded as a credit to the tax expense account.

In particular, the company has paid taxes on a certain type of revenue that, by law, it didn’t owe in the first place. The money was returned to the corporation a few years later by the Department of Revenue.

I don’t have access to GAAP itself or the FASB Codification. I tried to search through IRS guidelines, but couldn’t find anything that specifically cited that this type of returned tax should be classified as revenue on the corporation’s books or not. Could an experienced person please help out? If possible, please reference or at least point me in the right direction as to what your source is. Thanks so much and I appreciate your time!

Answer: In 45 years of accounting and taxation I’ve never heard of anyone treating a tax refund as revenue. You simply debit cash and credit the relevant account that was debited when it was originally paid.

Reforms to the Foreign Investment Real Property Tax Act Will Spur Investment, Create Jobs and Encourage Economic Growth

Contact: Scott Sherwood, +1-202-639-8400, sherwood@rer.org; Xenia (Ksen’ya) Jowyk, +1-202-639-8400, xjowyk@rer.org

$8000 Federal Tax Credit Explained (We Buy Houses Maryland DC VA)

Question: do you know if the tax credit only applies to wood stoves?

what about wood furnaces? i just installed one in my home and was wondering if the wood furnaces qualify. becuz all i can find info on is wood stoves.

Answer: yes it does, need qualified installer that gives you receipt and proof of furnace. or maybe seller of same can give you receipt.

HearthStone Tribute Wood Stove Basics

Question: How much do rental car companies hold on your credit card?

I am renting a car from Alamo at SEA-TAC airport for $57 including taxes. How much will they hold on my credit card when I pick up the car?

Answer: The full price of rental and all fees DUH!!!!!

Spain—2011 Article IV Consultation Concluding Statement of the Mission

In the face of serious economic and financial challenges, the authorities implemented a strong and wide-ranging policy response over the last year. This has helped the economy to gradually recover and get the necessary rebalancing underway.

California Tax 9 Credit for New Home Buyers

Question: Can I file my taxes, get my refund, and then file an amendment to get the home buyer tax credit?

My boyfriend and I purchased our first home last September and now I want to claim the $8000 home buyer credit, the one you don’t have to pay back. I know that we qualify for it but while I was preparing my taxes an FYI came up that said that not only can’t I e-file because of the credit, but also that the IRS wasn’t going to process returns based on the home buyer credit until late March. I have a refund coming to me over and above my half of the home buyer credit. I thought maybe I could process my return without it, e-file and get that refund, then process an amendment for the $4000. Does anyone know if that will work or am I going to his road blocks because of it?

Answer: Yes you could do that , but let me tell you that amendments 1040x are not pretty, specially if you are planning to do it yourself, you need to do a 1040 with schedules and receipts for the wrong amount and then another one with the new amount you can’t do it online and you probably will have to do both state and federal and sometimes can get very complicated. Not just for you but also the clerks that processed that sometimes get confuse and then you have to keep calling them to fix it

Question: PA child support question?

I received a letter about 2 weeks ago stating that i will be receiving my ex’s tax refund. i have gotten these letters in the past and it says about it being withheld for 6 mths cuz hes filed jointly. i have never waited 6 mths before. i looked online and i saw that in pa it says that if she filed an injured spouse form at the time they filed, domestics will hold it for 90 days from the date of offset. my question is….how do i determine when the date of offset is? do i take it from the time they filed, or from the date on my letter? im pretty sure she has already filed this from. also…domestics already credited the amount to the arrears. how can they do this, yet not give me my money? if it is credited it towards his arrears, shouldnt they give me the money? thanks in advanced

Answer: Try the law category.

Village News

•GWA customers may now pay their bills over the phone by calling 647-4729 from 8 a.m. to 5 p.m. Monday through Friday. Customers may still go to the upper Tumon office, open 7:30 a.m. to 6 p.m. Monday through Friday to pay by credit card, cash or check; or you may pay online: www.guamwaterworks.org (click on box Pay GWA). Call 647-2603.

Benefity i podatki w UK – Working i child tax credit 3