SELLER FINANCING, INCLUDES A ORANGE COUNTY LIQUOR LICENSE (worth $300K)The stated Annualization
is right on through August
Although the annualization
method is intended as a safe harbor for computing quarterly installments, in practice the new regulations leave some questions unanswered, casting uncertainty on how "safe" the safe harbor is.
Occasionally we list multiple extra items--such as financial planning, a yearend tax planning meeting, additional services in connection with the sale of rental property, researching cost basis of mutual funds sold, calculation of S corporation basis, preparation of the next year's estimated taxes, prior years' income annualization
for estimated tax penalty reduction, alternative minimum tax credit calculation or any of a few dozen other items.
Other TEI representatives agreed that such a safe harbor would be better than the annualization
method, which is the only safe harbor available to corporations now and which is extraordinarily complicated.
Based on an annualization
of year to date (YTD) September 2002 cash flow and an adjustment to reflect the MCI Worldcom vacancy, Fitch NCF has decreased 29% since issuance.
School districts that choose to offer the annualization
election to their teachers do not need to make any changes prior to 2008, and their employees will not be subject to additional taxes under Sec.
This letter responds to Acting Assistant Secretary Fields's and your request for TEI's comments on the annualization
rules for corporate estimated tax payments under section 6655 of the Internal Revenue Code.
For those subject to the new rules, an additional annualization
The FAA's 1994 Transition Plan and later documents clearly stated that "personnel compensation and benefits, including locality pay, 5 percent pay for Air Traffic Controllers, associated pay raises and annualization
will be transferred for all personnel selected from the GS-2152 series.
The tax adviser would need to determine whether the use of the initial loss in the personal returns through the S election outweighs the extra corporate tax costs that might be incurred because of the tax rate annualization
requirement accompanying midyear conversions to C status.
Absent a first-quarter election to use different annualization
periods, each required payment is generally due by the 15th day of the 4th, 6th, 9th, and 12th month of each fiscal year.
For an individual using the annualization
method, the quarterly payments must be at least 90% of the tax due determined by annualizing taxable income for "the months in the taxable year ending before the due date of the installment" (Sec.