Albert E. Bergen, CPA

Federal

Storm Extends March Deadline for Some

Calendar-year S-corporations and partnerships who would have had a March 15 federal filing due-date have been been granted additional time to file for an extension, if they were affected by Winter Storm Stella.  Form 7004, which S-corps and partnerships use to request an additional six months to file their returns, would otherwise have been due…
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Real Estate Professional Taxes

Photo of 384 Court Street Auburn, ME 04210

Who is a Real Estate Professional One of my most popular blog articles describes how most small landlords are not required to file 1099s for work done on their properties.  That’s true for small landlords, but not for real estate professionals. Some landlords’ real estate activities rise to the level of being a business.  But what constitutes…
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Keep Real Estate Out of Your Corporation

Photo of 384 Court Street Auburn, ME 04210

Including the wrong kinds of assets in a corporation can be an expensive mistake. Things that are worth more over time, like investments, collectibles, and especially real estate, should be kept out of a closely-held corporation.  This mistake costs more for C-corporations than for S-corporations, but even  S-corps should be cautious about what assets they hold.  Business real estate…
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Identity Verification Letters (IRS 5071C)

Have you received an identity verification letter from the IRS??  While there are always a lot of scammers trying to impersonate the IRS, the IRS does send identity verification letters out to some taxpayers.  Real identify verification contacts will always come by paper mail.  are never sent by telephone or e-mail.  A real identity verification…
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Don’t incorporate too early!

Empty conference table in corporate board room.

The decision to incorporate is often one of the first choices new business owners makes, even before they’ve drafted a business plan or secured start-up capital.  In many cases, this can turn out to be a costly mistake.  While it’s true that incorporating a profitable business can sometimes yield tax savings, most businesses lose money…
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