Many Illinois not-for-profit corporations, both in the Chicago area and in other parts of the state, may wish to try to take advantage of a special tax-exempt status awarded by the Internal Revenue Service, or IRS.
When a person runs into a controversy over how much they owe in taxes to the United States, he or she, personally or in the name of a business, may take the matter before the United States Tax Court.
Previous posts on this blog have talked about how businesses of all sizes in Illinois have an obligation to withhold federal and state payroll taxes from employees. They do not have to do so with respect to independent contractors who work for their business on occasion.
The distinction between and employee and an independent contractor is an important one for business owners to keep in mind, as it has all sorts of legal implications that cover a number of issues, including workers' compensation, employee benefits and the like.
Payroll taxes are taxes that are withheld and paid by an employer on behalf of an employee. Failure to properly handle payroll taxes can result in serious consequences and potential penalties which is why it is important to be familiar with the requirements associated with payroll taxes.