IRS tax "Grab"

Grab penalty choking physician (The Series One)

~What surplus funds allocation process documents are........?

Author:

Lai Jia Yi, director of the accounting firm of Accountants macro dimension

Financial Management Soochow University lecturer

Soochow University Department of Accounting Outstanding Alumni

Certified Public Accountant exam pass the American Republic passed the exam

Example

Doctor Xu for orthopedic surgeons physicians, in addition to skillful and careful consultation between cordial, but has also been awarded the Business Week poll recommended as one of Taiwan Baida good doctor, popular places people love.

Doctor Xu Like most physicians as busy in the affairs of the clinic patients, in the child's growth process is always a lack of participation, and shortly Xiaoqian daughter of the United States to apply for a full scholarship to Ivy League schools offer prepare the United States attending college, because rest assured Mrs. Hsu daughter decided to no less than the United States, "read along" in order to take care of her daughter's life a living nearby. From Doctor Xu will become the airline's super VIP customers, every month attending the clinic will be closed off two weeks, Doctor Xu launched the so-called "trapeze" lifestyle.

However, Doctor Xu although Hugh attending the clinic's time to exchange along with his wife the daughter of space, but after all the individual physician to see the doctor is unable to repair the charm of long-term off-patients attending clinics immediate needs and impatience of waiting.

So, Doctor Xu has been actively contact with the school brother Doctor Hong, even hired Doctor Hong joined the ranks of clinics to see the doctor, in addition to the high monthly remuneration to see the doctor, plus two months of year-end bonuses, for the clinic to show the greatest sincerity and doctor Hong as a partner physician group practice clinics, in May when the annual income tax returns, Doctor Xu partnership with doctor Hong each clinic surplus distribution ratio 50%, according to declare the income from clinics.

Two years later the IRS actually advocate partnership Doctor Xu and Doctor Hong's not true, and further to the person in charge of the clinic Doctor Xu back taxes, that would declare to the clinic owned by a partnership, all integrated into the clinic Doctor Xu surplus personal execution business income. Doctor Xu is not satisfied, inform the IRS filed the review application, the fact that the clinic partnership of advocates, including Doctor Hong excellent learning experience is a plus background on the effect of the clinic, as well as the fact that the resulting daughter studying abroad Xiaoqian clinic does require physicians to join partnership in order to share the clinic affairs, etc. "Love Qi face demands," there arbiter can expect the IRS perspicacious. After the IRS receives Doctor Xu Legal Division review application, he sent someone to reply to Doctor Xu ad hoc studies and documents as attachments, Doctor Xu looked at the documents disappointed, puzzled face sweating fog Thinking about what "relevant financial documents surplus allocation process" is ...?

Tax resolve:

According to the IRS joint practice for the implementation of the province's business principles and auditing standards of partnership income recognized special emphasis: If the joint practitioner or a partner can not prompt investor related documents (force) certificates and surplus allocation, regarded as wholly management, all proceeds go lesson responsible person. The so-called surplus allocation related documents as shown in the aforementioned documents must be assigned to the clinic and have wider transfer surplus deposit blessing or money order, etc. It is easy to adduce evidence to prove there is a "real" distribution of surplus "action" and the calculation of the proportion of the surplus distribution and At that time the proportion of consolidated income tax return must be consistent.

Lai accountants recommend:

Physicians on the "partnership" with the IRS definition of "partnership" should have the substantive conditions tend to have gaps cognitive, Often in the face of the IRS partnership focused on matters related to the question and answer were "feeling Qi face demands", for example, because of factors to take into account not possible to quantify the quality of life, strengthen medical clinic lineup and expand its operations so that such description is difficult to convince the IRS examiners. Jufan tax burden on the most direct evidence of the force is also the most "money signs," such as money remittance other than cash flow or transfer, often can easily help you tell a story, the fact that the so-called partner reduction identification; opposite If it is very sincere, said: I swear, we are all for cash, "I am afraid of the case does not help.

Therefore, the proposal has been or will apply for partnership partnership hospitals should re-examine the allocation of surpluses to the partnership of physicians, this mesh tie funding process meets the standards of the IRS finds a partner earnings distribution.