Hope you had a good Thanksgiving Holiday. Some of us probably feel we ate or drank either too much or not enough, watched too much or not enough football, or spent too much time discussing politics and the state of the...more
11/29/2023
/ Business Income ,
C-Corporation ,
Consultants ,
Deferred Compensation ,
Directors ,
Employee Benefits ,
Family Businesses ,
Family Members ,
IRS ,
Marketing ,
Personal Liability ,
Rental Property ,
Residential Property Owners ,
Restructuring ,
Retirement Plan ,
S-Corporation ,
Sole Proprietorship ,
Tax Court ,
Tax Deductions ,
Tax Rates
It appears that many of the country’s colleges and universities believe they have not already contributed enough to the decline of American education and to the erosion of our society, generally.
These institutions of...more
11/9/2023
/ Activist ,
Annuities ,
Bad Actors ,
Business Income ,
Colleges ,
Dividends ,
Donors ,
Endowment Funds ,
Executive Compensation ,
Exempt Organizations ,
Federal Funding ,
Hate Speech ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Non-Taxable Income ,
Operational Requirements ,
Public Charities ,
Public Policy ,
Rent ,
Royalties ,
Student Loans ,
Students ,
Tax Benefits ,
Tax Deductions ,
Tax Exemptions ,
Tuition ,
Universities
It’s not enough for the founder of a closely held business to have successfully established the business. The business has to grow, not only to increase profits, but also to make it more competitive and to diversify its...more
11/6/2023
/ Bypass Trusts ,
Closely Held Businesses ,
Disclaimers ,
Estate Planning ,
Estate Tax ,
Executors ,
Fair Market Value ,
Family Businesses ,
Gift Tax ,
Irrevocable Trusts ,
IRS ,
Marital Trusts ,
Personal Liability ,
QTIP Trusts ,
Surviving Spouse ,
Tax Liability ,
Taxation ,
Transfer Taxes ,
Trustees ,
Trusts
For many weeks, we’ve been hearing about the IRS’s plans to use the funding provided under the Inflation Reduction Act[i] to increase and expand its compliance and enforcement efforts with respect to the wealthy, high-income...more
10/27/2023
/ Affordable Care Act ,
Charitable Donations ,
Charitable Organizations ,
Excise Tax ,
Hospitals ,
Income Taxes ,
Inflation Reduction Act (IRA) ,
IRS ,
Medicaid ,
Reporting Requirements ,
Tax Deductions ,
Tax Exemptions
It’s wonderful to be part of a successful business, especially in a strong economy. The owners are probably enjoying a more than just decent return on their investment and, in most cases, are getting along well enough. The...more
10/6/2023
/ Business Expenses ,
Business Ownership ,
Corporate Officers ,
Directors ,
Economic Downturn ,
FICA Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Medicare ,
Payroll Taxes ,
Recovery Plans ,
Responsible Party ,
Social Security ,
Summary Judgment ,
Tax Debt ,
Trust Fund Recovery Penalty (TFRP) ,
Trust Funds ,
Wages ,
Willful Violations ,
Withholding Tax
Another Mess-
Congress has only a few days to avert a “shutdown” of the federal government.
It’s not looking good in the House, as Speaker McCarthy has struggled to bring certain members of the majority into line, while...more
9/29/2023
/ Business Assets ,
Capital Assets ,
Distribution Rules ,
Government Shutdown ,
Inflation Reduction Act (IRA) ,
Internal Revenue Code (IRC) ,
IRS ,
Liquidation ,
Partnership Interests ,
Partnerships ,
Reporting Requirements ,
Retirement ,
Speaker of the House
Last week, the IRS announced “the start of a sweeping, historic effort to restore fairness in tax compliance by shifting more attention onto high-income earners, partnerships, large corporations and promoters abusing the...more
9/14/2023
/ Artificial Intelligence ,
Balance Sheets ,
Compliance ,
Highly Compensated Employees ,
Inflation Reduction Act (IRA) ,
IRS ,
Limited Partnerships ,
S-Corporation ,
Self Employed ,
Self-Employment Tax ,
Tax Court ,
Tax Debt ,
Tax Evasion ,
Tax Liability ,
Taxable Income ,
Wealth Tax
NY’s Almost There-
Back in June of this year, New York’s legislature passed a bill that, if enacted, would create the first state-level public database with information regarding the ownership of limited liability...more
8/24/2023
/ Beneficial Owner ,
Business Entities ,
Business Ownership ,
Civil Liberties ,
Corporate Transparency Act ,
Department of Justice (DOJ) ,
Disclosure Requirements ,
FinCEN ,
IRS ,
Limited Liability Company (LLC) ,
New York ,
Privacy Act of 1974 ,
Tax Audits ,
Tax Fraud ,
Tax Liability ,
Tax Reform ,
Transparency ,
US State Departments ,
Whistleblowers
Do you feel as challenged as I do when someone asks you to explain the term “Bidenomics”? I know that it is predicated upon the imposition of higher taxes on businesses and their owners, which have not yet materialized....more
8/17/2023
/ Business Ownership ,
Buyers ,
Cancellation of Debt (COD) ,
Capital Gains ,
China ,
Debt ,
Fair Market Value ,
Federal Budget ,
Federal Taxes ,
Income Taxes ,
Insolvency ,
IRS ,
Limited Liability Company (LLC) ,
Recessions ,
S-Corporation ,
Startups ,
Tax Court ,
Third-Party
Death of a Parent-
In the context of a family-owned business, it is often the case that the matriarch or patriarch of the family is also the chief executive of the business. They may have founded the business, or they may...more
8/11/2023
/ Closely Held Businesses ,
Estate Planning ,
Estate Tax ,
Family Businesses ,
Heirs ,
Insolvency ,
Internal Revenue Code (IRC) ,
IRS ,
Spouses ,
Surviving Spouse ,
Tax Court ,
Tax Liability ,
Tax Liens ,
Tax Returns ,
Transfer Taxes ,
Trusts
Faulty Framework?
The question posed above is not intended to be rhetorical. Rather, it is one that the owners of a closely held business should consider thoroughly before transferring or committing any business assets to...more
8/4/2023
/ Charitable Donations ,
Charitable Organizations ,
Charitable Trusts ,
Closely Held Businesses ,
Fair Market Value ,
Family Businesses ,
For-Profit Corporations ,
IRS ,
Nonprofits ,
Public Charities ,
S-Corporation ,
Tax Court ,
Tax Deductions
Losses Weren’t Always Bad-
Most tax advisers are aware that, prior to the Tax Reform Act of 1986 (the “TRA”),[i] the Code placed few limitations on the ability of an individual taxpayer to use deductions from a particular...more
7/27/2023
/ Business Losses ,
Capital Contributions ,
Deficit Reduction ,
IRS ,
Limited Liability Company (LLC) ,
Membership Interest ,
Net Operating Losses ,
Non-Recourse Loans ,
Partnership Interests ,
Partnerships ,
Passive Losses ,
Promissory Notes ,
Tax Court ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Losses ,
Tax Planning ,
Tax Reform
What Was Intended?
Transactions between commonly controlled, closely held businesses are often conducted in an informal manner. This is unfortunate because, in the absence of documentation, it is sometimes difficult to...more
7/20/2023
/ Bad Debt ,
Capital Assets ,
Capital Contributions ,
Closely Held Businesses ,
Creditors ,
Debt ,
Debtor-Creditor ,
Deductions ,
Equitable Contribution ,
Equity ,
Fair Market Value ,
Fund Transfers ,
Investment ,
IRS ,
Loans ,
Ownership Interest ,
Real Estate Development ,
S-Corporation ,
Secured Debt ,
Tax Court ,
Tax Liability ,
Tax Returns
It’s Complicated-
The Code includes a number of complex rules that are aimed at those overseas business and investment activities of U.S. taxpayers that Congress has determined may result in the improper deferral or...more
7/11/2023
/ CARES Act ,
Controlled Foreign Corporations ,
Foreign Corporations ,
Foreign Earned Income ,
Foreign Investment ,
Foreign Ownership ,
Foreign Tax ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Parent Corporation ,
Senate Finance Committee ,
Stock Ownership ,
Subpart F ,
Tax Cuts and Jobs Act ,
Tax Deferral
Earlier this week, the United States celebrated the 247th anniversary of its declaration of independence from the United Kingdom of Great Britain, though the latter did not formally recognize the independence of its thirteen...more
Estate Tax – It’s a Killer-
One of the reasons often given for eliminating the estate tax is the substantial economic burden it places upon the estate of a deceased business owner and upon the business itself. Specifically,...more
6/16/2023
/ Acceleration ,
Adjusted Gross Income ,
Business Assets ,
Business Ownership ,
Closely Held Businesses ,
Deceased ,
Decedent Protection ,
Estate Tax ,
Fair Market Value ,
Gift Tax ,
Installment Agreements ,
Irrevocable Life Insurance Trusts ,
IRS ,
Life Insurance ,
Redemption Agreement ,
Stock Ownership ,
Stock Purchase Agreement ,
Tax Liability ,
Testamentary Transfers
Something’s Wrong-
Of late, a not insignificant number of the business owners with whom I’ve been working have raised some concern over whether they are financially prepared for the next stage of their lives.
...more
6/6/2023
/ Business Expenses ,
Business Ownership ,
CEOs ,
Compensation ,
Dividends ,
Interest Rates ,
Investors ,
IRS ,
Tax Court ,
Tax Liability ,
Tax Planning ,
Transfers
The Supremes-
The Constitution has figured prominently in the news of late. In the days preceding the initial discussions among members of the Administration and the Congressional leadership regarding the debt ceiling,...more
5/24/2023
/ Debt Ceiling ,
Debt Collection ,
Federal Budget ,
Financial Records ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Investigations ,
IRS ,
Notice Requirements ,
SCOTUS ,
Summons ,
Tax Liability ,
Third-Party
At war with Russia in eastern Europe, a nascent competing world order, mass shootings and bank failures at home, questionable audit practices by the Big 4 . . . everywhere, debt ceilings and the risk of default, inflation,...more
5/12/2023
/ Capital Contributions ,
Capital Gains ,
Capital Investments ,
Fair Market Value ,
Future Profits ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Investors ,
IRS ,
Limited Liability Company (LLC) ,
Liquidation ,
Partnership Interests ,
Partnerships ,
Profits Interests ,
Safe Harbors ,
Tax Court ,
Term Sheets
Charitable Giving Update-
According to a recent report on charitable giving, the number of donors at every level of giving dropped during the first three quarters of 2022. The number of new donors was down by over 19...more
5/3/2023
/ Articles of Incorporation ,
Bonuses ,
Burden of Proof ,
Capital Gains ,
Change in Control ,
Charitable Donations ,
Due Diligence ,
Gift Tax ,
IRS ,
Letters of Intent ,
Private Equity ,
Purchase Agreement ,
Registered Investment Advisors ,
Selling a Business ,
Shareholder Distributions ,
Stock Purchase Agreement ,
Tax Court ,
Tax Returns
Like Peas in a Pod?
What do private, not-for-profit colleges and hospitals have in common? There are quite a few items that come immediately to mind:
•They may qualify for exemption from federal income tax.
•Tax-exempt...more
4/20/2023
/ CHNA ,
Colleges ,
Exclusions ,
Executive Compensation ,
Exemptions ,
Federal Taxes ,
Financial Assistance Policies ,
Hospitals ,
IRS ,
Mayo Clinic ,
Net Investment Income ,
Public Charities ,
Tax Exemptions ,
Teaching Hospitals ,
UBIT ,
Unrelated Business Income Tax
On March 20, 2023, Senators Warren, Sanders, Van Hollen, and Whitehouse addressed a letter to Treasury Secretary Yellen in which they urged Yellen “to use [her] existing authority to limit the ultra-wealthy’s abuse of trusts...more
4/11/2023
/ AFR ,
Estate Tax ,
Fair Market Value ,
Gift Tax ,
Grantor Trusts ,
Heirs ,
Irrevocable Trusts ,
IRS ,
Tax Avoidance ,
Tax-Free Transfers ,
Trusts ,
U.S. Treasury
Every year, the IRS compiles a list of common scams that taxpayers may encounter – its so-called “Dirty Dozen.”
Today, the Service wrapped up the annual Dirty Dozen list of tax scams for 2023 with a reminder for taxpayers,...more
4/6/2023
/ Charitable Deductions ,
Charitable Remainder Trust ,
Criminal Investigations ,
Digital Assets ,
Email ,
Employee Retention ,
Foreign Bank Accounts ,
Fuel Tax ,
IRS ,
Misleading Statements ,
Offer-in-Compromise ,
Offshore Banks ,
Online Platforms ,
Phishing Scams ,
Scams ,
Social Media ,
Tax Avoidance ,
Tax Credits ,
Tax Preparers ,
Text Messages ,
Third-Party
Many years ago, New York revised its personal income tax law to achieve close conformity with the Federal system of income taxation. The stated purpose for the revision was to simplify tax return preparation, improve...more
3/27/2023
/ Adjusted Gross Income ,
Audits ,
Documentation ,
Income Taxes ,
IRS ,
New York ,
Real Estate Professionals ,
Rental Property ,
State Taxes ,
Tax Appeals ,
Tax Deductions ,
Taxable Income ,
Taxation
What Is It?
Where one stands on an issue of tax law may depend upon context and perspective, including the facts and circumstances one finds relevant, and whom one is counseling or representing.
Tax advisers often find...more
3/23/2023
/ Broker-Dealer ,
Capital Assets ,
CCA ,
Charitable Deductions ,
Investors ,
IRS ,
Limited Liability Company (LLC) ,
OCC ,
Partnership Interests ,
Partnerships ,
Securities ,
Tax Exemptions