Last Friday, New York’s Governor Hochul delivered the following remarks at the annual meeting of the Business Council of New York State:“Someone asked me today, are we going to raise income taxes? I said, ‘I’m not raising...more
9/26/2024
/ Administrative Law Judge (ALJ) ,
Business Taxes ,
Disallowance Defense ,
Income Taxes ,
New York ,
Non-Resident Income Taxes ,
Remote Working ,
State Budgets ,
State Taxes ,
Tax Audits ,
Tax Liability ,
Taxable Income
Over the last couple of years, several of my friends have become citizens of the country from which their parents emigrated to the U.S. Also during that period, some acquaintances took advantage of the so-called “golden...more
7/26/2024
/ Citizenship ,
Exit Tax ,
Foreign Corporations ,
Foreign Investment ,
Golden Visa ,
Green Cards ,
Income Taxes ,
Investment Property ,
IRS ,
Like Kind Exchanges ,
Real Estate Investments ,
Replacement Properties ,
Tax Liability ,
Tax-Deferred Exchanges
In less than four months, the citizens of the United States will be electing their next President to a four-year term. They will also be deciding which of the two major political parties will “control” the Senate, the House,...more
7/11/2024
/ Apportionment ,
C-Corporation ,
Conservatives ,
Controlled Foreign Corporations ,
Foreign Corporations ,
IRS ,
Moore v US ,
Partnerships ,
Pass-Through Entities ,
Presidential Elections ,
Repatriation ,
S-Corporation ,
SCOTUS ,
Shareholders ,
Sixteenth Amendment ,
Tax Cuts and Jobs Act ,
Tax Deferral ,
Tax Liability ,
Term Limits
An anonymous thinker, lost to history, is credited with having said that the unofficial motto of the IRS is, “We have what it takes to take what you have.” In some instances, the truth of the above statement is manifested in...more
5/30/2024
/ Alter Ego ,
Appeals ,
Audits ,
Bad Actors ,
Bank Accounts ,
Capital Gains ,
Deficiency Notices ,
Income Taxes ,
IRS ,
S-Corporation ,
Sole Proprietorship ,
Summary Judgment ,
Tax Avoidance ,
Tax Court ,
Tax Liability ,
Tax Liens
Earlier this year, the OECD observed there has been a significant increase in global wealth inequality over the last two decades. It also acknowledged that “taxation is a key instrument . . . that governments have at their...more
5/16/2024
/ Audits ,
Capital Gains ,
Federal Budget ,
Foreign Governments ,
Inflation Reduction Act (IRA) ,
IRS ,
Net Investment Income ,
OECD ,
Presidential Elections ,
Surtax ,
Tax Authority ,
Tax Avoidance ,
Tax Increases ,
Tax Liability ,
United Nations ,
Wealth Tax ,
Whistleblowers
Imagine the IRS notifies Taxpayer that they have an outstanding tax liability with respect to Tax Year, and that the agency intends to levy on Taxpayer’s property to collect the allegedly unpaid tax. Taxpayer challenges the...more
4/19/2024
/ Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Overpayment ,
Popular ,
Spouses ,
Tax Appeals ,
Tax Court ,
Tax Debt ,
Tax Levy ,
Tax Liability ,
Tax Refunds ,
Tax Returns
How many times have you wished that you could undo something from your past, perhaps a string of incoherent statements made at a client dinner while slightly under the influence, or an expletive-filled email composed and sent...more
3/7/2024
/ Abrogation ,
Capital Gains ,
Cash Transactions ,
Fair Market Value ,
IRS ,
Property Transaction Taxes ,
Property Valuation ,
Reacquisitions ,
Real Estate Transactions ,
Related Parties ,
Repossess ,
Rescission ,
Selling a Business ,
Tax Liability
Would you be surprised to learn that most shareholders of closely held corporations, and especially those with minority or merely passive interests, believe they cannot be held responsible for the tax obligations of their...more
2/15/2024
/ Closely Held Businesses ,
Corporate Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability ,
Liquidation ,
Securities ,
Shareholders ,
Stock Purchase Agreement ,
Stock Sale Agreements ,
Stock Transfer ,
Tax Court ,
Tax Liability ,
Tax Shelters ,
Transferees
New York Governor Kathy Hochul signed a bill on Friday, November 20, 2023, that allows New York City cannabis businesses to deduct business expenses paid or incurred in carrying on such business for purposes of determining...more
11/21/2023
/ Business Expenses ,
Business Taxes ,
Cannabis-Related Businesses (CRBs) ,
Controlled Substances Act ,
Internal Revenue Code (IRC) ,
Marijuana Related Businesses ,
New Legislation ,
New York ,
Schedule I Drugs ,
Tax Deductions ,
Tax Liability
NY Needs the Revenue-
A couple of weeks ago, the Tax Foundation released its latest “State Business Tax Climate Index,” which assesses a state’s tax system and compares it to that of other states. New York seems to be a...more
11/15/2023
/ Audits ,
Conciliation ,
Investors ,
Limited Liability Company (LLC) ,
Managing Members ,
New York ,
OCC ,
Penalties ,
Personal Liability ,
Responsible Person Liability ,
Sales Tax ,
State Taxes ,
Tax Liability ,
Tax Revenues
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
Uncertain Future-
The Congressional Budget Office (“CBO”) recently released some data for the federal government’s 2023 fiscal year. According to the CBO, the federal budget deficit for the year was $1.7 trillion, or...more
10/23/2023
/ Allocation of Funds ,
Bankruptcy Code ,
Bankruptcy Court ,
C-Corporation ,
Chapter 11 ,
Commercial Bankruptcy ,
Congressional Budget Office ,
Debtors ,
Double Taxation ,
Federal Debt Collection ,
Interest Rates ,
Lenders ,
Net Operating Losses ,
Price Inflation ,
Pro Rata Allocation Rule ,
S-Corporation ,
Sale of Assets ,
Shareholders ,
Tax Liability ,
Taxable Income ,
Unsecured Debt
Since 1995 to the present, the LLC has emerged as the entity of choice for the vast majority of entrepreneurs. This form of business entity owes its success to the flexibility and to the tax benefits that it affords its...more
9/22/2023
/ Beneficiaries ,
C-Corporation ,
Capital Gains ,
Entrepreneurs ,
Federal Taxes ,
Limited Liability Company (LLC) ,
Net Operating Losses ,
Reasonable Compensation ,
S-Corporation ,
Shareholders ,
Small Business ,
Tax Liability ,
Trusts
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
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
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
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
State of the “Union”
Did you watch the President’s state of the union address the other night? Was it as you expected? Were you hoping for something more? Were you disappointed? Did you find it informative? Maybe...more
2/13/2023
/ Capital Assets ,
Debt ,
Dischargeable Debts ,
Fair Market Value ,
FIRPTA ,
Foreign Ownership ,
Foreign Taxpayers ,
IRS ,
Joe Biden ,
Lenders ,
Purchasers ,
Short Sales ,
State of the Union ,
Tax Liability
According to a report issued by the National Association of Realtors a couple of days ago, last year saw a large outmigration of people from California and New York, while Florida and Texas experienced a comparably large...more
2/3/2023
/ Beneficiaries ,
Closely Held Businesses ,
Domicile ,
Estate Planning ,
Exemptions ,
Gifts ,
Grantor Trusts ,
Income Taxes ,
New York ,
Non-Residents ,
Settlors ,
State and Local Government ,
Tax Liability ,
Trusts ,
Value Appreciation ,
Wealth Tax
Last Friday, December 30, 2022, during the final hours of the 117th Session of Congress, the House Ways and Means Committee – through which all tax legislation passes – released redacted versions of six years of Mr. Trump’s...more
1/5/2023
/ Audits ,
Business Expenses ,
Business Losses ,
Closely Held Businesses ,
Donald Trump ,
IRS ,
Loans ,
Tax Avoidance ,
Tax Legislation ,
Tax Liability ,
Tax Reform ,
Ways and Means Committee
Don’t Be Unreasonable-
Much has been written of late regarding the payment by a business of various personal expenses incurred by its owner or certain key employees. The payment of an owner’s personal expenses appears to...more
12/16/2022
/ Arms Length Transactions ,
Business Expenses ,
Business Ownership ,
Closely Held Businesses ,
Compensation ,
Family Businesses ,
IRS ,
Personal Use ,
Reasonable Compensation ,
Selling a Business ,
Tax Deductions ,
Tax Liability ,
Taxable Income
“Show Me the Money”-
Much has been written in recent months about how well the investment portfolios of private foundations have performed over the last several years.
For example, a study conducted by the Council on...more
10/12/2022
/ Bipartisan Budget Act ,
Business Income ,
C-Corporation ,
Charitable Organizations ,
Closely Held Businesses ,
Distribution Rules ,
Donor-Advised Funds (DAFs) ,
Internal Revenue Code (IRC) ,
Investment Portfolios ,
IRS ,
Private Foundations ,
Required Minimum Distributions ,
S-Corporation ,
Tax Deductions ,
Tax Liability