Louis Vlahos on Taxable Income

New York Tax Continues to Inconvenience Nonresidents Working Remotely

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

Unconstitutionally Excessive FBAR Penalties? It Depends

You may recall that earlier this year the IRS launched an initiative to pursue 125,000 “high-income, high-wealth” taxpayers who have not filed taxes since 2017. These were cases where the IRS received third party information...more

9/18/2024 / Bank Secrecy Act , Citizenship , Civil Forfeiture , Excessive Fines Clause , Failure-to-File , FBAR , Foreign Bank Accounts , Income Taxes , Internal Revenue Code (IRC) , IRS , Reporting Requirements , Tax Appeals , Tax Avoidance , Tax Debt , Tax Penalties , Taxable Income , Voluntary Compliance , Voluntary Disclosure , Willful Violations

New York’s Tax Treatment of Compensatory Restricted Stock and Dividends in the Hands of a Nonresident Executive

As far back as I can remember, the end of August has always elicited a sense of dread comparable to what many schoolchildren, and a fair number of adults, experience every Sunday afternoon. In retrospect, I cannot say that...more

9/4/2024 / Adjusted Gross Income , Administrative Law Judge (ALJ) , Bonuses , Dividends , New York , Non-Resident Income Taxes , Non-Residents , Restricted Stocks , State Taxes , Stock Appreciation Rights , Tax Audits , Taxable Income , Vesting

When A Shareholder Loses Control of Their S Corporation

If given their druthers, most transactional corporate attorneys would prefer to spend their day practicing “happy law,” by which they typically mean transactions that involve capital formation, mergers and acquisitions, joint...more

8/20/2024 / Board of Directors , CEOs , CFOs , Corporate Dissolution , Deficiency Notices , Embezzlement , IRS , K-1 , Misappropriation , S-Corporation , Settlement Agreements , Shareholder Distributions , Shareholders , State Courts , Stock Transfer , Tax Returns , Taxable Income , Whistleblowers

Taxing A Foreigner’s Sale of a Partnership Interest – Déjà Vu All Over Again

There is no denying that many parts of the Code are complex and, in some cases, too obscure for many “laypersons” to comprehend. Over time, this reality spawned the need for advisers who are both knowledgeable and experienced...more

8/12/2024 / Business Expenses , Capital Gains , Fair Market Value , Foreign Persons , Internal Revenue Code (IRC) , IRS , Limited Liability Company (LLC) , Non-Resident Aliens , Partnership Interests , Tax Cuts and Jobs Act , Tax Deductions , Taxable Income

“C’mon Man! Tax the Rich!” Business Owners Face Tax Increases*

Last week, Sen. Warren reintroduced her “Ultra-Millionaires” wealth tax proposal to the Senate. Query her timing. The measure has the proverbial snowball’s chance in Hell of being enacted by this Congress.Perhaps the Senator...more

New York Can Be Stingy Giving Credit – Resident Tax Credit, That Is

The Office of the New York State Comptroller just released a new report that examines taxpayer migration trends during the pandemic. The report, which builds on an earlier analysis of pre-pandemic taxpayer migration trends,...more

12/8/2023 / Administrative Law Judge (ALJ) , Capital Gains , Carried Interest , Compensation , Conciliation , Dividends , Double Taxation , Investment Management , K-1 , Limited Liability Company (LLC) , New York , Non-Residents , Partnerships , Relocation , Resident Status , State Taxes , Tax Appeals , Tax Credits , Tax Rates , Tax Returns , Taxable Income , Tribunals

Debtor Corp’s S Election: “Property” in Bankruptcy?

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

Self-Employment Tax and the Limited Partner – Substance Over Form, or Something Else?

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

Withholding Taxes: Deferred Comp and Services Overseas

Approaching Year End- Which holiday do you dread the most? For me, it has always been, and likely will always be, Labor Day. Of course, with each passing year, anything that I describe as “always” is less meaningful than...more

9/7/2023 / Acquisitions , CFC , Controlled Foreign Corporations , Equity , FICA Taxes , Grantee , Income Taxes , Internal Revenue Code (IRC) , Medicare , Qualified Restricted Stock Units (RSUs) , Remuneration , Selling a Business , Social Security , Stocks , Taxable Income , Taxation , Vesting , Wages , Withholding Tax

Some Observations On Recent Conversions of Partnerships to “C” Corporations

Decisions- It is often the case that the optimal form of legal entity through which a business should operate, at least for income tax purposes, will depend in part upon the stage of its life cycle in which the business...more

6/20/2023 / Acquisitions , C-Corporation , Federal Taxes , Investors , Limited Liability Company (LLC) , Liquidation , Partnerships , Pass-Through Entities , Reinvestment Funds , Shareholders , State Taxes , Tax-Free Transfers , Taxable Income

New York Examines Federal Income Tax Issues –Conformity and . . . Disclosure?

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

Will New York Increase Taxes On Investment Income?

Last Thursday, New York State Senator Gustavo Rivera, who represents the 33rd District (basically, the northwestern quadrant of The Bronx), proposed legislation that seeks to collect more taxes from the State’s high-income...more

1/26/2023 / Capital Gains , Estate Tax , High Net-Worth , Income Taxes , Net Investment Income , New York , Selling a Business , State Taxes , Tax Increases , Tax Rates , Taxable Income , Trusts , Wealth Tax

Generating Tax Losses as a Hobby

Every now and then, some well-meaning colleague will ask how I spend my free time. I usually pause before responding – to gather my thoughts – which prompts them to restate their question with what they believe is greater...more

1/13/2023 / Business Income , Business Profits , Income Taxes , Investment , IRS , Loans , Profits , Tax Court , Tax Deductions , Tax Losses , Tax Planning , Taxable Income

Transacting With One’s Business – Keep It Arm’s Length

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

Will New York Be Looking At Your Federal Tax Return? Probably

State Finances- Much has been written over the last few weeks about the unprecedented financial cushion that many states have accumulated thanks to federal support prompted by the pandemic and larger-than-expected tax...more

5/24/2022 / Adjusted Gross Income , Administrative Law Judge (ALJ) , Audits , Federal Aid , IRS , Limited Liability Company (LLC) , New York , State Budgets , State Taxes , Tax Appeals , Tax Liability , Tax Returns , Tax Revenues , Taxable Income

Attention Congress: Focus On the Estate Tax Regime; Leave the Income Tax Alone

“Déjà vu All Over Again”- The White House last week released the President’s Budget for the Fiscal Year 2023. The Budget is ambitious, but its “investments,” we are told, “are more than paid for with tax reforms focused on...more

4/8/2022 / Capital Gains , Capital Gains Tax , Estate Tax , Fair Market Value , Family Businesses , Federal Budget , Gift Tax , Grantor Retained Annuity Trusts (GRATs) , Grantor Trusts , Income Taxes , Joe Biden , Rule Against Perpetuities , Taxable Income , Transfer Taxes , Trusts , Wealth Tax

The Liquidation of a Partner’s Interest Under NYC’s Unincorporated Business Tax

Taxes and Snowy Weather? How many of you awoke Saturday to find that the winter storm about which we had heard so much during the preceding days had lived up to its hype? What was your first thought? “Fudge,” right?...more

2/4/2022 / C-Corporation , Income Taxes , IRS , Liquidation , New York , Partnerships , Pass-Through Entities , S-Corporation , State Taxes , Tax Authority , Tax Deductions , Taxable Income , Unincorporated Business Tax (UBT)

Revised Nonresident Audit Guidelines For New York Statutory Residence

Last Week- What a week it was. It began relatively well, with the Cowboys losing the NFC wild card game, albeit to a California team. It ended disturbingly, with the Arizona Democratic Party censuring Senator Sinema...more

1/24/2022 / Audits , Domicile , Holding Periods , Joe Biden , Jurisdiction , Lawful Permanent Residents , Non-Residents , Out-of-State Employees , Property Owners , State Taxes , Sustainability , Tax Increases , Taxable Income

Leaving New York – But What About One’s New York Business?

Goodbye New York- Late last year, the U.S. Census Bureau released data showing population shifts across the country during 2021. According to this information, New York lost 1.8 percent of its population... ...more

1/18/2022 / Apportionment , C-Corporation , Census Bureau , Closely Held Businesses , Corporate Taxes , Domicile , Exit Tax , Income Taxes , Middle Market , New York , Pass-Through Entities , Residence Status , Small Business , State of the State , Tax Advice , Tax Increases , Tax Relief , Taxable Income

Gift Transfers: Not on the Congressional Agenda, But Still in the Crosshairs of the IRS

Same old in D.C.- On Monday, November 15, the President will sign into law the approximately $1 trillion Infrastructure Investment and Jobs Act that was finally passed by Congress when the House approved the Senate’s...more

11/15/2021 / Beneficiaries , Business Assets , Closely Held Businesses , Dynasty Trust , Fair Market Value , Gift Tax , Infrastructure , IRS , Joe Biden , Limited Liability Company (LLC) , Net Investment Income , Partnerships , Revocable Trusts , Surcharges , Tax Advice , Tax Returns , Taxable Exchanges , Taxable Income , Transfer Taxes , Valuation

Maybe Tax the Rich, but Not The Conversion of S corps into Partnerships – What Gives?

Tax the Rich? A few days ago, an opinion piece that appeared in the Wall Street Journal began as follows: “President Biden’s effort to pass the largest tax increase in U.S. history is based on the verifiably false...more

10/18/2021 / Built-In Gains , C-Corporation , Congressional Budget Office , Corporate Taxes , Fair Market Value , Joe Biden , Limited Liability Company (LLC) , Liquidation , OECD , S-Corporation , Sale of Assets , Shareholders , Tax Increases , Taxable Income , Ways and Means Committee , Wealth Tax

Louis Vlahos

Rivkin Radler LLP

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