Baran, Mark R.

TAX ALERT: IRS ISSUES ITS 2017 COST-OF-LIVING ADJUSTMENTS, Baran, Mark R. , 12/14/2016

The IRS recently issued its 2017 cost-of-living adjustments. Mark Baran, Principal in the Tax Practice, explains the adjustments that have been made so that you can take them into account as you implement your 2016 year-end tax planning strategies. 

Download

TAX ALERT: IMPLEMENTING LAST-MINUTE 2016 TAX-SAVING TIPS, Baran, Mark R. , 12/14/2016

Mark Baran, Principal in the Tax Practice, lays out six simple steps that you should take into consideration to reduce your 2016 tax liability. Act fast, because you only have until December 31st, 2016. 

Download

Tax Alert: DOL’s final overtime rule brings sweeping changes, Baran, Mark R., 06/14/2016

The DOL has released a final rule that makes dramatic changes to the rules for determining overtime for certain executive, administrative and professional employees under the Fair Labor Standards Act (FLSA). The final rule will make it more difficult for employers to classify employees as exempt from overtime requirements. This article details the changes under the new rule and provides compliance options. 

Download

Partnership Audit Rules Revised, Baran, Mark R., 06/10/2016

The Bipartisan Budget Act of 2015 includes sweeping changes to the rules for auditing partnerships. As a result of this legislation, audits of master limited partnerships, investment funds and other business entities organized as partnerships are likely to increase. In fact, recent IRS examination data reflects an increase in partnership audits and a shift in resources devoted to them. More importantly, given the impact of the new audit rules, many partnership agreements will need to be amended. 

The impact of the new partnership audit regime will be significant for a majority of partnerships in areas ranging from tax and operations to legal issues and economic consequences. 

Download

Tax Alert: IRS offers guidance to employers who plan to claim the WOTC, Baran, Mark R., 04/08/2016

The IRS has recently granted “transitional relief” to eligible employers who are planning to claim the Work Opportunity Tax Credit (WOTC). The relief outlined in IRS Notice 2016-22 comes in the form of an extended deadline — until June 29, 2016 — to file a form necessary to claim the credit for certain eligible workers. This article explains the WOTC and describes this recent transitional guidance.  

Download

2016 Tax Calendar, Baran, Mark R., 03/07/2016

This summary is a friendly reminder of various tax due dates for both individual and business taxpayers. 

Download

Tax Alert: IRS issues deadline extensions for ACA information reporting, Baran, Mark R., 02/17/2016

In an effort to help employers who are subject to the Affordable Care Act's (ACA’s) information reporting requirements meet those obligations, the IRS has extended two important deadlines. Employers now have an additional two months to provide employees the necessary forms and three months to report the information to the IRS. This article explains the ACA’s information reporting requirements and details the penalties for noncompliance.

Download

Tax Alert: Budget act eliminates strategies for maximizing Social Security payout, Baran, Mark R., 02/03/2016

The Bipartisan Budget Act of 2015 contains provisions that may significantly affect retirement planning for many Americans. It eliminates two strategies that many married couples have used to maximize Social Security retirement benefits. This article explains how the two strategies worked under previous law and describes how the budget act has changed them.

Download

Form 1099 Information Returns, Baran, Mark R., 02/02/2016

Business tax returns and accompanying schedules specifically ask whether you made payments in 2015 that would require you to file Forms 1099, and if you already filed or will file required Forms 1099. In general, any payment made “in the course of business” for services, rent, interest and non-employee compensation may be subject to 1099 reporting. This article addresses the latest IRS requirements and provides guidance on Form 1099 compliance.

Download

Tax Alert: Partnership audit rules revised under 2015 budget act, Baran, Mark R., 01/25/2016

The Bipartisan Budget Act of 2015, signed into law on November 2, 2015, raises the federal debt ceiling and lifts mandatory spending caps on defense and domestic programs. The law also makes sweeping changes to the rules for auditing partnerships. The end result of the revised rules is that audits of master limited partnerships, investment funds and other business entities organized as partnerships are likely to increase. More importantly, given the significant operational impact of the new audit rules, many partnership agreements will need to be reviewed and amended. The new rules are generally effective for partnership tax years beginning after December 31, 2017 but partnerships may elect to be governed by the new audit rules for any tax year on or after November 2, 2015. 

Download

Employee or Independent Contractor? Worker Misclassification Investigations are Growing, Baran, Mark R., 08/07/2015

There has been a sharp increase in worker classification cases and investigations by the Department of Labor and the Internal Revenue Service (IRS).  The DOL’s Wage and Hour Division (WHD) is leading the Fair Labor Standards Act (FLSA) enforcement effort and has been working with the IRS and many states to “combat employee misclassification and to ensure that workers get wages, benefits, and protections to which they are entitled.” 

While the majority of classifications of workers are not challenged by the IRS, that may soon change as a result of the increased investigations and information sharing among the various federal and state agencies. The best protection for employers is to be proactive, and review and test employment arrangements.  It is not enough to explicitly describe a worker as an independent contractor in an agreement or rely on a set number of factors to make the worker an employee or independent contractor.  Businesses must weigh all of factors and evaluate each arrangement. 

You can download a copy of the article below.

Download

Barr, Eric J.

Valuation and Litigation Briefing, August 2016, Barr, Eric J. , 08/11/2016

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

Download

Valuation and Litigation Briefing, June 2016, Barr, Eric J. , 06/22/2016

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

Download

Valuation and Litigation Briefing, March 2016, Barr, Eric J., 03/23/2016

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

Download

Valuation and Litigation Briefing, January 2016, Barr, Eric J., 01/18/2016

Marks Paneth has published its latest issue of Valuation and Litigation Briefing.

Download

What to Consider When Using Guideline Transaction Data, Barr, Eric J., 10/15/2015

Income taxes play a major role in the pricing and structure of transactions because income taxes can substantially reduce the seller’s net proceeds and/or lower the net cost of a purchased ownership interest.  Transactions are priced and structured to address these tax consequences.  Failing to properly consider the tax consequences of the entity form of the seller or the decision to buy/sell assets or equity may result in an improper valuation conclusion.  In this article, Eric Barr, partner-in-charge, Valuation Services, discusses the impact of Federal income taxes on transaction prices and terms.  

This article appeared in the September/October 2015 issue of The Value Examiner, published by the National Association of Certified Valuators and Analysts (NACVA).

Download

Valuation and Litigation Briefing, October 2015, Barr, Eric J., 10/14/2015

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

Download

The Pass-Through Entity Conundrum, Barr, Eric J., 09/15/2015

Entity form affects after-tax economic benefits and thus entity values, and the courts have provided conflicting guidance on how analysts should address the issue when valuing pass-through entities.  Does entity form impact after-tax economic benefits and thus entity value?  If so, why does it, and how much?  And if entity form affects economic benefits, what happens when tax laws or tax rates change?  These questions have vexed business appraisers for years.  This article, by Eric J. Barr, partner-in-charge of Valuation Services, examines how the appraisal community and the courts have addressed such entity form valuation issues. 

This article is reprinted with permission from Valuation Strategies (published by Thomson Reuters), September/October 2015.

Download

Valuation and Litigation Briefing, August 2015, Barr, Eric J., 08/11/2015

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

Download

Valuation and Litigation Briefing, June 2015, Barr, Eric J., 06/23/2015

Marks Paneth has published the latest issue of Valuation and Litigation Briefing.

Download

Restrictions on Distributions and Impact on DLOM...Who Else WIll Follow?, Barr, Eric J., 01/07/2015

In 2009 Nevada Senate Bill 350 was passed into law. This law authorized the creation of two new business entities: the Restricted LLC and Restricted LP. The bill also allowed for the conversion of existing entities into one of the above types. In this article, Eric J. Barr provides an overview of these two entities, explains the advantages of such restricted pass-through-entities, and whether the IRS will respect the valuation implications of Nevada senate bill 350's statutory restrictions.

This article appeared in the January version of the Quick Read Buzz.  

This article originally appeared under the firm of Fischer, Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

Valuing Pass-Through Entities Using the Guideline Public Company Method, Barr, Eric J., 01/01/2015

Pass-through entities (PTEs) comprise approximately 78% of all business entities, yet their valuation is one of the most discussed, controversial and least understood areas of business appraisal practice. Much attention has been focused on valuing PTEs, yet there remains a lack of clarity and consensus. In this article, Barr critiques the manner in which business appraisers have historically applied the Guideline Public Company Method when valuing PTEs and offers a new perspective on how to apply this method.

"Valuing Pass-Through Entities Using the Guideline Public Company Method", By Eric Barr, originally appeared in the January-February, 2015 issue of The Value ExaminerThe Value Examiner is published by NACVA.

This article originally appeared under the firm of Fischer, Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

The History of Federal Income Tax Rates, Barr, Eric J., 10/01/2014

The History of Federal Income Tax Rates The following chart is not the pattern of an irregular heartbeat, although it may cause cardiac arrhythmias.  It is a chart of the federal tax rate in the maximum statutory income bracket for married filing jointly taxpayers, for the years 1913 through 2013.

This article was published by Fischer Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

Valuation Implications of Dividend Income, Barr, Eric J., 10/01/2014

The after-tax earnings resulting from ownership interests in Pass-Through Entities (PTEs) and C corporations are impacted by Federal income tax laws.  Such laws legislate tax rates, income brackets and other matters – all of which have historically been subject to extreme volatility since the inception of the Internal Revenue Code.   

This article was published by Fischer Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

The Guideline Transaction Method, Barr, Eric j., 09/27/2014

A The Guideline Transaction Method (GTM) remains a viable option for valuing businesses; the question is whether it is being properly applied. In this article, Eric Barr proposes that despite the recent negative press, the GTM can provide valuable insight.

This article appeared in the September version of the Quick Read Buzz.  

This article originally appeared under the firm of Fischer, Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

GAAP Financial Statements of Pass-Through Entities, Barr, Eric J., 09/01/2014

Business Entities and their Income Tax Differences C corporations incur income tax expense (federal and state) at the business-entity level; a second level of income taxes are incurred at the C corporation owner level when after-tax net income is distributed in the form of dividends.   

This article was published by Fischer Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

A Conversation With a Prospective Business Valuation Client, Barr, Eric J., 09/01/2014

This morning I was speaking with a prospective client that was interested in knowing the value of her business.  The subject company was an owner-managed, 100%-owned specialty retail business.  The owner was tired of the 7-day per week grind, depressed about a looming one hundred percent rent increase and knew that the company was underperforming. 

This article was published by Fischer Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

Five Problems to be Aware of When Performing Analytical Procedures, Barr, Eric J., 08/01/2014

A key assumption in performing analytical procedures is the belief that the information being examined (current year data) can be benchmarked against measures (ratios, percentages, etc.) that are based on properly formed expectations.  Such measures are often derived from company prior years’ data, industry results, etc.

This article was published by Fischer Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

The Value of Analytical Review Procedures, Barr, Eric J., 08/01/2014

Analytical procedures are an essential, efficient and effective tool used by accountants to understand a company’s financial position, results of operations, cash flows and/or their changes from year-to-year.  In fact, accountants are required to perform analytical procedures for audits performed in conformity with Generally Accepted Auditing Standards in the United States (“GAAS”) and in connection with reviews of financial statements performed in conformity with Statements on Standards of Accounting and Review Services (“SSARS”).

This article was published by Fischer Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

When to Decline a Business Valuation Request, Barr, Eric J., 07/01/2014

I am often asked by potential clients to determine the value of an ownership interest in a business. The prospect offers limited context, are coy about the purpose of the valuation, and an incomplete description of the business ownership interest being valued is provided. 

This article was published by Fischer Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

The Impact of State and Local Income Taxes on Pass-Through Entity Valuations, Barr, Eric j., 07/01/2013

Parsippany, NJ – Eric J. Barr, Member, Fischer Barr & Wissinger LLC was published in the July/August 2013 issue of The Value Examiner. His article is entitled, “The Impact of State & Local Income Taxes on Pass-Through Entity Valuations,” and discusses and analyzes individual state income tax rates and its impact on business valuation.

“The Impact of State and Local Income Taxes on Pass Through Entity Valuations", by  Eric Barr, originally appeared in the July-August, 2013 issue of The Value Examiner. The Value Examiner is published by NACVA.

This article originally appeared under the firm of Fischer, Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

Bekas, Michael

Navigating the Recession, Bekas, Michael; Eliach, Steven; Ciavarella, Steven J., 05/18/2009

The current economic downdraft is a first in many respects. Just a glance at headlines from the fourth quarter of last year reveals a perfect storm of economic trauma whose magnitude is like nothing in recent memory.

Download

Bercovici, Paul

IRS Announces Major Changes Regarding Offshore Voluntary Disclosures, Bercovici, Paul, 06/30/2014

On June 18, 2014, the IRS announced significant changes to the 2012 Streamlined Program and to the 2012 Offshore Voluntary Disclosure Program. The changes to the terms of the 2012 Streamlined Program and the 2012 Offshore Voluntary Disclosure Program are designed to encourage more taxpayers who have failed to report income from offshore assets to voluntarily come forward to report the existence of such offshore assets and the income derived therefrom. According to the IRS, approximately 45,000 taxpayers have voluntarily disclosed the existence of such accounts under the terms of the various iterations of the offshore voluntary disclosure program that was first announced in 2009, and that such disclosures have resulted in the collection of approximately $6.5 billion in taxes, interest and penalties.

Download

Marks Paneth Tax Alert: Treasury and IRS Release Final Rules on Foreign Account Reporting, Bercovici, Paul, 03/12/2013

The U.S. Department of the Treasury and the IRS have issued comprehensive final regulations implementing Foreign Account Tax Compliance Act (FATCA) information reporting provisions. Under the regulations, foreign financial institutions (FFIs) — including foreign banks, brokers, insurance companies and investment funds — must disclose to the IRS certain information about their U.S.-owned accounts. This article reviews the major provisions of the final regulations and the potential impact on individual taxpayers with foreign accounts.

Download

Tax Alert: New Guidance on Streamlined Compliance Program for Delinquent Non-Resident Taxpayers, Bercovici, Paul, 09/12/2012

On August 31, 2012, the IRS issued additional information regarding the streamlined federal income tax return and foreign bank account reporting requirements available to certain delinquent taxpayers which was first announced on June 26, 2012 (the Streamlined Program). The Streamlined Program was created in response to the fact that many individuals had recently become aware (primarily due to increased media coverage) of their ongoing US tax filing obligations and wanted to become compliant. The Streamlined Program came into effect on September 1, 2012.

Download

Berse, Steven L.

New Requirement For Registered Investment Advisers - July 10th Deadline, Berse, Steven L., 06/25/2010

The US Securities and Exchange Commission (SEC) has amended its custody rule — Rule 206(4)-2 under the Investment Advisers Act — to help safeguard investor assets. Now it's time for certain SEC-registered investment advisers (RIAs) to start taking steps to facilitate compliance with two major new SEC requirements.

Download

Best, Curtis

TAX ALERT: NEW IRS REGULATIONS TARGET EARNINGS STRIPPING, Best, Curtis, 12/14/2016

The IRS has issued much-anticipated final regulations intended to keep multinational companies from moving their profits offshore to avoid paying U.S. income taxes. The regs are part of a larger Obama administration campaign against corporate inversions, whereby a U.S. company merges with a foreign firm and then changes its tax address (domicile) to the foreign country. In particular, the regs address earnings stripping, a practice commonly used to minimize taxes after an inversion.

Download

INTEREST-CHARGE DOMESTIC INTERNATIONAL SALES CORPORATIONS, Best, Curtis, 11/30/2016

IC-DISCs (interest-charge domestic international sales corporations) were once thought of as uninspiring, and not particularly efficient, tax deferral vehicles. They were originally created by the government as a way to assist US-based corporations that focused on foreign sales and exports. Nothing more.

In fact, regulators at the time even conceded that IC-DISCs were not really tax shelters at all. Nor were they considered as listed or reportable transactions. As a result, IC-DISCs were largely marginalized as a tax savings tool; overlooked at best and, if noticed at all, regarded as ineffective and not worth the attention of serious investors

Download

Corporate Inversions in the United States: A Primer, Best, Curtis , 11/23/2016

At this point we've all heard about tax inversions: The process by which a company that's taxed heavily in its home country buys a smaller company headquartered in a country where the business taxes are considerable lower, then maintains that the newly amalgamated business is now officially headquartered in the low-tax country. Now domiciled in, say, Dublin, Ireland, with a corporate income tax rate of 12.5 percent or less, rather than Chicago, Illinois, with an effective US corporate income tax rate around 40 percent, the new entity enjoys greatly reduced income tax levels.

This article was originally published in the September 2016 edition of Global Tax Weekly:Corporate Inversions In The United States: A Primer by Curtis Best, a partner in our Tax practice. 

Download

Bryde, Steven P.

New York changes personal income tax rules, Bryde, Steven P., 08/15/2016

New York State just released a summary of recently enacted legislation regarding income taxes that may be levied in addition to those personal income taxes described in the state's Budget for 2015-2016 corporate tax provisions. 

The following topics are included in the following report:

  • New York City enhanced real property tax credit extended
  • New York City income tax credit for general corporation taxes paid extended
  • Property tax relief credit established
  • Taxpayer refund choice act extended
  • Yonkers resident income tax surcharge and the Yonkers earning tax on nonresidents extended
Download

STATE AND LOCAL TAX ADVISOR: HIGHLIGHTING KEY TAX LAW CHANGES ACROSS THE REGION, Bryde, Steven P., 12/15/2014
Download

STATE AND LOCAL TAX ADVISOR: HIGHLIGHTING KEY TAX LAW CHANGES ACROSS THE REGION, Bryde, Steven P., 11/24/2014

Each state has its own unclaimed property laws. Your business may be liable for penalties and interest, if it fails to timely report its unclaimed property. To help your business with its compliance obligations, this article covers some of the major unclaimed property laws in three states, California (CA), New Jersey (NJ) and New York (NY), and helps clarify the what, when, and where questions that often plague businesses with unclaimed property.

Download

New York State and City Residency Rules Create Tax Traps for the Unwary, Bryde, Steven P., 09/01/2014

Is your client a resident of New York State for tax purposes?  Under NYS Tax Law Section 605(b), a resident is defined as someone who maintains a “permanent place of abode” and spends more than 183 days of the tax year in New York.  But a recent case has redefined “permanent place of abode” for the purposes of determining statutory residency – and taxpayers and their counsel need to be careful:  City and state residency rules remain complex and continue to lay many tax traps for the unwary.

This article, “New York State and City Residency Rules Create Tax Traps for the Unwary”, was originally published in The Metropolitan Corporate CounselSeptember 2014.

Download

Marks Paneth State and Local Tax Advisor: Highlighting Key Tax Law Changes Across The Region, Bryde, Steven P., 04/08/2014

On March 31, Governor Cuomo and the New York State (NYS) Legislature reached agreement on the 2014-2015 Budget, which is effective April 1.

This newsletter provides a summary of the more important tax provisions contained in the budget. 

Download

MARKS PANETH STATE AND LOCAL TAX ADVISOR: HIGHLIGHTING KEY TAX LAW CHANGES ACROSS THE REGION, Bryde, Steven P., 02/05/2014

There are several noteworthy proposed tax law changes in the Proposed New York State Budget Tax Provisions. Please note that for “estate tax of gifts,” action may be required before April 1, 2014. 

The Proposed Budget will reduce taxes by $500 million in 2014-2015 and reduce taxes by $1.6 billion in 2015-2016. Under the Proposed 2014-2015 Executive Budget, these are the important changes of which you should be aware:

Download

MARKS PANETH STATE AND LOCAL TAX ADVISOR: HIGHLIGHTING KEY TAX LAW CHANGES, Bryde, Steven P., 10/15/2013

Based on legislation signed into law by California (CA) Governor Gerry Brown on October 4, 2013, investors in "qualified small business stock" (QSBS) of CA. companies will not owe CA income tax on 100% of the gain from the sale of their QSBS interest retroactive to 2008-2012 based on the previously decided case, Cutler v. Franchise Tax Board, that struck down the 50% income tax exclusion on gains from the sale of QSBS of CA companies. The new law reverses the decision in the Cutler case. Note: To qualify as a QSBS company under the new law, the Company must have 80% of its payroll as measured by total dollar value, attributable to employment located within CA.

Download

MARKS PANETH STATE AND LOCAL TAX ADVISOR: HIGHLIGHTING KEY TAX LAW CHANGES ACROSS THE REGION, Bryde, Steven P., 09/19/2013

The New York State Legislature has recently passed and Governor Cuomo has signed into law, an economic development program that would create "tax-free zones" for businesses that locate near State University of New York (SUNY), City University of New York (CUNY) and certain private college and university campuses located in most upstate regions of New York (NY). The law is effective for tax years beginning on or after January 1, 2014.

Download

Cloud Computing Transactions are the New "Wild West" Sales Tax Frontier, Bryde, Steven P., 09/13/2013

New York imposes a sales tax on basic data access known as a taxable information service. In addition, the state has begun subjecting software-as-a-service (“SaaS”) and cloud computing to sales/use tax if the buyer is located in New York. It is one of a limited number of jurisdictions at the leading edge of aggressiveness in defining the taxability of online and cloud-computing transactions. But such aggressiveness is a growing trend. And for businesses, this tax posture creates a new set of obligations.

This article, “Cloud Computing Transactions are the New ‘Wild West’ Sales Tax Frontier as Jurisdictions Push Aggressively to Increase Online Revenue”, was originally published in The Metropolitan Corporate Counsel, September 2013.

Download

Marks Paneth TAX ALERT: NEW YORK STATE ENACTS BUDGET AND NEW YORK COURT RULES ON “AMAZON TAX”, Bryde, Steven P., 05/07/2013

On March 20, 2013, Governor Cuomo and the State Legislative Leaders reached a new Budget for the fiscal year beginning April 1, 2013. Subsequently, the Governor signed the Legislation into law.

The 2013-2014 Budget closes a $1.3 billion gap with no new taxes or fees. Here are a few of the more noteworthy provisions.

Download

VIDEO: Doing Business in the Cloud is Great, Except for Tax Traps, Bryde, Steven P., 12/01/2012

New York, along with other states, is zeroing in on services that haven't been taxed before, and cloud computing is right up there on the list. Steven Bryde discusses the complications of taxation on companies using the Internet to do business.

Download

Tax Alert: Additional Guidance on Filing MCTMT Protective Claims, Bryde, Steven P., 10/22/2012

This is an update to the Marks Paneth Tax Alert issued on August, 28, 2012 addressing the New York State (NYS) Supreme Court decision, Mangano, et al. v. Silver, et al., which held the NYS Metropolitan Commuter Transportation Mobility Tax (MCTMT) to be unconstitutional and that employers located in the the Metropolitan Commuter Transportation District (MCTD) who have been paying this tax since its effective date, March 1, 2009, should file protective refund claims on or before November 2, 2012. At the time of the August alert, NYS had not issued guidance on the proper procedure, so we recommended that taxpayer/employers file amended Forms MTA-305 in paper form.

Download

Tax Alert: NYS Metropolitan Commuter Transportation Mobility Tax Deemed Unconstitutional, Bryde, Steven P., 08/28/2012

On August 22, 2012, in the case entitled Mangano, et al. v. Silver, et al, NYS Supreme Court, No. 14444/10, New York State (NYS) Supreme Court Justice Bruce Cozzens granted the plaintiffs’ motion for summary judgment and held the Metropolitan Commuter Transportation Mobility Tax (MCTMT) to be unconstitutional under the NYS Constitution. The Justice said that the MCTMT did not serve a substantial state interest and the tax appropriated public funds for a local project.

Download

State and Local Tax Advisor, June 2012, Bryde, Steven P., 07/06/2012

Marks Paneth has published the latest issue of State and Local Tax Advisor. Click below for the June issue.

Download

Facing Up to the State and Local Tax Headache The Internet Era Serves Up to the Hospitality Industry, Bryde, Steven P., 04/30/2012

The hotel you operate sold a block of rooms through Expedia. Expedia charged consumers $100 per night. You received a discounted rate of $80 per room per night from Expedia – discounted because Expedia went to the effort of advertising and booking the rooms for you. In addition, Expedia paid you $8 per room per night to cover the 10 percent occupancy tax – based on the discounted rate of $80 per night. Expedia keeps $22 per room per night for itself, as its fee. Has Expedia done the right thing? Or has it underpaid you for the occupancy tax?

Download

State and Local Tax Advisor, March 2012, Bryde, Steven P., 03/19/2012

Marks Paneth has published the latest issue of State and Local Tax Advisor. Click below for the March issue.

Download

Cacace, Christopher A.

Section 181’s Extension to Live Stage Productions Doesn’t Set Clear Path for Producers, Investors, Cacace, Christopher A., 05/01/2016

At the end of 2015, Congress passed, as part of a large tax extender bill, the Protecting Americans from Tax Hikes Act (PATH), an extension of Section 181 of the Internal Revenue Code.  Section 181 has been available since 2004 to permit expedited deduction of the costs of a film or TV production.  The present version of Section 181 permits an expedited de­duction of a production’s costs up to $15 million ($20 million in certain circum­stances).  Since inception, this has had several sunset provisions, each of which was extended as part of year-end extender bills. The latest for the first time has extended the availability of Section 181 treatment to live stage productions.

This article, which appeared in a recent issue of Entertainment Law & Finance newsletter (an ALM publication), discusses whether this new provision will be helpful to producers of live theatrical productions as they seek to raise funding for their shows.  It was co-written by Thomas D. Selz and Bernard C. Topper, Jr., of New York City law firm Frankfurt Kurnit Klein & Selz PC, and Christopher A. Cacace, Partner-in-Charge, Theater, Media and Entertainment Group, Marks Paneth LLP.

Download

Ciavarella, Steven J.

Navigating the Recession, Bekas, Michael; Eliach, Steven; Ciavarella, Steven J., 05/18/2009

The current economic downdraft is a first in many respects. Just a glance at headlines from the fourth quarter of last year reveals a perfect storm of economic trauma whose magnitude is like nothing in recent memory.

Download

Cohen, Lawrence

Tax Alert: Tax IRS proposed regulations target gift and estate tax planning strategies, Cohen, Lawrence, 09/07/2016

 The IRS has released proposed regulations that would close so-called tax loopholes that many wealthy taxpayers have used to minimize gift and estate taxes when transferring interests in a closely-held family business to relatives. If finalized, the regulations would significantly limit the effectiveness of certain tax-saving vehicles, including family limited partnerships, for reducing the value of transferred interests for tax purposes. This article details the proposed regulations. 

Download

Are We There Yet? Looking down the road at the health of the hospitality sector, Cohen, Lawrence, 09/01/2016

Times are good for many of us in the hospitality industry.  Across every sub-sector, from hotels and airline travel to new building development and job creation, the industry continues to enjoy the fruits of a new US economic recovery.  And yet, those who have lived through downturns and shrinking markets find times like this to be perilous, leading all of us to ask, “Are we there yet?” — i.e. are we at the peak of the market and in for a nasty shock.

In this article, Lawrence Cohen explores the ups and downs of the US hospitality industry and the possibility that we are near the top of the business cycle.

This article, “Are We There Yet?”, was originally published in the September 2016 issue of Metropolitan Corporate Counsel.

Download

"Irrational Exuberance” or Golden Age: Is This The Best of Times for New York City Hotels?, Cohen, Lawrence, 01/11/2016

What’s changed in the NYC hospitality sector over the past two years? Nothing, but everything…

Partner and Hospitality Group Leader Lawrence Cohen has refreshed his 2014 article, “’Irrational Exuberance’ or Golden Age: Is this the Best of Times for New York City Hotels?” and discusses the impact that the last two years have had on the market.

Download

To Operate or Not to Operate Your Hotel Restaurant Yourself...That is the Question, Cohen, Lawrence, 04/29/2015

Upscaling your hotel restaurant can do wonders for your brand.  For hotel owners who are ready to renovate their property as a result of a healthy economy and are looking to upgrade services, the restaurant is often a prime target for renovation.  For a well-run full-service hotel, quality food service is paramount.  But a top-flight hotel restaurant can be a draw in its own right, attracting customers who might not otherwise visit the hotel, and adding energy and an air of prestige to help build the hotel’s brand.  Leasing the operation to a third party may be the obvious answer – and it can be profitable to boot.  But there are traps for the unwary.  And the result – rather than a smooth-running business – can become a nightmare of obligations that don’t fit well with the restaurateur’s talent and business and can result in ongoing contract disputes.  And if you, the hotelier, decide to run the restaurant yourself, you’ll find that unless you know the business well, the execution may be much different than your original plan.

Download

Committing to a Hotel Conversion? Look Before You Leap, Cohen, Lawrence, 01/07/2015

Conversions are a hot topic in the hospitality industry – understandably, because the hotel market itself is hot, and converting a property is a quick way to establish or expand your footprint. In many cases, it’s far easier and much less expensive to convert an existing building than it is to build from scratch. Why wouldn’t you want to get a fast start on an opportunity – and possibly a jump on the competition – by committing to a conversion? For all players in hotel property – real estate investors looking to move into hospitality, business owners who want to claim a share of hospitality industry revenues and established hotel owners in need of an expansion path – conversion looks like the smart way to go. Is it? Not always.

Download

Pigs Get Slaughtered: Do’s and Don’ts for Buyers and Sellers in a Red Hot Hotel Real Estate Market, Cohen, Lawrence, 05/02/2014

Today’s hotel transaction market is definitely hot – after several slow years, the pace has accelerated sharply – and it’s exciting for both buyers and sellers.  Should you be a buyer . . . a seller . . . or both?  Should you act now, or wait?  The answer depends on your situation – and also on your expectations.  How realistic are they?  A hot market can be a good time to make money.  It can also burn you.  As with any other market, you need to understand the market dynamics and develop a strategy.  Above all, don’t get greedy.  What’s said of the stock market can also be said of buying and selling in the hospitality industry: Bulls make money and bears make money.  But pigs get slaughtered.

Download

VIDEO: Buying a distressed hotel? Avoid being the dog that catches the car, Cohen, Lawrence, 05/28/2013

Acquiring a distressed hotel can be a very exciting strategy for an owner or entrepreneur. But you have to keep your eyes wide open because a distressed property can come with problems and risks that are often overlooked. Learn what happens and what challenges you face when you finally close the deal on your troubled property -- and the right steps to take that can help you come out ahead.

Download

VIDEO: Word to the wise for hotel owners, Cohen, Lawrence, 05/28/2013

The hotel business is different -- it's not like other properties where decisions are made periodically. Hotel decisions are made daily, even hourly, or because the weather has changed -- and they are often made by the representatives of your management company, without consulting you, the owner/entrepreneur. The solution? Keep your management company -- but be smart and hire key people who report to you. And always trust . . . but verify.

Download

A Key to Managing Your Hotel Through Troubled Times: Keeping Your Lender Happy, Cohen, Lawrence, 05/17/2013

You bought your hotel with the highest expectations. And why not? All owners do. But the best-laid plans of hotel owners can go astray. Maintaining control of a distressed hotel can be a challenge. To meet it, focus on your contingency plan and have the right team in place.

Download

Avoid Becoming "The Dog That Caught The Car" When You Acquire A Distressed Hotel, Cohen, Lawrence, 04/03/2013

A distressed hotel isn’t an acquisition you can make and then forget. It won’t run on its own. It requires daily, hands-on, operational management – a specialized, knowledgeable kind of management sensitive to the particular realities of a hotel in turnaround, a management that is able to work with the hotel’s people and its physical plant and set the property back on the road to success. This article reviews how an effective turnaround plan will anticipate, and help you avoid a worst-case outcome.

Download

To Succeed with Your New Restaurant, Take a Businesslike Approach, Cohen, Lawrence, 11/01/2012

The restaurant business can be a wonderful, rewarding pursuit. It can also be a trap. The industry is one of the most challenging in existence. It demands a mix of creativity, inspiration and hard business sense. And like any industry, it imposes its own very specific, very demanding business conditions. As in any other field, experience counts and systematic planning is rewarded.

Download

Watchdogs for Your New Hotel: Why a Hotel Owner Needs a Friend (or Friends) on Top of Managers and Franchisors, Cohen, Lawrence, 05/15/2012

New owners often come into the hospitality industry from a background in real estate. Buying a hotel seems like a logical next step for those who own other forms of commercial property, such as office buildings and retail locations, and who are looking to expand their portfolios. But owning a hotel isn't like owning other types of property, even those that, like hotels, involve third-party management. Hotel ownership carries its own terms and conditions, its own rules of engagement, and its own particular dangers that can trap – and cost – the unwary.

Download

A Major Challenge for Hotel Owners: Managing Employees and Labor Issues, Cohen, Lawrence, 05/15/2012

The largest ongoing expense for a hotel is, of course, payroll. Whether your hotel is union, non-union, five-star luxury or limited service, managing your employees and their costs are one of the biggest challenges a hotel owner or operator can face.

Download

When Owner's Commitment And Dedication Work Against Them, Cohen, Lawrence, 05/25/2010

Your client's business used to be a major success. Now it isn't. But if you rely on your client to tell you that he or she is in trouble, you'll be the last to know – and worse, you might be unable to intervene.

Download

D'Amico, John

FASB Project on Not-for-Profit Financial Reporting, D'Amico, John , 04/21/2016

New Accounting and Auditing Matters on the Horizon -- The FASB is moving forward with the proposed ASU Presentation of Financial Statements of Not-For-Profit Entities. The proposed changes are considered to be the most sweeping changes since 1993.  After receiving 264 comment letters and holding three public roundtables, which representatives of Marks Paneth LLP participated in, the FASB Board decided to separate the project into two phases. This summary provides useful information on the changes which lie ahead.

Download

Eliach, Steven

Trump Presidency Portends Major Tax Changes, Eliach, Steven, 11/16/2016

The unexpected election of Donald Trump as President of the United States, along with Republicans retaining control of both chambers of Congress, will likely result in some changes to the U.S. tax code.

In this brief article, Steven Eliach, Principal-in-Charge of the our Tax Practice, outlines the potential impact of the 2016 election on tax law.

Download

US Taxpayers Are Paying More Than They Realize, Eliach, Steven , 10/17/2016

Most tax policy discussions dwell on three types of taxes: income tax, payroll tax and estate tax. These taxes, however, are only cornerstones in a crowded fiscal system consisting of federal, state and local taxes. Such tunnel vision leaves commentators and taxpayers alike with a murky understanding of what taxation in the U.S. actually entails. The gap between what the public believes about its tax burden and the amount it pays is so wide that it renders much of our tax debate totally off target. Governmental authorities impose many lesser-known taxes, but you’d never know that from public discussions about our tax system.

This article was originally published in the October 2016 issue of Metropolitan Corporate Counsel. It was co-written by Maria L. Castilla of Thomson Reuters and Steven Eliach, Principal-in-Charge of Tax Services, Marks Paneth LLP.

Download

Tax Alert: Deadline Reminder for IRS Penalty Relief Program, Eliach, Steven, 05/12/2015

June 2 deadline looming on IRS penalty relief program for late retirement plan returns

Download

Marks Paneth: Year-End Tax Planning for Businesses and Individuals, Eliach, Steven, 10/30/2014

Now that the final quarter of 2014 has begun, many businesses and individuals are turning their attention to year-end tax planning. This year, however, uncertainty over dozens of expired or expiring tax provisions complicates the planning process, particularly for business owners.

Download

Marks Paneth Tax Alert: Year-End Tax Planning for Businesses and Individuals, Eliach, Steven, 12/03/2013

Although tax legislation signed into law this past January made a wide variety of tax breaks permanent, it extended several valuable breaks for businesses only through Dec. 31, 2013. It’s possible that some, or even all, of them could be extended again. But with the battle in Washington over tax reform, it’s difficult to predict what will happen with expiring breaks. So taxpayers may want to take steps now to lock in any breaks that can benefit their businesses while these breaks are still available. But they shouldn’t ignore traditional year end strategies for their businesses — or themselves.

Download

Tax Alert: IRS Issues Sweeping Rules That Affect Businesses Owning Tangible Property, Eliach, Steven, 11/25/2013

The IRS has released its final regulations on the tax treatment of expenditures related to tangible property. The regulations provide guidance on how to comply with Sections 162 and 263 of the Internal Revenue Code, which require the capitalization of amounts paid to acquire, produce or improve tangible property but allow amounts for incidental repairs and maintenance of property to be deducted. The regulations explain how to distinguish between capital expenditures and deductible business expenses.

The regulations (IRS T.D. 9636) generally will apply to tax years beginning on or after Jan. 1,2014. They affect all businesses that own or lease tangible property, including buildings, machinery, vehicles, furniture and equipment.

Download

Tax Alert: How The IRS Ruling Impacts Tax and Estate Planning for Same-Sex Married Couples, Eliach, Steven, 09/26/2013

In Revenue Ruling 2013-17, the IRS clarified that a same-sex couple’s marital status for federal tax purposes is determined by the laws of the state where they got married — not the state where they reside. This article details Revenue Ruling 2013-17 and explains its impact on tax and estate planning.

Download

Marks Paneth Tax Alert: IRS Issues Guidance on Delay in Implementing Health Care Act, Eliach, Steven, 07/17/2013

The IRS has issued guidance on the recently announced delay in implementation of the Patient Protection and Affordable Care Act’s (PPACA) information-reporting provisions and its employer shared-responsibility — also known as “play or pay” — provision. This alert summarizes the delayed provisions, the reasons for the delay and its impact.

Download

Marks Paneth Tax Alert: Supreme Court Issues Landmark Decisions On Same-Sex Marriage, Eliach, Steven, 07/15/2013

On June 26, the US Supreme Court issued two landmark decisions. United States v. Windsor requires the federal government to recognize same-sex marriage in states where it’s legal. Hollingsworth v. Perry may allow same-sex marriage in the country’s most highly populated state, California. These 5-4 decisions could dramatically affect tax and estate planning for same-sex married couples, as well as the benefit plans employers and the federal government provide to such couples. This article provides a brief overview of the decisions and the potential for signifcant tax and benefits implications.

Download

Marks Paneth Tax Alert: IRS Expands Relief Program for Employers with Misclassified Workers, Eliach, Steven, 03/25/2013

The IRS has modified the Voluntary Classification Settlement Program (VCSP) to, among other things, allow employers under IRS audit (other than an employment tax audit) to participate. It also temporarily further expands eligibility — through June 30, 2013. But while the expansions may seem like a win-win option for employers, participating isn’t without risk. This article reviews VCSP eligibility, processes and terms, and details the recent changes.

Download

Marks Paneth Tax Alert: What the American Taxpayer Relief Act Means for Your Estate Plan, Eliach, Steven, 02/18/2013

The American Taxpayer Relief Act of 2012 (ATRA), signed into law Jan. 2, 2013, primarily addresses income taxes. However, it also provides substantial estate tax relief compared to the changes that otherwise would have gone into effect in 2013. In addition, it provides increased estate tax law certainty. Nevertheless, ATRA is not all positive for estate planning, as it increases the estate tax rate compared to the 2012 estate tax law regime. The many changes going into effect in 2013 warrant a review of your estate plan. Here are some of the most important changes to consider.

Download

Marks Paneth Tax Alert: What the American Taxpayer Relief Act Means for Your Individual Taxes, Eliach, Steven, 02/11/2013

The American Taxpayer Relief Act of 2012 (ATRA) does, as its name implies, provides substantial tax relief to many taxpayers. However, while higher-income taxpayers will enjoy some benefits, they’ll also see some tax increases. Here’s a closer look at ATRA’s most important changes for individuals, along with the tax planning implications.

Download

Marks Paneth Tax Alert: What the American Taxpayer Relief Act Means for your Business Taxes, Eliach, Steven, 02/04/2013

The American Taxpayer Relief Act of 2012 (ATRA) extends and enhances many breaks for businesses. In particular, it provides incentives for businesses to invest in assets, research and people. This article provides an overview of ATRA’s most important changes for businesses, along with the implications for 2012 tax returns and tax planning for 2013 and beyond.

Download

Marks Paneth Tax Alert: What the Fiscal Cliff Deal Means for Your Taxes, Eliach, Steven, 01/06/2013

After much contention and negotiation, President Obama and Congress finally came to agreement on legislation to address the “fiscal cliff.” The American Tax Relief Act (ATRA) prevents income tax rate increases for all but approximately the top 2% of taxpayers. ATRA also extends other income tax breaks for individuals and businesses and addresses the alternative minimum tax (AMT) and the estate tax. This alert provides an overview of some of the act’s key tax law changes.

Download

Marks Paneth Tax Alert: IRS Provides Guidance on Additional 0.9% Medicare Tax, Eliach, Steven, 12/26/2012

On November 30, 2012, the IRS issued proposed regulations regarding the 0.9% Additional Hospital Insurance Tax on High-Income Taxpayers (commonly referred to as the Additional Medicare Tax), which takes effect January, 1, 2013. This alert details how the tax may affect individuals, employers and payroll service providers.

Download

Tax Alert: Tax Filing Extensions for Taxpayers Affected by Hurricane Sandy, Eliach, Steven, 11/09/2012

As a result of the tremendous impact of Hurricane Sandy, the Internal Revenue Service (IRS) has announced that it is postponing various tax filing and payment deadlines for affected taxpayers. Those taxpayers in parts of New York, New Jersey and Connecticut that have been declared a disaster area by the Federal Emergency Management Agency (FEMA) will have until February 1, 2013 to file returns and pay taxes due.

Download

Tax Alert: Supreme Court Upholds Health Care Law: What Do Businesses Need to Do Now?, Eliach, Steven, 07/26/2012

June 28’s US Supreme Court ruling has drawn attention to the far-reaching provisions of the Patient Protection and Affordable Care Act of 2010. Since 2010, various provisions have trickled into effect. But the waters of change are gaining speed, with several particularly significant provisions scheduled to take effect over the next 18 months, barring congressional action.

Businesses face a variety of compliance requirements under the act, though certain small businesses may be eligible for a tax-saving opportunity. What all businesses need to do now is prepare.

Download

Tax Alert: Individual Tax Planning in the Aftermath of the Supreme Court's Health Care Law Ruling, Eliach, Steven, 07/26/2012

Since the US Supreme Court issued its health care law ruling, most of the attention has focused on its mandates, expansion of coverage and state insurance exchanges. But the Patient Protection and Affordable Care Act of 2010 includes some significant tax-related provisions affecting individuals that are scheduled to take effect in 2013 and 2014, unless Congress repeals them or takes other action.

Now is the time to start planning so you can minimize any negative tax consequences to the extent possible.

Download

Tax Alert: JOBS Act Eases Small Business Funding, Allows Crowdfunding, Eliach, Steven, 07/17/2012

The Jumpstart Our Business Startups Act of 2012 (JOBS act) is designed to provide capital for small businesses and startups. Under the new law, a qualified business will be able to raise cash without meeting all the usual requirements for initial public offerings (IPOs).

Download

Tax Alert: Current Estate Tax Law Uncertainty Should Alter Your Planning Strategies in 2012, Eliach, Steven, 04/09/2012

Without congressional action before year end, on Jan. 1, 2013, gift and estate tax exemptions will drop and rates will increase. But Congress may address the expiring estate tax law provisions. Such uncertainty can play havoc with estate planning. This article explains how making lifetime gifts can take advantage of the currently high exemption amount and low tax rate and details ways to add flexibility to an estate plan to prepare for potentially lower exemptions and higher rates in 2013.

Download

Tax Alert: IRS Releases Extensive New Rules Affecting Businesses That Acquire, Produce or Improve Tangible Property, Eliach, Steven, 02/14/2012

The IRS has issued extensive regulations, in temporary and proposed form (the temporary regulations serve as the text for the proposed regulations), providing its long-awaited guidance on the tax treatment of expenditures related to tangible property. These regulations are intended to simplify compliance with Section 263 of the Internal Revenue Code, which generally requires the capitalization of amounts paid to acquire, produce or improve tangible property. They focus largely on how to determine whether expenditures are for deductible repairs or capital improvements. The regulations will affect all businesses that acquire, produce, or improve tangible property.

The new regulations (IRS TD 9564 and REG-168745-03) generally apply to expenditures made in tax years beginning on or after Jan. 1, 2012, so they don't apply to 2011 tax returns. For 2012 and beyond, however, the regulations will affect a wide swath of businesses that purchase, lease, produce or improve tangible property, such as buildings, machinery, vehicles, furniture and equipment.

Download

Tax Alert: Congress Extends Payroll Tax Relief, Eliach, Steven, 01/10/2012

After much debate and political maneuvering, Congress has passed the Temporary Payroll Tax Cut Continuation Act of 2011. The act provides an extension of payroll tax relief until February 29, 2012. This article provides a brief overview of the legislation.

Download

For Technology Start-ups, A Road Map is Essential and It Should Cover Every Stage of the Journey, Goulet, Jeanne P.; Eliach, Steven, 03/10/2011

A technology start-up is a complex entity, even if its initial scale is small.

Careful planning is needed to arrive at a roadmap – not just for product development, marketing and sales, but also for a business model that ultimately will result in a great product market fit. The ideal roadmap is one that addresses the financial needs of both the entrepreneur and the business.

See Steven and Jeanne's article originally published in The Metropolitan Corporate Counsel March 2011.

Download

The Road Map of a Start-Up and the Entrepreneur, Goulet, Jeanne P.; Eliach, Steven, 01/10/2011

A start-up venture is not just about product development, marketing and sales. It is a constant search for a business model that ultimately will result in a great product market fit. During the course of this endeavor, the financial needs of both the entrepreneur and the business can be complex. The financial needs of the entrepreneur and the business model run on two parallel paths and can change substantially over the life cycle of the venture.

Download

Navigating the Recession, Bekas, Michael; Eliach, Steven; Ciavarella, Steven J., 05/18/2009

The current economic downdraft is a first in many respects. Just a glance at headlines from the fourth quarter of last year reveals a perfect storm of economic trauma whose magnitude is like nothing in recent memory.

Download

Effects of New York's 2009-2010 State Budget, Eliach, Steven, 05/01/2009

On April 7, 2009, New York Governor David Paterson signed into law New York State's Fiscal 2009-10 Budget. The enacted budget agreement closes a two-year $17.7 billion 2009-10 budget gap and reduces the State's multi-year deficit by an estimated 80 percent from approximately $60 billion to approximately $11 billion.

Download

American Recovery and Reinvestment Act of 2009, Eliach, Steven, 04/10/2009

The American Recovery and Reinvestment Act of 2009 totals $787 billion. Nearly $300 billion of the bill includes tax relief for individuals and businesses which is outlined in the Marks Paneth alert.

Download

Engelhardt, Thomas H.

HR AND TODAY’S ADVERTISING INDUSTRY: Navigating the digital terrain, Engelhardt, Thomas H. Stern, Richard, 07/01/2016

When asked to provide a rundown of his adverting agency’s assets, marketing guru Fairfax Cone replied "The inventory goes down the elevator every night."

But, if that was true back in the 1950s ― that an ad agency’s most precious resource was its people ― it’s just as true now.

After all, the ultimate success of any agency depends almost entirely on the talent and skill of its creatives and account managers. Banks depend on their financial holdings for viability and retailers survive based on their ability to sell products. But advertising agencies have to put their people at the top of any ‘must have’ list.

Download

Evans, John N.

Living in the Millennial World, Evans, John N., 03/07/2016

Forces of unimaginable power are reshaping the business world – and in ways unimaginable even 30 years ago: Continual connectivity, relentless technological innovation, personalized interactions, increased efficiency, rapid turnarounds, and high-value relationships and outputs.  

What’s more, hi-tech development, globalization and the need to improve efficiency are becoming critical strategic priorities worldwide.  As a result, organizations have to become more agile in order to support new business strategies and meet growing employee and client expectations.

The fundamental questions for companies today then − and those who work for them − are: Does your brand actually attract new clients; does it encourage those clients to spend more; and does it earn you any loyalty?

Download

TAX ALERT: BUSINESS-TRAVEL PER DIEM RATES UPDATED FOR 2015, Evans, John N. , 11/12/2014

Effective Oct. 1, IRS Notice 2014-57, 2014–2015 Special Per Diem Rates, updates the per diem rates that can be used for reimbursement of ordinary and normal business expenses incurred while employees travel away from home. It also revises the list of high-cost localities for use in the high-low substantiation method. The per diem rates, which are established by the General Services Administration (GSA), are updated before the end of the federal government’s fiscal year. Some employers elect to use these rates to simplify recordkeeping.

Download

Despite Higher Tax Rates, 'S' Corporations Retain Advantages Over 'C' Corporations, Evans, John N. , 03/25/2014

Owners of small, growing businesses face a perennial question: Should the business function as an S corporation, or should the entity revoke its election under Subchapter S of the Internal Revenue Code? Individual tax rates are now generally higher than corporate rates – but that doesn’t mean that it’s an advantage to realize income as a corporation. Tax rates are not the whole story.

This article, “Despite Higher Tax Rates, ‘S’ Corporations Retain Advantages Over ‘C’ Corporations”, by John Evans and Maria Castilla, was originally published in Practical Tax Strategies by Thomson Reuters, December 2013.

Download

VIDEO: The advantages of an “S”-Corp vs. a “C”-Corp, Evans, John N. , 05/08/2013

The American Tax Relief Act raises tax rates for some high-income people and probably has some growing, successful business owners thinking their companies should become “C” corporations. Think again, says John Evans, who explains why you’ll still probably save money by remaining an “S” corporation.

Download

Tax Alert: June 30th Filing Dates for FBar Form 90-22.1, Evans, John N., 06/13/2012

Form 90-22.1, "Report of Foreign Bank and Financial Accounts" (FBAR) for the year ended December 31, 2011, is due and must be received by the US Treasury no later than June 30, 2012.

Download

Forslund, Alyssa

Tax Tips for Start-Ups: US Sales and Employment Withholding Obligations, Forslund, Alyssa, 09/01/2011

Tax ranks high among the many structural issues a start-up needs to consider. Even tax responsibilities that seem straightforward – such as collecting sales tax and setting up withholding for employees – can be challenging and need to be approached carefully.

See Alyssa's article originally published in The Metropolitan Corporate Counsel, September 2011.

Download

Goldstein, Hope

Developing a Fraud-Free Workplace for the Nonprofit Organization: A Fresh Perspective, Kreuter, Eric A.; Goldstein, Hope, 09/16/2015

Fraud is a significant and growing problem for nonprofit organizations, according to a number of sources, occurring more frequently and becoming more costly. According to the 2014 Report to the Nations by the Association of Certified Fraud Examiners (ACFE), nonprofit fraud accounted for 10.8% of total incidents of fraud in 2013, up from 9.6% reported in 2010. Nonprofit organizations lost a median $108,000 per incident in 2013, up from $90,000 reported in 2010. Since many nonprofits are relatively small, the financial impact is often far greater than the dollar amount implies. 

This article by Eric Kreuter, partner, Financial Advisory Services, and Hope Goldstein, partner, Nonprofit and Government, reviews the risks (financial, reputational and funding threats), fraud’s origins and the steps an organization should take to strengthen its control environment.

Download

Goulet, Jeanne P.

Exemption on Gain of Small Business Stock, Goulet, Jeanne P., 02/15/2013

In 1993, the Qualified Small Business Stock (QSB) provision was enacted granting a 50% exemption on the gain on sale of shares of a qualified small business. The provision, known as section 1202, was largely ignored, because, for various reasons, the benefits were not worth the effort. Fortunately, the American Taxpayer Relief Act of 2012, signed into law on January 2, 2013 made the 100% exemption retroactive to January 2012 and effective until January 1, 2014.

Download

VIDEO: Having a Great Idea and Potential Product are Not Enough, Goulet, Jeanne P., 12/01/2012

There's a chasm between the brilliance of defining a new product and finding its market fit -- and developing the financial foundation to scale the business. What makes someone a great entrepreneur frequently makes him or her pretty bad at steering the financial side of their business. So, what distinguishes someone from the pack is the ability to make both happen.

Download

Playing Tax Defense + Offense When Starting a New Business, Goulet, Jeanne P., 04/30/2012

Today many entrepreneurs want to try their hand at developing a new product or service that will solve a problem, fix a pain point or change the world. It is instinctive to focus one's attention on the technology and the product market fit. Attorneys, however will frequently advise the entrepreneur to set up a legal entity right away in order to minimize legal risks, and to establish agreements among the founding team to reduce friction and misunderstandings that can develop as the business evolves. Even if a product has not yet been developed or revenue has not yet been generated, once a legal entity is established or once an agreement is reached by individuals to work together to share profits and losses, tax matters must be addressed as inevitably tax consequences result. One of the key indications that an entrepreneur is able to transition from the creation of a product to the creation of a successful business is his/her ability to manage corporate responsibilities.

Download

For Technology Start-ups, A Road Map is Essential and It Should Cover Every Stage of the Journey, Goulet, Jeanne P.; Eliach, Steven, 03/10/2011

A technology start-up is a complex entity, even if its initial scale is small.

Careful planning is needed to arrive at a roadmap – not just for product development, marketing and sales, but also for a business model that ultimately will result in a great product market fit. The ideal roadmap is one that addresses the financial needs of both the entrepreneur and the business.

See Steven and Jeanne's article originally published in The Metropolitan Corporate Counsel March 2011.

Download

International Tax Planning - An Essential Step For Global Start-Ups, Goulet, Jeanne P., 01/30/2011

The same turbulence that has challenged the global economy has also created pockets of opportunity around the world. Simultaneously, entrepreneurship is at a high, as recent college graduates create their own opportunities, as layoffs at senior levels transform executives into entrepreneurs.

See Jeanne's article originally published in the January-February 2011 issue of Corporate Taxation, © 2011 Thomson Reuters/RIA. All rights reserved.

Download

The Road Map of a Start-Up and the Entrepreneur, Goulet, Jeanne P.; Eliach, Steven, 01/10/2011

A start-up venture is not just about product development, marketing and sales. It is a constant search for a business model that ultimately will result in a great product market fit. During the course of this endeavor, the financial needs of both the entrepreneur and the business can be complex. The financial needs of the entrepreneur and the business model run on two parallel paths and can change substantially over the life cycle of the venture.

Download

Where in The World is My Business? Taxable Presence and the Global Start-up, Goulet, Jeanne P., 12/10/2010

You are probably comfortable – even energized – by the idea that your business can easily reach beyond geographic boundaries. Thanks to the Internet, even as a start-up, you can do business around the world, selling goods and services, quickly setting up offices to help you penetrate new markets, and moving employee teams into critical locations to put them closer to the marketplace.

Download

Don't Pay Tax Twice on Each Dollar of Earnings!, Goulet, Jeanne P., 12/10/2010

Many experienced entrepreneurs, investors and business owners who have successfully operated in the past in their local environment are unaware of the tax pitfalls involved in cross-border transactions. It is easy to fall prey to serious missteps and to pay tax to more than one government for the same dollar of earnings.

Download

The Global Start-Up: A Look at Jurisdiction, Goulet, Jeanne P., 08/27/2010

You've weighed the entity options for your Start-Up. You now understand the tax differences between corporations and transparent entities and the impact they could ultimately have on your bottom line. You think you have a strong sense of where you want to set-up your legal entity. Or do you?

Download

An Introduction to the Global Start-Up, Goulet, Jeanne P., 08/06/2010

Start-Ups have been around for a long time. Traditionally, they have been local enterprises run by small business entrepreneurs. Today, however, thanks to the Internet's global reach, entrepreneurs have the ability to tap networks and establish Start-Up operations all across the world.

Download

Henning, Steven L.

Fully Leveraging IP Assets, Henning, Steven L., 07/12/2016

R&D is woven into the fabric of our economy, yet it receives very little attention from business magazines, let alone the mainstream press. It might seem like an altogether forgotten part of the American industrial machine, but in 2013, R&D expenditures in the U.S. amounted to a staggering $473 billion – almost 3 percent of the country’s total GDP.

This article, “Fully Leveraging IP Assets”, was originally published in The Metropolitan Corporate Counsel, July 2016. 

Download

Legal Issues and Valuation of Tangible Assets, Patents and Copyrights, Henning, Steven L., 05/16/2016

Understanding the nature and value of the assets of a business is essential for a variety of reasons, and it has become increasingly clear that legal considerations can play an important role. In general, asset values are an important consideration in formulating asset management and protection policies. And many of the financial crises we have experienced in recent memory can be attributed, in part, to the subjective nature of some inputs used to determine fair value.

This article by Steven L. Henning, Tax Partner-in-Charge of the Financial Advisory Services Group, Marks Paneth LLP, and Peter Twombly, a Partner with McCarter & English, is reprinted with permission from the May edition of The New York Law Journal© 2016 ALM Media Properties, LLC.

Download

The Challenge and Responsibility of Protecting Client Data, Henning, Steven L., 01/01/2015

According to an October 2014 Gallup Poll, 69 percent of Americans frequently or occasionally worry about theft of their credit card information.  Other than having a computer or smartphone hacked, the majority of Americans worry about this crime more than any other crime they were asked about.  These worries are driven by the growing wave of hackers that hit major retailers throughout 2014, including Neiman Marcus, Sony, Morgan Stanley, eBay, AOL and others.  As businesses collect more and more information about their customers, and in spite of the concern over theft of this data, few Americans are taking actions to protect themselves.  And businesses, which seem to have ample incentives to protect themselves and have repeatedly been warned about data breaches, routinely ignore such threats for a variety of reasons.

This article, “The Challenge and Responsibility of Protecting Client Data”, was originally published in The Metropolitan Corporate Counsel, January 2015.

Download

Managing Intellectual Property In A Knowledge Economy, Henning, Steven L., 02/21/2014

We frequently see new products, brands and creative designs that are the result of continuous innovation and creativity. Many of these innovations are driven by small businesses that possess innovative and creative capacity, but may lack awareness of the protection that our intellectual property system can provide. Left unprotected, an invention or creation may be lost to competitors who are in a better position to commercialize the product or service, leaving the original inventor or creator without financial benefit or reward. Therefore, securing adequate protection of a company’s intellectual property may be a crucial step in deterring potential infringement and in turning ideas into business assets with a real market value.

This article was originally published in The Metropolitan Corporate Counsel, February 2014.

Download

Increased Regulation Drives Demand for Forensic Accounting Services, Misuraca, Yasmine L.; Henning, Steven L., 12/23/2013

Major financial reforms and volatility following notorious frauds and scandals have led to outsized growth in the demand for forensic accounting services.  During the past decade or so, Congress reacted to the WorldCom Inc. and Enron bankruptcies resulting from fraudulent financial reporting by passing the Sarbanes-Oxley Act of 2002, adding regulation targeting internal controls over financial reporting, among other requirements.  The more recent financial crisis that is blamed for the Great Recession led Congress to pass the Dodd-Frank Wall Street Reform and Consumer Protection Act, requiring greater financial transparency of public companies.  This increased regulation has contributed to strong revenue growth for forensic accounting services providers. 

This article was originally published in The Metropolitan Corporate Counsel, December 2013.

Download

VIDEO: The Part of Dodd-Frank Investors Can't Live Without, Henning, Steven L., 07/23/2013

It's easy for investors to balk at increasing financial regulations since 2008. However, one provision of the Dodd-Frank Act which permits surprise audits of investment companies is important to protecting investors and institutions. Surprise audits can actually provide comfort and protection to ensure you have what you and the investment company say you have.

Download

Reaping the Full Benefits of Intellectual Property, Sacks, Glenn D.; Henning, Steven L., 02/05/2013

Intellectual Property (IP) accounts for nearly $6 trillion value added, roughly equal to 40 percent of US GDP. Moreover, IP is critical to our balance of trade, as goods from IP-intensive industries account for 60 percent of all U.S. exports. Given the jobs, exports and wage premiums those businesses support, many will say we must protect our IP from infringers in developing nations and elsewhere. But we must also protect our IP from ourselves.

This article was originally published in The Metropolitan Corporate Counsel, February 2013.

Download

U.S. And China Look To Each Other For Opportunity, Henning, Steven L., 12/24/2012

U.S. investors have been enthusiastically investing in Chinese businesses listing on U.S. exchanges in order to achieve returns that were believed to exceed those available in lower growth Western economies, including the U.S. Ironically, Chinese businesses have been buying U.S. businesses and assets in record amounts because of the opportunity for growth the U.S. offers. Can these seemingly disparate strategies both work?

This article was originally published in The Metropolitan Corporate Counsel, December 2012.

Download

US and China Ensnared in Regulatory Cold War, Henning, Steven L., 12/17/2012

The regulatory stalemate has accelerated the pace at which Chinese companies are “going dark” and withdrawing from US exchanges. Many of these companies are seeking listing status on Hong Kong’s Hang Seng stock market. Moreover, the impasse diminishes the competitiveness of the US markets as other companies seek to raise capital elsewhere.

Download

VIDEO: The Credit Agencies Lesson... Applicable to Everyone and Every Business, Henning, Steven L., 12/01/2012

Despite the few noticeable outcomes of the downgrade of US debt, S&P, Moody's and Fitch are still worth paying attention to. Steven Henning discusses how rating agencies continue to hold sway over big business, small business and individual decisions.

Download

VIDEO: Raising Capital: The Private Placement Advantage, Henning, Steven L., 12/01/2012

Companies are pursuing growth opportunities by entering new markets, launching new products or increasing market share. To fund this growth, companies may want to consider a private placement, an oft-overlooked source of capital. Private placements enable companies to raise capital quickly and at substantially lower transactions costs than capital raised through an initial public offering.

Download

Accounting and Auditing Alert: SEC Staff Issues “Final Report,” but IFRS Decision Still to Come, Henning, Steven L., 07/30/2012

On July 13, the staff of the U.S. Securities and Exchange Commission (SEC) issued its final report on the agency’s work plan in relation to International Financial Reporting Standards (IFRS). Although the 127-page report provides analysis of six key areas, what may be most notable is that it doesn’t make a recommendation as to what the SEC’s decision should be regarding incorporating IFRS into the financial reporting system for U.S. issuers. This article provides an overview of the report.

Download

Exchanges Need to Take Initiative to End New Scam: Fraudulent Listings of Chinese Companies on U.S. Exchanges, Henning, Steven L., 04/01/2012

The problem with reverse mergers is that they have long been a favorite technique of financial fraudsters - and they are now giving many Chinese companies easy entry to US markets. Some of those Chinese companies, however, do not actually exist and those that do often publish false, misleading or incomplete financials.

Reprinted from the April 2012 issue of the Financial Fraud Law Report.

Download

Empowering Intellectual Property, Henning, Steven L.; Sacks, Glenn D., 02/01/2011

Intellectual property ("IP") is an untapped frontier in value creation. The problem is the basic tendency regarding IP, including patents, as the single, proprietary, closely guarded holding of the patent developer. That tendency is fundamental to the patent system – indeed, to all property rights, because at the root, we are talking about patent ownership.

See Steven and Glenn's article originally published in The Metropolitan Corporate Counsel, February 2011.

Download

Executive View, Why the US Must Adopt International Financial Reporting Standards, Henning, Steven L., 03/16/2010

Can you envision a world in which the U.S. is no longer the world's premier marketplace for capital? We can. In fact, unless U.S. companies and exchanges act, we believe that the world may be well on its way to a new financial order, one in which the U.S. no longer leads.

Download

Financier Worldwide, IFRS Roundtable, Henning, Steven L., 03/03/2010

Recent events in worldwide markets have shed light on accounting principles and the differences that exist in the way assets are valued and reported. In recent years, the globalisation of financial markets has intensified calls for a unified set of accounting principles. Not only will changes impact financial reporting, but there may also be implications for tax policies, M&A, financial planning and compensation structures.

Download

Controlling Real-World Risks of Mark-to-Market Valuation, Henning, Steven L., 06/01/2009

In an article recently published in Accounting Today, Steve Henning, the Partner-in-Charge of the Marks Paneth Litigation and Corporate Financial Advisory Services Group urges companies and financial executives to take a hard, skeptical look at their balance sheets for assets that may be portraying false, overly optimistic valuations.

Download

The Future of Accounting Principles, Henning, Steven L., 02/10/2009

The events of the last few months have shed light on accounting principles and the role they might have played in prolonging the current market turmoil. Fair value accounting, in particular, has been accused, by some professionals and officials, of being at least partly responsible for the current financial troubles.

Download

Global Presence, Local Excellence, Henning, Steven L.; Nash, Ronald, 06/01/2007

JHI is a leading international business association for independent business advisers, financial consulting, and accountancy firms. JHI exists to support the development of its member firms by facilitating communications, exchange, networking, and resource sharing worldwide. Its members benefit from global networking while maintaining total practice independence.

Download

Hughes, Robert J.

Marks Paneth Tax Alert: Rules Surrounding IRA Rollovers Become Less Friendly to Taxpayers, Hughes, Robert J., 07/09/2014

Earlier this year, the US Tax Court made a controversial ruling regarding IRA (Individual Retirement Account) rollovers that contradicted an IRS publication designed to explain the law to taxpayers. Soon after, the IRS announced that it would adopt the court’s less taxpayer-friendly interpretation of the rollover rules. Taxpayers with multiple IRAs will have to be much more careful when making rollovers to ensure they don’t violate the aggregate rules and generate unnecessary tax liability — and possibly interest and penalties. This alert provides a brief overview of the Tax Court case, the IRS response and some other rules surrounding IRA rollovers that taxpayers should be aware of.

Download

IRS issues final regulations on 3.8% net investment income tax and 0.9% additional Medicare Tax, Hughes, Robert J., 01/29/2014

The IRS has issued final regulations addressing two new taxes under the Affordable Care Act that took effect Jan. 1, 2013: the 3.8% net investment income tax (NIIT, also known as the Medicare contribution tax), and the 0.9% additional Medicare tax. This article reviews these taxes and details how the final regs. differ from the proposed regs. that were issued last year.

Download

Inberg, Polina

Impact of PATH ACT: Section 181 IRS Code Revisions to Live Theater Productions, Inberg, Polina, 08/18/2016

On December 18, 2015, Congress passed and President Obama signed the PATH Act of 2015 which included revisions to section 181 of the Internal Revenue Code. One of the revisions was an extension of the film and television rules on expensing production costs for qualified live theatrical productions.  This change in the federal tax code for theatrical production companies is arguably the single biggest legislative change affecting the industry in almost 20 years.  The new law provides opportunities, but it presents challenges as well: the unique aspects of theater companies can create uncertainties as well as obstacles to implementation.

Polina Inberg, CPA, is a Director in the Theater, Media and Entertainment Group at Marks Paneth LLP.  She is based in the firm’s midtown Manhattan headquarters and can be reached at (212) 330-6022 or by email at pinberg@markspaneth.com.

Download

Jennings, William H.

Marks Paneth Comments on HUD's Proposed Changes to §200.216, Jennings, William H., 10/08/2015

Marks Paneth recently submitted its comments in response to the United States Department of Housing and Urban Development's (HUD) proposed rule meant to improve the previous participation reviews process, particularly under FR-5850-P-01 §200.216.

Download

Real Estate Advisor, June 2015, Jennings, William H., 06/23/2015

Marks Paneth has published the latest issue of Real Estate Advisor

Download

Real Estate Advisor, May 2015, Jennings, William H., 05/11/2015

Marks Paneth has published the latest issue of Real Estate Advisor

Download

Spring 2015 Gotham Commercial Real Estate Survey Results, Jennings, William H., 04/29/2015

The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of commercial real estate professionals in the New York City market. The 107 professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agents, and attorneys, accountants and other professionals specializing in the sector. The research employed self-administered questionnaires completed online and on paper by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of February 25 to March 31, 2015.

Download

Real Estate Advisor, March 2015, Jennings, William H., 03/11/2015

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the March issue.

Download

Real Estate Advisor December 2014, Jennings, William H., 12/19/2014

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the December issue.

Download

Fall 2014 Gotham Commercial Real Estate Results, Jennings, William H., 12/10/2014

The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of commercial real estate professionals in the New York City market. The 124 professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agents, and attorneys, accountants and other professionals specializing in the sector. The research employed self-administered questionnaires completed online and on paper by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of November 6 to December 1, 2014.

Download

Real Estate Advisor October 2014, Jennings, William H., 11/12/2014

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the October issue.

Download

Real Estate Advisor July 2014, Jennings, William H., 07/29/2014

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the July issue.

Download

Summer 2014 Gotham Commercial Real Estate Results, Jennings, William H., 07/28/2014

The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of 100 commercial real estate professionals in the New York City market. Professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agents and attorneys and accountants specializing in the sector. The inaugural survey was completed in January 2013, the second in June 2013, the third in December 2013 and the fourth in May 2014.  The research employed self-administered questionnaires completed online by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of June 17 through July 11, 2014.

Download

Real Estate Advisor June 2014, Jennings, William H., 06/13/2014

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the June issue

Download

Spring 2014 Gotham Commercial Real Estate Results, Jennings, William H., 05/21/2014

The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of nearly 100 commercial real estate professionals in the New York City market. Professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agents and attorneys and accountants specializing in the sector. The inaugural survey was completed in January 2013, the second in June 2013 and the third in December 2013.  The research employed self-administered questionnaires completed online by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of March 3rd to May 7th, 2014.

Download

Real Estate Advisor, May 2014, Jennings, William H., 05/15/2014

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the May issue

Download

Succession Planning: To Avoid Landmines, Seek Advice Outside the Family, Jennings, William H., 05/01/2014

Succession Planning: To Avoid Landmines, Seek Advice Outside the Family

Succession planning is a difficult matter in any business. In a family-owned business, the difficulty is, if anything, much greater. Family politics and interpersonal relationships are always challenging – all the more so when the future of a business is at stake. Most family businesses are dominated by one or two strong leaders – often a founder, always an authority figure – who leave succession planning until the last possible moment, sometimes settling on a successor who doesn’t have the makings of a good future leader. The results can be disastrous. Picking the wrong successor can destroy the business. It can be equally bad to pick no successor at all.

This article was originally published in ABO Developments, Volume 22, Number 2, Spring 2014.

Download

Trends Shaping NY Real Estate Industry, According to Latest Gotham Commercial Real Estate Monitor, Jennings, William H., 03/21/2014

Uncertainty about the de Blasio administration and a high commercial vacancy rate were among the issues that worried New York real estate professionals, according to the 2013 editions of the Gotham Commercial Real Estate Monitor, an ongoing survey conducted by my firm, Marks Paneth.

This article, “Uncertainty about de Blasio, a Soft Commercial market and Other Trends Shaping New York’s Real Estate Industry, According to Latest Gotham Commercial Real Estate Monitor”, was originally published in The New York Real Estate Journal, February 25, 2014.

Download

Fall 2013 Gotham Commercial Real Estate Results, Jennings, William H., 12/17/2013

The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of over 100 top commercial real estate professionals in the New York City market. Professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agents, and attorneys and accountants specializing in the sector. The inaugural survey was completed in January 2013 and the second in June 2013. The research employed self-administered questionnaires completed online by respondents.  The list of professionals surveyed was compiled by Marks Paneth, the research sponsor.  In addition, a link to the survey site was included in an online trade publication.  Interviews were completed during the period of November 7-30, 2013.

Download

Real Estate Advisor, December 2013, Jennings, William H., 12/06/2013

Marks Paneth has just published the latest issue of Real Estate Advisor. Click below for the December issue.

Download

Real Estate Advisor, October 2013, Jennings, William H., 10/23/2013

Marks Paneth has just published the latest issue of Real Estate Advisor. Click below for the October issue.

Download

Your Grant Might Be a Wolf in Sheep’s Clothing, Jennings, William H., 09/13/2013

Due to a loophole in the Internal Revenue Code, grants to partnerships – unlike grants to corporations – are taxable income.  Worse, they are fully taxable in the year received, and unfortunately, there is no after-the-fact remedy.  Once the partnership receives the grant, the tax consequences are automatic.  Only by advance planning can it be structured properly to avoid this potential tax time bomb. An IRS loophole can lead to devastating tax consequences when partnerships receive New York State energy grants.

This article, “Your Grant Might Be a Wolf in Sheep’s Clothing:  An IRS Loophole Can Lead to Devastating Tax Consequences When Partnerships Receive New York State Energy Grants”, was originally published in the New York Real Estate Journal, August 27, 2013.

Download

Real Estate Advisor, September 2013, Jennings, William H., 09/08/2013

Marks Paneth has just published the latest issue of Real Estate Advisor. Click below for the September issue.

Download

Real Estate Advisor, July 2013, Jennings, William H., 07/31/2013

Marks Paneth has just published the latest issue of Real Estate Advisor. Click below for the July issue.

Download

Spring 2013 Gotham Commercial Real Estate Results, Jennings, William H., 07/22/2013

The Gotham Commercial Real Estate Monitor from Marks Paneth LLP represents the findings of a survey of over 100 top commercial real estate professionals in the New York City market. They included owners and managers of commercial property, commercial real estate brokers and agents, and attorneys and accountants specializing in this sector. The inaugural survey was completed in January 2013. The research employed self-administered questionnaires completed online by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor. In addition, a link to the survey site was included in an online trade publication. Interviews were completed during the period of May 6 to July 1, 2013.

Download

Real Estate Advisor, June 2013, Jennings, William H., 06/11/2013

Marks Paneth has just published the latest issue of Real Estate Advisor. Click below for the June issue.

Download

Real Estate Advisor, March 2013, Jennings, William H., 03/06/2013

Marks Paneth has just published the latest issue of Real Estate Advisor. Click below for the March issue.

Download

Winter 2013 Gotham Commercial Real Estate Results, Jennings, William H., 01/23/2013

This summary presents the key findings of a survey of over 100 top commercial real estate professionals in the New York City market. A dual-mode methodology was employed of self-administered questionnaires completed either online or on paper by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor. Interviews were completed during the period of November 16, 2012 to January 4, 2013.

Download

Cost Segregation - Wait a Minute... Exercise Caution and Research all Scenarios, Jennings, William H., 11/05/2012

Cost segregation is basically an engineering study that breaks large assets into components with shorter lives to attain an accelerated depreciation benefit. A cost segregation study dissects the building into components with shorter depreciable lives, therefore throwing off larger depreciation deductions in earlier years.

This article was originally published in New York Real Estate Journal, August-September 2012.

Download

Real Estate Advisor, March 2012, Jennings, William H., 03/05/2012

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the March issue.

Download

Kaden, Monica

Valuing Physician Practices Using the Market Approach, Kaden, Monica, 10/15/2015

The changing regulatory environment caused by the passage of the Patient Protection and Affordable Care Act (PPACA) has led to additional uncertainty in the healthcare industry on many levels. Practices are consoldating to gain market share and increase efficiency, as many believe that a larger group or network will produce greater profitability. This article explores the factors that are affecting the healthcare industry and complicating the valuation of medical practices.

This article appeared in the September/October 2015 issue of The Value Examiner, published by the National Association of Certified Valuators and Analysts (NACVA).

Download

Choosing an Experienced Health Care Appraiser, Kaden, Monica, 03/01/2015

Thinking of Buying or Selling a Medical Practice? Having an experienced health care appraiser will ensure that the correct information and documents are requested, the right questions are asked, and all of the potential opportunities and risks of the entity and industry are included in the valuation. There are many resources available to health care appraiser. 

Download

Valuation for Your Healthcare Practice, Kaden, Monica, 03/01/2015

There are many reasons to value a physician practice, ambulatory surgery center, imaging center or other health care entity (for example, merger, acquisition, sale, litigation, matrimonial dissolution). But such health care businesses are subject to different regulations, technology changes, consolidation and other risk factors than companies in other industries. Thus, the person performing the appraisal should be experienced and knowledgeable in health care valuation.

Download

Advising Physician Clients Regarding the Decision to be Acquired, Kaden, Monica, 02/01/2015

Many physicians wonder if they should be part of a larger group, such as a hospital or multi-specialty practice group. It is common for small groups and solo practitioners, in certain specialties, to be approached by large health care organizations to consider selling their practice and becoming an employee.

Download

Choosing the Right Medical Practice Valuation Consultant, Kaden, Monica, 08/01/2014

The physician who obtains an independent valuation gains a better understanding of the practice’s value.  An independently prepared valuation prepared by a qualified, experienced accredited or certified business appraiser with medical practice experience will help to insure that you make an informed and proper decision.  In addition, the medical practice valuation consultant will often be available to offer advice regarding the parameters for setting an asking price, deal terms and restrictive covenants.

This article was published by Fischer Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

Selling Your Medical Practice?, Kaden, Monica, 07/01/2014

It seems that in recent years, more physician practices are bringing in partners, combining with larger practices, or joining hospitals.  There are a number of demographic and economic factors contributing to this urge to grow and merge.

This article was published by Fischer Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

Download

Valuing Your Medical Practice, Kaden, Monica, 07/01/2014

When considering the sale or purchase of all or certain assets of a physician practice, a valuation is often warranted.  Sellers need to be able to realistically assess the value of their practice in order to monetize its full value, while buyers may need a valuation for both business and regulatory reasons.

This article was published by Fischer Barr & Wissinger LLC (FBW), now part of Marks Paneth LLP.

 

Download

Kanjamala, Joseph J.

Marks Paneth Nonprofit Alert: EO #38 Sets Limits on Administrative Expenses and Executive Compensation, Kanjamala, Joseph J. , 07/30/2013

New York State Governor Andrew M. Cuomo's Executive Order #38 (EO #38), which sets limits on administrative expenses and executive compensation for covered provider entities, went into effect on July 1, 2013. EO # 38 is applicable to entities regulated by any of 13 specified State agencies. This alert summarizes the key features.

Download

Kiess, Kurt S.

A Call for Guidance: Tip Credit Uncertainty Burdens Vital NYC Restaurant Industry, Kiess, Kurt S., 03/11/2015

Restaurant owners in New York City are left in the difficult position of interpreting the rules on the federal tip credit.  The New York City Department of Finance has not issued clear and definitive guidelines on how to treat the federal tip credit as it relates to New York City taxable income.  As a result, New York City restaurant owners may be paying tax on phantom income – not real income but rather paper income for which there is no cash to offset the tax burden.  The lack of clarity has created inconsistent reporting throughout the city, placing a burden on the New York City restaurant industry – an industry that is vital to the city’s economy.

This article, “A Call for Guidance:  Tip credit uncertainty burdens vital NYC restaurant industry”, was originally published in The Metropolitan Corporate Counsel, April 2015.

Download

Klein, Dov

Vendors Cautioned to Separate Sales Tax on All Taxable Transactions, Klein, Dov, 11/23/2016

A recent advisory opinion (TSB-A-16(28)S) issued by the New York State Department of Taxation and Finance (the “Department”) has concluded that a vendor required to collect sales tax may not “absorb” collected sales tax into its hourly rate.

Tax Law also provides that the person required to collect tax is required to separately state the tax on any invoice, or other statement of the transaction provided to the customer. The Department has stated that, “The words tax included or words of similar import, on a sales slip or other document, do not constitute a separate statement of the tax, and the entire amount charged is deemed the sales price of the property sold or services rendered.”

Download

Kreuter, Eric A.

Developing a Fraud-Free Workplace for the Nonprofit Organization: A Fresh Perspective, Kreuter, Eric A.; Goldstein, Hope, 09/16/2015

Fraud is a significant and growing problem for nonprofit organizations, according to a number of sources, occurring more frequently and becoming more costly. According to the 2014 Report to the Nations by the Association of Certified Fraud Examiners (ACFE), nonprofit fraud accounted for 10.8% of total incidents of fraud in 2013, up from 9.6% reported in 2010. Nonprofit organizations lost a median $108,000 per incident in 2013, up from $90,000 reported in 2010. Since many nonprofits are relatively small, the financial impact is often far greater than the dollar amount implies. 

This article by Eric Kreuter, partner, Financial Advisory Services, and Hope Goldstein, partner, Nonprofit and Government, reviews the risks (financial, reputational and funding threats), fraud’s origins and the steps an organization should take to strengthen its control environment.

Download

Travel Expense and Payroll Fraud Case Study, Kreuter, Eric A.; Sawhney, Sareena M.; Sacks, Glenn D., 09/13/2013

Travel expense and payroll fraud have become hot topics within both for profit and non-profit organizations.  Weaknesses in internal controls and greed both contribute to the ongoing problem of assets and profits being slowly siphoned from unwary organizations.  This case study illustrates what can happen, what can be done and what value can be added during and following the forensic engagement.

This article, “Travel Expense and Payroll Fraud Case Study”, was originally published in The Forensic Examiner, Fall 2013.

Download

The Importance Of Business Continuity Planning: Dealing With Inevitable Risk, Kreuter, Eric A., 07/18/2013

Increased awareness of the need to prepare for risk and risk of disaster does not always translate into action. One reason is because businesses feel prior events are not likely to recur or effects would not be overly severe. Business managers should plan for the worst and commit to the development of a responsible strategic plan to minimize the impact of harmful events, even unlikely ones.

This article was originally published in The Metropolitan Corporate Counsel, June 2013.

Download

Kuchner, Robert G.

What’s Old Is What’s New, Kuchner, Robert G., 11/15/2016

Contrary to popular belief ― and probably in keeping with your own professional experience ― high net worth individuals (HNWI) rarely regard tax reduction and improving cash flow as chief among their concerns. For affluent investors it's really about what they can walk away with, not necessarily how much they earn. And let’s face it, a great performing investment can become a very mediocre one once taxes kick in.

This article was written by Robert G. Kuchner, CPA/PFS, a Partner at Marks Paneth LLP. “What's Old Is What's New”, will appear in the December issue of Global Business Oppertunities. 

Download

CREATING A LEGACY: HOW MUCH WEALTH IS ENOUGH TO LEAVE CHILDREN, Kuchner, Robert G., 01/07/2016
Download

CREATING A LEGACY: WHAT ARE THE ALTERNATIVES TO A LUMP-SUM TRANSFER AND BASICS OF CHARITABLE PLANNING, Kuchner, Robert G., 01/04/2016
Download

LaForgia, Laura E.

Have You Outgrown Your Accountant?, LaForgia, Laura E., 11/24/2014

Have You Outgrown Your Accountant?

When it comes to selecting tax advisors, there is a point in your life where equal focus should shift to the value that an accountant may bring to your situation as opposed to putting sole focus on the price of traditional core services such as preparation. Quite often people ignore their intuition that tells them it is time to move on until either the government has reached out to them in some unpleasant way or someone questions whether there are more tax-efficient ways of doing things. Do not miss an opportunity to have your return reviewed by a qualified professional for planning that may equate to current and future tax savings such as estate planning, small business sales tax issues, Schedule D reporting and “married filing separate” issues.

Download

New York State Nursing Home Assessment Credit, LaForgia, Laura E., 05/01/2014

The nursing home assessment credit is a commonly overlooked New York State income tax credit that could provide some real money to those in need. The credit is a refund on the portion of the assessment which a New York nursing home is required to pay to the State and which is then passed through on the nursing home resident’s bill. It is equal to up to 6 percent of the base-rate portion of the assessment and can be claimed by anyone who pays the assessment, whether that person is the nursing home resident or is a relative or other individual responsible for paying the charges.

This article originally appeared in the May 2014 issue of the TaxStringer. It is reprinted with permission from the New York State Society of Certified Public Accountants. It can also be accessed by clicking here.

Download

Identity Theft: The Tax and Financial Implications, LaForgia, Laura E., 06/11/2013

By now, everyone is familiar with the phrase “identity theft” and probably knows someone who has been hurt in some way from it. Identity theft occurs when someone uses your personally identifying information, such as your name, Social Security number, or credit card number, without your permission to commit fraud or other crimes.  This article outlines the areas where people are vulnerable, the techniques thieves can use to steal identities and the tips people should be aware of to protect themselves.

This article originally appeared in Tax Stringer, a publication of the New York State Society of CPAs (NYSSCPA).  It appeared in the June 2013 issue.

Download

Lyons, Robert

Minimum Distribution Requirements for Private Foundations, Lyons, Robert, 09/18/2015

Every year, private, non-operating foundations are faced with determining their minimum investment return in order to calculate their distributable amount. For calendar year 2014, the distributable amount is the amount that the foundation must pay out as a qualifying distribution by the end of 2015 to avoid the 30% excise tax on the undistributed portion.

In this article, director Robert Lyons provides foundation administrators with technical guidance around the appropriate timing of and planning that should go into the distributable amount’s payout.

Download

The Definitive Guide to Income Tax Planning for Same-Sex Couples, Lyons, Robert, 03/26/2015

The Supreme Court’s decision in Windsor expanded the range of tax-planning considerations same-sex couples must navigate as they transition  from a tax system that disregarded their relationship to one that treats and taxes their relationship as a single economic unit.  As a result, the federal income tax ramifications of marriage may surprise some same-sex couples, particularly those who have been in relationships long before marriage was even possible.

Providing insightful guidance, The Definitive Guide to Income Tax Planning for Same-Sex Couples published in the March, 2015 issue of the Journal of Taxation  comprehensively explores these issues and opportunities The article was authored by Robert R. Lyons, tax director in the Nonprofit and Government Group at Marks Paneth LLP, Sean R. Weissbart, a trusts, estates and tax attorney with Morris & McVeigh LLP and Michael T. Meltzer, a portfolio manager at Tocqueville Asset Management LP.

You can download a copy of the article below.

Download

Effect of 2013 NY Non-Profit Revitalization Act on Incorporating NY-Based Charities in Delaware, Lyons, Robert, 06/01/2014

In December 2013, Governor Cuomo signed into law the New York Non-Profit Revitalization Act (the “Act”), which addressed, for the first time in over forty years, many of the inefficiencies in New York laws regulating not-for-profit organizations. Among the changes, the Act eliminates the requirement that many organizations with an educational purpose receive Education Department consent before they can incorporate. When this law takes effect on July 1, 2014, these organizations will be able to complete the New York incorporation process without the delays previously caused by the Education Department. This article addresses whether New York-based organizations should still continue to incorporate in Delaware.

This article by Robert Lyons, Tax Director, Marks Paneth LLP, and Sean R. Weissbart, an attorney with Morris & McVeigh LLP, is reprinted with permission from: Trusts and Estates Law Section Newsletter, Summer 2014, Vol. 47, No. 2, published by the New York State Bar Association, One Elk Street, Albany, NY 12207.

Download

Marks Paneth & Shron LLP Nonprofit Group Authors Alert on Alternative Investment, McNee, Michael L.; Lyons, Robert, 12/16/2008

The most recent Marks Paneth Nonprofit and Government Group Alert discusses the tax implications that apply to common alternative investments made by exempt organizations, as well as the reporting requirements and questions organizations should consider before making investment decisions.

Download

Nonprofit Alert: United States Investors in Offshore Hedge Funds Should Consider Filing the Report of Foreign Bank and Financial Accounts (FBAR), Lyons, Robert, 10/30/2008

TD F 90-22.1 is required to be filed for all accounts where a U.S. person or entity has a financial interest or signature authority in foreign financial accounts if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year. These relationships are reported on the calendar year by filing Form TD F 90-22.1 with the Department of the Treasury on or before June 30, of the succeeding year.

On June 12, three IRS personnel participated in a teleconference with a law firm that was designed to address open questions regarding the TDF 90-22.1 filing for calendar year 2008 that must be filed by June 30. It was their position (not official IRS position at this point) that an offshore hedge fund is a "foreign financial account" for this purposes and that, therefore, every U.S. investor in an offshore hedge fund should file a TDF 90-22.1 Form, whether or not the fund has any offshore bank or securities accounts. While the IRS's position on hedge funds is not official, it does carry substantial weight and should be considered.

Download

Marks Paneth & Shron LLP Nonprofit Group Authors Alert on Campaign Intervention, McNee, Michael L.; Lyons, Robert, 09/01/2008

During election years, the Internal Revenue Service takes a keen interest in whether charitable (501(c)(3)) organizations are intervening in political activities. This is particularly relevant in Presidential campaign years. One common characteristic to most charitable organizations is a passion about their respective causes. Since candidates for office are generally "issues" oriented, it is understandable that organizations, particularly those involved in advocacy for a cause, want to support the candidate that supports their position.

Download

Marks Paneth & Shron LLP Nonprofit Alert, June 2008, McNee, Michael L.; Lyons, Robert, 06/01/2008

On May 5, 2004 IRS issued Letter Ruling 200435020 in response to a charitable organization’s treatment of certain real estate transactions, credit cards, meals, gasoline, miscellaneous charges and cell phones.

Download

A Brave New World for a New Form 990, McNee, Michael L.; Lyons, Robert, 02/01/2008

On February 29, 2008, Michael McNee and Robert Lyons of the Nonprofit and Government Services Group presented a webinar entitled "A Brave New World for a New Form 990." This event discussed significant IRS changes to Form 990 and what they mean for the industry.

Download

McNee, Michael

Nonprofit Agendas - October, 2016, McNee, Michael , 10/07/2016
Download

Nonprofit Agendas - July, 2016, McNee, Michael , 07/19/2016

Marks Paneth has published the latest issue of Nonprofit Agendas.

Download

Nonprofit Agendas - May, 2016, McNee, Michael , 05/04/2016

Marks Paneth has published the latest issue of Nonprofit Agendas.

Download

Nonprofit Agendas - March, 2016, McNee, Michael, 03/02/2016

Marks Paneth has published the latest issue of Nonprofit Agendas.

Download

Nonprofit Revitalization: Checklist for Compliance, McNee, Michael L., 02/24/2016

New York State has a law pertaining to nonprofits called the Nonprofit Revitalization Act of 2013. It was signed by Governor Cuomo on December 18, 2013 and most provisions were effective on July 1, 2014. Marks Paneth has developed a self-administered checklist you can use to help with the process of verifying compliance for your organization.

 

Download

Nonprofit Agendas - December, 2015, McNee, Michael , 12/08/2015

Marks Paneth has published the latest issue of Nonprofit Agendas.

Download

Nonprofit Pulse: A Leadership Survey from Marks Paneth, McNee, Michael, 10/28/2015

Marks Paneth is proud to service many leading nonprofits.  To gain insights that will be useful and interesting to these organizations, and to help us meet their audit and other business needs, we regularly survey the leadership to top nonprofits around the country.  Topics span a range of issues organization leaders face or are concerned about.

Our most recent survey of nonprofit chief executives officers, executive directors, presidents, chief financial officers and board members was fielded during the second half of 2015.

Download

Nonprofit Agendas - October, 2015, McNee, Michael, 10/07/2015

Marks Paneth has published the latest issue of Nonprofit Agendas.

Download

FASB Roundtable on Proposed Nonprofit Accounting Standards, McNee, Michael, 09/28/2015

Marks Paneth was invited to attend one of two FASB roundtable meetings held on September 21 to discuss our views with the FASB Board and their technical managers on the Proposed Accounting Standard update (exposure draft) which suggests major revisions to the way nonprofit financials will look in the future.

Download

Nonprofit Agendas - August, 2015, McNee, Michael, 08/14/2015

Marks Paneth has published the latest issue of Nonprofit Agendas

Download

Nonprofit Agendas, April 2015, McNee, Michael, 04/21/2015

Marks Paneth has published the latest issue of Nonprofit Agendas

Download

Executive Summary: Exploring the Financial and Governance Ingredients for Nonprofit Stability, McNee, Michael, 04/02/2015

Executives from the nonprofit world convened at Marks Paneth recently for a seminar co-sponsored by Charity Navigator, a nonprofit charity watchdog group. Using the financial collapse of the Federation Employment and Guidance Services (FEGS), as a backdrop, the seminar explored issues related to fraud, governance, reporting transparency and operational sustainability – and underscored practices and safeguards that can protect nonprofits.

Download

Nonprofit Pulse: A Leadership Survey from Marks Paneth, McNee, Michael, 03/30/2015

The Nonprofit Pulse: A Leadership Study from Marks Paneth represents the findings of a survey of nonprofit leaders in the United States. The 103 professionals participating in the research include Board Chairs, Presidents, Executive Directors, Chief Executive Officers, Chief Financial Officers, Treasurers, Chief Operating Officers, Development Directors, Vice Presidents and Board members and are with organizations with annual budgets between $10 million and $100 million. The research employed self-administered questionnaires completed online by respondents. The national list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of November 12 to December 31, 2014.

Download

Marks Paneth Nonprofit Agendas, February 2015, McNee, Michael, 02/13/2015
Download

MARKS PANETH NONPROFIT AGENDAS DECEMBER 2014, McNee, Michael, 12/04/2014
Download

MARKS PANETH NONPROFIT AGENDAS OCTOBER 2014, McNee, Michael, 10/27/2014

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the October issue

Download

MARKS PANETH NONPROFIT AGENDAS SEPTEMBER 2014, McNee, Michael, 09/17/2014

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the September issue

Download

Marks Paneth Nonprofit Agendas July 2014, McNee, Michael , 07/28/2014

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the July issue

Download

NonProfit Agendas, May 2014, McNee, Michael , 05/19/2014

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the May issue

Download

Marks Paneth Nonprofit Agendas February 2014, McNee, Michael, 02/19/2014

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the February issue

Download

NonProfit Agendas, November 2013, McNee, Michael L., 11/25/2013

Marks Paneth has just published the latest issue of Nonprofit Agendas. Click below for the November issue.

Download

Nonprofit Agendas, September 2013, McNee, Michael L., 09/19/2013

Marks Paneth has just published the latest issue of Nonprofit Agendas. Click below for the September issue.

Download

Nonprofit Revitalization Is Here. Is Your Organization Ready?, McNee, Michael L., 07/16/2013

New York State Attorney General Eric T. Schneiderman’s initiative called the Nonprofit Revitalization Act (the Act) represents the most sweeping changes in New York State’s nonprofit law in 40 years. The law is a balance between less red tape and more oversight by the Attorney General. It considerably increases liability of Board members and scrutiny of Board actions. With the new Act, it’s time for a routine checkup of your organization’s governance policies.

Download

Nonprofit Agendas, May 2013, McNee, Michael L., 05/09/2013

Marks Paneth has just published the latest issue of Nonprofit Agendas. Click below for the May issue.

Download

Nonprofit Agendas, February 2013, McNee, Michael L., 02/25/2013

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the February issue.

Download

Nonproft Agendas, December 2012, McNee, Michael L., 12/20/2012

Marks Paneth has published the latest issue of Nonprofit Agendas.  Click below for the December issue.

Download

Nonprofit Agendas, November 2012, McNee, Michael L., 11/15/2012

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the November issue.

Download

Nonprofit Agendas, October 2012, McNee, Michael L., 10/17/2012

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the October issue.

Download

Nonprofit Agendas, August 2012, McNee, Michael L., 08/27/2012

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the August issue.

Download

Nonprofit Agendas, July 2012, McNee, Michael L., 07/27/2012

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the July issue.

Download

Nonprofit Agendas, June 2012, McNee, Michael L., 06/01/2012

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the June issue.

Download

Nonprofit Agendas, April 2012, McNee, Michael L., 05/02/2012

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the April issue.

Download

Nonprofit Agendas, January 2012, McNee, Michael L., 01/19/2012

Marks Paneth has published the latest issue of Nonprofit Agendas. Click below for the January issue.

Download

Endowment Accounting under FASB Topic 958-205 (Formerly FSP 117-1) and NYPMIFA, McNee, Michael L., 08/14/2011

A PREAMBLE NYPMIFA calls for: Prudence, donor notification and investment management. As the Beatles said, "Dear Prudence, won't you come out and play?" Do not mistake NYPMIFA and FASB 958-205 for being the same. Legal issues and accounting issues do not always agree. In legal terms, as it relates to endowments, you can "borrow", but you can't "steal". In accounting terms, you can't "hide".

EXAMPLES OF ENDOWMENT RESTRICTIONS

  • True endowment with no use restriction-My contribution should be kept intact and the income is to be used for the organization.
  • True endowment with use restriction-same as above except the income from the contribution is to be used for supplies for the organization.
  • Endowment for a term of years-keep the gift intact for 20 years, during which time the income is for supplies and after 20 years, the gift has no restrictions.
Download

Nonprofit Alert: New Update from Office of the Medicaid Inspector General (OMIG) Tightens Compliance Requirements for All Organizations Reliant on Medicaid Reimbursements, McNee, Michael L.; Marks, Eric A., 11/23/2009

As of October 1, 2009, The Office of the Medicaid Inspector General (OMIG) now requires all organizations that rely on Medicaid reimbursements to ensure that all persons, providers and affiliates providing care, services or supplies under Medicaid be in good standing and eligible to receive payment.

Download

Marks Paneth & Shron LLP Nonprofit Group Authors Alert on Alternative Investment, McNee, Michael L.; Lyons, Robert, 12/16/2008

The most recent Marks Paneth Nonprofit and Government Group Alert discusses the tax implications that apply to common alternative investments made by exempt organizations, as well as the reporting requirements and questions organizations should consider before making investment decisions.

Download

Marks Paneth & Shron LLP Nonprofit Group Authors Alert on Campaign Intervention, McNee, Michael L.; Lyons, Robert, 09/01/2008

During election years, the Internal Revenue Service takes a keen interest in whether charitable (501(c)(3)) organizations are intervening in political activities. This is particularly relevant in Presidential campaign years. One common characteristic to most charitable organizations is a passion about their respective causes. Since candidates for office are generally "issues" oriented, it is understandable that organizations, particularly those involved in advocacy for a cause, want to support the candidate that supports their position.

Download

Marks Paneth & Shron LLP Nonprofit Alert, June 2008, McNee, Michael L.; Lyons, Robert, 06/01/2008

On May 5, 2004 IRS issued Letter Ruling 200435020 in response to a charitable organization’s treatment of certain real estate transactions, credit cards, meals, gasoline, miscellaneous charges and cell phones.

Download

Nonprofit Investment Committees: Buyer Beware, McNee, Michael L., 03/05/2008

Increasingly, nonprofits are moving into alternative investments: private investment funds, hedge funds, real estate funds, venture capital funds, oil, and gas funds. The goal is generally higher returns and diversification.

Download

A Brave New World for a New Form 990, McNee, Michael L.; Lyons, Robert, 02/01/2008

On February 29, 2008, Michael McNee and Robert Lyons of the Nonprofit and Government Services Group presented a webinar entitled "A Brave New World for a New Form 990." This event discussed significant IRS changes to Form 990 and what they mean for the industry.

Download

Auditing Alternative Investments, McNee, Michael L., 01/01/2008

Auditing alternative investments presents unique challenges. As an auditor, it is critical to evaluate processes used by your clients to help support valuation and existence assertions in the financials.

Download

Misuraca, Yasmine L.

Increased Regulation Drives Demand for Forensic Accounting Services, Misuraca, Yasmine L.; Henning, Steven L., 12/23/2013

Major financial reforms and volatility following notorious frauds and scandals have led to outsized growth in the demand for forensic accounting services.  During the past decade or so, Congress reacted to the WorldCom Inc. and Enron bankruptcies resulting from fraudulent financial reporting by passing the Sarbanes-Oxley Act of 2002, adding regulation targeting internal controls over financial reporting, among other requirements.  The more recent financial crisis that is blamed for the Great Recession led Congress to pass the Dodd-Frank Wall Street Reform and Consumer Protection Act, requiring greater financial transparency of public companies.  This increased regulation has contributed to strong revenue growth for forensic accounting services providers. 

This article was originally published in The Metropolitan Corporate Counsel, December 2013.

Download

Moehringer, Harry

Real Estate Advisor, January 2012, Moehringer, Harry, 01/10/2012

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the January issue.

Download

Real Estate Advisor, July 2011, Moehringer, Harry, 07/22/2011

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the July issue.

Download

Real Estate Advisor, June 2011, Moehringer, Harry, 06/16/2011

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the June issue.

Download

Real Estate Advisor, March 2011, Moehringer, Harry, 03/01/2011

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the March issue.

Download

Real Estate Advisor, December 2010, Moehringer, Harry, 10/18/2010

Marks Paneth has published the latest issue of Real Estate Advisor. Click below for the December issue.

Download

Neumark, Avery E.

Regulatory Changes in the Trump Administration, Neumark, Avery E., 12/20/2016

Now that a new administration is about to occupy The White House, and the Republicans have retained both houses of Congress, it’s fair to say that that we will see significant regulatory changes in the future.  There will, for instance, probably be a number of important modifications in employee benefits policies, as well as amendments to the tax laws and related health care programs. Here are some items you should keep in mind as the New Year approaches. 

If you have questions, please contact Avery Neumark, Partner in the Tax Practice, or any of our tax professionals.

Download

Tax Alert: DOL's Overtime Rule Blocked by US District Court, Neumark, Avery E., 11/29/2016

On November 22 - just before the US Department of Labor’s (DOL’s) new overtime rule was scheduled to go into effect on December 1, 2016 - a federal judge issued an injunction and temporarily blocked it. The rule was set to make dramatic changes to the rules determining overtime for certain executive, administrative and professional employees under the Fair Labor Standards Act (FLSA). The final rule, issued last May, would have doubled (to $47,500) the maximum salary an executive, administrative or professional worker could earn and remain eligible for mandatory overtime pay, making it more difficult for employers to classify employees as exempt from overtime requirements.

Download

Packer, Solomon

Location: A Taxing Choice For New Businesses, Packer, Solomon, 06/25/2009

Given the raft of issues involved in launching a new business in the U.S., it should come as no surprise that the question of where the new legal entity should be formed is often given short shrift, when it is considered at all.

Download

Marks Paneth Outlines Departure Tax in Recent Article, Packer, Solomon, 09/04/2008

Solomon Packer, Senior Marks Paneth International Tax Consultant, publishes Corporate Business Taxation Monthly article on the recently enacted U.S. departure tax, which taxes built-in gains in excess of $600,000 from assets owned by “covered” expatriating U.S. citizens and long-term residents who relinquish their green cards.

Download

Robbins, James M.

Marks Paneth Tax Alert U.S. Treasury & IRS release amended final rules on foreign account reporting, Robbins, James M., 03/20/2014

The US Department of the Treasury and the IRS have issued what is expected to be their final significant package of regulations implementing the Foreign Account Tax Compliance Act (FATCA). FATCA requires foreign financial institutions (FFIs) — including foreign banks, brokers, insurance companies and investment funds — to disclose to the IRS certain information about their US -owned accounts. This article reviews the major provisions of the amended final regulations and the potential impact on individual taxpayers with foreign accounts. 

Download

VIDEO: Don't mess up a great investment with the wrong filing decision, Robbins, James M., 05/08/2013

A US company acquiring an overseas firm or a foreign company looking to do business in the US needs to make smart decisions early on to avoid the wrong tax elections. James Robbins explains why a simple document filing can make a big difference between a successful or a failed investment.

Download

Tax Alert: US Treasury Department Releases Model Intergovernmental Agreement on FATCA, Robbins, James M., 08/27/2012

The US Department of the Treasury has issued a model intergovernmental agreement to implement the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (FATCA). The provisions are intended to combat offshore tax evasion, and they require foreign financial institutions (FFIs) to report to the IRS information about certain financial accounts.

Download

Tax Alert: IRS Releases Guidance on Foreign Account Tax Compliance Act (FATCA), December 2011, Robbins, James M., 12/20/2011

Temporary regulations have been issued under Section 6038(D) relating to the requirement that individuals attach a statement to their tax return with respect to foreign financial assets. The IRS will release Form 8938 shortly which will be used to identify and report interests in foreign financial assets. It is important for taxpayers to determine whether they are subject to this new requirement because the tax law imposes significant penalties for non-compliance. Form 8938 does not replace or otherwise affect a taxpayer's obligation to file an FBAR.

Download

Ruppel, Warren

VIDEO: Implications of new pension reporting requirements, Ruppel, Warren, 05/08/2013

A more transparent way of pension accounting is coming: New standards from the Government Accounting Standards Board (GASB) take effect in 2013 and 2014. Warren Ruppel discusses what the changes are, who they affect and how.

Download

Sacks, Glenn D.

Travel Expense and Payroll Fraud Case Study, Kreuter, Eric A.; Sawhney, Sareena M.; Sacks, Glenn D., 09/13/2013

Travel expense and payroll fraud have become hot topics within both for profit and non-profit organizations.  Weaknesses in internal controls and greed both contribute to the ongoing problem of assets and profits being slowly siphoned from unwary organizations.  This case study illustrates what can happen, what can be done and what value can be added during and following the forensic engagement.

This article, “Travel Expense and Payroll Fraud Case Study”, was originally published in The Forensic Examiner, Fall 2013.

Download

Reaping the Full Benefits of Intellectual Property, Sacks, Glenn D.; Henning, Steven L., 02/05/2013

Intellectual Property (IP) accounts for nearly $6 trillion value added, roughly equal to 40 percent of US GDP. Moreover, IP is critical to our balance of trade, as goods from IP-intensive industries account for 60 percent of all U.S. exports. Given the jobs, exports and wage premiums those businesses support, many will say we must protect our IP from infringers in developing nations and elsewhere. But we must also protect our IP from ourselves.

This article was originally published in The Metropolitan Corporate Counsel, February 2013.

Download

Will The New Patent Law Remove Barriers to Monetization?, Sacks, Glenn D., 02/20/2012

At OpportunIP LLC we work with owners of intellectual property (IP) to foster innovation by helping them realize the hidden value inherent in their patent portfolios. Specifically, we work with IP owners to develop strategic relationships with other entities that result in alternative applications of existing technologies, thereby further enhancing the value of the IP. However, it is our experience that certain IP owners are fearful of the increased risks of making their IP available to other entities, including real or perceived increases in litigation risk. Increased litigation risk brings with it the potential for significant costs to defend the IP against allegations of infringement.

See Glenn's article originally published in The Metropolitan Corporate Counsel, February 2012.

Download

Empowering Intellectual Property, Henning, Steven L.; Sacks, Glenn D., 02/01/2011

Intellectual property ("IP") is an untapped frontier in value creation. The problem is the basic tendency regarding IP, including patents, as the single, proprietary, closely guarded holding of the patent developer. That tendency is fundamental to the patent system – indeed, to all property rights, because at the root, we are talking about patent ownership.

See Steven and Glenn's article originally published in The Metropolitan Corporate Counsel, February 2011.

Download

Sadang, Angela

Creating the Bridge Between Transfer Pricing and the Valuation of Intangibles, Sadang, Angela, 05/11/2016

International mergers and acquisitions (M&A) are at their hottest pace since before the 2008 financial crisis, and an increasing percentage of this activity involves intangible assets as significant components of the transaction. 

As multinational companies shift ownership of intangible assets between legal entities and across jurisdictions for various strategic purposes, the most critical considerations in cross-border M&A include the identification and valuation of intangible assets and transfer pricing. 

In the article, Director Angela Sadang challenges the perception that the value of a transaction and its largely-acquired intangible assets is motivated by financial reporting valuation rather than by transfer pricing valuation. Moreover, she discusses the importance of aligning the two disciplines early on in the M&A process to create lasting, value-added synergies. 

This article, "Creating the Bridge Between Transfer Pricing and the Valuation of Intangibles," appeared in the May version of the Quick Read Buzz.  

Download

Taxing Intangible Assets: A New Global Approach, Sadang, Angela, 04/28/2016

In this article, Angela Sadang Director with the firm's Financial Advisory Services group, looks at the OECD’s 2015 final report on all 15 Action Plans, the aim of which was to, “restore confidence in the international tax framework by addressing weaknesses that create opportunities for BEPS”.  After pinpointing the important functions that contribute to the value of the intangible,  the piece goes on to discuss the ways in which to identify the intangibles that make up a particular transaction, as well as a look at five transfer pricing methods the OECD thinks would be appropriate when transferring intangibles, or rights in intangibles.

This article was originally published in Morison KSi's quarterly tax newsletter, Global Tax Insights, Q1 2016. It was reprinted by permission in Global Tax Weekly, April 28, 2016, published by CCH, a Wolters Kluwer business.

Download

What's Next? Implications of Proposed IRS Regulations on Family-Owned Entities, Sadang, Angela, 02/01/2016

At the American Bar Association’s Section of Taxation meeting in May 2015, Cathy Hughes, Estate and Gift Tax Attorney Advisor with the US Treasury Department’s Office of Tax Policy, indicated that proposed regulations under IRC Section 2704(b)(4) (§2704) concerning restrictions on valuation discounts pertaining to the transfer of family-owned entity interests could be issued by mid-September 2015. As of this writing, no such regulations have been issued, though further informal communication on behalf of the Internal Revenue Service (IRS) suggests that new regulations are forthcoming. Meanwhile, questions and speculations abound. In a recent article, Angela Sadang discusses the implications of these proposed regulations on family-owned entities.

This article, “What's Next? Implications of Proposed IRS Regulations on Family-Owned Entities”, was originally published in the February 2016 issue of Metropolitan Corporate Counsel.

Download

Finding an Intersection Between Intangibles Valuation and Transfer Pricing, Sadang, Angela, 07/09/2015

In the recent boom of cross-border merger and acquisition (M&A) activity, the large proportion of transactions involving intangible assets or intellectual property (IP) as a dominant acquired asset has shed light on the importance of the identification and valuation of intangible assets and transfer pricing.

In this article, director Angela Sadang discusses how aligning these two disciplines early on in the M&A process can create lasting, value-added synergies.

This article, “Finding An Intersection Between Intangibles Valuation and Transfer Pricing in the US”, was originally published in Morison International’s quarterly tax newsletter, Global Tax Insights, Q2 2015.  It was reprinted by permission in Global Tax Weekly, July 9, 2015, published by CCH, a Wolters Kluwer business

Download

New Methods Promise More Accurate Valuations of Small, Privately Held Businesses, Sadang, Angela, 07/02/2015

Accurate valuation of any business is challenging. When the business is small and privately held, the challenge is all the greater. In the past, appraisers have used public company stock return data as a benchmark for valuing small private businesses. There are significant problems with this approach as appraisers have been challenged to find alternate data that might yield more accurate valuations. Fortunately, this is changing as new developments offer appraisers alternate data that might result in more accurate valuations.

Download

Sawhney, Sareena M.

Use Caution: Foreign Agents Ahead, Sawhney, Sareena M., 04/01/2016

In a recent case, four multinational corporations and a Japanese trading company paid a combined $1.7 billion in civil and criminal sanctions on their joint bribery scheme to win natural gas construction projects in Nigeria.  Too many companies are unaware that hiring local individuals or entities in a foreign country to help them conduct business may expose them to criminal or civil liability under FCPA.

Sareena Sawhney, Director with the firm's Financial Advisory Services group, examines how third-party compliance with anti-bribery provisions is under scrutiny in a recent article with Metropolitan Corporate Counsel.

This article, “Use Caution: Foreign Agents Ahead”, was originally published in the April 2016 issue of Metropolitan Corporate Counsel.

Download

The Dangers of Letting Bribery Go Undetected, Sawhney, Sareena M., 01/26/2016

The US Foreign Corrupt Practices Act (FCPA) includes both anti-bribery and accounting provisions. As detailed in A Resource Guide to the U.S. Foreign Corrupt Practices Act, from the Criminal Division of the Department of Justice (DOJ) and the Enforcement Division of the US Securities and Exchange Commission, the FCPA makes it a crime for American corporations or their subsidiaries to bribe foreign officials to obtain or retain business. 

In this article, Sareena M. Sawhney, director in the Financial Advisory Services group at Marks Paneth, details the ways to avoid an FCPA disaster and the serious consequences that may result if companies do not take necessary precautions. 

Download

Meeting US FATCA Reporting Requirements, Sawhney, Sareena M., 12/31/2015

The Foreign Account Tax Compliance Act (“FATCA”) was enacted with the primary goal of providing the Internal Revenue Service (“IRS”) with the ability to locate US tax evaders hiding assets abroad.  Foreign Financial Institutions (“FFIs”) will now need to conduct the necessary due diligence and meet the necessary documentation requirements in order to help find such US tax avoiders.  Non-compliance can result in the FFI paying a 30% withholding tax on income from US sources. Sareena Sawhney outlines the overall steps an FFI needs to take to maintain FATCA compliance.

This article was originally published in Morison KSi's Global Opportunities Bulletin, December 2015. It was reprinted by permission in Global Tax Weekly, December 31, 2015, published by CCH, a Wolters Kluwer business.

Download

The Dangers of Letting Bribery Go Undetected, Sawhney, Sareena M., 12/17/2015

In 2012, the New York Times reported that Walmart routinely bribed public officials to speed its expansion into Mexico. As a result, executives at Walmart’s headquarters shut down an internal investigation in 2005 in spite of a wealth of evidence that illicit and illegal payments had been made. The company did not report the alleged violations of the Foreign Corrupt Practices Act (FCPA) until November 2011.  In the wake of investor lawsuits and U.S. investigations into its operations, eight executives left.  Walmart increased its compliance staff by more than 30 percent in response to a Department of Justice request to improve its internal controls and compliance programs and has spent more than $430 million on investigations and its compliance program.

Sareena M. Sawhney reviews the anti-bribery and accounting provisions of the FCPA in this article originally published in Corporate Compliance Insights on December 17, 2015.

Download

Corruption Knows No Borders: FCPA compliance is not just an emerging market concern, Henning, Steve; Sawhney, Sareena M., 07/17/2015

In the wake of the recent FIFA and Petrobras scandals, Steven L. Henning and Sareena M. Sawhney discuss why violations of the Foreign Corrupt Practices Act (FCPA) should not be deemed a concern only within emerging markets, and what recent trends may suggest for US companies looking to expand their operational footprint internationally.

 This article, "Corruption Knows No Borders: FCPA Compliance is not just an emerging market concern" was originally published in the July-August 2015 issue of Metropolitan Corporate Counsel.

Download

Regulators Clamp Down on Casinos for Noncompliance, Sawhney, Sareena M., 06/17/2015

In 2013, the Las Vegas Sands Corp. paid $47 million to the US government for failing to file the necessary activity report (SRC) required by federal law.  This penalty was the result of an investigation by the US Department of Justice into wire transfers and cashiers’ checks totaling $58 million the Las Vegas Sands Corp. received on behalf of one gambler.  This is just one of many examples of US regulators more aggressively brining enforcement actions against casinos and banks for failure to comply with anti-money laundering (AML) rules and regulations.

In her recent article in Gaming Law Review and Economics, Sareena M. Sawhney, director, Financial Advisory Services, provides a detailed analysis of the components of a robust AML program and discusses how organizations can mitigate the risk of exorbitant fines and other penalties brought on by regular enforcement.

This article has been reprinted with permission from Gaming Law Review and Economics, Vol. 19, Issue 5, June 2015, published by Mary Ann Liebert, Inc., New Rochelle, NY.

Download

Health Care Fraud: Are You Prepared to Absorb the Costs?, Sawhney, Sareena M., 01/23/2015

Health care fraud is a national problem affecting everyone in the US, either directly or indirectly.  It is also a growing criminal enterprise.  In Fiscal Year 2012 alone, various government teams involved in the Health Care Fraud and Abuse (“HCFAC”) Program recovered $4.2 billion from individuals and companies who attempted to defraud federal health programs.

This article outlines the schemes carried out by many segments of the health care system, including hospitals, physician practices and individuals, and discusses the various forensic accounting techniques used to identify fraudulent activity or the heightened risk of fraud. 

Originally published in HealthCare Business NewsJanuary 2015 issue.

Download

Consequences of Having a Poor Anti-Money Laundering Program, Sawhney, Sareena M., 04/25/2014

A surge in recent investigations suggests that financial and non-financial institutions are increasingly in violation of Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) policies and procedures as well as regulatory requirements.  IRS statistics illustrate that the number of money laundering investigations and Bank Secrecy Act investigations has increased from 1,597 to 1,663 and 738 to 923 from 2010 to 2012, respectively. Many different kinds of businesses are at risk for money laundering and for penalties if AML programs do not meet regulatory standards – all the more reason to ensure that adequate anti-money laundering programs are in place.

Download

Health Care Fraud and Abuse, Sawhney, Sareena M., 04/25/2014

Health care fraud is a national problem affecting everyone in the US, either directly or indirectly, and is carried out by many segments of the health care system, including companies or individuals, using various methods.  It is also a growing criminal enterprise:  In Fiscal Year 2012 alone, various government teams involved in the Health Care Fraud and Abuse (“HCFAC”) Program recovered $4.2 billion dollars from individuals and companies who attempted to defraud federal health programs.  And the Justice Department opened 1,131 new criminal health care fraud investigations involving 2,148 potential defendants.  For the health care provider or the insurer or the companies offering health care to their employees, detecting such schemes can involve various forensic accounting techniques.

Download

Travel Expense and Payroll Fraud Case Study, Kreuter, Eric A.; Sawhney, Sareena M.; Sacks, Glenn D., 09/13/2013

Travel expense and payroll fraud have become hot topics within both for profit and non-profit organizations.  Weaknesses in internal controls and greed both contribute to the ongoing problem of assets and profits being slowly siphoned from unwary organizations.  This case study illustrates what can happen, what can be done and what value can be added during and following the forensic engagement.

This article, “Travel Expense and Payroll Fraud Case Study”, was originally published in The Forensic Examiner, Fall 2013.

Download

Small Businesses Warned to Beware of Employee Fraud, Sawhney, Sareena M., 11/18/2011

Small businesses and nonprofit organizations often overlook the warning signs of employee fraud, especially by senior managers, according to accounting firm Marks Paneth.

This article, written by Michael Cohn appeared in Accounting Today on November 18, 2011.

Download

Forensic Accountants: An Essential Part of the Bankruptcy Team, Sawhney, Sareena M., 09/21/2010

Bankruptcy is rampant. According to the United States Bankruptcy Court, there were 1.4 million bankruptcy filings in fiscal year 2009, a 32 percent increase over 2008. Bankruptcy filings for 2010 are higher still - data from AACER (Automated Access to Court Electronic Records) shows 379,000 bankruptcy filings in the first quarter of 2010, a 17 percent increase over the same quarter of the previous year. July 2010 saw a 24.2 percent increase in bankruptcy filings over the previous month. The upsurge in bankruptcy filings is unsurprising, given the severe economic downturn and the slow pace of recovery. Predictably, along with the high rate of bankruptcy filings comes another trend – a sharp and prolonged spike in bankruptcy fraud. Economic desperation – of the sort that drives individuals and businesses into bankruptcy – also drives them into complex schemes designed to conceal assets and shelter them from creditors.

Download

The Case for the Forensic Accountant, Sawhney, Sareena M., 03/26/2010

Suddenly, Ponzi schemes seem to be everywhere. Credit for the renewed attention to this classic financial fraud is of course due in large measure to Bernard Madoff, the now-convicted financier who defrauded investors of an estimated $65 billion. Madoff's widely publicized crime was a classic Ponzi – he took on investor funds, diverted them to finance his own lifestyle, falsified his clients' financial statements to show investment positions when there weren't any, then used new investments to pay "dividends" and "interest" to past investors. It was the largest and most dramatic example of a Ponzi scheme to date.

Download

Schlisselfeld, Abe

As The New York Commercial Real Estate Boom Continues, Help Investors Avoid These Common Mistakes, Schlisselfeld, Abe, 04/16/2014

For commercial real estate investors, the boom mentality continues, and those seeking opportunities continue to flock to New York City. That can spell trouble if they are not prepared for the consequences real estate investment can bring, including results that are hard to foresee.

See Abe's article originally published in The Metropolitan Corporate Counsel April 2014.

Download

VIDEO: Straight Talk for Real Estate Limited Partners, Schlisselfeld, Abe, 12/01/2012

Parking your money in commercial real estate in places like New York City is relatively safe -- despite the bumps along the way, it's likely to rebound and grow in value. But if this is your first time, particularly as a limited partner, remember: The relationship is going to end, so make sure you do all the right research and sign all the right documents beforehand so you're protected on the way out.

Download

Property Owners Need to Seize Tax Opportunities Before Provisions Expire, Schlisselfeld, Abe, 04/01/2012

New York City commercial real estate is enjoying a significant comeback. Commercial properties were less affected by the economic downturn than residential property or business ventures. Now, as the economy improves and as interest rates remain dramatically low, lenders have regained confidence in the sector. All of that moves commercial real estate farther along the road to recovery.

See Abe's article originally published in The Metropolitan Corporate Counsel April 2012.

Download

Stern, Richard

LEVERAGING BIG DATA A NEW WAY FOR THE MEDIA AND ENTERTAINMENT INDUSTRY TO ‘CRUNCH THE NUMBERS’, Stern, Richard, 08/16/2016

Big data! You’ve heard the term, and have likely read about it – even though no one can quite agree on its precise meaning. And that’s because no single technology defines, or is associated with, big data and its analytic potential. But, at the most basic level, big data is information that’s too big, moves too fast and simply can’t be processed using conventional database systems or software.

So, why is it so important? Its champions say that within “big data” sets exist valuable patterns, informational trends and structures that have remained hidden until now because we just haven’t had the tools to extract them. And here’s where the opportunity resides for businesses, the sciences, government – any data-gathering entity, in fact, that wants to use its data more effectively.

The fact is that data on its own means nothing; it’s what we do with it that’s important. But once thoroughly analysed, it can do a lot.

Download

HR AND TODAY’S ADVERTISING INDUSTRY: Navigating the digital terrain, Engelhardt, Thomas H. Stern, Richard, 07/01/2016

When asked to provide a rundown of his adverting agency’s assets, marketing guru Fairfax Cone replied "The inventory goes down the elevator every night."

But, if that was true back in the 1950s ― that an ad agency’s most precious resource was its people ― it’s just as true now.

After all, the ultimate success of any agency depends almost entirely on the talent and skill of its creatives and account managers. Banks depend on their financial holdings for viability and retailers survive based on their ability to sell products. But advertising agencies have to put their people at the top of any ‘must have’ list.

Download

Expanded New York State Film Production Tax Credit Program Offers More Funding, Faster Applications, Stern, Richard, 10/22/2015

New York State’s film production tax credit program is more robust than ever.  Richard Stern has written an article that explains how the credit works, what’s required to apply for it and how it can help production companies recover up to 30 percent of their production and post-production costs back from the State.

Download

Stocker III, William M.

NEW ACCOUNTING STANDARD TACKLES DISCLOSURES ABOUT BUSINESS CONTINUITY, Stocker III, William M., 10/15/2014

The Financial Accounting Standards Board (FASB) has updated U.S. Generally Accepted Accounting Principles (GAAP) to eliminate a critical gap in existing standards. The new guidance, found in Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, clarifies the disclosures management must make in the organization’s financial statement footnotes when management has substantial doubt about its ability to continue as a “going concern.” The guidance applies to all companies.

Download

Long-Awaited FASB Standard Revamps Revenue Recognition Model, Stocker III, William M., 07/24/2014

The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued new joint guidance that addresses one of the most important measures investors use when assessing a company’s performance and prospects — revenue. By extension this also affects net income. FASB’s version, communicated in ASU No. 2014-09, Revenue from Contracts with Customers, standardizes the revenue recognition process for customer contracts across different industries and geographic locations. It also requires more comprehensive footnote disclosures for all types of public and, especially, private companies. This article provides an overview of the converged guidance, along with a brief look at the potential impact on certain industries.

Download

Accounting and Auditing Alert: FASB Private Companies Have Options on Accounting for Goodwill, Stocker III, William M., 02/24/2014

The Financial Accounting Standards Board {FASB) has issued two updates to Generally Accepted Accounting Principles (GAAP) that offer alternatives to private companies: Accounting Standards Update (ASU) 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill, and ASU 2014-03, Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps—Simplified Hedge Accounting Approach. The alternative standards streamline the method for goodwill impairment and make it easier for certain interest rate swaps to qualify for hedge accounting. This alert details each ASU.

Download

Accounting and Auditing Alert: Private Companies Get Possible New Option for Financial Reporting, Stocker III, William M., 08/06/2013

The AICPA has announced a new option for small business financial reporting. The “Financial Reporting Framework for Small- and Medium-Sized Entities” is intended to ease reporting for smaller, privately held, owner-managed businesses that aren’t required to abide by Generally Accepted Accounting Principles (GAAP). This alert details the framework and provides an overview of three FASB-endorsed proposals from the Private Company Council that would ease accounting requirements for privately held companies.

Download

VIDEO: Financial Statements: A Combination of Art and Science, Stocker III, William M., 06/28/2013

Financial statements are supposed to depict the reality of a business' health in a way that allows a company to be compared to its competitors. However, any portrayal of a business on a few sheets of paper is inherently distorted -- like depicting a multi-dimensional reality on a two-dimensional financial statement. William M. Stocker III outlines the issues that you, the stakeholder, or you, the preparer, need to be aware of and the important things to keep in mind about financial statements.

Download

Accounting and Auditing Alert: Indefinite-Lived Intangible Assets - Guidance on Impairment Testing, Stocker III, William M., 08/16/2012

The Financial Accounting Standards Board (FASB) recently issued revised standards for public and private companies on how to test indefinite-lived intangible assets, other than goodwill, for impairment. The amendments won’t change how a company measures an impairment loss, but they could allow some companies to skip the performance of the quantitative impairment test on assets such as trademarks, licenses and distribution rights when the likelihood of impairment is low.

Download

Accounting and Auditing Alert: The FAF Sets the Stage for Private Company GAAP, Stocker III, William M., 07/11/2012

On May 23, after considering numerous public comments, the Financial Accounting Foundation (FAF) — parent organization to the Financial Accounting Standards Board (FASB) — approved the creation of the Private Company Council (PCC).

The PCC will identify and vote on exceptions and modifications to US Generally Accepted Accounting Principles (GAAP) that respond to the needs of private companies and their financial statement users. Its decisions will be subject to “endorsement” by FASB. The PCC will replace the existing Private Company Financial Reporting Committee (PCFRC).

Download

Tempesta, Anthony J.

2012 Westchester Real Estate Market: Expect a Slight Improvement in the Year Ahead, Tempesta, Anthony J., 02/20/2012

The rollercoaster conditions of the Westchester real estate market will continue in 2012, and barring any significant negative developments such as a repeat of European debt crises, in general, we at Marks Paneth expect a slight improvement in the year ahead.

This article was originally published in New York Real Estate Journal February 14, 2012.

Download

Wang, Alexander X.

Location, Location And Tax Implications, Wang, Alexander X., 07/07/2016

With the global economy still struggling to shed its post-recession pessimism, it’s no wonder that many foreign investors still regard the US real estate market as a better investment than most. However, foreign investors should tread carefully when approaching the US market and its wide range of tax legislation – mostly notably, the 1980 Foreign Investment in Real Property Act (FIRPTA).

In a recent article, Alexander Wang, Partner, and Kenneth Siu, Manager with the firm’s Tax Group, discuss FIRPTA and its implications, as well as best practices for foreign investors to accomplish their business goals while successfully navigating the US tax system.

Download

Location, Location and Tax Implications, Wang, Alexander X., 03/01/2016

Foreign investors need to consider FIRPTA when purchasing US real estate

With the global economy still struggling to shed its post-recession pessimism, it’s no wonder that many foreign investors still regard the US real estate market as a better investment than most. However, foreign investors should tread carefully when approaching the US market and its wide range of tax legislation – mostly notably, the 1980 Foreign Investment in Real Property Act (FIRPTA).

In a recent article, Alexander Wang, Partner, and Kenneth Siu, Manager with the firm’s Tax Group, discuss FIRPTA and its implications, as well as best practices for foreign investors to accomplish their business goals while successfully navigating the US tax system.

This article, “Location, Location and Tax Implications”, was originally published in the March 2016 issue of Metropolitan Corporate Counsel.

Download

Foreign Investors Need a Roadmap as They Flock to New York Real Estate, Wang, Alexander X. , 09/03/2015

For foreign investors, it may be tempting to hurriedly rush into the flourishing New York real estate market, which has recovered much faster than expected from the 2008 financial crisis. It’s small wonder, therefore, that savvy investors are attracted to New York real estate, but they should not go it alone. In a recent article, Alexander X. Wang and Carl Leung discuss considerations that should be made prior to investing foreign capital into the market.

This article, “Foreign Investors Need a Roadmap as They Flock to New York Real Estate”, was originally published in the September 2015 issue of Metropolitan Corporate Counsel.

Download

EB-5 Visa Applicants Need Careful Tax Planning, Wang, Alexander X., 11/05/2014

Immigration policy may be a sore point in Washington DC, but one immigration program has been a resounding success.  The EB-5 Visa program, created by the Immigration Act of 1990, provides a fast track to a US green card for foreign investors who promise to create jobs for US workers.  The program has the potential to be a win-win – for investors who want to become US residents, for US workers and for the US economy.

But participation in the program comes with a price – having to manage a complex set of tax issues.  If not handled correctly, the result can be excessive taxation and in some cases compliance problems. 

This article was originally published in The Metropolitan Corporate Counsel, December 2014.

Download

 
 

The Advantages of an “S”-Corp vs. a “C”-Corp

The American Tax Relief Act raises tax rates for some high-income people and probably has some growing, successful business owners thinking their companies should become “C” corporations. Think again, says John Evans, who explains why you’ll still probably save money by remaining an “S” corporation.

 
 

 
 

NYLJ 2014 Logo

Marks Paneth LLP has been ranked among the top three providers of forensic accounting services in the New York metropolitan area by readers of the New York Law Journal (NYLJ). Marks Paneth is the only firm to be voted among the top three in this category for all six years since the NYLJ’s 2010 inaugural survey. 

Marks Paneth Press Release