News & Insights: articles

Current Legislative Proposals Have Broad Implications for Gift and Estate Tax Valuations


By Angela Sadang  |  June 24, 2021

There are two legislative proposals in progress which are cause for concern for tax advisors and estate planners. Both issues were highlighted during the 2021 Heckerling Institute, the largest national conference on estate and wealth planning, and one of the key takeaways is the importance of obtaining a qualified valuation of your business.

Tax Implications of Terminating Grantor Trust Status


By Christopher D. Wright  |  June 24, 2021

Grantor trusts, a planning tool often used by high-net-worth individuals, are a frequent topic at the annual Heckerling Institute, a week-long gathering of estate planning professionals. Current legislature proposals have made this discussion more relevant - if enacted, they could significantly change how grantor trusts are utilized.

For Nonprofits, E-filing Required for Most Tax and Information Returns


By Magdalena M. Czerniawski  |  June 18, 2021

As the IRS requires increasingly more tax and information returns to be filed electronically, nonprofits are finding that E-filing is faster, more accurate and results in faster refunds when they are due. However, smaller nonprofits accustomed to filing paper returns are sometimes challenged
by e-filing.

Practical Guidance for Implementing the New Lease Standard


By Sibi B. Thomas  |  June 18, 2021

The joint project between the FASB and the International Accounting Standards Board to enhance financial reporting standards for leasing activities has been underway since back in 2006. The time is now for organizations to adopt the reporting practices they will need to comply with
the new lease standard.

Resiliency During Uncertain Times: Resilient Leaders Will Lead Societal Change by Reimagining the Future of Work


By Hassan Khan  |  June 18, 2021

Technology leaders today are in a unique position to help their organizations reimagine the future of work. It is time now to pivot, to take the lessons learned during this pandemic and use them to reimagine the future. By pivoting successfully, resilient leaders will create resilient organizations.

Proposed Boost in Capital Gains Tax and Curtailment of 1031 ‘Like-Kind’ Exchanges Could Shift Real Estate Investment to Opportunity Zones


By Alan M. Blecher |  Steve Brodsky  |  June 4, 2021

Opportunity zones offer advantages and disadvantages but may yield greater tax savings in the long run for some investors.

Does Income from a Triple Net Lease Qualify for the Qualified Business Income Deduction?


June 4, 2021

A triple net lease changes the nature of a real estate investor’s rental property holding from business ownership to passive investment, making the taxpayer ineligible for the popular Qualified Business Income – or 199a – deduction. But active management of the property can change that.

The Challenges of State Residency During COVID-19 and How A Family Office Can Provide Guidance


By Joseph M. Giampapa |  Pamela A. Mosiello  |  May 28, 2021

One of the many issues for high-net-worth clients arising during the COVID-19 pandemic is state domicile and the related tax implications. As taxpayers who lived in major cities began to take up residence out of state due to safety concerns, many were unaware that spending time in their out-of-state residence could affect their tax liability.

A New Spirit Emerges in Today’s Resilient Nonprofits


By Hope Goldstein  |  May 6, 2021

As they emerge from the COVID-19 crisis, nonprofit leadership teams are putting resilience into practice through smart strategies that reflect an optimistic outlook for the future.

Isolating Section 1231 Gains for Opportunity Zone Investing: A Taxpayer-Friendly Option


By Alan M. Blecher  |  April 27, 2021

Careful consideration of the final Opportunity Zone regulations provides investors with an important reminder that taxpayer-friendly final decisions were made regarding the investment of 1231 gains.

Resiliency During Uncertain Times: To Protect Your Nonprofit from Another Crisis, Focus on Business Continuity Planning and Best Practices


By Hassan Khan  |  March 29, 2021

Continuing to focus on sound business continuity practices can protect your organization in the advent of another crisis.

Final Regulations on Exempt Organization Excess Renumeration


By Magdalena M. Czerniawski  |  March 26, 2021

An overview of the final IRS regulations on the taxation of excess executive compensation for tax-exempt organizations.

Planning Considerations to Maximize the Benefit of Employee Retention Credits


March 24, 2021

The American Rescue Plan Act has extended the availability of the Employee Retention Credit (ERC). Employers should consider all planning opportunities that can help them qualify for the ERC and maximize potential credits.

Energy Tax Incentives Available for the Real Estate and Construction Industries


By Lisa Minniti-Soska  |  March 23, 2021

At the end of 2020, and after years of lobbying, the energy tax incentive industry secured several big wins. These came in the form of the §45L Residential Tax Credit receiving a one-year extension, extending the credit through the end of 2021, and the energy efficient commercial building tax deduction §179D being made permanent. 

Despite Struggles, the Hotel Industry is Preparing for a Renaissance


By Elizabeth Mueller  |  March 19, 2021

As we continue to see the easing of government-imposed closures and travel restrictions, the summer months will be a true indicator of the pace of recovery and the path forward. The hotel and lodging industry is well prepared to welcome back the travelers that keep the sector humming.

Protecting Your Wealth - Estate Planning Strategies to Consider Following the Elimination of the Stretch IRA


By Michele A. Lazzara  |  March 16, 2021

The Secure Act introduced a number of changes to the existing retirement plan contribution and distribution rules. One of the most notable was the elimination of the “stretch IRA,” an often-employed strategy that helped to limit required distributions on an inherited IRA and, in many cases, avoid a sizable tax bill in the process.

Complying With Federal Requirements for COVID-19 Funding in Your Single Audit


By John D'Amico  |  February 25, 2021

Nonprofits and state and local governments are subject to a federal Single Audit if they expend $750,000 of federal financial assistance or more in their fiscal year. This includes COVID-19 assistance either in grants or loans and all their other non-COVID-19 federal financial assistance expended in their fiscal year.

Resiliency During Uncertain Times: What’s Next for Technology Operations and Investments?


By Hassan Khan  |  February 25, 2021

As COVID-19’s ramifications ripple through the global economy, one thing is certain: technology will be among the most powerful weapons in every organization’s arsenal for responding effectively and decisively to this challenge. Nonprofits and higher education institutions will not be an exception to the norm.

The End of the LIBOR Era


February 17, 2021

In July of 2017, with the goal of creating a more reliable benchmark, the UK Financial Conduct Authority announced it would no longer compel panel banks to submit LIBOR quotes after 2021. Given the potential exposure, as well as the wide range of real estate investors, real estate professionals and managers affected by the LIBOR reform, taking prompt action will be critical to the health of your investments and can present potential advantageous opportunities.

REITs and Recovery


By Michael Siino  |  February 17, 2021

As with each subsector under the umbrella of real estate, the effect of the COVID-19 pandemic on Real Estate Investment Trusts (REITs) has been varied, creating opportunities and challenges that seem likely to continue throughout the year ahead. An in-depth look at the structure of REITs and the performance of the broader real estate market is necessary to determine how REITs are positioned for recovery.

Federal Program Offers Relief to Shuttered Entertainment Venues


February 15, 2021

The Shuttered Venue Operators Grant (SVOG) program includes $15 billion in grants to help shuttered entertainment venues stay in business long enough to return once the COVID-19 pandemic is over. 

New York State Budget Proposals: What’s in Store for High-Net-Worth Individuals?


By Reshma Ghouri  |  February 15, 2021

In the wake of the ongoing COVID-19 pandemic, New York Governor Andrew Cuomo recently outlined the Fiscal Year 2022 Executive Budget, which proposes several significant tax law changes affecting high-net-worth individuals.

What Are the Advantages of a Family Office?


By Pamela A. Mosiello  |  February 15, 2021

As the affairs of many high-net-worth individuals become more complex and their transactions increasingly numerous, they might benefit from the services of a family office.

COVID-19’s Impact on Your Financial Statements


February 10, 2021

Due to the fast-changing business environment, unprecedented market volatility and other circumstances resulting from the COVID-19 pandemic, many companies are uncertain of the full extent of COVID-19’s impact on their business’ future, including their financial statements. Following are some key factors that should be considered when preparing your most recent year-end financial statements.

Federal and State Tax Consequences of PPP Loan Forgiveness


February 8, 2021

During 2020 many small, and even not-so small, businesses applied for and received Paycheck Protection Program (PPP) loans which, if spent on certain permitted expenditures, are forgivable and essentially become a form of government grant.

Biden Tax Proposals: What You Should Know


February 3, 2021

With Democrats now in control of Congress, albeit narrowly, it is increasingly likely that President Biden will be able to get at least some of his tax proposals passed.

What Can Nonprofits Expect Under the Biden Administration?


By Matthew Estersohn  |  January 29, 2021

Like the rest of the economy, nonprofit organizations have had to navigate the COVID-19 pandemic, an ever-changing economy, social change and political uncertainties. As scenario planning remains critical in these times of uncertainty, we want to highlight key Biden Administration plans and their potential impact on the nonprofit community.

IRS Issues Final SILO Regulations for Nonprofits


By Magdalena M. Czerniawski  |  January 29, 2021

The IRS has issued final regulations providing guidance on how an exempt organization subject to unrelated business taxable income (UBTI) determines if it has more than one unrelated trade or business.

A Once-in-a-Decade Market for Long Island Real Estate Investors


January 21, 2021

Highlights from Marks Paneth's LI Real Estate Executive Outlook in 2021 by Maya Khan. Long Island real estate industry leaders shared a resoundingly optimistic outlook for the future.

Financial Relief for Co-operatives Is Finally Here


January 21, 2021

Co-ops that are struggling financially due to current economic conditions can now apply for PPP loans.

What It Takes to Reduce Your Real Estate Taxes in NYC


By Neil A. Sonenberg  |  January 21, 2021

Challenging your NYC property assessment values and obtaining a sought-after reduction in real estate taxes requires a certiorari filing.

7 Considerations for Gift and Estate Valuation Amid COVID-19


By Angela Sadang  |  January 14, 2021

Many important areas remain in the hands of the valuation analyst’s professional judgment. It is therefore critical that the professional judgment is airtight and clearly laid out, well supported and reasonable for whatever context the valuation is used – especially for gift and estate tax filings and in these unprecedented times.

SALT Deduction Work-Arounds Receive IRS Blessing – Look for More States to Enact Them


By James (Jay) M. Brower, Jr  |  January 14, 2021

Several states have sought ways to circumvent the SALT Cap limiting an individual’s annual itemized deduction for state and local income and property taxes. Now that the IRS has blessed Connecticut’s SALT Cap work-around, we will probably see several other states enact similar laws.

Planning Ahead For Partnership Audits Under the New Regime


January 14, 2021

The IRS has made it clear that it is focusing on auditing partnerships in the near future. Consequently, it is critical that partners and partnerships are aware of the new centralized partnership audit regime and how it will affect them in the event of an audit.

ESG Investing Outlook and the Benefits of Tax Credits


January 6, 2021

Senior Manager Katherine Zheng and Partner Philip DeRosa co-wrote an article, “ESG Investing Outlook and the Benefits of Tax Credits,” that was recently published by Wealth Management Real Estate

Tips to Reduce Uncertainties and Provide More Stability in 2021


By Hope Goldstein  |  November 23, 2020

During this time of COVID-19, nonprofits continue to work relentlessly to serve their stakeholders and clients while meeting their missions in circumstances that were previously unthinkable. The good news is the election is behind us, and there are some promising vaccines that will hopefully be entering the market soon.

Maintaining Internal Controls for a Remote Environment


By Hassan Khan  |  November 23, 2020

Internal control environments are constantly evolving with employee departures, software updates, offered services and programmatic changes. However, given these unprecedented times, there is potential for higher risk of fraud, internally and externally. 

Election Over? What Now?: The New Horizon in Estate Planning


By Christopher D. Wright  |  November 18, 2020

Although there most likely will not be any significant changes to the estate tax in the near future, given the numerous challenges faced by the incoming Biden Administration, some of the proposed changes are examined as well as the advantages and disadvantages of year-end gifting. 

Marketing Investment Returns of a Real Estate Fund to Potential Investors


By Philip DeRosa  |  November 17, 2020

In today’s economic climate, properly presented investment returns can help appeal to potential institutional investors.

Even In an Industry That’s Seen It All, the Future is Hard to Predict


November 17, 2020

By Pamela Fischer

On the morning of November 4, 2020, Marks Paneth presented its second New York State Real Estate State of the Market Seminar, bringing together voices from the industry to illuminate the greatest challenges and opportunities that have arisen as a result.

State Residency and Tax Issues During COVID-19


By Jennifer Prendamano  |  November 12, 2020

Due to COVID-19, many individuals have decided to, at least temporarily, move out of more populated areas to take up residence in vacation homes or other dwellings that are located in other states.  This has the potential to cause a dual residency issue for these individuals as both the state they left and the state they moved to may consider them residents for income tax purposes.

US-UK Cross-Border Taxation in the Financial Arena Post-COVID-19


By Julio M. Jimenez  |  October 27, 2020

The global response to the COVID-19 pandemic has not spared the horizon of cross-border taxation. This article examines some of the developments impacting the US-UK finance horizon that require monitoring, planning and preparation.

The Impact of COVID-19 on Single Audits


By John D'Amico  |  October 21, 2020

The 2020 OMB Compliance Supplement, which is required to be used by auditors performing a Single Audit, did not include guidance for auditing COVID-19-related federal financial assistance. The OMB advised that they will issue an addendum to the Supplement to address this concern but until it is issued, there is a great deal of uncertainty regarding compliance with the requirements for such assistance.

Increased Transparency on Gifts-in-Kind


By Sibi B. Thomas  |  October 21, 2020

The FASB has issued Accounting Standards Update No. 2020-07 that increases transparency around gifts-in-kind received by not-for-profit organizations.

Adaptive Reuse Is the Future of Commercial Real Estate


October 14, 2020

A look at how some of the most influential owners and developers are approaching their investments and adapting for the future. 

Finding the Right Investment Manager During and Post COVID-19 Pandemic


October 1, 2020

Individuals, family groups and organizations with substantial assets and net worth often employ the services of professional investment management firms for guidance in achieving their financial goals. The COVID-19 pandemic has led to an incredibly turbulent time for these investors, and finding a suitable firm can be very challenging.

GoFundMe Donations May Have Tax Consequences


October 1, 2020

GoFundMe’s ability to contribute directly to people in need, as opposed to their business products, has caused confusion around the deductibility of such amounts as charitable contributions.

Is The COVID-19 Pandemic Helping New York City Become A Global Life Sciences Leader?


September 16, 2020

While efforts over the last decade have primed the city to welcome more life sciences companies, the onset of the COVID-19 pandemic may be speeding up a shift that is bringing more life sciences companies to NYC and could help the city become a global leader in this sector.

Billing Optimization Through Analytics


By Dean Boyer  |  September 12, 2020

Optimizing your billing using analytics involves much more than reengineering your current processes and procedures. By analyzing data that is relative to the bill and the billing process, you can identify variables that impact the value of the bill.

Hurry Up and Wait!


By Philip Marciano  |  September 12, 2020

Nonprofit organizations now must consider what the effect of the delay in revenue recognition and lease standards has on their financial statements. 

Navigating New York’s Rules on Tax Exemption


By Magdalena M. Czerniawski |  Robert Lyons  |  September 12, 2020

New York’s extremely complicated rules involving the exemption of tax-exempt organizations can be overlooked when an organization is formed or begins to do business in New York.

An Overview of Self-Directed IRAs, or Conversations I Have With Investors


By Avery E. Neumark  |  August 26, 2020

There has been a marked increase among informed investors in placing alternative investment assets into their holdings via a self-directed IRA (SDI). These retirement investment vehicles usually hold a broader range of investment options and, as such, are good for diversification purposes. 

Overcoming Common Estate Planning Misconceptions


By Christopher D. Wright  |  August 26, 2020

An examination of some of the most common misconceptions that get in the way when setting up an estate plan or making alterations when life changes occur.

Consider the “Gross-Up” in Lease Modifications and New Commercial Leases


By Eduard Suleymanov  |  August 18, 2020

Including this provisional clause in a modified lease or a new lease can benefit both landlords and tenants.

Has The NYC Real Estate Market Headed to The 'Burbs?


By Deana L. Wetzel  |  August 18, 2020

Is the pandemic really a sign of the demise of NYC real estate, or does data and the city’s rich history tell a different story?

Main Street Lending – Now Available for Nonprofit Organizations


By Joseph J. Kanjamala  |  August 12, 2020

The Main Street Lending Program has been expanded to provide greater access to credit for nonprofit organizations.

Bringing AI to the Security Fight: Augment the Security Team and Disrupt Machine-Speed Attacks


August 12, 2020

As companies around the globe are increasingly facing the devastating impacts of cybersecurity breaches, artificial intelligence has proven it can handle many of the processes involved in fighting cyber-threats.

Tax Considerations in a Section 1031 Exchange That Includes a Personal Property Component


By Steve Brodsky  |  July 14, 2020

With like-kind exchanges now limited to real property, taxpayers must consider how to deal with the personal property that can accompany real property in a like-kind exchange.

Proposed Section 1031 Regulations Define "Real Property" for Purposes of Like-Kind Exchanges


By Steve Brodsky  |  July 14, 2020

Newly released proposed regulations provide much-needed guidance as to what constitutes “real property” in a 1031 exchange.

IRS Issues Proposed Regulations for Taxation of Nonprofit Executive Compensation


By Magdalena M. Czerniawski |  Robert Lyons  |  July 1, 2020

On June 11, 2020, the Treasury Department issued proposed regulations regarding the taxation of nonprofit executive compensation.

What Are the Tax Implications of a Typical Foreclosure Action?


June 17, 2020

There is a long list of repercussions associated with foreclosures, but few taxpayers consider the tax implications—until they must file their tax return.

Auditing Has Gone Remote, But Careful Planning Still Helps


By Darya Shneyder  |  June 17, 2020

Learn how companies can prepare for their next remote audit and reap the benefits of improved efficiency.

Disaster Relief: What Are the Options for Nonprofits?


By Magdalena M. Czerniawski |  Robert Lyons  |  May 27, 2020

What can be done to help employees who have been furloughed or temporarily let go?  

Tips to Help Organizations Stay Financially Healthy and Connected to Their Stakeholders


By Hope Goldstein  |  May 27, 2020

Helpful tips that may increase contributions during these uncertain times.

Ensuring Grant Compliance in the Wake of COVID-19


By John D'Amico |  Joseph J. Kanjamala  |  May 27, 2020

Timely and clear guidance is necessary for recipients of federal financial assistance to comply with the terms and conditions of these awards.

Charitable Contributions Enhancement Under the CARES Act


By Magdalena M. Czerniawski  |  May 27, 2020

The recently enacted CARES Act includes provisions directly impacting the nonprofit community.

CDFI: Best Practices in Liquidity Management During the COVID-19 Pandemic


By XiXi Dong  |  May 27, 2020

CDFI lenders are facing greater than ever liquidity risk due to the COVID-19 pandemic.

Reopening the Workplace: Thoughts from Inside the Industry


May 20, 2020

Industry leaders discuss how landlords, tenants, consumers, and businesses will alter their behavior and actions in light of COVID-19, and what challenges will they encounter as we move to restart the economy.

Estate Planning Considerations in Light of COVID-19


By Sara Rabi  |  May 14, 2020

The rapid escalation of the coronavirus pandemic has motivated clients to finalize their estate planning documents.

COVID-19: An Opportunity for Gift and Estate Planning at Low Valuations


By Angela Sadang  |  May 14, 2020

Business owners and high-net-worth individuals can take advantage of low valuations during this time to minimize gift and estate taxes.

Special Rules for Use of Retirement Funds


May 14, 2020

By Lorri Morris

The CARES Act includes several provisions that cover retirement accounts and changes that will impact retirement income strategies.

Is Now the Right Time to Convert to a Roth IRA?


By Galina Portnoy  |  May 14, 2020

The current downturn in the stock market due to COVID-19 and today’s low tax rates create ideal conditions for a Roth conversion.

How COVID-19 Is Affecting Your Exit Plan


By Dannell R. Lyne  |  May 14, 2020

For owners who are contemplating, planning or executing an exit plan, various factors must be considered to ensure an equitable deal is possible considering the current COVID-19 pandemic.

With Historic Preservation Tax Credits, Old Buildings Offer Great Opportunity


May 6, 2020

Historic buildings that qualify for the Historic Preservation Tax Credit program can be a wise choice for investors.

CARES Act: Summary of Real Estate-Related Tax Provisions


By Steve Brodsky |  Alan M. Blecher  |  April 21, 2020

Our specialists examine the provisions of the CARES Act affecting the real estate industry.

Impact of COVID-19 on Business Valuation


By Angela Sadang  |  April 21, 2020

A review of the technical and factual information to help you understand the effects of COVID-19 on business valuation.

Cybersecurity: Best Practices While Working Remotely Under COVID-19


April 21, 2020

Organizations must remain vigilant to protect and secure corporate data in an effort to mitigate cyber risk during the COVID-19 pandemic.

Financial Reporting Considerations Related to COVID‐19


By Michele Amato  |  April 21, 2020

A review of accounting matters and financial reporting issues related to COVID‐19 designed to assist management in preparing an entity’s financial statements.

How Does Your Nonprofit Prioritize During a Crisis?


By Hope Goldstein  |  March 30, 2020

During these unprecedented times, what are the priorities for nonprofit organizations already operating with scarce resources? Hope Goldstein, Co-Partner-in-Charge of the Nonprofit, Government & Healthcare Group, discusses how nonprofits should prioritize.

GASB Statements Effective for the Year Ended December 31, 2019


By Philip Marciano  |  March 26, 2020

Senior Manager Philip Marciano examines the Governmental Accounting Standards Board (GASB) statements effective for the year ended December 31, 2019.

Not-for-Profit Raffles: Don't Gamble with Federal and State Requirements


By Magdalena M. Czerniawski |  Robert Lyons  |  March 26, 2020

Partner Magdalena M. Czerniawski and Director Robert Lyons discuss the federal and state filing requirements that not-for-profits engaging in raffle activities should be aware of.

A Guide to Proper Reporting and Valuation of In-Kind Contributions


By Joseph J. Kanjamala  |  March 26, 2020

Partner Joseph J. Kanjamala discusses the requirement for nonprofit organizations to report in-kind contributions on their financial statements.

Footnote Disclosure Overload


By John D'Amico  |  March 26, 2020

The FASB has had several projects over the years to improve the effectiveness of disclosures in footnotes to financial statements, but it seems that these projects have been somewhat forgotten for nonprofits, writes Partner John D’Amico.

Educating Your Board About Nonprofit Accounting


March 26, 2020

By Matthew Castellano, CPA

Educating your Board about nonprofit accounting is a key way to get more brains from different industries and backgrounds all working toward improving the financial viability of your organization, writes Senior Manager Matthew Castellano.

Additional Revenue Sources for Nonprofits


By Magdalena M. Czerniawski  |  March 25, 2020

Partner Magdalena Czerniawski examines how reduced government funding has led nonprofit organizations to look for alternative revenue sources.

Analytics - Friend or Foe


By Dean Boyer  |  February 20, 2020

Dean Boyer, Director in Marks Paneth’s Technology Services Group, explains how to properly introduce data analytics into your real estate business and maximize your results.

Don’t Overlook Valuable Tax Credits This Year


February 19, 2020

By: Anthony Delvalle, CPA | Shmuli Fromovitz, CPA

Real Estate Group professionals Anthony DelValle and Shmuli Fromovitz highlight three commonly overlooked credits that individuals and real estate businesses may be able to take advantage of on this year’s returns.

Real Estate Partnership Debt Financed Distributions and the Effects of Interest Tracing


By Steve Brodsky  |  February 19, 2020

A recent Tax Court decision highlights the appropriate treatment of partnership interest expense from a debt-financed distribution.

The Evolution of the 421a Tax Exemption Program


February 19, 2020

By: Vivian Martinez, CPA | Matthew Hausman, CPA

The popular 421a Tax Exemption Program was extended in 2017. Partner Vivian Martinez and Manager Matthew Hausman examine what has changed and how clients can utilize and benefit from the new program.

Affordable Housing: State of the Industry


By Gina Citrola  |  February 19, 2020

Affordable Housing specialist Gina Citrola provides a state of the industry report on the federal government’s primary program for incentivizing private investment in affordable housing, known as the Low-Income Housing Tax Credit.

20/20 Vision: A Closer Look at Commercial Real Estate Trends


By Darya Shneyder  |  February 19, 2020

By: Darya Shneyder, CPA | Erin Kiernan, CPA

Partner Darya Shneyder and Senior Manager Erin Kiernan examine trends in commercial real estate, including the expanded presence of tech giants in NYC and the impact that local and global politics, policy and law will have on owners, developers and the rest of the industry.

Did You Make a Taxable Gift in 2019? Don’t Overlook Gift Tax Filing Requirements When Funding Trusts


By Christopher D. Wright  |  February 11, 2020

While cash gifts of are fairly straightforward (as are their impact on tax filings), there is an often-overlooked instance of the gift tax that has the potential to generate quite a headache come April—funding a trust.

Maximize Your Charitable Contributions to Minimize Your Tax Liability


By Jennifer Leelaviwatana  |  February 11, 2020

Since the enactment of the Tax Cuts and Jobs Act of 2017, taxpayers are limited to a deduction of up to $10,000 of state and local income taxes. However, donating to charity is still a powerful tool to minimize tax liability.

Succession Planning: Tax Considerations When Exiting Your Business


By Dannell R. Lyne  |  February 11, 2020

There comes a time when business owners begin to contemplate retirement and an exit from the company they own and/or are operating. It’s important to begin succession planning in advance, because how you approach exiting your business will produce different tax outcomes.

The Fallout From the New Tax Law


By Joseph M. Giampapa |  Russell S. Ephraim  |  February 11, 2020

In preparation for the coming tax season, Joseph Giampapa and Russel Ephraim examine who reaped the benefits of the new tax law in 2018 and which changes had the most dramatic impact on high-net-worth and high-profile individuals.

To Report or Not to Report, That Is the Question


February 7, 2020

By: Anthony Delfiner and Hal Margolit 

Anthony Delfiner and Hal Margolit, Tax Partner and Manager in Marks Paneth’s Commercial Business Group, respectively, examine the foreign informational reporting forms that taxpayers may need to consider as part of their tax filing requirements. 

Public – Private Partnerships


By Philip Marciano  |  January 10, 2020

The Government Accounting Standards Board (GASB) has addressed issues with the accounting and financial reporting between government and public parties (PPPs) in order to increase efficiency and prevent issues.  

Achieving Efficiencies of the Financial Statement Audit Through IT


January 10, 2020

IT audits are becoming an increasingly valuable tool for nonprofit organizations, as they can help organizations identify critical issues and increase the efficiency of the financial statements audit.

Alternative Financing Methods of Unemployment Benefits for 501(c)(3) Nonprofits: Benefits & Risks


January 8, 2020

By: Ben Jonas

Nonprofit organizations have unique rights when it comes to State Unemployment Insurance programs and can gain better control of their finances by reducing their unemployment benefit expenses.

Protecting Resources While Pursuing your Mission: Marks Paneth’s Annual Nonprofit Industry Update


By Hope Goldstein  |  January 7, 2020

Hope Goldstein, Co-Partner-in-Charge of Marks Paneth’s Nonprofit, Government & Healthcare Group shares key takeaways from Marks Paneth’s annual nonprofit industry update seminar.

RMDs & QCDs – A Perfect Match


By Avery E. Neumark  |  December 5, 2019

Tax Partner Avery Neumark examines how taxpayers age 70 ½ and older can take advantage of the Qualified Charitable Distribution as a tax savings opportunity.

Understanding the Safe Harbor Rule for Rental Real Estate Enterprises


By Anthony DelValle  |  November 22, 2019

Taxpayers who do not meet the safe harbor requirements still have the opportunity to prove that their rental real estate qualifies as a trade or business for purposes of the 199A deduction. 

The Importance of Hiring the Right CFO for Your Business


By Neil A. Sonenberg  |  November 22, 2019

This article provides guidance in selecting a CFO and other key financial officers for an entrepreneurial family-operated business at different stages in the business lifecycle.

Considerations for Your 2019 Tax Planning


By Jay Sussman  |  November 22, 2019

Taxpayers are right to start planning at year end, and utilizing the proper tax-planning strategies can have a significant impact come April 15.

The Future of Disruption


By Alan M. Blecher |  Dean Boyer  |  November 22, 2019

Companies today are operating in an increasingly complex environment that is more dynamic and a lot less predictable due to several business disruptors. 

What Is the New York Real Estate ‘State of the Market’? Vibrant & Entrepreneurial


By Abe Schlisselfeld  |  November 22, 2019

Marks Paneth’s inaugural New York Real Estate State of the Market Seminar took place this September in front of an energetic crowd at the Harvard Club in Manhattan. 

GASB Statements 88 & 89


By Philip Marciano  |  October 1, 2019

Philip Marciano examines changes introduced by GASB Statements 88 & 89.

Is it Time to Update Your Form 990 Compensation Study?


By Magdalena M. Czerniawski  |  October 1, 2019

Considering both the “old” Form 990 and the new tax law, it’s time for organizations to review their policies for establishing compensation and also ensure that the basis for that compensation is still relevant. 

Improving Fundraising Efficiency with Data Analytics


By XiXi Dong  |  October 1, 2019

Data analytics tools can help nonprofits maximize their resources, increase donations and engage and retain donors.

The Taxpayer First Act of 2019: What Exempt Organizations Need to Know


By Magdalena M. Czerniawski  |  October 1, 2019

The Taxpayer First Act of 2019 (“Act”) was signed into law by President Trump on July 1, 2019. It includes several provisions that are important to exempt organizations, as they will bring about filing changes.

Form 990-T Fiscal Year Filers: Why Did I Get This Notice?


By Magdalena M. Czerniawski |  Robert Lyons  |  October 1, 2019

Many nonprofit organizations that fell under the category of 2017 fiscal year filer are receiving an unexpected balance due or refund notices. Tax Director Magdalena M. Czerniawski examines the IRS changes responsible for these notices.

Cryptocurrency: Considerations for Accepting Gifts of Virtual Currency


By Matthew Estersohn |  Sibi B. Thomas  |  September 30, 2019

Bitcoin was invented in 2009 and saw limited use for the first few years of its existence, with transactions limited mostly to novelty purchases and early adopters. The past few years, however, have seen increased growth, with bitcoin transactions now in the hundreds of thousands per day and price volatility that has made national news.

Defeasance Deductibility in Commercial Real Estate


By Eduard Suleymanov  |  August 19, 2019

This article will explore the role of defeasance in commercial real estate transactions as well as the tax deductibility of a defeasance premium paid pursuant to a legal defeasance.

How the New Lease Accounting Rules Affect Landlords and Tenants


By Mark Cuccia  |  August 19, 2019

Mark Cuccia and Adeline Lee analyze how the new lease accounting standards, now deferred until January 1, 2021 for private companies, affect both lessors and lessees.

Who are the Real Winners and Losers of the Reformed Rent Regulation Laws?


By Abe Schlisselfeld  |  August 19, 2019

Abe Schlisselfeld and Maya Khan examine the impact of The Housing Stability and Tenant Protection Act of 2019, a historic piece of legislation that has transformed New York's rent regulation laws.

Valuation Discounts Applicable to Real Estate Holding Companies (PART 2)


By Angela Sadang  |  August 19, 2019

In part two of this two part series, Principal and valuation specialist Angela Sadang discusses the discount for lack of marketability, or DLOM, with regard to real estate holding companies.

Governmental Accounting Standards Board, Statement 84: Fiduciary Activities


By Philip Marciano  |  July 1, 2019

When people hear the word fiduciary, they associate several different activities with it, but mainly money or financial matters. The word, however, applies to any situation where someone places their confidence and trust in someone else.

Are You Ready for Your Upcoming Single Audit? The OMB Compliance Supplement Can Help


By John D'Amico  |  July 1, 2019

If your organization is subject to a Single Audit under Uniform Guidance, the OMB Compliance Supplement can be a useful resource.

What Does the Landmark Wayfair Ruling Mean to Nonprofits?


By Magdalena M. Czerniawski  |  July 1, 2019

In the wake of the Wayfair ruling, even exempt organizations should be mindful of their sales activities in various states and should aim to know and monitor state sales tax thresholds in order to stay in compliance.

NYC Introduces Higher Indirect Cost Reimbursement for City Contracts


By Joseph J. Kanjamala  |  July 1, 2019

The City of New York Health and Human Services Cost Policies and Procedures Manual is a bold step towards ensuring a reasonable indirect cost rate for New York's provider community.

The Benefits of Storytelling as a Fundraising Tool


By XiXi Dong  |  July 1, 2019

A great story motivates donors to act on their emotions and inspire generosity. Incorporating storytelling can be an effective fundraising tactic to both raise funds and further an organization’s mission.

US International Inbound Tax Issues: A Tax Advisor’s Musings


By Julio M. Jimenez  |  June 13, 2019

Principal and international tax services specialist Julio M. Jimenez shares his insights on the US international inbound landscape and what items must be on your radar.

Valuation Discounts Applicable to Real Estate Holding Companies


By Angela Sadang  |  May 29, 2019

Principal and valuation specialist Angela Sadang discusses real estate holding companies and the use of minority discounts (also known as the discount for lack of control, or DLOC) in the valuation of partial, non-controlling interests in entities holding real estate as their primary and most valuable asset. 

The Impact of the Tax Cuts and Jobs Act on Trusts and Estates


By Laura E. LaForgia  |  May 29, 2019

Among the many provisions in the Tax Cuts and Jobs Act of 2017 (TCJA) were some significant changes to the taxation of trusts and estates. Tax Partner Laura LaForgia helps high-net-worth individuals and their advisors understand the temporary and permanent effects on their trust and estate tax planning strategies.

IRS Issues New Proposed Regulations On Qualified Opportunity Funds


By Alan M. Blecher |  Abe Schlisselfeld  |  May 29, 2019

On April 17, 2019, the IRS released a second round of proposed regulations regarding investments in Qualified Opportunity Funds (QOFs). While the Qualified Opportunity Zones provision has garnered the attention of the real estate industry (as well as outside investors and fund managers) since its introduction in 2017, the lack of available guidance had many waiting to act on this potentially groundbreaking tax incentive program.

Reflections on the first TCJA Tax Season


By Alan M. Blecher  |  May 29, 2019

April 15, 2019 marked the ostensible end to the first “tax season” implementing the Tax Cuts and Jobs Act of 2017 (TCJA). Alan Blecher, tax principal in our Real Estate Group, reflects on the challenges, misconceptions and unanswered questions that complicated the tax compliance process this year. 

BLOCKCHAIN TECHNOLOGY REVOLUTIONIZING THE REAL ESTATE INDUSTRY


By Darya Shneyder  |  May 28, 2019

While creating an electronic environment is costly, the benefits of readily accessible information in a real estate transaction are limitless. The more information that is available to real estate investors, the more educated decisions can be made and the more quickly deals can be completed. Partner Darya Shneyder discusses one of the ways technology has accomplished this goal – blockchain technology.

Nonprofit Alert: Change to Nondiscrimination Reporting Policy for Schools


By Magdalena M. Czerniawski |  Robert Lyons  |  May 23, 2019

After forty-four years, one of the Internal Revenue Service’s oldest requirements has passed into history, in favor of an update that recognizes how much more efficiently today’s technology allows us to communicate.

Nonprofit Tax Update: What We’ve Learned About the TCJA Provisions Affecting Exempt Organizations


By Magdalena M. Czerniawski  |  April 2, 2019

Since the enactment of the TCJA, the IRS has issued interim guidance on each of the four provisions directly affecting exempt organizations, providing clarity on the treatment of these provisions and what organizations can expect moving forward.

The Benefits of Obtaining a Federally Approved Indirect Cost Rate


By Raymond M. Blake  |  April 1, 2019

While many social service type nonprofits receive some government funding to operate programs that fulfill their mission, it is often derived from a local government. Nonprofits can also get federal government funding and establish an Indirect Cost Rate through negotiations with their cognizant federal agency.

General Managers as Partnership Representatives: Key Considerations Before Taking on the Role


By Christopher A. Cacace  |  March 4, 2019

A new Centralized Partnership Audit Regime (“CPAR”) was introduced in the Bipartisan Budget Act of 2015. Marks Paneth issued a full analysis of the audit rules last month, which included information on the new required Partnership Representative (“PR”).

Cybersecurity Attacks in the Real Estate Sector: Business Email Compromise


February 18, 2019

By: Charly Shugg

Business Email Compromise (BEC) is a sophisticated scam which targets businesses that regularly perform wire transfer payments. The Email Account Compromise (EAC) component of BEC targets the individuals that perform wire transfer payments. 

Trend Watch: Developments in the NYC Real Estate Market


February 18, 2019

By: Erin Kiernan, CPA

NYC real estate made plenty of headlines last year– and the rapidly shifting market trends show no sign of slowing down in 2019. 

Aggregation & Netting Under Section 199A


February 18, 2019

By: Anthony Delvalle | Shmuli Fromovitz

When the Tax Cuts and Jobs Act passed on December 22, 2017, there were many questions that arose, especially in with regard to the new qualified business income (QBI) deduction. 

Project Owner’s Guide to Analyzing Change Orders


By Georgia Stamelos  |  February 15, 2019

A thoughtful and well-executed contract is the best start to any construction project, but equally important is making sure the terms of the contract are being adhered to at every turn.

Everyone Loves Talking About Qualified Opportunity Zones


January 31, 2019

By now, most real estate professionals have heard about the Qualified Opportunity Zone (“QOZ”) program created by the Tax Cuts and Jobs Act of 2017. 

The New Centralized Partnership Audit Regime


By Steve Brodsky  |  January 4, 2019

As previously advised by our Real Estate Group, 2018 partnership returns will be subject to a new IRS audit regime.

Government Update: Effects of Tax Reform on Local Government


December 20, 2018

The Tax Cuts and Jobs Act of 2017 (Public Law 115-97) (“TCJA”) is the most sweeping tax reform measure in more than 30 years. 

The Overhead Myth: Finding Better Ways to Measure Nonprofit Performance


By John D'Amico  |  December 20, 2018

The Overhead Myth campaign, started in 2013 by Better Business Bureau’s Wise Giving Alliance, Charity Navigator and GuideStar®, aims to eradicate the practice of judging a nonprofit’s performance primarily on its overhead ratio.

Tax Reform's Impact on Charitable Contributions


By Magdalena M. Czerniawski |  Robert Lyons  |  December 20, 2018

Almost a year ago, the Tax Cuts and Jobs Act (TCJA) brought major tax reform to individuals, for-profit businesses and not-for-profit entities. 

Incorporating Data Analytics Into Your Internal Controls


December 20, 2018

The evolution of technology has demanded that organizations more deeply understand the businesses they operate but has also allowed management to gain this understanding with greater ease and efficiency than ever before.

IRS Issues Guidance for Determining Nondeductible Parking Fringe Benefits


By Magdalena M. Czerniawski  |  December 20, 2018

While two sections of the Tax Cuts and Jobs Act (“the Act”) - Code section 512(a)(6) and Code section 512(a)(7) - have a direct and significant bearing on tax-exempt organizations, very little guidance has been forthcoming since the law was passed almost a year ago.

Marks Paneth's 2018-2019 Tax Planning Guide


December 4, 2018

To provide you with convenient access to current tax laws and regulations and prepare you for the 2019 tax season, Marks Paneth has launched its 2018-2019 Tax Planning Guide.

Tips for NFP internal reports


By Sibi B. Thomas  |  November 14, 2018

A not-for-profit should consider the following best practices to ensure that internal financial reports prepared for its board of directors and other governance committees are accurate, timely, and decision-useful.

GASB Issues Statement Providing Clarity on In-Substance Defeasance of Debt


October 2, 2018

In May 2017, the Governmental Accounting Standards Board (GASB) issued Statement No. 86, Certain Debt Extinguishment Issues. 

Out with the Old and In with the New Financial Reporting Standards for Nonprofits


By John D'Amico  |  October 2, 2018

It has now been twenty-five years since the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements for Not-for-Profit Organizations

Real Estate Financial Statements: One Size Does Not Fit All


By Neil A. Sonenberg |  Darya Shneyder  |  July 27, 2018

When a company is in need of an annual financial statement, a Generally Accepted Accounting Principles (GAAP) financial statement is typically the first thing that comes to mind. 

Property Improvement Analysis for Building Owners


July 27, 2018

When the final details of the Tax Cuts and Jobs Act were released late last year, real estate professionals celebrated the industry’s exclusion from the 30 percent business interest expense limitation. 

NYC Retail Marketing Woes: Sign of the Times or Catalyst for Growth?


By William H. Jennings  |  July 27, 2018

In the not-too-distant past, most people shopped in their local stores in New York City – dealing with weather, limited choices, out-of-stock items and sometimes rude salespeople. 

2018 Technical Corrections to the New Partnerships Audit Rules


By Alan M. Blecher  |  July 27, 2018

In late March, the President signed legislation that includes technical corrections to the new partnership audit rules that were introduced in the Bipartisan Budget Act of 2015. 

Wayfair Ruling: Will Foreign Corporations be Required to Collect Sales Tax?


By Solomon Packer  |  July 13, 2018

Will the Wayfair case, which holds that U.S. corporations can be required to collect sales tax from out-of-state customers, also have application to international commerce?

Nonprofit Budgeting: Key Board Roles and Responsibilities and Questions to Ask Prior to Approval


By Hope Goldstein  |  May 29, 2018

The roles different people play in the budgeting process generally depend on the nonprofit’s size, structure, revenue sources and expenditure expectations.

Understanding the Updated Lease Accounting Rules


By Alan Becker  |  May 29, 2018

Updated lease accounting rules have been the subject of numerous exposure drafts, comment periods and rounds of debate by the Financial Accounting Standards Board (FASB) and the accounting industry over the past decade.

Using Effective Ratio Analysis at Nonprofits


By Sibi B. Thomas  |  May 29, 2018

Analyzing key ratios in your nonprofit’s financial statements can be a very useful tool for gaining deeper insight into the organization’s financial condition and evaluating its overall performance, even at the programmatic level. Effective ratio analysis can be used to analyze trends over a period of time, plan for future strategies and measure current financial health.

Compensation Considerations for Attracting and Retaining Not-for-Profit Executives


May 29, 2018

Recruitment efforts in the not-for-profit sector can be especially challenging in today’s near record-low unemployment economy, where professional opportunities abound for competent business executives and limited not-for-profit budgets can make it difficult to compete with the for-profit world.

Introduction to GASB 87 Leases


By Warren Ruppel  |  May 29, 2018

The Financial Accounting Standards Board (FASB) is not the only standard-setting body to address updates to lease accounting procedures. State and local governments and governmental entities need to be aware of a similar standard that was issued by the Governmental Accounting Standards Board (GASB). Similar in concept to the FASB standard (discussed on page 4), GASB 87 Leases contains some significant differences.

GASB’s Guidance for Irrevocable Split-Interest Agreements is Now in Effect


By John D'Amico  |  May 29, 2018

The Governmental Accounting Standards Board (“GASB”) Statement No. 81 Irrevocable Split-Interest Agreements is now in effect for financial statement periods beginning after December 15, 2016 (December 31, 2017 year-ends and thereafter) and should be applied retroactively.

Misunderstood Provisions of the New Tax Law Affecting High-Net-Worth Business Owners


By Dawn Rhodes  |  March 20, 2018

The complexity and uncertainty of the new tax bill have left taxpayers with many questions and misunderstandings. Partner Dawn Rhodes provides some clarification in NJBIZ.

Don’t risk facing AML/BSA violations in the U.S.


February 5, 2018

Sareena Sawhney was recently published in the H1 2018 issue of Global Opportunities Bulletin. Her article addresses the importance of complying with Anti-Money Laundering/ Bank Secrecy Act rules. 

How much is artificial intelligence worth?


By Angela Sadang  |  February 5, 2018

Angela Sadang was recently published in the H1 2018 issue of Global Opportunities Bulletin. Her article addresses the growing artificial intelligence industry. 

Tax Reform: A New Reality for Exempt Organizations


February 2, 2018

With the 2017 charitable giving season behind us, many exempt organizations (“EO”s) are concerned that their funding may start to decrease this year and in the foreseeable future as a result of the new Tax Cuts and Jobs Act (hereafter, “the Act”) passed into law on December 22, 2017.

Recognizing the Symptoms of Fraud in Your Nonprofit Organization


By John D'Amico  |  February 2, 2018

“Where there is a will, there’s a way.” The old saying holds true even with employees bent on embezzling funds from their employer – whether directly or indirectly.

Protecting Your Nonprofit from a Cyberattack


By Richard Nathan  |  February 2, 2018

2017 was predicted to be the “year of cyber warfare” by Forbes.com. Sure enough, by mid-year, cyberattacks had already doubled the previous year’s totals. Given that an estimated 63% of nonprofits experienced a data breach in 20161, we are likely facing even more devastating statistics for the industry as the results of 2017 are realized.

Using Form 990 as a Marketing Tool


By Robert Lyons  |  February 2, 2018

Unlike a tax return, Form 990 is a public document open for inspection. Currently, the only part not available to the public is Schedule B, which shows contributor information. The rest stands out in all of its glory – which can be good or bad, depending on the organization.

Four Components of Meaningful Internal Financial Statements for Nonprofits


February 2, 2018

At many nonprofits, audited financial statements draw a lot of attention. These are often made publicly available and are scrutinized by management, external auditors, Boards and public stakeholders – such as funding agencies and donors.

The Nonprofit Audit Committee’s Evolving Role


By Joseph J. Kanjamala  |  February 2, 2018

The Audit Committee is an indispensable part of any nonprofit organization’s governance structure. The roles and responsibilities of an audit committee vary from organization to organization. However, as the financial, operational and regulatory complexities of the environment in which nonprofits operate evolve, so must the roles and responsibilities of the Audit Committee. 

Tax Reform Dilemma: Uncertainty Surrounds Business Interest Deduction


By Alan M. Blecher  |  January 22, 2018

Real Estate Partner Alan M. Blecher authored an article entitled “Tax Reform Dilemma: Uncertainty Surrounds Business Interest Deduction” which was featured in the Commercial Observer.

House and Senate Tax Reform Bills: Where are we now?


By Mark R. Baran  |  November 13, 2017

The House and Senate released their respective versions of the Tax Cuts and Jobs Act this November. The Marks Paneth tax team provides a detailed analysis of both tax reform bills and how their provisions would affect individual taxpayers and businesses.

MARKS PANETH’S 2017-2018 TAX PLANNING GUIDE


November 9, 2017

To provide you with access to current tax rules and regulations and prepare you and your business for possible tax changes ahead, Marks Paneth has launched its 2017-2018 Tax Planning Guide.

What You Need to Know About Pass-Through/Subrecipient Relationships Under the Uniform Guidance


By John D'Amico  |  November 3, 2017

In this article, John D’Amico, Director with our Professional Standards Group, outlines the responsibilities of a pass-through entity under “legacy” OMB Circular guidance, as well as a relatively new rule stemming from the 2014 issuance of the Uniform Guidance.

Lobbying vs. Education and Advocacy: What Does It Mean for Your Nonprofit Organization?


By Robert Lyons  |  November 2, 2017

Charitable organizations often find themselves in the precarious position of determining the difference between lobbying, education and advocacy. This issue revolves primarily around the determination of what constitutes a lobbying expenditure versus expenditures that may be programmatic in nature. Reporting activity falling under any of the three categories can be costly – with penalties ranging from an excise tax of 25 percent on excess expenditures to loss of exemption or the loss of the ability to attract tax deductible contributions.

Changes in Conflict of Interest Laws for Co-ops and Condos


By Darya Shneyder  |  November 1, 2017

Board members of cooperatives and condominiums in New York now have a new fiduciary duty to the shareholders of their respective corporations. In September 2017, the governor signed an amendment to the New York Business Corporation Law (BCL) establishing procedures for handling conflict of interest contracts. The addition of Section 727 identifies the changes in procedures related to contracts entered into with board members for cooperatives and condominiums formed under BCL.

GOP's Proposed Tax Plan Changes the Rules for Businesses and Individuals


By Mark R. Baran  |  October 2, 2017

After months of speculation, President Trump and Republican congressional leaders have released an outline of their tax reform plan. “Unified Framework for Fixing Our Broken Tax Code” is intended to serve as a template for congressional committees to draft legislation aimed at cutting tax rates, simplifying the tax code and providing a more competitive environment for businesses. The framework addresses tax issues that affect both businesses and individuals.

HONOREES ANNOUNCED FOR PHILADELPHIA’S TOP LAWYERS AWARD PROGRAM


September 26, 2017

Marks Paneth is proud to be the Presenting Sponsor of the Philadelphia Business Journal’s inaugural Best of the Bar awards program, which seeks to honor Philadelphia-area attorneys and their recent accomplishments.

Mitigation of damages: Professional obligations for the expert witness computing damages


By Eric A. Kreuter  |  August 29, 2017

Eric A. Kreuter was recently published in the H1 2017 issue of Global Opportunities Bulletin. His article explains how economic damages experts can apply the Mitigation of Damages Doctrine to their casework within the context of the economic analysis.

On boarding a new transfer pricing client


By Angela Sadang  |  August 29, 2017

Angela Sadang was recently published in the H1 2017 issue of Global Opportunities Bulletin. Her article addresses the importance of understanding a new client’s business when initiating a transfer pricing engagement and developing the appropriate transfer pricing policy and methodology.

Foreign Partners in US Business Get Tax Relief in New ECI Ruling


August 23, 2017

A major US tax court handed a victory to foreign investors in US business this summer, when it rejected the controversial IRS Ruling 91-32. The ruling, issued in 1991, allowed the IRS to treat a non-US partner’s gains from the disposition of an interest in a US partnership as ECI (income effectively connected to the trade or business).  ECI of a non-US person is subject to US income tax and an additional 30 percent branch profits tax.

Border-Adjustment Tax Eliminated from Tax Reform Plan


By Mark R. Baran  |  August 14, 2017

While much of the Trump administration’s tax reform plan remains uncertain, we now know one thing for sure: it will not include a border-adjustment tax.

IC-DISCs: A Powerful Tax Savings Opportunity for Export Companies


August 11, 2017

The U.S. Court of Appeals recently ruled in favor of taxpayers who want to utilize IC-DISCs (interest-charge domestic international sales corporations) for estate planning purposes. In Summa Holdings, Inc. v. Commissioner1, the court rejected the IRS’s application of the substance-over-form doctrine to prevent the use and holding of IC-DISC stock in IRAs and trusts. It found that the substance-over-form doctrine should only be applied when a taxpayer or the IRS attempts to characterize a transaction differently than its substance.

Tax Act puts onus on Americans to do the right thing


By Paul Bercovici  |  August 8, 2017


Planning for Life after a QPRT


By Laura E. LaForgia |  Kathi Mintzer  |  August 3, 2017

Laura E. LaForgia and Kathi Mintzer were published in the August 2017 issue of Trusts & Estates. Their article addresses the decisions, choices and considerations that need to be made at the end of a qualified personal residence trust (QPRT).

Marks Paneth’s Summer 2017 Nonprofit Survey Results


August 1, 2017

Marks Paneth is pleased to reveal the findings of our third Nonprofit Pulse survey, which gauges the views and expectations of nonprofit leaders with organizations ranging from 20 employees to 500 employees. The Summer 2017 survey uncovered the industry’s outlook on funding availability, demand for services, board member effectiveness and other organizational issues.

Amendments to New York Nonprofit Revitalization Act of 2013 are now in effect


By Michael McNee |  John D'Amico  |  July 6, 2017

On November 28, 2016, additional amendments (the “2016 Amendment”) to the New York Nonprofit Revitalization Act of 2013 (the “NPRA”) were signed into the New York Not-for-Profit Corporation Law (“NPCL”). The 2016 Amendment is intended to “improve and make clarifying amendments” in order to “correct certain inconsistencies, and make the statute operate more smoothly and efficiently.”

New rules for telling your financial story


By John D'Amico  |  June 2, 2017

Nonprofits that are at least partially funded through government contracts face two ongoing challenges. One is finding funding for any associated administrative costs that are not covered by the grant. The second is managing cash flow when governmental agencies are notoriously late in reimbursing nonprofits for expenses they have already incurred. It is common for nonprofits to wait three to six months or more for reimbursement. This can result in serious liquidity issues. Combined, these issues often make it difficult for nonprofits to provide potential private donors a true picture of their financial status.

Effective date of OMB’s Procurement Standards extended


By John D'Amico  |  May 25, 2017

On December 26, 2013, the US Office of Management and Budget (OMB) published 2 CFR 200, “Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards” – also referred to as the Uniform Guidance (UG). One of the most significant changes introduced by the UG relates to procurement standards for non-Federal entities.

Where is US Corporate Tax Headed Under the New Administration?


By Solomon Packer  |  May 4, 2017

It is contemplated that US Congress will soon revise corporate tax policy.

Among the proposals coming to the fore, and being highly-debated in business and tax journals, is “destination-based cash-flow tax,” or “DBCFT.”

It is important to recognize that a DBCFT tax regime differs greatly from our current income tax system, and incorporates two distinct elements: a destination-based tax system, and a cash flow tax system

Ensuring Nonprofit Compliance with the Federal OMB Uniform Guidance and NJ's Circular 15-08 OMB


By John D'Amico  |  March 13, 2017

The federal OMB’s Uniform Guidance requires New Jersey-based nonprofit organizations with fiscal year expenditures greater than $750,000 to have a Single Audit. Organizations that receive new or incremental federal funding either directly from a federal agency or passed-through from the state or a local government after December 24, 2014 need to follow the federal OMB’s Uniform Guidance. For federal grants awarded prior to that date, OMB Circulars (A-110 and A-122 for nonprofits) are still in effect.

The new employee tax credit your organization may be missing out on


By Mordecai Lerer  |  February 28, 2017

Are you familiar with Internal Revenue Service forms 5884, 5884C and 8850? If not, your organization may be missing an opportunity to reduce its federal tax liability from $1,200 up to $9,600 per new hire. The great news is, both “for-profit” and “nonprofit”employers are eligible for the Work Opportunity Tax Credit (“WOTC”).

Nonprofit Pulse: A Leadership Survey From Marks Paneth


February 9, 2017

Mark Paneth’s Nonprofit Pulse collects the opinions of nonprofit leaders twice a
year. Findings from the Summer/Fall 2016 survey provide insights into the impact of
funding challenges on meeting demand for services, attracting and retaining staff
and the financial stability of organizations facing funding gaps.
The majority of respondents are senior leaders of human-service nonprofits
operating in the US, including executive directors, CEOs, CFOs, board members, and
directors.

Transfer Pricing Business Models


By Angela Sadang  |  January 27, 2017

A key factor in establishing a reasonable transfer price is establishing the business model used by sales and distribution organizations. In this article, the authors describe the three primary models and their relevance establishing and defending a transfer price.

PREPARING FOR THE SALE OF YOUR BUSINESS


By Angela Sadang  |  January 27, 2017

So, you founded your business and, over the years, built it into the profitable — and flourishing — operation it is today.  Or maybe you inherited the business, maybe even bought out an existing enterprise.  But, whatever your path to success, you’ve no doubt worked hard and long to get to where you are.

New Liquidity Disclosure Requirements for Nonprofits


By Sibi B. Thomas  |  January 23, 2017

Under the Financial Accounting Standards Board’s new financial reporting standards for nonprofits released on August 18, 2016, nonprofit organizations are required to provide enhanced disclosures about the liquidity and availability of its resources in the audited financial statements. The disclosures must be both qualitative and quantitative in nature.  

Avoiding Damage Done by Damages Experts


By Eric A. Kreuter  |  December 6, 2016

Economic damages experts are often confronted with legal theories, which must be carefully applied to their casework within the context of the economic analysis. One example is the Mitigation of Damages Doctrine.

Interest-Charge Domestic International Sales Corporations


November 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

Corporate Inversions in the United States: A Primer


November 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. 

VENDORS CAUTIONED TO SEPARATE SALES TAX ON ALL TAXABLE TRANSACTIONS


By Dov Klein  |  November 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.

TRUMP PRESIDENCY PORTENDS MAJOR TAX CHANGES


By Steven Eliach  |  November 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 our Tax Practice, outlines the potential impact of the 2016 election on tax law.

US TAXPAYERS ARE PAYING MORE THAN THEY REALIZE


By Steven Eliach  |  October 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.

MARKS PANETH’S 2016-2017 TAX PLANNING GUIDE


October 13, 2016

To provide you with access to current tax rules and regulations, Marks Paneth has launched its 2016-2017 Tax Planning Guide.

Are We There Yet? Looking down the road at the health of the hospitality sector


September 1, 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.It can be found on page 29.

Impact of PATH ACT: Section 181 IRS Code Revisions to Live Theater Productions


By Polina Inberg  |  August 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.

New York changes personal income tax rules


By Steven P. Bryde  |  August 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

Fully Leveraging IP Assets


July 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. 

Partnership Audit Rules Revised


By Mark R. Baran  |  June 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. 

Tips for improving the quality of your nonprofit’s audit


By Sibi B. Thomas  |  June 8, 2016

Audit quality is one of the most discussed topics in the accounting and auditing profession. Audit quality involves both qualitative and quantitative elements, some of which are not easily measurable. It is subjective and viewed differently by different stakeholders based on their expectations and perceptions. It’s important for all the involved stakeholders to align their expectations in order to produce a quality audit.

Legal Issues and Valuation of Tangible Assets, Patents and Copyrights


May 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 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.

Creating the Bridge Between Transfer Pricing and the Valuation of Intangibles


By Angela Sadang  |  May 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.  

Section 181’s Extension to Live Stage Productions Doesn’t Set Clear Path for Producers, Investors


By Christopher A. Cacace  |  May 2, 2016

At the end of 2015, Congress passed, as part of a large tax extender bill, the Protecting Americans from Tax Hikes Act (PATH), H.R 2029 (http://1.usa. gov/1JPofei), an extension of §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 §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 §181 treatment to live stage productions.

Will this new provision be helpful to producers of live theatrical productions as they seek to raise funding for their shows?

Assigning Value Is More Than A Number


May 1, 2016

Approximately 80 percent of the businesses filing U.S. federal income tax returns are S corporations, partnerships or limited-liability companies, collectively known as pass-through entities (PTEs). Valuing PTEs is one of the oldest, least resolved and, some would say, most poorly defined issues challenging the business valuation profession.

In this articleEric J. Barr, CPA, Partner-in-Charge of valuation services in the Financial Advisory Services group at Marks Paneth, outlines the crucial matters attorneys need to know about valuing PTEs. 

This article, “Assigning Value is More Than a Number”, was originally published in the May 2016 issue of Metropolitan Corporate Counsel.

Taxing Intangible Assets: A New Global Approach


By Angela Sadang  |  April 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.

Taxation And Technology: Playing Catch-Up In A Digital World


April 28, 2016

In this article, Jeanne Goulet, Senior Consultant, takes an up-close look at OECD recommendations aimed to minimize aggressive tax planning and encourage governments to reduce gaps and tax arbitrage opportunities in their domestic laws. She also discusses treaty abuse, the artificial avoidance of PE status, the use of artificial means of reducing tax in both market and parent jurisdictions and nowhere tax in parent jurisdictions.

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.

FASB Project on Not-for-Profit Financial Reporting


By John D'Amico  |  April 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.

Use Caution: Foreign Agents Ahead


April 1, 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.

Ways to avoid identity theft


By Steven Eliach  |  March 30, 2016

Identity theft presents a challenge to businesses, organizations and governments, including the Internal Revenue Service. Tax-related identity theft occurs when someone uses a stolen Social Security number (SSN) to file a tax return to claim a fraudulent refund. Although identity theft affects a small percentage of tax returns, it can delay a taxpayer’s refund and have a major impact on the victim’s peace of mind.    

2016 Tax Calendar


By Mark R. Baran  |  March 7, 2016

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

Location, Location and Tax Implications


By Alexander X. Wang  |  March 1, 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.

Nonprofit Revitalization: Checklist for Compliance


By Michael McNee  |  February 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.

 

What's Next? Implications of Proposed IRS Regulations on Family-Owned Entities


By Angela Sadang  |  February 1, 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.

The Dangers of Letting Bribery Go Undetected


January 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. 

Gotham Commercial Real Estate Monitor


By William H. Jennings  |  January 26, 2016

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. Overall, 201 individuals responded to the survey — 64 online following a series of email invitations and 135 in person at a convention of New York City real estate professionals. Marks Paneth staff supervised the convention site intercept interviews and email deployments for online data collection.  Michaels Opinion Research, Inc. hosted the online data collection site and tabulated all questionnaires. Interviews were completed during the period of November 11 - Decemeber 23, 2015.

"Irrational Exuberance” or Golden Age: Is This The Best of Times for New York City Hotels?


January 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.

Monitoring your organization’s fiscal health to avoid financial failure


By Sibi B. Thomas  |  January 8, 2016

When considering the myriad of challenges the nonprofit sector faces today, it is important that nonprofit leaders take a holistic approach to understanding the factors affecting their organizations' financial viability. There are several tools and specific approaches to nonprofit governance that can greatly facilitate this undertaking. 

In this article, Partner Sibi Thomas discusses give factors that nonprofit leaders should consider to better secure their organizations against financial mismanagement and organizational risk.

This article was originally published in New York Nonprofit Media in January 2016.

Meeting US FATCA Reporting Requirements


December 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.

The Dangers of Letting Bribery Go Undetected


December 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.

Marks Paneth’s 2015-2016 Tax Planning Guide


December 9, 2015

To provide you with access to current tax rules and regulations, Marks Paneth has launched its 2015-2016 Tax Planning Guide.

Start-ups Coming to the US


November 12, 2015

Emerging companies coming to the US are faced with myriad of tax and reporting obligations that carry substantial penalties for noncompliance. This checklist covers the issues and helps you prepare for the tax requirements your startup will encounter.

Uncertainty Over Expired Tax Breaks Once Again Complicates Year-end Tax Planning


By Steven Eliach  |  November 11, 2015

Year-end tax planning this year will be just as complicated as last year primarily because of uncertainty surrounding many expired tax breaks for individuals and businesses. Tax legislation signed into law last December extended several expired breaks, but only through the end of 2014. This article reviews expired tax breaks that Congress may revive later this year and details tax-saving strategies currently available to individuals and businesses.

Nonprofit Pulse: A Leadership Survey from Marks Paneth


By Michael McNee  |  October 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.

Expanded New York State Film Production Tax Credit Program Offers More Funding, Faster Applications


October 22, 2015

New York State’s film production tax credit program is more robust than ever.  This article 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.

What to Consider When Using Guideline Transaction Data


October 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).

Marks Paneth Comments on HUD's Proposed Changes to §200.216


By William H. Jennings  |  October 8, 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.

Transfer Pricing: A Primer for International New Entrants to the US


October 1, 2015

Regardless of structure and revenue levels, the operations of corporations with related entities across international tax jurisdictions inevitably involve intercompany transactions.  International and local rules and guidelines require that the arm’s length standard must be met in the pricing of intercompany transactions, requiring contemporaneous documentation.  International transfer pricing rules and guidelines are established by the Organisation for Economic Co-operation and Development (OECD) as set forth by the OECD Guidelines, while transfer pricing rules and regulations for the US are established by the US Department of the Treasury, Internal Revenue Service (IRS). 

This article, "Transfer Pricing: A Primer for International New Entrants to the US", was originally published in Morison International's quarterly tax newsletter, Global Tax Insights, Q3 2015. It was reprinted by permission in Global Tax Weekly, October 15, 2015, published by CCH, a Wolters Kluwer business

FASB Roundtable on Proposed Nonprofit Accounting Standards


By Michael McNee  |  September 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.

Minimum Distribution Requirements for Private Foundations


By Robert Lyons  |  September 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.

Developing a Fraud-Free Workplace for the Nonprofit Organization: A Fresh Perspective


By Eric A. Kreuter |  Hope Goldstein  |  September 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.

The Pass-Through Entity Conundrum


September 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.

Lost Profits: The Reasonable Certainty Standards and the Modern New Business Rule


September 9, 2015

While the vast majority of jurisdictions have moved away from the new business rule and adopted the modern new business rule, by which new/unestablished businesses can recover damages, such adoption does not diminish the requirements under the reasonable certainty standard. Given the lack of historical financial performance data and under the lens of the reasonable certainty standard, estimates of lost profits damages to new/unestablished businesses are subject to a higher level of scrutiny. This article by Josefina V. Tranfa-Abboud, principal, Financial Advisory Services group, focuses on new/unestablished businesses and the importance of post-incident business-specific data/facts to isolate the effects of the disputed event, and to establish a measure of lost profits damages that can be considered reasonably certain.

This article appeared in the September 9, 2015 issue of QuickRead, published by the National Association of Certified Valuators and Analysts (NACVA).

Foreign Investors Need a Roadmap as They Flock to New York Real Estate


By Alexander X. Wang  |  September 3, 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.

Highway Funding Law Brings Important Tax Compliance Law Changes


By Steven Eliach  |  August 25, 2015

The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 provides a temporary three-month extension of the Highway Trust Fund that is paid for through several tax compliance revenue offsets. These revenue offsets primarily affect tax return filing due dates and extension deadlines for C corporations, partnerships, and trusts and estates. There are also other important tax provisions contained in the law that include modifications to estate and mortgage reporting, consistent basis reporting, clarification of the 6-year limitation period for overstated basis, veterans tax incentives regarding ACA exemptions and improved HSA contribution eligibility, and an excise fuel tax provision for alternative fuels.

Employee or Independent Contractor? Worker Misclassification Investigations are Growing


By Mark R. Baran  |  August 7, 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.

Corruption Knows No Borders: FCPA compliance is not just an emerging market concern


July 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.

Finding an Intersection Between Intangibles Valuation and Transfer Pricing


By Angela Sadang  |  July 9, 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

Supreme Court upholds premium tax credits for coverage purchased on federal exchanges


By Steven Eliach  |  July 1, 2015

On June 25, the US Supreme Court, in a much-anticipated ruling, essentially again upheld the Affordable Care Act (ACA), this time by upholding premium tax credits for qualifying taxpayers whether they purchase coverage through a federal or a state exchange. In a 6-3 decision, the Court found that taxpayers purchasing coverage through a federal exchange can qualify for subsidies. The decision is important not just to taxpayers receiving subsidies, but also to the viability of the entire ACA. The majority of states have not set up exchanges. For “large” employers, as defined under the ACA, the decision means that the shared responsibility provisions due to go into effect this year and next, as well as the information reporting requirements due to go into effect this year, will indeed go into effect.

Marriage Ruling Brings Significant Changes for Same-sex Couples


By Steven Eliach  |  June 29, 2015

The U.S. Supreme Court’s decision in Obergefell v. Hodges ruled that same-sex couples have a constitutional right to marry, effectively making same-sex marriage legal in all 50 states. The decision has numerous implications for the tax, estate and retirement planning of same-sex couples and will also affect some employers in states that had not previously recognized same-sex marriage. 

Uniform Guidance (Formerly A-133) for Federal Award Programs


By Michael McNee  |  June 26, 2015

The Office of Management and Budget recently published Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. This guidance supersedes several OMB Circulars that govern federal awards, including the Circulars that affect non-profits, such as Circular A-110 and A-122. These new regulations are commonly called “Uniform Guidance” or “UG”.

Regulators Clamp Down on Casinos for Noncompliance


June 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.

Spring 2015 Gotham Commercial Real Estate Survey Results


By William H. Jennings  |  April 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.

To Operate or Not to Operate Your Hotel Restaurant Yourself...That is the Question


April 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.

Executive Summary: Exploring the Financial and Governance Ingredients for Nonprofit Stability


By Michael McNee  |  April 2, 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.

Nonprofit Pulse: A Leadership Survey from Marks Paneth


By Michael McNee  |  March 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.

The Definitive Guide to Income Tax Planning for Same-Sex Couples


By Robert Lyons  |  March 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.

Lost Profits, Business Cycles, and the Reasonable Certainty Standard


March 18, 2015

Courts standards require that damages analysis results be within “reasonable certainty”, and objective rather than speculative, terms more of art than of science.  Given these standards, it is of vital importance to analyze all relevant factors to the extent permitted by the best data available. And it is the responsibility of the damages expert to present an analysis that is both reasonably certain and objective by making every effort to request and/or research the best data available. The expert who is unable to isolate the wrongdoing from exogenous factors may be challenged on the basis that analysis is speculative.

This article, “Lost Profits, Business Cycles, and the Reasonable Certainty Standard”, appeared in the March 18, 2015 issue of QuickRead, published by the National Association of Certified Valuators and Analysts and the Consultants’ Training Institute.

A Call for Guidance: Tip Credit Uncertainty Burdens Vital NYC Restaurant Industry


By Kurt S. Kiess  |  March 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.

Choosing an Experienced Health Care Appraiser


March 1, 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. 

Valuation for Your Healthcare Practice


March 1, 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.

Advising Physician Clients Regarding the Decision to be Acquired


February 1, 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.

Doing Business Guide – Switzerland


January 27, 2015

Doing business around the world presents a variety of challenges. Morison International (MI), the association of independent accounting and consulting firms to which Marks Paneth belongs, publishes a series of guides designed to provide an introduction to foreign investors on the various aspects of doing business. The guides are written by the MI member firm in the country that is being profiled. Please click below to access the guide for Switzerland.

Health Care Fraud: Are You Prepared to Absorb the Costs?


January 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.

Restrictions on Distributions and Impact on DLOM...Who Else WIll Follow?


January 7, 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.

Committing to a Hotel Conversion? Look Before You Leap


January 7, 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.

Valuing Pass-Through Entities Using the Guideline Public Company Method


January 1, 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.

The Challenge and Responsibility of Protecting Client Data


January 1, 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.

Fall 2014 Gotham Commercial Real Estate Results


By William H. Jennings  |  December 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.

Have You Outgrown Your Accountant?


By Laura E. LaForgia  |  November 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.

Implementing the New Tangible Property Regulations


November 21, 2014

Implementing the New Tangible Property Regulations The IRS released final regulations addressing the treatment of repairs and maintenance expenses for federal income tax purposes as well as regulations governing the treatment of dispositions of tangible assets and the treatment of assets included in general asset accounts (GAAs) that are deemed to be disposed of upon the completion of significant repairs. The changes, however, extend beyond just repairs and address the tax treatment of improvements, repairs and maintenance, materials and supplies, spare parts and acquisition costs as well as a broad range of capitalization and deduction issues associated with tangible property expenditures and potentially impacting businesses in all industries.

This article provides a brief description of the significant areas addressed by the final regulations.

EB-5 Visa Applicants Need Careful Tax Planning


By Alexander X. Wang  |  November 5, 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.

Marks Paneth: Year-End Tax Planning for Businesses and Individuals


By Steven Eliach  |  October 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.

NEW ACCOUNTING STANDARD TACKLES DISCLOSURES ABOUT BUSINESS CONTINUITY


By William M. Stocker III  |  October 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.

The History of Federal Income Tax Rates


October 1, 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.

Valuation Implications of Dividend Income


October 1, 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.

The Guideline Transaction Method


September 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.

GAAP Financial Statements of Pass-Through Entities


September 1, 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.

New York State and City Residency Rules Create Tax Traps for the Unwary


By Steven P. Bryde  |  September 1, 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.

A Conversation With a Prospective Business Valuation Client


September 1, 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.

Five Problems to be Aware of When Performing Analytical Procedures


August 1, 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.

The Value of Analytical Review Procedures


August 1, 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.

Summer 2014 Gotham Commercial Real Estate Results


By William H. Jennings  |  July 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.

Long-Awaited FASB Standard Revamps Revenue Recognition Model


By William M. Stocker III  |  July 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.

Selling Your Medical Practice?


July 1, 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.

Valuing Your Medical Practice


July 1, 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.

 

When to Decline a Business Valuation Request


July 1, 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.

Presenting Compensation Estimates to a Jury


July 1, 2014

Presenting a damages estimate to a jury is an art that must be backed up by understandable science.  The art is in the combination of effective questions by counsel (whether retaining or opposing) and a presentation by the expert that gets the jury’s attention. 

This article, “Presenting Compensation Estimates to a Jury”, was originally published in The Metropolitan Corporate Counsel, July-August 2014.

IRS Announces Major Changes Regarding Offshore Voluntary Disclosures


By Paul Bercovici  |  June 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.

DEPRECIATION RECAPTURE: WHAT DOES IT MEAN TO YOU?


June 16, 2014

Over the past decade, business owners have been reaping generous tax benefits by writing off their new equipment purchases, including certain qualified leasehold improvements. What they may fail to realize is that some or all of the previously-derived tax benefits could be negated when the affected assets are disposed of. What does depreciation recapture mean to you?  (Note:  Due to some expired provisions and uncertain future tax developments, this article has been updated since its original publication in May 2013.)

Spring 2014 Gotham Commercial Real Estate Results


By William H. Jennings  |  May 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.

New York State Makes Significant Changes to Estate and Trust Tax Laws


May 13, 2014

On March 31, 2014, New York State Governor Andrew Cuomo signed into law the 2014-15 budget legislation (the Executive Budget), which made a number of significant changes to New York's estate and trust tax laws. This article discusses the highlights and the impact of some of these changes.

Pigs Get Slaughtered: Do’s and Don’ts for Buyers and Sellers in a Red Hot Hotel Real Estate Market


May 2, 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.

New York State Nursing Home Assessment Credit


By Laura E. LaForgia  |  May 1, 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.

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


By William H. Jennings  |  May 1, 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.

Consequences of Having a Poor Anti-Money Laundering Program


April 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.

Health Care Fraud and Abuse


April 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.

As The New York Commercial Real Estate Boom Continues, Help Investors Avoid These Common Mistakes


By Abe Schlisselfeld  |  April 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.

Despite Higher Tax Rates, 'S' Corporations Retain Advantages Over 'C' Corporations


By John N. Evans  |  March 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.

Trends Shaping NY Real Estate Industry, According to Latest Gotham Commercial Real Estate Monitor


By William H. Jennings  |  March 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.

Managing Intellectual Property In A Knowledge Economy


February 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.

IRS issues final regulations on 3.8% net investment income tax and 0.9% additional Medicare Tax


By Robert J. Hughes  |  January 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.

Increased Regulation Drives Demand for Forensic Accounting Services


December 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.

Fall 2013 Gotham Commercial Real Estate Results


By William H. Jennings  |  December 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.

Cloud Computing Transactions are the New "Wild West" Sales Tax Frontier


By Steven P. Bryde  |  September 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.

Your Grant Might Be a Wolf in Sheep’s Clothing


By William H. Jennings  |  September 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.


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