News & Insights: tax

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?


By Michael W. Hurwitz  |  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.

Business SALT Issues Arising From COVID-19 Travel Restrictions


June 12, 2020

Business shutdown orders and travel restrictions due to the COVID-19 pandemic have State and Local Tax (SALT) implications for employers and individuals.

Individual SALT Issues Arising From COVID-19 Travel Restrictions


June 12, 2020

Business shutdown orders and travel restrictions due to the COVID-19 pandemic have State and Local Tax (SALT) implications for employers and individuals.

Internal Revenue Service Issues Final Regulations on Donor Disclosure Requirements


By Magdalena M. Czerniawski |  Robert Lyons  |  June 8, 2020

After much deliberation, on May 26, 2020, the IRS issued Treasury Decision (T.D.) 9898, which includes final regulations on donor disclosure requirements as well as some technical corrections.

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.

With Historic Preservation Tax Credits, Old Buildings Offer Great Opportunity


By Michael W. Hurwitz  |  May 6, 2020

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

Guidance for Applying ‘Silo’ Rules to Unrelated Business Taxable Income


April 28, 2020

On April 23, 2020, the Treasury Department issued proposed regulations for applying UBTI "silo" rules for tax-exempt organizations.

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


By Melissa Ouari  |  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.

New IRS Guidance Addresses Bonus Depreciation and Related Issues for Qualified Improvement Property


April 21, 2020

On April 17, the IRS released Revenue Procedure 2020-25 in response to the retroactive assignment of a 15-year recovery period for qualified improvement property (QIP) and the bonus depreciation “glitch-fix.”

IRS Provides Procedural Relief on Elections Related to Interest Expenses Under Section 163(j)


April 15, 2020

On April 10, the IRS released Revenue Procedure 2020-22 in response to consequential changes made to Internal Revenue Code Section 163(j) under the CARES Act.

IRS Extends Tax Deadlines for Nonprofits


April 13, 2020

On April 9, the IRS issued Notice 2020-23 providing an automatic extension for Forms 990, 990-PF and 990-T.

Tax Authorities Expand Tax Filing and Payment Due Dates


April 12, 2020

The IRS recently provided broad relief to taxpayers with tax filing and payment deadlines that fall between April 1 and July 15, 2020.

IRS Issues Tentative Refund Notice 2020-26 Providing Guidance for Taxpayers Claiming NOL Carrybacks


April 11, 2020

The IRS has issued guidance providing tax relief under the CARES Act for taxpayers filing a net operating loss (NOL) carryback claim. Notice 2020-26 grants a six-month extension to file such a claim for taxable years arising during calendar year 2018 and ending on or before June 30, 2019.

Alert: Partnerships Can Now File Amended Returns to Receive CARES Act Benefits


April 9, 2020

The IRS has recently addressed serious concerns with certain consequences of the CARES Act affecting partnerships. 

When is My 990 Form Due?


April 3, 2020

Does the extension of income tax return deadlines and related payments until July 15, 2020 apply to nonprofit tax filings?

Paycheck Protection Program: SBA Application and Treasury Information Sheet Released


April 1, 2020

The SBA released a loan application for the Paycheck Protection Program.

New SBA Loan Options: Paycheck Protection Program and Economic Injury Disaster Loans


March 31, 2020

The CARES Act includes changes to SBA lending programs that eligible businesses and non-profits may apply for.

7 Ways CARES Act Financially Supports Nonprofits


By Sibi B. Thomas  |  March 30, 2020

Sibi Thomas, Partner in Marks Paneth’s Nonprofit, Government & Healthcare Group, examines seven ways the $2.2 trillion stimulus bill provides assistance concerning donations and operational revenue for nonprofits.

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.

Treasury Secretary Mnuchin Announces Extension of Federal Tax Filing Deadline to July 15


March 20, 2020

U.S. Treasury Secretary Steven Mnuchin announced that the federal tax filing deadline would be extended from April 15 to July 15. New York State announced that it would be extending its tax filing deadline to July 15 as well.

Alert: Taxpayers Can Postpone Federal Payments Until July 15


March 19, 2020

In response to the coronavirus pandemic, the Treasury Department has issued guidance (IRS Notice 2020-17) allowing taxpayers to delay making certain federal income tax payments until July 15, 2020 without interest, penalties or additions to tax.

Alert: Financial Assistance for Small Businesses Affected by the Coronavirus


By Howard Hoff  |  March 16, 2020

A program is being implemented by the NYC Department of Small Business Services to provide financial support to businesses impacted by the coronavirus (COVID-19).

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. 

Nonprofit Alert: IRS Issues Guidance on Refunds for Paid Qualified Transportation Taxes


By Magdalena M. Czerniawski |  Robert Lyons  |  January 23, 2020

The IRS has issued guidance on the steps nonprofits will need to take in order to claim a refund on taxes paid under Section 512(a)(7), commonly known as the “Transportation Tax.”

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.  

Tax Alert: Key Issues Addressed in Final QOZ Treasury Regulations


By Michael W. Hurwitz |  Alan M. Blecher  |  January 8, 2020

The Internal Revenue Service and the Treasury Department issued Final Treasury Regulations related to investing in Qualified Opportunity Zones, addressing many of the questions that have arisen since the program's inception in the Tax Cuts and Jobs Act of 2017.

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.

Philanthropy Isn’t Dead – An Update on Charitable Giving Post Tax Reform


By Magdalena M. Czerniawski  |  December 26, 2019

People are willing to donate and not just because of the tax benefits. Magdalena M. Czerniawski, Tax Director in our Nonprofit, Government & Healthcare Group examines the impact of the 2017 Tax Cuts and Jobs Acts on charitable contributions.

President Trump Signs Further Consolidated Appropriations Act Into Law


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

As expected, President Trump signed into law H.R. 1865 (The Further Consolidated Appropriations Act, 2020) on Friday, December 20, 2019. Two of the law’s provisions have a significant impact on nonprofit organizations.

Bipartisan Support for Repeal of Tax on Nonprofit Transportation Benefits


By Magdalena M. Czerniawski |  Robert Lyons  |  December 18, 2019

A bipartisan tax relief proposal, which includes the repeal of the tax on transportation benefits, passed the U.S. House of Representatives on December 17, 2019 and is expected to be passed by the Senate and signed by the President shortly.

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.

New Draft Federal Forms Issued in Response to Heightened Scrutiny Of QOZ Program


By Michael W. Hurwitz  |  November 19, 2019

The Qualified Opportunity Zones (QOZs) tax-incentive program has recently come under heightened scrutiny by the national media due to alleged abuses. 

Will IRC Section 181 Come Back To Life … Again? And Why Would It Matter?


By Christopher A. Cacace  |  September 10, 2019

A renewal of Section 181 can only be looked at as a positive development for the entertainment industry because it gives production companies another alternative. As with any tax position, it’s important to have a good understanding of each available option. 

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.

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.

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 |  Michael W. Hurwitz  |  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. 

Tax Alert: IRS Issues New Proposed Regulations on Qualified Opportunity Funds


By Alan M. Blecher |  Abe Schlisselfeld |  Michael W. Hurwitz  |  April 18, 2019

The IRS has released a second round of proposed regulations regarding investments in Qualified Opportunity Funds, addressing a number of the critical issues and providing long-awaited clarity for investors seeking to take advantage of the opportunity zone tax benefits.

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”).

NYC Makes it Easier to Challenge Property Assessments


By Darya Shneyder  |  January 29, 2019

Many real estate owners who just received their property value assessments from the NYC Department of Finance may find it easier to challenge those assessments this year.

IRS Issues Interim Guidance on Excise Taxes for Nonprofit Executive Compensation


By Magdalena M. Czerniawski |  Robert Lyons  |  January 9, 2019

On Monday, December 31, 2018, the Internal Revenue Service issued Notice 2019-09 offering interim guidance for nonprofit executive compensation under Section 4960 of the Internal Revenue Code, which imposes an excise tax of 21 percent (or current rate) on remuneration in excess of $1 million and any excess parachute payments paid by an applicable tax-exempt organization to a covered employee.

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.

Nonprofit Alert: Cuomo Signs Bill Exempting Nonprofits from NY Transportation Tax


By Robert Lyons |  Magdalena M. Czerniawski  |  December 13, 2018

On Friday, December 7, 2018, Governor Cuomo signed into New York law the much-anticipated bill exempting nonprofits who provide pre-tax transportation and parking benefits from the New York State level transportation tax. 

SALT Alert: Amazon Puts FBA Sellers on Notice of Possible Sales Tax Nexus


By Steven P. Bryde  |  December 11, 2018

In October 2018, Amazon advised its Fulfillment by Amazon (FBA) sellers that it intended to provide the California Department of Tax and Fee Administration (the Department) with the FBA sellers’ contact information (name, address, and email) and U.S. Taxpayer identification numbers, by November 6, 2018.

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.

Real Estate Tax Certiorari: Challenging the Assessments


By Darya Shneyder  |  November 16, 2018

The New York City Department of Finance determines the property value assessment for all New York City properties. The notice of property value is provided to the real estate owners in the middle of January every year. 

Tax Alert: IRS Releases Proposed Regulations on Qualified Opportunity Funds


By Alan M. Blecher  |  October 23, 2018

The IRS has issued proposed regulations relating to the deferral of gain under Code Section 1400Z-2, for investments in qualified opportunity funds (QOFs). Enacted late last year, the QOF provisions, while enticing, left many questions unanswered.

IRS Releases 199A Passthrough Deduction Guidance


By Mark R. Baran  |  August 13, 2018

The much-anticipated guidance from the IRS regarding implementation of the so-called 20% passthrough deduction under new Internal Revenue Code Section 199A (199A) has been released.

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?

SALT Alert: U.S. Supreme Court Overturns Physical Presence Rule for Out-of-State Sellers


By Steven P. Bryde |  James (Jay) M. Brower, Jr  |  June 27, 2018

On June 21, 2018, the U.S. Supreme Court overturned a longstanding court precedent that applied to the collection of sales tax from online and other remote retailers. In South Dakota v. Wayfair, Inc. et al, the Court replaced the “physical presence” rule with a new standard for determining when states can impose a sales tax collection responsibility on out-of-state sellers of taxable goods and services.

Nonprofit Alert: IRS Guidance on New Rules for UBIT


By Robert Lyons  |  May 21, 2018

Our nonprofit tax professionals have been monitoring comments coming out of the IRS on the new Unrelated Business Income Tax rules created by the Tax Cuts and Jobs Act. Read more on what not-for-profits can expect in the forthcoming guidance.

Christopher Cacace Featured in Forbes


April 24, 2018

As Broadway producers continue to consider tax reform’s impact on their taxes and cash flow, Partner Christopher Cacace provides his perspective to Forbes.

International Tax Provisions in the U.S. Tax Reform Bill


April 6, 2018

In a move to a territorial tax regime, the new U.S. tax reform bill that was passed into law late last year makes significant changes to the taxation of foreign income.  All shareholders of foreign corporations – both U.S. and non-U.S. individuals – should take careful note of the new provisions that affect their income, tax deductions, and accounting procedures.

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.

IRS Announces Termination of 2014 Offshore Voluntary Disclosure Program


By Paul Bercovici  |  March 19, 2018

On March 13, 2018, the IRS announced that the 2014 Offshore Voluntary Disclosure Program (OVDP) will close on September 28, 2018. This program allows U.S. taxpayers who failed to report certain offshore assets - and/or the income derived from such assets - to voluntarily come into compliance with U.S. tax laws and generally avoid criminal prosecution in exchange for payment of an offshore penalty.

Qualified Opportunity Funds


By Michael W. Hurwitz  |  March 16, 2018

As part of the extensive Tax Cuts and Jobs Act of 2017 (TCJA), Congress created a little known but beneficial tax program to incentivize the inflow of capital investments into qualified low-income communities. The Qualified Opportunity Zone program offers significant tax benefits that are designed to reward taxpayers who reinvest capital gains from certain property sales into a Qualified Opportunity Fund.

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.

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.

What the New Tax Reform Means for You and Your Firm: Four Experts Weigh In


By Mark R. Baran  |  January 30, 2018

Mark Baran, Principal in our Tax Group, participated in a Crain's roundtable discussion entitled, "What the New Tax Reform Means for You and Your Firm: Four Experts Weigh In."

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.

New Repatriation Tax on Foreign Corporate Shareholders


January 2, 2018

The tax reform bill signed into law last week could signal a significant one-time deemed repatriation tax on owners of foreign corporations. For a calendar-year foreign corporation with a calendar-year shareholder, the tax would apply to 2017. For others, it would apply to the last year of the foreign corporation that begins before 2018.

Trump Signs Tax Reform Bill Into Law


By Mark R. Baran  |  December 22, 2017

After an impressive display of speed and discipline, both chambers of Congress passed the final reconciled version of the Tax Cuts and Jobs Act (H.R. 1) and it was signed into law by President Trump this week.

Real Estate Alert: Tax Bill Creates New Deduction on Qualifying Pass-Through Income


By William H. Jennings  |  December 20, 2017

The Tax Cuts and Jobs Act (H.R. 1) was passed by Congress today and sent to the President to be signed into law. The final reconciled bill creates a new deduction for qualifying pass-through income, subject to certain limitations. Generally, any trade or business is eligible for the deduction, except specified service businesses.

Tax Reform: Closing in on the Finish Line


By Mark R. Baran  |  December 11, 2017

A conference committee consisting of both House and Senate negotiators will begin work this week to reconcile differences between their respective tax measures. Among the many provisions that differ between the two plans, we have outlined the ones we feel will have the broadest impact on all of our clients and industry groups.

Marks Paneth’s 2017 Estate Planning Guide


December 8, 2017

The Marks Paneth Tax Services Group has issued its 2017 Estate Guide to highlight the tax law changes and other issues affecting our clients’ estate planning strategies

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.

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.

“Mission Drift” and Other Potential Audit Triggers You Should Know About


By Robert Lyons  |  August 22, 2017

It is your organization’s responsibility to apply due diligence when preparing the Form 990, and ensure that you are operating in accordance with the purpose for which you were granted exemption. Manage that responsibility well. 

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).

Tax Alert: Trump Administration’s Tax Plan Explained


By Steven Eliach  |  May 17, 2017

On Wednesday, April 26, 2017, the Trump Administration unveiled a tax plan that proposes significant reductions to individual and corporate tax rates, reduces the number of individual tax brackets to three – 10 percent, 25 percent and 35 percent – and repeals the estate tax – among other proposals. While the plan has been presented as a broad outline, rather than in legislative text, the proposal represents a significant overhaul of the US tax system.

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

SALT Alert: New York State 2017-2018 Budget


By Steven P. Bryde  |  April 21, 2017

New York State Governor Andrew M. Cuomo signed the 2017-2018 State Budget. The bill contains a variety of corporate franchise, personal income, and sales/use tax changes. 

This year’s budget proposal contains a number of extenders and measures focused on compliance. The final budget may, however, be more notable for the original January proposals that were removed from the final budget, as opposed to what remained. Next, State legislatures, including New York’s, will likely be focused on addressing the effects of foreseeable federal tax law changes.

  

Tax Alert: IRS issues 2017 cost-of-living adjustments


By Avery E. Neumark  |  March 13, 2017

Did you know that the IRS has adjusted cost of living thresholds? The 2017 cost-of-living adjustment amounts trend higher than 2016 amounts, but only slightly. How might these amounts affect your year-end tax planning or retirement planning? 

Real Estate Alert: Proposed Significant Change to NYS Real Estate Transfer Tax Law


By William H. Jennings  |  February 3, 2017

New York State Governor Andrew Cuomo recently released his FY 17-18 Executive Budget, which suggests a number of changes to the tax law. Among those changes is a proposal to greatly expand the reach of the New York State Real Estate Transfer Tax with respect to transfers of entities holding New York State real estate. 

TAX ALERT: 2017 FILINGS-WHAT YOU NEED TO KNOW


By John N. Evans  |  January 9, 2017

Due dates for filing of certain tax returns and information returns have been changed - see chart below for more information. 

Tax Alert: Deadline Extended for ACA Information Reporting to Employees


By Mark R. Baran  |  December 16, 2016

The IRS has again extended the deadline for employers who are subject to the Affordable Care Act’s (ACA’s) information reporting requirements to meet their obligations to employees. Last year the IRS extended the 2016 deadlines for reporting 2015 information, which gave employers an additional two months to provide Form 1095-B, “Health Coverage” and Form 1095-C, “Employer-Provided Health Insurance Offer and Coverage” to their employees.  

Tax Alert: IRS Issues Its 2017 Cost-of-Living Adjustments


By Mark R. Baran  |  December 14, 2016

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

Tax Alert: Implementing Last Minute 2016 Tax Saving Tips


By Mark R. Baran  |  December 14, 2016

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

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

Tax Alert: DOL's Overtime Rule Blocked by US District Court


By Avery E. Neumark  |  November 29, 2016

On November 22 - just before the US Department of Labor’s (DOL’s) new overtime rule was scheduled to go into effect on December 1, 2016 - a federal judge issued an injunction and temporarily blocked it. The rule was set to make dramatic changes to the rules determining overtime for certain executive, administrative and professional employees under the Fair Labor Standards Act (FLSA).

The final rule, issued last May, would have doubled (to $47,500) the maximum salary an executive, administrative or professional worker could earn and remain eligible for mandatory overtime pay, making it more difficult for employers to classify employees as exempt from overtime requirements.

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.

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.

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

Tax Alert: DOL’s final overtime rule brings sweeping changes


By Mark R. Baran  |  June 14, 2016

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

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. 

Tax Alert: IRS offers guidance to employers who plan to claim the WOTC


By Mark R. Baran  |  April 8, 2016

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

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.

Tax Alert: IRS issues deadline extensions for ACA information reporting


By Mark R. Baran  |  February 17, 2016

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

Tax Alert: Budget act eliminates strategies for maximizing Social Security payout


By Mark R. Baran  |  February 3, 2016

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

Form 1099 Information Returns


By Mark R. Baran  |  February 2, 2016

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

Tax Alert: Partnership audit rules revised under 2015 budget act


By Mark R. Baran  |  January 25, 2016

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

Tax Alert: 2016 cost-of-living adjustments: Minimal changes from 2015


By Steven Eliach  |  January 11, 2016

The IRS has issued its cost-of-living adjustments (“COLAs”) for 2016. Since inflation remains low, many COLA amounts remain the same as last year or were increased modestly. This article provides an overview of 2016 amounts related to individual income taxes, the alternative minimum tax, education- and child-related tax breaks, retirement plans, and gift and estate taxes.

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.

SALT Alert - NYC to Require Employers to Offer Pre-tax Transit Benefits


By Steven P. Bryde  |  November 19, 2015

The Affordable Transit Act (Intro 295-A) requires New York City employers to offer pre-tax transit benefits in 2016. Employers that do not already offer these benefits will need to have a qualified transportation benefit program in place when the new law takes effect on January 1, 2016.  This alert describes who is covered and exempt under the law and provides information about the penalties for non-compliance.

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.

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.

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. 

Tax Alert: Deadline Reminder for IRS Penalty Relief Program


By Steven Eliach  |  May 12, 2015

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

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.

Tax Alert: New IRS Guidance on the Work Opportunity Tax Credit and Tangible Property Regulations


By John N. Evans  |  March 11, 2015


TAX ALERT: BUSINESSES, INDIVIDUALS BENEFIT FROM LATEST TAX RELIEF EXTENDER LAW


December 19, 2014

On Dec. 16, the Senate passed the Tax Increase Prevention Act of 2014 (TIPA), the latest “extender” package, a stopgap measure that retroactively extends through Dec. 31, 2014, certain tax relief provisions that expired at the end of the previous year. It now goes to President Barack Obama and he is expected to sign it. This article provides an overview of important tax-saving provisions for businesses and individuals.

State and Local Tax Advisor: Highlighting Key Tax Law Changes Across the Region


By Steven P. Bryde  |  December 15, 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.

State and Local Tax Advisor: Highlighting Key Tax Law Changes Across the Region


By Steven P. Bryde  |  November 24, 2014

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

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.

TAX ALERT: BUSINESS-TRAVEL PER DIEM RATES UPDATED FOR 2015


By John N. Evans  |  November 12, 2014

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

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.

Global Tax Insights


October 2, 2014

Morison International (MI), the global association of leading independent accounting and consulting firms of which Marks Paneth is a member, has published the latest issue of Global Tax Insights. It is made up of contributions from MI member firms and includes country focus articles, technical updates and international tax cases.

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.

Marks Paneth Tax Alert: Rules Surrounding IRA Rollovers Become Less Friendly to Taxpayers


By Robert J. Hughes  |  July 9, 2014

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

Global Tax Insights


July 3, 2014

Morison International (MI), the global association of leading independent accounting and consulting firms of which Marks Paneth is a member, has published the latest issue of Global Tax Insights. It is made up of contributions from MI member firms and includes country focus articles, technical updates and international tax cases.

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.)

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.

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.

Global Tax Insights


April 8, 2014

Morison International (MI), the global association of leading independent accounting and consulting firms of which Marks Paneth is a member, has published the latest issue of Global Tax Insights. It is made up of contributions from MI member firms and includes country focus articles, technical updates and international tax cases.

Marks Paneth State and Local Tax Advisor: Highlighting Key Tax Law Changes Across The Region


By Steven P. Bryde  |  April 8, 2014

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

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

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.

Marks Paneth Tax Alert U.S. Treasury & IRS release amended final rules on foreign account reporting


March 20, 2014

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

MARKS PANETH STATE AND LOCAL TAX ADVISOR: HIGHLIGHTING KEY TAX LAW CHANGES ACROSS THE REGION


By Steven P. Bryde  |  February 5, 2014

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

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

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.

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


By Steven Eliach  |  December 3, 2013

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

Tax Alert: IRS Issues Sweeping Rules That Affect Businesses Owning Tangible Property


By Steven Eliach  |  November 25, 2013

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

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

MARKS PANETH STATE AND LOCAL TAX ADVISOR: HIGHLIGHTING KEY TAX LAW CHANGES


By Steven P. Bryde  |  October 15, 2013

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

Tax Alert: How The IRS Ruling Impacts Tax and Estate Planning for Same-Sex Married Couples


By Steven Eliach  |  September 26, 2013

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

MARKS PANETH STATE AND LOCAL TAX ADVISOR: HIGHLIGHTING KEY TAX LAW CHANGES ACROSS THE REGION


By Steven P. Bryde  |  September 19, 2013

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

Marks Paneth Tax Alert: IRS Issues Guidance on Delay in Implementing Health Care Act


By Steven Eliach  |  July 17, 2013

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

Marks Paneth Tax Alert: Supreme Court Issues Landmark Decisions On Same-Sex Marriage


By Steven Eliach  |  July 15, 2013

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

Identity Theft: The Tax and Financial Implications


By Laura E. LaForgia  |  June 11, 2013

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

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

VIDEO: Don't mess up a great investment with the wrong filing decision


May 8, 2013

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

VIDEO: The advantages of an “S”-Corp vs. a “C”-Corp


By John N. Evans  |  May 8, 2013

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

Marks Paneth TAX ALERT: NEW YORK STATE ENACTS BUDGET AND NEW YORK COURT RULES ON “AMAZON TAX”


By Steven P. Bryde  |  May 7, 2013

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

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

Marks Paneth Tax Alert: IRS Expands Relief Program for Employers with Misclassified Workers


By Steven Eliach  |  March 25, 2013

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

Marks Paneth Tax Alert: Treasury and IRS Release Final Rules on Foreign Account Reporting


By Paul Bercovici  |  March 12, 2013

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

Marks Paneth Tax Alert: What the American Taxpayer Relief Act Means for Your Estate Plan


By Steven Eliach  |  February 18, 2013

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

Marks Paneth Tax Alert: What the American Taxpayer Relief Act Means for Your Individual Taxes


By Steven Eliach  |  February 11, 2013

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

Marks Paneth Tax Alert: What the American Taxpayer Relief Act Means for your Business Taxes


By Steven Eliach  |  February 4, 2013

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

Marks Paneth Tax Alert: What the Fiscal Cliff Deal Means for Your Taxes


By Steven Eliach  |  January 6, 2013

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

Marks Paneth Tax Planning Guide 2012/2013


December 28, 2012

To facilitate ongoing access to the latest tax rules and regulations,Marks Paneth offeres an online tax guide that is updated on an ongoing basis.

Marks Paneth Tax Alert: IRS Provides Guidance on Additional 0.9% Medicare Tax


By Steven Eliach  |  December 26, 2012

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

VIDEO: Doing Business in the Cloud is Great, Except for Tax Traps


By Steven P. Bryde  |  December 1, 2012

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

Tax Alert: Tax Filing Extensions for Taxpayers Affected by Hurricane Sandy


By Steven Eliach  |  November 9, 2012

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

Tax Alert: Additional Guidance on Filing MCTMT Protective Claims


By Steven P. Bryde  |  October 22, 2012

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

Tax Alert: New Guidance on Streamlined Compliance Program for Delinquent Non-Resident Taxpayers


By Paul Bercovici  |  September 12, 2012

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

Tax Alert: NYS Metropolitan Commuter Transportation Mobility Tax Deemed Unconstitutional


By Steven P. Bryde  |  August 28, 2012

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

Tax Alert: US Treasury Department Releases Model Intergovernmental Agreement on FATCA


August 27, 2012

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

Tax Alert: Supreme Court Upholds Health Care Law: What Do Businesses Need to Do Now?


By Steven Eliach  |  July 26, 2012

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

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

Tax Alert: Individual Tax Planning in the Aftermath of the Supreme Court's Health Care Law Ruling


By Steven Eliach  |  July 26, 2012

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

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

Tax Alert: IRS Offers New Guidance on the OVDP; Tax Relief for US Citizens Living Abroad


By John N. Evans  |  July 25, 2012

The IRS recently issued guidance on its current Offshore Voluntary Disclosure Program (OVDP) and tightened eligibility requirements. The program allows taxpayers with undisclosed foreign accounts and assets to “come clean” in exchange for reduced penalties and protection against criminal prosecution. The IRS also announced new procedures, effective September 1, 2012, which provide US citizens living abroad with an opportunity to catch up with their tax filings — in many cases penalty-free if they have little or no US tax due.

Tax Alert: JOBS Act Eases Small Business Funding, Allows Crowdfunding


By Steven Eliach  |  July 17, 2012

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

State and Local Tax Advisor, June 2012


By Steven P. Bryde  |  July 6, 2012

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

Tax Alert: June 30th Filing Dates for FBar Form 90-22.1


By John N. Evans  |  June 13, 2012

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

Tax Alert: Current Estate Tax Law Uncertainty Should Alter Your Planning Strategies in 2012


By Steven Eliach  |  April 9, 2012

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

State and Local Tax Advisor, March 2012


By Steven P. Bryde  |  March 19, 2012

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

Tax Alert: IRS Releases Extensive New Rules Affecting Businesses That Acquire, Produce or Improve Ta


By Steven Eliach  |  February 14, 2012

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

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

Tax Alert: Congress Extends Payroll Tax Relief


By Steven Eliach  |  January 10, 2012

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

Tax Alert: IRS Releases Guidance on Foreign Account Tax Compliance Act (FATCA), December 2011


December 20, 2011

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

Year-End 2011 Tax Planning: Opportunities and Challenges


November 29, 2011

As the end of the year approaches, it's always a good idea to review your tax situation and assess whether there are any actions you should take by Dec. 31 to reduce your tax bill. This year is no exception, and many opportunities are available that may significantly reduce your taxes. However, 2011 also presents some unique challenges.

Small Businesses Warned to Beware of Employee Fraud


November 18, 2011

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

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

Tax Tips for Start-Ups: US Sales and Employment Withholding Obligations


By Alyssa Forslund  |  September 1, 2011

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

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

Should You Consider an Interest Charge Domestic International Sales Corporation (IC-DISC)?


July 12, 2011

Setting up and operating an interest charge domestic international sales corporation (IC-DISC) can reduce the tax rate on qualifying export sales by up to 20 percentage points. An IC-DISC's tax-savings power is derived from the current 15% tax rate on qualified dividends. Businesses that could benefit include companies that earn significant income from exporting goods, including software, or from engineering or architectural services on foreign construction projects. If your company falls into one of these categories, you should consider creating an IC-DISC sooner rather than later because, without additional Congressional action, this tax rate applies only through 2012.

International Tax Planning - An Essential Step For Global Start-Ups


January 30, 2011

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

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

Don't Pay Tax Twice on Each Dollar of Earnings!


December 10, 2010

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

Tax Alert: Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010


December 1, 2010

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extends and expands a wide variety of valuable tax breaks for individuals and businesses. It also provides some good news for those concerned about estate tax liability. This Marks Paneth Tax Alert provides highlights of the provisions of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

Tax Alert: Small Business Jobs Act of 2010, October 2010


October 13, 2010

Congress has passed — and President Obama has signed — the Small Business Jobs Act of 2010 (SBJA); thereby, creating a $30 billion fund to provide capital to community banks to encourage lending to small businesses. The legislation also includes $12 billion in tax relief for small businesses and incentives to encourage investment in them. The SBJA also provides some benefits for larger businesses as well as for the self-employed and individual taxpayers.

Nonprofit Alert: Form 1099 Reporting and Tax Legislation: Summary of Changes, August 2010


August 1, 2010

Section 6041 of the Internal Revenue Code lays out the basic requirements for Form 1099 reporting. The Patient Protection and Affordable Care Act of 2010 includes a significant amendment to Section 6041, which now requires 1099 reporting for any payments aggregating $600 to a supplier per year. The new amendment will now create filing and reporting requirements for all for-profit corporations. The definition of a corporation that is contained in the amendment includes an exclusion or modification for tax-exempt corporations.

Tax Alert: Health Coverage for Adult Children, May 2010


June 2, 2010

The Internal Revenue Service (IRS) has released guidance on provisions of the Patient Protection and Affordable Care Act (PPACA) related to the tax treatment of employer-provided health coverage for adult children. Under the PPACA, coverage requirements have expanded and such coverage is generally tax free for employees. IRS Notice 2010-38 explains the implications for workplace and retiree health plans, including cafeteria plans and flexible spending accounts (FSAs).

Tax Alert: Roth IRA Conversion, May 2010


May 1, 2010

You've filed — or at least extended — your 2009 income tax return, so it's time to start thinking about 2010 and beyond. If you're a higher-income taxpayer, one new opportunity you may have heard about is the Roth IRA conversion. But is it right for you?

Tax Alert: Highlights of the Patient Protection and Affordable Care Act, April 2010


April 8, 2010

The tax provisions of the Patient Protection and Affordable Care Act will have an impact on most taxpayers as well as on how employers deal with health care insurance for their employees. The main tax provisions affecting individuals and businesses are discussed in this Marks Paneth Tax Alert.

Tax Alert: Highlights of the Hiring Incentives to Restore Employment Act, March 2010


March 1, 2010

The Hiring Incentives to Restore Employment (HIRE) Act provides tax incentives for hiring and retaining workers and purchasing equipment and many other business assets. It also includes new measures that heighten disclosure and reporting requirements for foreign accounts. Some key features of the Act are discussed in this Marks Paneth Tax Alert.

Location: A Taxing Choice For New Businesses


By Solomon Packer  |  June 25, 2009

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

Effects of New York's 2009-2010 State Budget


By Steven Eliach  |  May 1, 2009

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

American Recovery and Reinvestment Act of 2009


By Steven Eliach  |  April 10, 2009

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

Marks Paneth & Shron LLP Nonprofit Group Authors Alert on Alternative Investment


By Michael McNee |  Robert Lyons  |  December 16, 2008

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

Tax Alert: Year-End Tax Planning, December 2010


November 18, 2008

Companies and individuals alike seek to minimize their tax liability while still complying with applicable tax laws and regulations. Year-end tax planning can help achieve these goals and facilitate the filing of next year's tax returns. This year — with the legislative uncertainty about 2011 tax rates as well as the availability of many tax breaks for 2010 and 2011 — tax planning is made even more challenging.

Marks Paneth Outlines Departure Tax in Recent Article


By Solomon Packer  |  September 4, 2008

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

Marks Paneth & Shron LLP Nonprofit Group Authors Alert on Campaign Intervention


By Michael McNee |  Robert Lyons  |  September 1, 2008

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

Marks Paneth & Shron LLP Nonprofit Alert, June 2008


By Michael McNee |  Robert Lyons  |  June 1, 2008

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

Property and Casualty Insurance Solutions for Entity Owners, June 2008


June 1, 2008

An increasing number of Americans are transferring personal ownership of residential property to trusts, limited liability corporations (LLC), limited liability partnerships (LLP), and other entities designed to protect assets or take advantage of favorable tax treatment.