If you have any questions about the contents of this issue, please e-mail Partner-in-Charge of the Fashion Services Group Harriet Greenberg at HGreenberg@friedmanllp.com. In This Issue: Bitcoins: The Reality of Taxing Virtual Reality Source: Friedman LLP Tax Matters NYS Sales Tax Laws are Far Reaching When it Comes to Responsible Persons Source: Friedman LLP...
Anyone craving emerging technology has surely seen the enormous interest generated by and surrounding Bitcoins. In just five years the little-known virtual currency has gone from being worth pennies to thousands of dollars apiece. And many speculators have been cashing in on them.
Most investors feel confident investing in a Limited Liability Company (“LLC”) because they are, for the most part, free from liabilities. This confidence stems from the LLC laws which explicitly state that a member of an LLC cannot be held personally liable for the LLC’s obligations solely based on their status as a member. Yet, in a recent case, In The Matter of The Petitions of Eugene Boissiere and Jason Krystal, decided by the New York State Division of Tax Appeals, two members of an LLC were held responsible to pay for a portion of assessed sales tax that was not remitted by the LLC to the State even though they were just minor investors in the LLC.
Friedman LLP, a regional accounting, tax and advisory firm, announced today that Harriet Greenberg and Frederick Berk have been appointed as the firm’s co-managing partners. Bruce Madnick, who served as Friedman’s managing partner for over 25 years, has been appointed chief executive officer. Jeff Agranoff has also been named chief operating officer. In addition, the firm announced today the naming of four new partners.
On Dec. 16, the Senate passed the Tax Increase Prevention Act of 2014 (TIPA), which the House had passed on Dec. 3. TIPA is the latest "extender" package, a stopgap measure that retroactively extends through Dec. 31, 2014, certain tax relief provisions that expired at the end of 2013. It was drafted after the collapse of negotiations over a bill that would have made some of the provisions permanent, while extending others for two years.
If you have any questions about the contents of this issue, please e-mail Partner-in-Charge of the Fashion Services Group Harriet Greenberg at HGreenberg@friedmanllp.com. In This Issue: Tax Tips: November/December 2014 Source: Friedman LLP Women in Business Q&A: Harriet Greenberg, Partner at Friedman LLP Source: Huffington Post Consumer Spending Gains Steam, Boosted by Lower Gas Prices Source: Daily Finance Snap...
Friedman LLP is pleased to announce that Eric Tunis has joined the firm as a Partner in the Diamond and Jewelry Group. He will work out of the New York City office.
This past October, the Friedman LLP team was a first-time sponsor at the 2014 BoardSource Leadership Forum (BLF) held in Washington, D.C. The annual two-day conference was attended by BLF members from around the United States, which included nonprofits' board members, chief executives, staff and professionals. BoardSource's mission is dedicated to the advancement of the public good by building exceptional nonprofit boards who will aspire to quality board service.
In the news: The Wall Street Journal- Bob Charron quoted regarding assets of inherited IRAs and whether they can be shielded from taxes in bankruptcy; the article was also published in the Weekend Investor section of the October 18 print edition. The Wall Street Journal - Kevin Hyams quoted regarding COSO implementation. Politico Pro...
If you have any questions about the contents of this issue, please e-mail Partner-in-Charge of the Fashion Services Group Harriet Greenberg at HGreenberg@friedmanllp.com. In This Issue: It's not business, it's personal Source: Friedman LLP How Crowdfunding Is Changing the Fashion Business Source: Entrepreneur When Fashion Sponsorship Works Source: Business of Fashion Target...
All members of a controlled group are treated as a single employer and the plan must satisfy the following compliance requirements for a plan to maintain its tax-qualified status.
Most business owners make the decision to start up a retirement plan for a specific company and employees in mind. When establishing this plan, owners should be aware of the effects being part of a controlled group of trades or businesses can have on the company. Joint ownership in other business ventures must also be taken into consideration to ensure the retirement plan is compliant with Internal Revenue Service and Department of Labor regulations, as well as addresses minimum coverage, nondiscrimination and plan documentation requirements.
New York City’s first discount outlet center,the world’s tallest observation wheel, the first new shopping mall built in New York City in the past 40 years, and a 750,000 square-foot building that will house nine ice skating rinks, are just a few of the commercial developments taking place in the boroughs of Staten Island and the Bronx.
The City of New York’s recently issued Housing New York: A Five Borough, Ten-Year Plan reported that New York City’s shortage of affordable housing has reached a crisis point. Most New Yorkers now have limited options for housing and have to spend an unacceptably high share of their income just...
Tax credits are valuable to taxpayers as they provide dollar- for- dollar reductions in taxes which in turn can generate large tax savings and often cash back. New York State has enacted several real property tax credits that affect commercial properties which warrant consideration.
The New York State and New York City tax laws have numerous traps for unwary nonresidents. To avoid one of the biggest tax hazards, nonresidents owning or renting homes within New York must be aware of the applicable residency tests and what records they should maintain to avoid a dual residency determination. Nonresidents of New York State are only taxed on income earned in or sourced to the state. New York City only taxes city residents. However, if a nonresident is not attentive to the residency tests, the tax consequences can have New York State, and possibly New York City, seeking to impose tax on all income, including interest, dividends, and capital gains, regardless of its source.
As a state and local tax practitioner located in New York City, one of the questions I hear most often from potential clients is "What is Commercial Rent Tax?" Usually, that inquiry is immediately followed by the exclamation "I didn’t even know such a tax existed!" After I start explaining the nature of the Commercial Rent Tax ("the CRT") to them, they generally find it difficult to believe that New York City (the "City") imposes a tax on the very expensive rent already being paid by them. Guess what, it does!
Parties to merger and acquisition (M&A) transactions involving closely held corporations may enjoy certain tax benefits if they can allocate a portion of the purchase price to individual shareholders’ personal goodwill. Although the IRS doesn’t much like personal goodwill, a recent Tax Court case (see the sidebar "Personal goodwill is alive and well") confirms that it remains a viable tax-planning tool under the right circumstances.
The United States tax code recognizes the need for qualified organizations to reach out to taxpayers to help fund their nonprofit activities. And in return, these patrons receive the right to deduct such charitable gifts on their tax returns.
If you or your spouse is a non-U.S. citizen, different rules apply to your estate plan. One misstep can lead to unpleasant tax surprises, so make sure you understand the differences.
As tax season approaches, be on the alert for tax fraud. Every year, the IRS publishes its list of "Dirty Dozen" tax scams. Here are two of the most common:
In This Issue: Client Alert: IRS Announces 2015 Limits Affecting Qualified Plans Source: Friedman LLP Los Angeles Port Congestion Threatens Retailers' Holiday Shipments Source: Sourcing Journal Weakness abroad, volatile rumblings at home Source: Wilmington Trust In a time when lending is tight, alternatives abound (Harriet Interviewed) Source: National Jeweler Industry Focus Finance: The Opportunities and Challenges of International Sales Source:...
Each year, the IRS announces tax inflation adjustments for the following year. The tax inflation adjustments are based on changes to the Consumer Price Index ("CPI"). The tax inflation adjustments for 2015 were released by the IRS on October 23, 2014. The highlights of changes to key pension contribution, compensation and benefit limits...
Recent issues of the Nonprofit Advisor have focused on developing a planned giving program (see October 2013 and July 2014). Implementing a planned giving program in-house or by using outsourced providers is considered a best practice and essential to accomplishing your organization's charitable mission.
Karl Knechtel has joined Friedman LLP's New York office as a Director in the Corporate Recovery Group as of September 29.
Press Mentions and Announcements: Wall Street Journal, Dow Jones Newswire and Law360 : Partner Ryan Dudley was interviewed and quoted in several publications on the OECD's recommendations for base erosion and profit sharing. Marketplace, LA Times , International Business Times : Ryan was also interviewed by several top publications on proposed Treasury rule changes. Operation...
Public companies are increasingly using social media outlets, such as Facebook, LinkedIn and Twitter, to make important announcements. But these relatively new communication channels raise questions about compliance with Regulation FD, the SEC's "fair disclosure" regulation.
Earlier this month, the New York State Society of CPAs' Not-for-Profit Organizations Committee hosted a presentation and webinar on The Charities Bureau and the New York Nonprofit Revitalization Act (the "Act") during which James G. Sheehan, Chief of the Charities Bureau, explained the reasons behind the Act, as well as best practices for implementation. The Charities Bureau, run out of Attorney General Eric Schneiderman's office, provides regulation, guidance and support to the over 80,000 registered nonprofit organizations throughout New York State.
Friedman LLP is pleased to announce that Jo Anna M. Fellon, senior tax manager out of the firm's East Hanover office, has been named a NJBIZ "Forty Under 40".
On September 17, 2014, the New Jersey Division of Taxation announced a limited tax initiative for individuals and businesses who have unpaid New Jersey tax liabilities. The years covered under the program are tax periods 2005 through 2013.
If you have any questions about the contents of this issue, please e-mail Partner-in-Charge of the Fashion Services Group Harriet Greenberg at HGreenberg@friedmanllp.com. In This Issue: Sales Tax Laws Still Struggling to Keep Up Source: Friedman LLP Kohl's (KSS) Launches Juicy Couture Source: Zacks Sears Turns to Its Chief for a Loan Source: Dealbook Startup lets consumers reserve fashion...
In recent years, the big sales tax topic has been the emergence of the so-called "Amazon" laws, whereby an out-of-state Internet retailer who has a "click-through" arrangement with a local vendor must collect sales tax in that state, even if it has no physical presence there.
Often, when I am meeting with clients, I will bring up the subject of "unclaimed property." Many respond by saying that they don’t have any. Still others really haven’t a clue about the subject, and don’t appear overly interested in discussing it. My experience has been that just about all companies have unclaimed property. In the world of unclaimed property, such companies are referred to as "holders."
Recent tax law changes demand new approaches to estate planning. For many taxpayers, traditional strategies, which focus on minimizing estate taxes, may no longer be relevant. In fact, they may result in unnecessary income taxes.
Many businesses receive payment in advance for goods and services. Examples include magazine subscriptions, long-term supply contracts, organization memberships, computer software licenses and gift cards.
To ensure your retirement nest egg doesn’t crack, it’s critical to abide by several retirement plan fundamentals — especially in today’s uncertain economy. Doing so can mean the difference between a comfortable retirement and a retirement filled with regrets.
According to the Treasury Inspector General for Tax Administration (an IRS watchdog), there’s a big discrepancy between deductions claimed by ex-spouses paying alimony and the alimony income reported by recipients. Generally, alimony is deductible by the payer and taxable to the recipient. But property settlements and child support payments are neither deductible nor includable in income.
Recent amendments to the New York Tax Law have changed the payment and filing due dates of the Metropolitan Commuter Transportation Mobility Tax (MCTMT) for self-employed individuals. Individuals with net earnings from self-employment are required to make estimated MCTMT payments and to file annual MCTMT returns for the tax year. The new MCTMT payment and filing due dates now conform to the personal income tax payment and filing due dates. Effective for tax years beginning on or after January 1, 2015, estimated MCTMT payments are due on April 15, June 15, September 15, and January 15, and annual MCTMT returns must be filed by April 15. It should be noted that the payment and filing due dates for employers have not changed.
John L. Miscione, Chairman of the Board of Directors, and Judith Kahan, Chief Executive Officer, spoke to Friedman LLP Partner Amish Mehta about the governance challenges their organization, Center Against Domestic Violence (www.cadvny.org), faces.
If you sponsor a 401(k) or other type of defined contribution retirement plan for your employees and use a "pre-approved" type of plan (i.e., prototype and volume submitter), you will be required to restate the plan within the next two years. Failure to complete this restatement before April 30, 2016...
If you have any questions about the contents of this issue, please e-mail Partner-in-Charge of the Fashion Services Group Harriet Greenberg at HGreenberg@friedmanllp.com. In This Issue: One Thing States Can Agree on is Sales Tax Source: Friedman LLP Denim is in Real Danger of Going Out of Style Source: NBC News J.C. Penney: Out of Intensive...
Press Mentions and Announcements: CCTV: Partner Harriet Greenberg appeared in a segment about the effects of the financial crisis on Generation X. Huffington Post: Harriet also contributed to an article on Juicy Couture's comeback The Stoler Report: Partner Fred Berk was a guest on the latest episode of The Stoler Report, and spoke...
On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued its standard on revenue recognition, No. 2014-09, "Revenue from Contracts with Customers". The new standard will ultimately affect all industries, some more significantly than others, by establishing a single comprehensive model that will eventually exist in the FASB's Accounting Standard Codification Topic 606. The standard, among other things, is expected to remove inconsistencies in current revenue requirements, improve comparability across entities and industries and provide more useful information to users of financial statements.
Kenneth Gibbons has joined Friedman LLP's East Hanover office as a Principal.
It was a very good year, Frank Sinatra once crooned. And after seeing how charitable giving increased in 2013, those of us concerned about strengthening nonprofits and propelling more philanthropy should be singing, too. The Giving USA annual report on philanthropy - released last month by the Giving Institute and Indiana University's Lilly School of Philanthropy - showed that total giving grew by 4.4 percent in 2013, reaching $335 billion.
One thing is certain: the current pricing for commercial real estate assets have reached an all-time high. Few real estate leaders who have experienced the ups and downs of recessions and cycles have ever seen these record levels for all forms of real estate properties. In my conversations with real estate leaders, many are embracing the former television commercial pitch of radio DJ Jerry Carroll, when he represented the Crazy Eddie electronic stores, stating “these prices are insane”. Surprisingly while these prices may be insane, few real estate leaders believe that pricing will drop in the foreseeable future.
The Committee of Sponsoring Organizations of the Treadway Commission ("COSO") issued its new Internal Control - Integrated Framework in May 2013, updating the original Internal Control - Integrated Framework first published in 1992. The 2013 COSO Framework ("COSO 2013") sets forth the requirements for an effective system of internal control.
Generally, withdrawals from a traditional IRA are taxable, but there’s an exception for “rollovers.” You can withdraw IRA funds tax-free, so long as you reinvest them in the same or another IRA within 60 days. You’re allowed one such rollover in any one-year period.
Thinking of buying a company? Good for you! But be sure you know what you’re getting into. For example, you’ll need to research a number of business and financial issues as well as certain legal issues. And, of course, there are numerous tax issues that you simply can’t ignore. Here are just a few.