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  • 10/15/2021
    Monetized Installment Sales – IRS Says Trick not Treat

    The old saying, "if it sounds too good to be true, it probably is," is practically gospel in the tax world. Nowhere is this more obvious than the transaction known as the Monetized Installment Sale ("MIS" but sometimes referred to as an M453 or C453 transaction). The transaction is marketed...

  • 10/15/2021
    This Week In Tax | October 15

    New this week: The IRS signaled its disapproval of Monetized Installment Sales (“MIS”) transactions through a CCA published in May. Plus, a Texas court sets a high price in a case involving a business alter ego. Monetized Installment Sales – IRS Says Trick not Treat The old saying, "if it sounds too...

  • 10/15/2021
    The High Cost of a Business Alter Ego: I Am My Business and My Business Is Me*
    By Michael Greenwald, MPPM, CPA, Partner, Business Tax Leader

    Taxpayers often establish business entities to shield themselves personally from liabilities of the business. The laws of different states provide differing degrees of protection from claimants attempting to “pierce the corporate veil” and sue shareholders personally. Lawyers advise business owners to try and observe corporate formalities – don’t mix business and...

  • 10/08/2021
    A (Further) Update on Syndicated Conservation Easements: Reconciliation Bill Edition
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    In June, we told you about recent Internal Revenue Service (IRS) enforcement action related to its 2017 Notice designating types of transactions that the IRS has identified as tax avoidance schemes. (Participating in a “listed transaction” requires taxpayers to make additional disclosures on their returns and may subject them to enhanced penalties.) Congress...

  • 10/08/2021
    This Week In Tax | October 8

    New in this week: The Financial Crimes Enforcement Network announces deadline extensions for victims of Hurricane Ida, plus Congress weighs in on conservation easements. With 10 Days to Go, FinCEN Gets Off Fence and Extends 2020 FBAR Deadline for Hurricane Ida Victims In a case of certainly too little and almost too late,...

  • 10/01/2021
    Hurricane Ida Relief Also Includes 1031 Exchanges
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    In 1997, Congress gave the Treasury the authority to postpone certain deadlines by reason of Presidentially declared disaster. (In 2002, it was extended to include terroristic or military actions.) This authority has been invoked many times since then, most recently for those suffering the effects of Hurricane Ida. While most people...

  • 10/01/2021
    This Week In Tax | October 1

    Find the latest Hurricane Ida tax relief update, as well as a surprising tax court ruling in our latest edition of This Week In Tax. Hurricane Ida Relief Also Includes 1031 Exchanges In 1997, Congress gave the Treasury the authority to postpone certain deadlines by reason of Presidentially declared disaster. (In 2002,...

  • 10/01/2021
    Tax Court Reaffirms That You Don’t Have to Make Money to Be in (Show) Business
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    Most everyone has a hobby. Some percentage of those with a hobby earn money from their efforts. Gardeners sell their prize winning roses or even the whole bush. Breeders sell their adorable Labradoodle puppies. Clients often ask us to deduct the costs associated with their hobbies on their tax returns....

  • 09/24/2021
    This Week In Tax | September 24

    Strengthen your financial decision-making with expert insights on COVID-19 related recovery and President Biden's recently released House Ways and Means Committee markup of the Build Back Better Act. SBA Eases EIDL Rules, Increases Loan Limits The economic impact of the COVID-19 pandemic lingers and many programs – Paycheck Protection Program (“PPP”) loans, Restaurant...

  • 09/10/2021
    Maximizing the Solar Energy Tax Credit
    By Alyssa Rausch, CPA, MBA

    Many business owners are looking for ways to obtain off-the-grid or sustainable energy resources to mitigate the risk of shutdowns due to natural disasters, reap environmental advantages and claim economic benefits. One option is to invest in solar energy projects, and like most of the Internal Revenue Code the nuances...

  • 09/10/2021
    This Week In Tax | September 10

    This week, find crucial new tax relief developments in the wake of Hurricane Ida, plus learn how to maximize the solar energy tax credit. Tax Relief Available to Victims of Hurricane Ida: Some Filing and Payment Deadlines Postponed to January 3, 2022 Hurricane Ida may be gone but the damage she inflicted...

  • 09/03/2021
    Getting Up to Speed on Senator Wyden’s DASH Act
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    Some people take their jobs more seriously than others. By way of example, Senate Finance Committee Chair Ron Wyden has introduced or co-sponsored more than 400 bills since the current session of Congress began in January. His latest, the Decent, Affordable, Safe Housing for All (“DASH”) Act, aims to end homelessness...

  • 09/03/2021
    This Week In Tax | September 3

    Start September on the right foot with tax guidance from our experts on the proposed DASH Act and New Jersey's roll back on teleworking tax relief. Getting Up to Speed on Senator Wyden’s DASH Act Senate Finance Committee Chair Ron Wyden's Decent, Affordable, Safe Housing for All (“DASH”) Act aims to end homelessness...

  • 09/03/2021
    New Jersey Joins a Growing Number of States Rolling Back COVID Remote Working-Based Tax-Relief Measures
    By Thomas Wrocklage, LL.M., Principal

    Even before COVID-19, trying to determine to which states a business might owe tax, or where it might be obligated to withhold tax on employee wages, was difficult at best. With the paradigm shift to employees working from home, the situation grew even more complex leading some states to give businesses...

  • 08/27/2021
    She is Working Remotely – Independent Contractor or Employee
    By Tom Corrie, JD, LL.M., Principal, State and Local Tax Co-Leader

    As the pandemic drags on, many folks continue to work remotely from home. In fact, a number of commentators have predicted that the everyday workplace paradigms have shifted, with the result being that the normal five day a week commute to work in an office has become a thing of...

  • 08/27/2021
    New York State Employer Compensation Expense Tax
    By Christian J. Burgos, J.D., LL.M., Managing Principal

    Election Period Opening October 1 for 2022 Tax Year

  • 08/27/2021
    This Week In Tax | August 27

    Prepare for the month ahead with new tax highlights and guidance from our experts. She is Working Remotely – Independent Contractor or Employee Although there has always been a certain tension between who should be classified as an independent contractor, and who should be classified as an employee, the increase in remote...

  • 08/20/2021
    IRS Releases New TCJA Guidance
    By Kelly Yim, CPA, Director

    The Tax Cuts and Jobs Act (“TCJA”) may have lowered the corporate tax rate but it also created a new rule causing many taxpayers to recognize taxable income sooner than they used to. Under the old law, a company could defer revenue recognition for a number of acceptable reasons. However, under...

  • 08/20/2021
    This Week In Tax | August 20

    Find the latest tax guidance on the Tax Cuts and Jobs Act (TCJA) and updates on foreign tax credits — all in one place. IRS Releases New TCJA Guidance The Tax Cuts and Jobs Act (“TCJA”) may have lowered the corporate tax rate but it also created a new rule causing many...

  • 08/20/2021
    Tax Court Applies Literal Interpretation to Deny Foreign Tax Credit Relief for Net Investment Income Tax
    By Ryan Dudley, CPA, CA, CTA, MIT, Partner, International Tax Practice

    On August 16, 2021, the U.S. Tax Court denied a U.S. citizen living abroad from claiming a foreign tax credit to offset their U.S. Net Investment Income Tax (“NIIT”) liability. Foreign tax credits are granted in order to shelter taxpayers from double taxation by different taxing jurisdictions on the same income....

  • 08/13/2021
    This Week In Tax | August 13

    This week's tax highlights include additional ERC guidance and clarification, carried interests and gross receipts. IRS Notice 2021-49: Additional ERC Guidance and Clarification Earlier this year, the IRS issued two notices, 2021-20 and 2021-23, attempting to provide guidance on the Employee Retention Credit (“ERC”). The current notice clarifies some of the earlier issued guidance...

  • 08/13/2021
    ERC Gross Receipts Safe Harbor
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    It should ordinarily be obvious that if something isn’t part of gross income is shouldn’t be considered part of gross receipts. When it comes to the Employee Retention Credit (“ERC”) however, nothing is obvious. One way an employer qualifies for the ERC is if it suffered a reduction in gross receipts....

  • 08/13/2021
    Wyden Bill on Carried Interests: It’s Complicated, Really
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    The so-called carried interest “loophole” has been a target of many presidential candidates and legislators. President Biden campaigned on closing it as part of his plan to raise taxes on those making more than $400,000. It was widely expected to be one of the revenue offsets in the $3.5 trillion reconciliation...

  • 08/06/2021
    Infrastructure is Incoming but What Else is Congress Up To? Two Tax Bills That May Pass
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    The $1 trillion (or so) Infrastructure Investment and Jobs Act (“IIJA”) is moving its way through the Senate. It is expected to be closely followed by the $3.5 trillion budget blueprint. And, while it may seem that they aren’t that busy, 8,556 bills have been introduced since the 117th Congress...

  • 08/06/2021
    IRS Being Einstein With EINs, And Is Asking Taxpayers To Be So As Well
    By David Shuster, JD, LL.M., Principal, Director of Tax Controversy Services

    Last week, the Internal Revenue Service (“IRS”) urged entities with Employer Identification Numbers (“EINs”) to update their so called responsible party information. This information, which consists of the responsible party’s name and social security number (“SSN”) or individual taxpayer identification number (“ITIN”), is initially provided on Form SS-4 when an entity applies for...

  • 08/06/2021
    This Week In Tax | August 6

    Read the latest from our advisors for updates on the Paycheck Protection Program, Employer Identification Numbers, and the latest Infrastructure bill in Congress. The SBA Changes Its Mind: You Don’t Have to Complete a PPP Loan Necessity Questionnaire Paycheck Protection Program (“PPP”) loans were created to forestall the economic catastrophe of mass layoffs due to...

  • 07/30/2021
    You Too Can Know What IRS Agents Know
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    Spotlight on Personal Use of Aircraft

  • 07/30/2021
    New Jersey Independent Contractors vs. Employees
    By Khaled Alotaibi, Tax Senior

    In early July 2021, New Jersey Governor Phil Murphy approved new legislation in an effort to ensure the proper classification of workers, as well as “tracking and eliminating” misclassification. According to Governor Murphy, “Workers who are misclassified as independent contractors miss out on fair wages and benefits,” and that “These business...

  • 07/30/2021
    This Week In Tax | July 30

    Start August on the right foot with new tax highlights and guidance from our experts. You Too Can Know What IRS Agents Know: Spotlight on Personal Use of Aircraft If you’ve ever searched the Internet looking for information on a particular tax topic, you may have been directed to one of the...

  • 07/30/2021
    Let’s Make a Deal: Details of the Bipartisan Infrastructure Bill
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    With recess looming in less than two weeks, the bipartisan group of Senators negotiating a stand-alone infrastructure bill announced that they’ve reached a deal. It calls for $550 billion in a new federal “investment.” The White House Fact Sheet can be read here. The package agreed to includes less spending on mass...

  • 07/23/2021
    Wyden Proposal Aims to “Fix” the Pass-Through Deduction
    By Michael J. Greenwald, MPPM, CPA, Business Tax Leader

    As he promised last month, Senate Finance Committee Chair Ron Wyden has proposed legislation aimed at “fixing” the 20% Qualified Business Income Deduction originally passed as part of 2017’s Tax Cuts and Jobs Act. Meanwhile, not everyone thinks the deduction is broken. Wyden believes “half the benefit goes to millionaires” and...

  • 07/23/2021
    The List is Growing – California and More States Adopt SALT Cap Workarounds
    By Christian J. Burgos, J.D., LL.M., Managing Principal

    In the first issue of This Week in Tax we said it seemed that state and local tax (“SALT”) cap workarounds were here to stay. We don’t want to take credit for it, but now California and several others have joined the list of states that have adopted a Pass-Through Entity...

  • 07/23/2021
    This Week In Tax | July 23

    Welcome back to another weekly tax roundup, featuring insights on SALT Cap workarounds and PTE, pass-through deductions and PPP loans. The List is Growing – California and More States Adopt SALT Cap Workarounds In the first issue of This Week in Tax we said it seemed that state and local tax (“SALT”) cap workarounds...

  • 07/23/2021
    It’s My Money and I Need it Now
    By Michael J. Greenwald, MPPM, CPA, Business Tax Leader

    When a Borrower Goes Bankrupt, Who Gets the Unspent PPP Loan Funds?

  • 07/16/2021
    Less “GILTI”: IRS Provides Tax Relief for Taxpayers Required to Pay GILTI Tax
    By Ulises Ruiz, J.D., LL.M., Principal

    Recognizing that aspects of the international tax regime can be unnecessarily complicated, the Internal Revenue Service (“IRS”) issued Revenue Procedure 2021-26 (the “Rev. Proc.”) providing relief for taxpayers that own 10 percent or more of a Controlled Foreign Corporation (“CFC”). The pronouncement allows certain U.S. taxpayers to reduce the income tax...

  • 07/16/2021
    SCOTUS Decides Not to Decide: Marijuana Edition
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    The United States Supreme Court decided yet again not to intervene in a federal income tax case. It is not as surprising as we make it sound. The Supreme Court actually declines to hear the vast majority of cases presented to it. Each year it receives approximately 10,000 petitions requesting a...

  • 07/16/2021
    This Week In Tax | July 16

    As another week comes to a close, our team is here to bring you another roundup of tax highlights, this time on budding cannabis businesses, GILTI tax and credit consolidation.   SCOTUS Decides Not to Decide: Marijuana Edition The United States Supreme Court decided yet again not to intervene in a federal income tax...

  • 07/16/2021
    They Say No Good Deed Goes Unpunished
    By John M. Bono, CPA, Partner

    According to New York State (NYS), it’s not always in your best interest to apply an overpayment of tax to the next year. Sure it gives the state access to extra cash and saves money in processing refunds, but sometimes that isn’t what it wants. In 2018, a taxpayer claimed a...

  • 07/09/2021
    IRS Enforcement Team, Resources Growing – Partnerships in the Crosshairs
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    We mentioned a few weeks ago that the IRS is stepping up their examination of LLC members and underreporting of self-employment tax. You may also have heard that President Biden’s Green Book, the General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals, includes a proposal adding $80 billion to the...

  • 07/09/2021
    SECURE Act 2.0: Is More Flexible Retirement Planning Coming?
    By Scott Stavin, CPA, CFP, PFS, Partner

    Very often a sequel does not live up to the achievements of the original movie (feel free to skip “The Hangover Part II”). Sometimes, though, success provides inspiration for further accomplishment. The possible enactment of the SECURE Act 2.0, which would provide additional retirement plan benefits and features from the provisions...

  • 07/09/2021
    When All Else Fails, Start a Fund
    By Lita Yu, Manager, International Tax Services

    Digital Asset Offshore Feeders – Select Tax Considerations

  • 07/09/2021
    This Week In Tax | July 9

    Read on for this week's new and noteworthy tax highlights, straight from our advisors: IRS Enforcement Team, Resources Growing – Partnerships in the Crosshairs The IRS is stepping up their examination of LLC members and underreporting of self-employment tax. SECURE Act 2.0: Is More Flexible Retirement Planning Coming? The possible enactment of the SECURE...

  • 07/02/2021
    SCOTUS Decides Not To Decide
    By Tom Corrie, JD, LL.M., Principal

    In this age of the pandemic, the respective states have suffered severe reductions in their expected tax revenues. Since many employees have been working remotely from homes that are located in states other than the state in which their employers are located, a question we have heard often is, “Why do...

  • 07/02/2021
    Things May Be Looking Up for Condo Developers
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    Everyone agrees that the Internal Revenue Code is complicated. No one is sure exactly how long it is, but recent estimates put the Code and accompanying Regulations at about 10 million words – more than twelve times longer than the King James version of the Bible and almost 18 times...

  • 07/02/2021
    Is the Pass-Through Entity Tax Here to Stay?
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    The 2017 Tax Cuts and Jobs Act (“TCJA”) brought many changes reducing the tax burden for corporations, owners of pass-through entities and others. It also included some not-so-favorable changes; chief among them, the dreaded cap on deductibility of state and local taxes. This “SALT” cap limited the amount of state and...

  • 07/02/2021
    This Week In Tax | July 2

    Just like that, we blinked and it was July. Don't let the summer — or this week's new and noteworthy tax highlights — pass you by. SCOTUS Decides Not To Decide Since many employees have been working remotely from homes that are located in states other than the state in which their employers...

  • 06/25/2021
    The Affordable Care Act Has its “Return of the Jedi” Moment
    By David Shuster, JD, LL.M., Principal, Director of Tax Controversy Services

    Last week the Supreme Court essentially upheld the Affordable Care Act (“ACA”), determining that the plaintiffs, which included several states and two individuals, lacked standing to challenge the constitutionality of the ACA’s individual mandate. As Justice Alito said in his dissent, the third installment in the trilogy of ACA cases...

  • 06/25/2021
    You Must Have a Business to Deduct Business Expenses
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    Entrepreneurs often spend money in addition to time in the pursuit of a successful business. They bear the risks and, in time, hope to enjoy the rewards. The question we are always asked is “can I deduct the expenses I’m incurring?” It’s a seemingly simple question – business expenses are deductible, right?...

  • 06/25/2021
    An Update on Syndicated Conservation Easements
    By Michael Greenwald, MPPM, CPA, Business Tax Leader

    The Internal Revenue Code is often used as a means of encouraging certain socially positive behaviors. Among these are charitable contributions generally and qualified conservation contributions. A qualified conservation contribution is a contribution of a qualified real property interest to a qualified organization exclusively for conservation purposes. A conservation easement is...

  • 06/25/2021
    This Week In Tax | June 25

    As June steadily comes to a close, here's a snapshot of this week's newsworthy tax highlights to give you a head start on tax planning for the month ahead.  The Affordable Care Act Has its “Return of the Jedi” Moment  Last week the Supreme Court essentially upheld the Affordable Care Act (“ACA”), determining...