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• 01/21/2022
  This Week In Tax

  This Week In Tax is your one-stop shop for the latest newsworthy tax highlights, giving you a head start on tax planning for the months ahead. Week of January 21 New this week: SPAC transactions continue to gain momentum as a means of raising funds quickly — read our analysis on their...

• 01/21/2022
  The SPAC is BACKBy Jo Anna M. Fellon, CPA, Partner

  Special-purpose acquisition companies (SPACs), often referred to as “blank-check” companies, raised more than $94.4 billion last year and shattered 2020’s record-setting raise of $83.2 billion – which, in its own right, was up more than 2,000 percent. Embedded within last year’s SPAC IPO numbers were more than 200 target companies...

• 01/21/2022
  New Jersey Enacts “Clean-Up” Bait LegislationBy Jeremy Katz, Tax Senior

  If you thought the elective pass-through entity (“PTE”) Business Alternative Income Tax (“BAIT”) for New Jersey could be improved upon, you were not alone. In response to pressure from the New Jersey Society of Certified Public Accountants (“NJCPA”) and other New Jersey taxpayers, on January 18, 2022, Governor Phil Murphy...

• 01/21/2022
  This Week In Tax | January 21

  New this week: SPAC transactions continue to gain momentum as a means of raising funds quickly — read our analysis on their advantages. Plus, New Jersey Governor Phil Murphy signed Senate Bill (S.B.) 4068 to revise the elective pass-through entity (PTE) Business Alternative Income Tax (BAIT). Read on for everything you need to...

• 01/14/2022
  So You Want to Be a Movie StarBy Tom Corrie, JD, LL.M., Principal

  Probably all of us at one time or another have leaned back in our chairs while sitting in a movie theatre and thought “Wow, what would it be like to be a movie star.” Well, fear not, maybe all is not lost. The entertainment industry is definitely in a state...

• 01/14/2022
  This Week In Tax | January 14

  Want to see your name in lights? New Jersey is offering incentives to attract the film industry. Learn how to take advantage in our latest tax highlight: So You Want to Be a Movie Star Probably all of us at one time or another have leaned back in our chairs while sitting in a...

• 01/14/2022
  What’s In a Name: IRS Chief Counsel Answers – At Least for Rental IncomeBy Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

  William Shakespeare’s Juliet thought that a name was arbitrary or irrelevant. Apparently, IRS Chief Counsel agrees, at least when it comes to determining if the definition of rental activity under the Passive Activity Loss rules controls whether income from such activity is exempt from self-employment tax. One of the consistently vexing...

• 01/07/2022
  We Love It When a Plan Comes TogetherBy Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

  Not long ago we wrote about a case involving the so-called “hobby loss” rules and how a taxpayer was able to demonstrate a profit motive and beat the IRS in Tax Court. Two recent cases highlight the importance of having, and following, a business plan in establishing that your fledgling business’s...

• 01/07/2022
  This Week In Tax | January 7

  Happy New Year and welcome back! This week, two recent cases illustrate the steps you can take to ensure your start-up business qualifies for deductions. Plus, the economy has been hard-hit by supply chain interruptions. The inability of manufacturers to get goods to market has had a significant impact on...

• 01/07/2022
  Supply Chain Interruptions Could Lead to Higher TaxesBy Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

  In addition to the medical and sociological implications of the COVID-19 pandemic, the economy has been hard-hit by supply chain interruptions. The inability of manufacturers to get goods to market has also had a significant impact on retailers. That truth was felt by any parent looking for the latest tech...

• 12/23/2021
  This Week In Tax | December 23

  *Note: In recognition of our employees incredible hard work this year, Friedman LLP will be closed from Friday, December 24 to Monday, January 3, 2022 to allow our staff to disconnect, re-energize, and spend time with family and friends during the holiday season. As a result, This Week In Tax...

• 12/23/2021
  The Boss Does Tax Planning: Let’s Call It the “E Street Shuffle”By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

  *Note: In recognition of our employees incredible hard work this year, Friedman LLP will be closed from Friday, December 24 to Monday, January 3, 2022 to allow our staff to disconnect, re-energize, and spend time with family and friends during the holiday season. As a result, This Week In Tax...

• 12/17/2021
  Hidden Challenges of Legacy StewardshipBy Sandra Prisco, CPA, Tax Director
  Loredana Scarlat, CPA, MsA, Sr. Tax Manager

  The Friedman Private Clients Services (PCS) group frequently sits on both sides of monetizing events for our high-net-worth clients. In this capacity, Friedman tailors tax-efficient solutions from optimizing transaction-structuring to partnering with families in the thoughtful stewardship of wealth. Wealthy families concerned with creating a legacy and reuniting family members under...

• 12/17/2021
  More Year-End Tidbits: Some actions you can take before January 1By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

  As 2021 winds down and Congress continues to wrestle with the Build Back Better Act (“BBBA”), you should be aware of opportunities that will expire with the new year and changes that are already in place for 2022. Charitable Deductions for Non-Itemizers When the Tax Cuts and Jobs Act (“TCJA”) nearly doubled...

• 12/17/2021
  This Week In Tax | December 17

  All good things come to an end, but it’s not too late – read this week’s break down of time sensitive tax advantages that you’ll need to act quickly to take benefit from. Also new this week: get familiar with the advantages and drawbacks of close relationships between donor advised...

• 12/10/2021
  Year-end Partnership and S Corporation TidbitsBy Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

  As 2021 draws to a close and we await a possible Christmas Eve present from Congress in the form of the Build Back Better Bill, the IRS has been busy issuing guidance, in various forms, for partnership and S corporation tax compliance. Accounting and reporting of forgiven PPP loans Three, count them,...

• 12/10/2021
  This Week In Tax | December 10

  With our sights set to the holiday season and 2022, read our latest on recently published guidance and FAQs covering loan forgiveness procedures, carried interest reporting, and short year returns. Plus, get to know the advantages and use cases of the IRS’ new IP PIN tool, including how you can...

• 12/10/2021
  New for 2022: IRS Debuts “Get an IP PIN” siteBy David M. Schneyman, CPA, Principal

  Beginning January 10, 2022, Identify Protection Personal Identification Numbers (IP PIN) will be available through the Internal Revenue Service’s (IRS) new Get an IP PIN site. Read on to learn more about IP PINs and Get an IP PIN’s key benefits and need-to-know details. How will I benefit from Get an IP...

• 11/19/2021
  PIN Your Way Out: What To Do With Partners Who Don’t Want a 1031 ExchangeBy Kelly Yim, CPA, Director

  *Note: This Week In Tax will not be publishing next week. Happy Thanksgiving and enjoy your holiday! It seems like every week we get some variation on this question: our partnership is selling its property, we want to do a 1031 exchange to defer the gain but some partners want to...

• 11/19/2021
  Washington Quickies: Crypto Reporting, Deductibility of MealsBy Michael Greenwald, MPPM, CPA, Partner, Business Tax Leader

  *Note: This Week In Tax will not be publishing next week. Happy Thanksgiving and enjoy your holiday! Cryptocurrency Reporting Rules: President Biden had yet to sign the Infrastructure Investment and Jobs Act (the “Act”) when members of the Senate decided it was time to make some changes to one of the more...

• 11/19/2021
  This Week In Tax | November 19

  *Note: This Week In Tax will not be publishing next week. Happy Thanksgiving and enjoy your holiday! In the latest edition of This Week in Tax, we answer a common question on navigating a 1031 exchange transaction when one partner wants to cash out. Plus, the latest on a proposed amendment...

• 11/12/2021
  TAS Won’t be Taking IRS to Task Over Backlogged Amended Returns, For the Time BeingBy David Shuster, JD, LL.M., Principal, Director of Tax Controversy Services

  Those of us here at Friedman LLP have received our share of client complaints about their refund claims, set forth in their evidently unprocessed amended returns sent to the IRS months ago. They ask us what is taking the IRS so long and what can be done? Other than suing the...

• 11/12/2021
  This Week In Tax | November 12

  New this week: The Taxpayer Advocate Service ("TAS") suspends taking on amended return cases due to IRS backlog. Additionally, the Employee Retention Credit (“ERC”) is slated for early termination. Read our latest:  TAS Won’t be Taking IRS to Task Over Backlogged Amended Returns, For the Time Being Those of us here at Friedman LLP...

• 11/12/2021
  Employee Retention Credit Terminated as of September 30, 2021 and Other Washington UpdatesBy Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

  As expected, the Infrastructure Investment and Jobs Act, otherwise known as the Bipartisan Infrastructure Plan (“BIP”), passed the House of Representatives. When signed by President Biden, one of its provisions will cause the early termination of the Employee Retention Credit (“ERC”). Originally extended through all four quarters of 2021, it...

• 11/05/2021
  Connecticut Launches Tax Amnesty Program Open Through January 31, 2022By Thomas Wrocklage, LL.M., Principal

  If, for some reason, you are delinquent in your tax obligations to the Nutmeg State, you are in luck. Connecticut has announced the 2021 Tax Amnesty program offering individuals and businesses the opportunity to come clean. Taxpayers who have not filed, under reported, or have existing liabilities related to taxes...

• 11/05/2021
  Celebrate Veterans Day – Hire a Vet: Tax Incentives for Hiring VeteransBy Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

  World War I formally ended at the 11th hour of the 11th day of the 11th month of 1918. A year later, President Woodrow Wilson called upon Americans to celebrate Armistice Day in recognition of that solemn event. Armistice Day became a federal holiday in 1938. In 1945, World War...

• 11/05/2021
  This Week In Tax | November 5

  This upcoming Veterans Day, celebrate by hiring a vet. A federal program offers tax incentives for hiring qualified veterans – read on to learn more. Also new this week: Behind on taxes and a Connecticut taxpayer? Act quickly to take advantage of amnesty before it expires. Celebrate Veterans Day – Hire a...

• 10/29/2021
  Still No Agreement on Reconciliation Bill but New Tax Bills Keep ComingBy Michael Greenwald, MPPM, CPA, Partner, Business Tax Leader

  At this writing, President Biden is in Rome for the G20 Summit to be followed by the UN Climate Change Summit in Glasgow. Congressional Democrats are still wrangling among themselves over what provisions or tax law changes are or aren’t in the (formerly) $3.5 trillion Build Back Better bill. As...

• 10/29/2021
  This Week In Tax | October 29

  The tax changes and revenue generating aspects within the Build Back Better bill are now in focus, with some surprising inclusions and omissions compared to prior drafts. How might you be affected? Read our summary of the tax items that stand out as well as those that were left out. Still No Agreement...

• 10/29/2021
  Build Back Better – More Details on Tax Changes EmergeBy Michael Greenwald, MPPM, CPA, Partner, Business Tax Leader

  In the race to give President Biden something to talk about in Rome and Glasgow, the House Rules Committee released the final (?) text of H.R. 5376, the Build Back Better Act (the “Act”). At 1,684 pages it is about 1,000 pages shorter than the original version introduced September 12. There are...

• 10/22/2021
  Avoiding the Fracas of Fighting Penalties: IRS Updates Process for FAQs Posted in Fact SheetsBy David Shuster, JD, LL.M., Principal, Director of Tax Controversy Services

  Given the rapid proliferation of new tax legislation, the IRS has been relying on issuing so-called Frequently Asked Questions (“FAQs”) to expedite its advice to taxpayers and the tax professional community rather than issuing regulatory guidance, which, by its nature, is a lengthy process. The problem is that tax practitioners...

• 10/22/2021
  Good News on Self-Created Know-HowBy Kelly Yim, CPA, Director

  Extra! Extra! Read all about it! Certain self-created know-how may still qualify for favorable capital gains tax treatment! Effective 2018, the Tax Cuts and Jobs Act (“TCJA”) eliminated capital gain treatment for certain self-created intangible assets. Any gain on the sale of these assets is now taxed at the higher...

• 10/22/2021
  This Week In Tax | October 22

  This Week In Tax: The IRS is formalizing its process relating to the publication of FAQs — find out how the impact of significant FAQs on newly enacted tax legislation has been elevated. Plus, does Know-how qualify as a capital asset? Read on: Avoiding the Fracas of Fighting Penalties: IRS Updates Process...

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

  New this week: Q Texas court sets a high price in a case involving a business alter ego. The High Cost of a Business Alter Ego: I Am My Business and My Business Is Me* Taxpayers often establish business entities to shield themselves personally from liabilities of the business. The laws of different...

• 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 EditionBy 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 ExchangesBy 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) BusinessBy 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 CreditBy 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 ActBy 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 MeasuresBy 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 EmployeeBy 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 GuidanceBy 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...