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  • 06/16/2022
    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 June 16 On June 7, 2022, Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced the Responsible Financial Innovation Act (“RFIA”). If enacted, the...

  • 06/16/2022
    Senators Propose Major Crypto Legislation: And the Industry (Mostly) Approves
    By Matt Belenky, Tax Senior

    On June 7, 2022, Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced the Responsible Financial Innovation Act (“RFIA”). If enacted, the RFIA will mark the first comprehensive federal legislation to include blockchain, cryptocurrency, and digital assets. Of particular significance is how the RFIA analyzes digital asset innovation as it...

  • 06/09/2022
    The Final Foreign Tax Credit Regulations: Is the Density a Feature or a Bug?
    By Adnan Islam, Esq., MBA, CPA, LL.M., Partner, International Tax Co-Leader

    New foreign tax credit (“FTC”) regulations released in January 2022 have made it more difficult to obtain a “dollar-for-dollar tax credit” for foreign income taxes paid by US taxpayers with foreign business operations. In addition to the existing limitations and restrictions for claiming the elective foreign tax credit, there is now...

  • 06/03/2022
    The Latest on Alimony and Tax Treatment on Qualified Small Business Stock
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    Two Separate, Unrelated Issues

  • 05/27/2022
    It’s An Election Year and Tax Bills in Congress Are Flying
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    Memorial Day is Monday, May 30. We honor the memory of the fallen heroes who made the ultimate sacrifice for our freedom. This article from April 15, 2022 has been updated to reflect new legislative updates as of May 26, 2022. They say nothing happens in Washington in an election year. Then...

  • 05/20/2022
    Sen. Gillibrand Plans to Bring Back Fashion Industry with FABRIC Act
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    We wrote last week about the America COMPETES Act designed to make American businesses more competitive internationally, particularly with China. Now, Senator Kirsten Gillibrand (D, NY) has introduced the Fashioning Accountability and Building Real Institutional Change (“FABRIC”) Act which, among other things, provides incentives to repatriate apparel manufacturing businesses. The ostensible focus of...

  • 05/20/2022
    Claiming Bonus Depreciation on Lesser Known Property in 2022
    By Evan Brabson, Tax Senior

    We are approaching the halfway mark of 2022, the final year of 100% Bonus Depreciation. There really isn’t anything much more generous in the tax code than spending millions of dollars on an asset and deducting the entire investment in the same year. The 2017 Tax Cuts and Jobs Act...

  • 05/13/2022
    Drop Until You Swap! What to Do With Partners Who Don’t Want a 1031 Exchange
    By Steve Brodsky, CPA, J.D., LL.M., Partner

    Real estate investments are often held in a partnership. They’ve operated as a partnership for many years and over time the property has appreciated in value. Often some investment partners may wish sell the property and are willing to pay tax to cash out of their investment while others may...

  • 05/13/2022
    America COMPETES Act Aims to Heighten Competition Overseas
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    An old aphorism coined by Sir Alec Issigonis, designer of the original Mini, goes that “a camel is a horse designed by committee.” Sir Alec liked to work alone and the Mini shows he needed neither help nor consensus. Moreover, the saying underestimates the camel’s great efficiency and suitability for...

  • 05/06/2022
    IRS Proposes Estate Anti-Claw-Back Tax Exemption
    By Brandon Baker, CPA, Partner, Trust, Estate and Gift Tax Practice Leader

    No Flattery Intended But Completed Gifts Suggested

  • 05/06/2022
    Key Changes to the NYS PTET Bound to Make Taxpayers Happy
    By Tom Corrie, JD, LL.M., Principal

    Many states enacted workarounds for the federal, state, and local (“SALT”) tax $10,000 cap. Most were not perfect when hastily drafted. Earlier this year New Jersey and California made needed changes to their SALT cap workarounds. Recent changes to the New York State Pass Though Entity Tax (“NYS PTET”) provisions (“the Legislation”) are likely...

  • 04/29/2022
    When the IRS makes unreported income assertions
    By David Shuster, JD, LL.M., Managing Principal, Director of Tax Controversy Services

    Proving negatives and other recent Tax Court victories

  • 04/22/2022
    Your Crypto’s Been Stolen: What Is Your Tax Recourse?
    By Jose Sampedro, Tax Manager

    Cryptocurrency represents a paradigm shift for money as we know it — how we save it, how we invest it, how we spend it. Hailed as the disruptor of the global banking system, these decentralized networks are built around the concept that there should be no need to check in with...

  • 04/08/2022
    Congress Has an Auto Fixation: LIFO and Autofill Act of 2022
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    Auto #1 – Auto Dealers LIFO Inventory Issues You may recall that in January we told you about how supply chain issues could lead to higher taxes. This problem is especially acute for auto dealers who historically use the Last In First Out (LIFO) method to record inventory. As we noted, LIFO...

  • 04/08/2022
    This Week In Tax | April 8

    Congress has introduced two bills of interest to the automotive industry — the first addresses dealers' LIFO inventory concerns and the second concerning the ‘‘Autofill Act of 2022,” which will allow taxpayers to file returns online on a secure IRS website. The returns would be automatically populated with information already...

  • 04/01/2022
    This Week In Tax | April 1

    President Biden has sent his 2023 budget proposal to Congress, and it includes information about the way individuals, estates, and gifts may be taxed. President Biden’s Revenue Proposals – Part 1: Hundred-Millionaires, Estates and Gifts, Oh My!  The President sent Congress his budget proposal for the 2023 fiscal year. Along with it...

  • 04/01/2022
    President Biden’s Revenue Proposals – Part 1:
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    Hundred-Millionaires, Estates and Gifts, Oh My!

  • 04/01/2022
    President Biden’s Revenue Proposals – Part 2:
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    Corporate Changes, Digital Assets, and a Bonus Proposal from Senator Sanders

  • 03/25/2022
    Cryptocurrency 101: What Is It and How Is It Taxed?
    By Gabriella Marion, Director

    You’ve probably heard of cryptocurrency, but you may not know exactly what it is. Let’s start with some basics: 1) Cryptocurrency (crypto) is any form of currency that exists digitally or virtually. It uses cryptography (blockchain technology) to secure transactions via encryption and decryption—hence, “crypto.” 2) Cryptocurrency puts the power and responsibility...

  • 03/25/2022
    IRS Issues Crowdfunding Guidance
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    It’s not surprising that the IRS is struggling to catch up with cryptocurrency, and fintech in general, given how the relative newness and the speed of innovation. The tax treatment of crowdfunding is, however, an entirely different matter. While the origins of crowdfunding aren’t exactly clear, it isn’t a recent phenomenon....

  • 03/25/2022
    This Week In Tax | March 25

    To say that the tax treatment of cryptocurrencies is uncertain would be an understatement. The IRS hopes its guidance will help clear things up. Plus, if you’re considering launching a crowdfunding effort, you should brush up on the IRS’s latest reporting guidance. Cryptocurrency 101: What Is It and How Is It Taxed? You’re...

  • 03/18/2022
    So What’s Going on in the Courts These Days
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    According to the budget justification it submits to Congress each year, the United States Tax Court’s mission is to provide a national forum for the expeditious resolution of disputes between taxpayers and the Internal Revenue Service for careful consideration of the merits of each case and to ensure a uniform interpretation...

  • 03/18/2022
    Supreme Court Asked to Resolve Conflict Involving Non-Willful Penalty for Foreign Bank Account Report (FBAR) Violations
    By David Shuster, JD, LL.M., Managing Principal, Director of Tax Controversy Services

    Many years ago, as a recent college graduate living in Southern California, yours truly was lured to attend one of those high pressured real estate sales seminars, with the salespeople doing everything they could to have us buy undeveloped lots far inland in Riverside County. We were regaled with tales...

  • 03/18/2022
    This Week In Tax | March 18

    Two recent court cases remind us that just because you own a business doesn’t mean it can pay for your personal expenses — at least not without incurring tax. Plus, FBAR enforcement used to be a relatively sleepy stopover on the way to tax enforcement. But as its profile has increased...

  • 03/11/2022
    It’s Been a Busy Week on Capitol Hill
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    Thank goodness Dr. John Warnock created the Portable Document Format (PDF). This week, the Staff of the Joint Committee on Taxation (JCT) released a 596 page “General Explanation of Tax Legislation Enacted in the 116th Congress” (you can download it here.) Not to be outdone, the House and Senate passed...

  • 03/11/2022
    Take Me Out to the Ballgame: Get a Separate Receipt for the Food
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    Even before there was an Internal Revenue Code (IRC) as we know it (1913), there was a deduction for business entertainment expenses implied in the Corporate Tax Act of 1909. The famous Cohan case dealt mainly with the fact that composer George M. Cohan couldn’t document his lavish business entertainment...

  • 03/11/2022
    This Week In Tax | March 11

    The Staff of the Joint Committee on Taxation just released its Bluebook covering more than 200 tax provisions passed since July 1, 2019 – read on for our first impressions on what is and isn’t included. Plus, what’s on the table when it comes to meal deductions? Things have changed in...

  • 03/04/2022
    Make Sure Your Future Gains Aren’t Lost in the Wash
    By Evan Brabson, Tax Senior

    Wash sale rules may unexpectedly trigger a tax liability

  • 03/04/2022
    Taxpayer v. Tax Scammers — A New Installment
    By Loredana Scarlat, Tax Senior Manager

    In a world where a simple smartphone substitutes for a wallet, a browsing device, and a GPS navigation tool, protecting sensitive personal data has become increasingly challenging. This vulnerability does not begin or end with cell phones or personal computers. Virtually every device connected through wi-fi or otherwise can constitute...

  • 03/04/2022
    This Week In Tax | March 4

    In a world where virtually every electronic device can constitute a point of access to your personal data, protecting sensitive information is increasingly challenging. Plus, learn more about wash sale rules and the tax liabilities they may trigger before you make those stock transactions. Make Sure Your Future Gains Aren’t Lost in the...

  • 02/25/2022
    Tax Update – Extenders and More: Remember, It’s An Election Year
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    The midterm elections are less than eight and half months away and primary season has already started in many states. So, Congress is already disinclined to do much especially regarding taxes. Add to that the Ukrainian situation, the upcoming hearings on President Biden’s Supreme Court nominee, and inflation, and you...

  • 02/25/2022
    Do I Qualify for the Employee Retention Credit?
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    Magic 8 Ball® Says “Reply hazy, try again.”

  • 02/25/2022
    This Week In Tax | February 25

    Which credits are pending extension and how does a recent ruling in an REIT case stand to impact the industry? Plus, the Employee Retention Credit may be the most valuable COVID-19 relief program. So why don’t more people understand it? Read our latest edition of This Week in Tax for answers. Tax...

  • 02/18/2022
    Since We Last Wrote: Tax News Updates
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader
    David Shuster, JD, LL.M., Managing Principal, Director of Tax Controversy Services

    On The Daily Show they say, “When news breaks, we fix it.” We like to follow suit. Since Congress is off for the next week for Presidents Day (no apostrophe please), we thought this would be a good time to provide updates on some of our recent subjects. Employee Retention Credit...

  • 02/18/2022
    This Week In Tax | February 18

    The IRS is offering Schedule K-2 and K-3 exemptions for certain partnerships and S-Corps. Our coverage will help you figure out if you qualify. Plus, get the latest on the ERC, pandemic inventory relief and IRS automated notices as relevant tax laws and guidance continue to evolve. The IRS Changes Its...

  • 02/11/2022
    Your Business Tax Return Just Got 39 Pages Longer
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    What Partnerships and S Corporations MUST Know About their New Reporting Requirements

  • 02/11/2022
    Objects in Mirror May Be Closer Than They Appear
    By Michael J. Greenwald, MPPM, CPA, Partner, Business Tax Leader

    Make Sure You Act Timely on Some Upcoming Tax (and other) Deadlines

  • 02/11/2022
    This Week In Tax | February 11

    This week, California Governor Gavin Newsom signed into law Senate Bill 113 which provides a much needed fix to the Elective Pass-Through Entity Tax. With the filing deadline less than nine weeks away, make sure you have all the necessary resources. Bonus: Virtually every partnership and S Corporation will need to include a...

  • 02/11/2022
    California Enacts Fix to SALT Cap Workaround and Restores Corporate Tax Breaks
    By Christian J. Burgos, J.D., LL.M., CMI, Managing Principal

    On February 9 California Governor Gavin Newsom signed into law Senate Bill (“S.B.”) 113 (“the Bill”) which provides a much needed fix to the Elective Pass-Through Entity Tax (“PTET”) that was enacted in July 2021, lifts the suspension on the utilization of net operating losses (“NOLs”) for the 2022 tax...

  • 02/04/2022
    A Possible Path to An Unconventionally Successful Retirement: The Self-Directed IRA
    By Danielle Wolfe, CPA, MS, Director

    While most standard retirement vehicles include a mix of stocks, bonds, and mutual funds over the last few decades investments have expanded to include many alternative assets such as private investments, real estate, and more recently virtual currencies. The self-directed IRA was created in order to allow for these additional...

  • 02/04/2022
    A Good Harvest Can Wash Your Crypto Gains Away
    By Jose Sampedro, Manager

    Loss-harvesting is a strategy that can be used by investors to leverage the all so common dips of the cryptocurrency candle charts to move towards a more tax advantageous position. The strategy isn’t necessarily limited to year end activity; that is simply when investors and their advisors seem to focus...

  • 02/04/2022
    This Week In Tax | February 4

    New this week: The Self-Directed IRA may be your path to an unconventionally successful retirement. Plus, what is loss-harvesting and does the strategy hold water? A Possible Path to An Unconventionally Successful Retirement: The Self-Directed IRA While most standard retirement vehicles include a mix of stocks, bonds, and mutual funds over the...

  • 01/28/2022
    The 2022 Filing Season – Into the Unknown
    By Loredana Scarlat, CPA, Senior Manager

    Just when you thought it was safe to go back in the water, another perilous tax season is upon us. “I am deeply concerned about the upcoming filing season,” said Erin M. Collins, the National Taxpayer Advocate. “Paper is the IRS’ Kryptonite, and the agency is still buried in it.” Chuck...

  • 01/28/2022
    This Week In Tax | January 28

    2022 tax season is upon us, and with it comes new questions about filing deadlines, regulations, and reporting requirements. We set out to show you what lies ahead, plus unravel the IRS' announcement that it intends to suspend the issuance of “certain automated notices." Read on: The 2022 Filing Season – Into...

  • 01/28/2022
    Whether the Weather be Cold, or Whether the Weather be Hot, the IRS Responds to Pressure Whether We Like it or Not
    By David Shuster, JD, LL.M., Managing Principal, Director of Tax Controversy Services

    A drop in pressure generally results in stormy weather, such as the bomb cyclone that might blanket the Northeast this weekend with heavy snow accompanied by high winds. Conversely, a high pressure system generally brings sunny skies and calm weather. For nearly the last two years, the IRS has been trying...

  • 01/21/2022
    The SPAC is BACK
    By 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 Legislation
    By 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 Star
    By 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...