The IRS has issued Proposed Regulations now under the new Section 199A 20% profit deduction for pass-through entities. The Proposed Regulations provide important guidance on the definition of “Qualified Business Income” –...more
8/21/2018
/ Beneficiaries ,
Business Income ,
Business Ownership ,
Business Taxes ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Partnerships ,
Pass-Through Entities ,
Proposed Regulation ,
S-Corporation ,
Sole Proprietorship ,
Tax Deductions
On August 8th, the IRS released its much-awaited Proposed Regulations on the new Section 199A 20% profit deduction for pass-through businesses. The new deduction applies to essentially all types of businesses other than C...more
8/15/2018
/ Aggregation Rules ,
Beneficiaries ,
Business Income ,
Business Ownership ,
C-Corporation ,
Estate Planning ,
Federal Taxes ,
Income Taxes ,
IRS ,
Partnerships ,
Pass-Through Entities ,
Professional Employer Organization ,
Proposed Regulation ,
S-Corporation ,
Sole Proprietorship ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
Tax Returns ,
Threshold Requirements ,
Trusts ,
W-2 ,
Wage and Hour
The Internal Revenue Service yesterday issued its much-anticipated Proposed Regulations on the new Section 199A 20% deduction for owners of pass-through business entities. This important deduction was created under the 2017...more
8/9/2018
/ Business Income ,
Business Ownership ,
Business Taxes ,
Comment Period ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Partnerships ,
Pass-Through Entities ,
Proposed Regulation ,
Public Comment ,
S-Corporation ,
Sole Proprietorship ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning
The IRS announced on April 17, 2018 that, due to IRS computer problems, all taxpayers are being given an extra day to file their 2017 tax returns and to pay any taxes owed (see IR-2018-100, April 17, 2018). The IRS apparently...more
The IRS recently announced it will be shutting down its successful Offshore Voluntary Disclosure Program (OVDP) for unreported foreign bank accounts and income. The program will end September 28, 2018. Under the OVDP, first...more
3/23/2018
/ Banking Sector ,
Criminal Prosecution ,
Disclosure Requirements ,
FATCA ,
FBAR ,
Filing Requirements ,
Financial Institutions ,
Fines ,
Foreign Bank Accounts ,
Foreign Tax ,
Income Taxes ,
IRS ,
Offshore Banks ,
Offshore Funds ,
OVDP ,
Reporting Requirements ,
Tax Amnesty ,
Tax Evasion ,
Tax Liability ,
Tax Penalties ,
Tax Returns ,
U.S. Treasury ,
Voluntary Disclosure
Under the Tax Cuts and Jobs Act, Congress is now offering a new 20% deduction for “pass-through” businesses – i.e. businesses that are not corporations. With the corporate tax rate being reduced under the new law to a flat...more
2/13/2018
/ Beneficiaries ,
Business Income ,
Business Ownership ,
Business Taxes ,
C-Corporation ,
Capital Gains ,
Compensation ,
Corporate Taxes ,
Employment Tax ,
FICA Taxes ,
FUTA ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
New Legislation ,
Partnerships ,
Pass-Through Entities ,
S-Corporation ,
Shareholders ,
Sole Proprietorship ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration ,
Wage and Hour
The new 20% deduction for “pass-through” business owners under the Tax Cuts and Jobs Act is raising many questions from owners of real estate-related businesses. Can these owners qualify for this important deduction, and...more
1/16/2018
/ Business Assets ,
Business Income ,
Business Ownership ,
Business Taxes ,
Income Taxes ,
Limited Liability Company (LLC) ,
New Legislation ,
Partnerships ,
Pass-Through Entities ,
Property Owners ,
Qualifying Income ,
Real Estate Market ,
S-Corporation ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Reform ,
Trump Administration
Aside from corporate tax reductions, one of the most important aspects of the new Tax Cuts and Jobs Act beginning this year is the new 20% deduction for “pass-thru” businesses – i.e. businesses that are not corporations. With...more
1/8/2018
/ Beneficiaries ,
Brick-and-Mortar Stores ,
Business Income ,
Business Ownership ,
Commercial Real Estate Market ,
Corporate Taxes ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
New Legislation ,
Partnerships ,
Pass-Through Entities ,
S-Corporation ,
Sole Proprietorship ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Rates ,
Trump Administration ,
Trusts ,
W-2 ,
Wage and Hour
President Trump signed into law a major overhaul of the US tax system. The corporate tax rates have changed from a system of graduated tax rates up to 35% to a flat tax on corporate profits of 21%. The alternative minimum tax...more
12/27/2017
/ Alternative Minimum Tax ,
Business Profits ,
Business Taxes ,
C-Corporation ,
Corporate Taxes ,
Employment Tax ,
Income Taxes ,
IRS ,
Mortgage Interest ,
New Legislation ,
Pass-Through Entities ,
Personal Exemptions ,
Personal Services ,
Shareholders ,
Small Business ,
Standard Deduction ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
Congress has passed a major overhaul of the US tax system. The measure passed 224 to 201 in the House and 51-48 in the Senate, largely along party lines. The tax bill is now on its way to the President, and the President is...more
12/22/2017
/ Business Taxes ,
Corporate Taxes ,
Estate Tax ,
Income Taxes ,
New Legislation ,
Personal Exemptions ,
Standard Deduction ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
Section 530 Relief -
Employers that have workers which the employer classifies as “independent contractors” (Form 1099) risk having these workers reclassified by the IRS as employees. This is a major audit area for the...more
12/20/2017
/ 1099s ,
Employer Liability Issues ,
Employment Tax ,
Federal Taxes ,
Income Taxes ,
Independent Contractors ,
Internal Revenue Code (IRC) ,
IRS ,
Misclassification ,
Tax Audits ,
Tax Liability ,
Tax Penalties ,
Tax Relief ,
W-2
IRS Voluntary Worker Classification Settlement Program -
Employers that have workers which the employer classifies as “independent contractors” (Form 1099) risk having these workers reclassified by the IRS as employees....more
12/8/2017
/ 1099s ,
Closing Arguments ,
Employment Tax ,
Federal Taxes ,
Income Taxes ,
Independent Contractors ,
IRS ,
Misclassification ,
Tax Audits ,
Tax Liability ,
Tax Penalties ,
VCSP
The United States has a voluntary tax reporting system. Once a tax return is filed, however, the IRS will seek to verify that filed tax returns comply with the tax laws. To achieve this, an IRS audit (“examination”) must take...more
If an individual or business owes but has not paid federal taxes, the IRS will make efforts to collect these taxes. The IRS will first send a series of notices requesting payment, but if the taxpayer does not respond to the...more
Married couples may file a joint federal income tax return together, reporting their joint income and expenses. The benefit of a joint return is that the overall tax rate may often be lower. However, if a joint return is...more
Where an individual or business owes IRS taxes, Congress has given the IRS a tax lien against all the assets of the taxpayer. The lien covers real estate, homes, furniture, cars, investments, and nearly everything an...more
9/6/2017
/ Asset Seizure ,
Business Assets ,
Business Taxes ,
Corporate Taxes ,
Discharge Letters ,
Income Taxes ,
IRS ,
Real Estate Transactions ,
Release of Liability ,
Tax Debt ,
Tax Liens ,
Tax Penalties
Where individuals and businesses owe IRS taxes, the IRS has a settlement program where it can legally accept less than what is owed. Known as an “Offer in Compromise,” Congress has given the IRS the authority to “compromise”...more
If an individual or business owes federal taxes and does not have the current ability to pay these taxes, the IRS can consider placing the account into “currently not collectible” (CNC) status. If placed in CNC status, a...more
If an individual or business owes federal taxes and does not have the current ability to pay these taxes, the IRS can “seller-finance” and offer a payment plan with the taxpayer. The primary benefit of a payment plan is that...more
The United States has a voluntary income tax reporting system. U.S. citizens, permanent residents, and businesses here must annually file income tax returns with the IRS, reporting their “worldwide income”, deductions, and...more
8/10/2017
/ 1099s ,
Filing Requirements ,
Income Taxes ,
IRS ,
Tax Amnesty ,
Tax Debt ,
Tax Evasion ,
Tax Penalties ,
Tax Returns ,
Voluntary Disclosure ,
W-4
Many individuals and businesses owe taxes to the IRS, or they have not filed their tax returns or both. While the IRS may be the most powerful creditor in the world, there are solutions. This is Part I of a series addressing...more
The South Carolina General Assembly approved a law in 2015 allowing the South Carolina Department of Revenue to offer an amnesty program to taxpayers in the state who have not filed tax returns and/or owe state taxes....more
South Carolina offers a wide variety of economic development incentives to businesses seeking to locate or expand in the state. This incentive array focuses on certain types of businesses the state wishes to attract. One such...more
The IRS recently announced that as of October it will no longer offer in-person or “face-to-face” settlement conferences with its Appeals Officers, except in a few, very limited circumstances. Settlement discussions will now...more
When someone owes the IRS taxes, as a result of not paying the tax shown as due on a tax return or where the IRS audits and imposes additional taxes owed, the IRS will “assess” this tax liability, and with penalties and...more