In December 2015, the Protecting Americans from Tax Hikes Act of 2015 ("Tax Extenders Bill") was signed into Law. The law includes an expansion of the rules related to the Federal Research and Development (R&D) Credit effective as of January 2016, as well as making the R&D Credit permanent.
Many of our clients serve as trustees or executors and should be aware of certain elections that may be available to them. This is especially true now, as there are elections that need to be made by March 7 of this year.
The Internal Revenue Service has issued new temporary regulations and proposed regulations providing that where a partnership owns 100% of the interests of a disregarded entity, a partner of the partnership cannot be treated as an employee of the disregarded entity. The Service believes that this is a clarification of the current rules.
In case taxpayers didn't already have enough reasons to keep current with their tax obligations, the Fixing America's Surface Transportation Act (FAST Act), signed into law in December, has added one more.
New York State's political leadership, led by Governor Andrew Cuomo, proudly announced at the end of March that for the sixth straight year, they have reached a budget agreement on time. As is usual, the budget includes landmark policies and provisions that will strengthen working and middle class families and the business community, while improving the lives of all New York State citizens.
The Indiana Department of Revenue (INDOR) has updated its regulations, effective for tax years beginning January 1, 2015, providing for changes to the composite and withholding compliance requirements for trusts, partnerships and corporations.
The Tax Court recently supported the IRS' decision to deny taxpayers a charitable contribution deduction for a conservation easement that was greater than $5,000. The deduction was denied after the taxpayers failed to attach an appraisal for the easement with their return. The IRS also imposed accuracy-related penalties and interest that the Tax Court also upheld.
The IRS has issued an alert advising all taxpayers to be aware of fraudulent email schemes during tax filing season. The IRS has seen a surge in email scams designed to trick taxpayers into thinking these are official communications.
The Internal Revenue Service has issued its final draft of Form 8971, Information Regarding Beneficiaries' Acquired Property from a Decedent, and instructions. This is in response to new section 6035 of the Internal Revenue Code, which was added by the Highway Funding Bill of 2015, imposing on certain executors the responsibility of providing information statements to IRS and to any person acquiring an interest in property from estates.
For many nonprofit organizations, a robust fundraising function is an important part of any long-term plan for success. A nonprofit's executive leadership team must, however, recognize that there are some significant risks that come with fundraising, and those risks and any related exposure for the organization must be properly managed.
For nonprofit organizations that receive contributions from private donors, there can be a variety of risks, including tracking and expending contributions as well as accounting and reporting for such funds.
As more and more companies use technology to improve products and increase efficiencies, the relevance and importance of reviewing expenditures for eligibility for the Research and Development Tax Credit becomes more critical. One industry where there has been tremendous growth in the research and development sector is the food and beverage industry.
On February 5, 2016, the IRS released an update to the Protecting Americans from Tax Hikes (PATH) Act of 2015, which was passed in December, citing new inflation adjustments effective for tax years beginning in 2016. The inflation adjustments focus on educator expenses, transportation fringe benefits, and the expensing of depreciable assets under Code Section 179.
On September 17, 2015, the Internal Revenue Service (the "IRS") issued final regulations under Code Section 871(m) relating to the imposition of U.S. withholding tax on "dividend equivalent" payments on certain U.S. equity swaps and other U.S. equity-linked instruments held by foreign persons. The regulations adopt, with some changes, the 2013 proposed regulations.