The IRS has recently released Revenue Procedure 2014-61, providing its annual inflation adjustments for various tax provisions, including the tax rate schedules, standard deduction, personal exemptions, and other items.
The IRS has recently issued Notice 2014-58, which provides additional guidance on certain aspects of the economic substance doctrine. A transaction has economic substance if the transaction changes (in a meaningful way) the taxpayer's economic position and the taxpayer also has a non-federal income tax business purpose for entering into the transaction.
As mentioned in our prior News & Events Alerts, during June 2013, Governor Andrew Cuomo unveiled a START-UP NY program which aims to foster entrepreneurialism and job creation through the introduction of tax-free zones throughout the state. These zones are created through partnerships with New York colleges and universities.
New York State withholding tax returns (Form NYS-1- "Return of Tax Withheld" and NYS-45- "Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return") due on or after April 30, 2015 must be electronically filed and electronically paid using the NYS Department of Taxation and Finance website.
On December 30, 2013, the Internal Revenue Service (IRS) issued guidance explaining the circumstances in which it will not challenge partnership allocations to its partners under IRC Section 47, The Rehabilitation Credit.
The New Jersey Division of Taxation has announced a limited-time opportunity for individuals and businesses with unpaid tax liabilities to enter into closing agreements with the state and resolve these liabilities. The program covers all types of taxes from 2005 through 2013 and will end on November 17, 2014.
The Massachusetts Department of Revenue has granted a limited amnesty program for taxpayers with existing personal and/or business liabilities. Participation in this program for eligible taxpayers could result in significant savings of assessed penalties.
One of the latest trends in the world of taxes is inversion. Tax inversion occurs when a company moves to a different country in order to avoid their home country’s high tax rate. Many companies are leaving the United States in search of better tax benefits and to avoid the U.S.’s corporate tax rate, which may currently peak at 39.1%.
When a spouse inherits an IRA from their deceased husband or wife, there are several planning strategies that the surviving spouse can follow to suit specific needs. Spouses who are designated the sole beneficiary of the IRA have special options that are not permitted for other beneficiaries.
The State of Connecticut is facing some difficult economic times in the near future. The state maintains its budgets on a biennial basis and the 2013-2014 and 2014-2015 were approved during 2013. Due to a reduction in the projected budgeted surplus, together with a projected deficit of approximately $2.8 billion for the 2016 and 2017 fiscal years, the Income Tax Rebate program proposed by the Governor was withdrawn from consideration.