Seniors: Medicare premiums could lower your tax bill

Americans who are 65 and older qualify for basic Medicare insurance, and they may need to pay additional premiums to get the level of coverage they desire. The premiums can be expensive, especially if you’re married and both you and your spouse are paying them. But one aspect of paying premiums might be positive: If … Continued

The IRS Expands the Penalty Waiver for Underpaying Income Tax

The IRS announced that it is providing expanded penalty relief to certain individuals whose 2018 federal income tax withholding and estimated payments fell short of their total tax liability for the year. (Notice 2019-25) The IRS is now lowering to 80% the threshold required to qualify for this relief. Under the relief originally announced January … Continued

Payroll Cards Gain Wider Adoption – and New Regulations

In the not-so-distant past, employers hand-delivered paychecks to employees. Employees then cashed their checks or deposited the money in checking accounts. Today, most employers use direct deposit, or, in a more recent development, payroll cards (or paycards). In January 2019, the Consumer Financial Protection Bureau (CFPB) finalized regulations governing prepaid accounts, including payroll cards. Notably, … Continued

An Overview of the Proposed Regs on the FDII and GILTI Deduction

An Overview of the Proposed Regs on the FDII and GILTI Deduction BackgroundThe Tax Cuts and Jobs Act (TCJA) established a “participation exemption system” under which certain earnings of a foreign corporation can be repatriated to a corporate U.S. shareholder without U.S. tax. (This occurs under Internal Revenue Code Section 245A.) However, Congress recognized that, … Continued

Proposed Regs Set Out How To Determine FDII

Proposed Regs Set Out How To Determine FDII Determining FDII Under the proposed regs, a domestic corporation’s FDII would be the corporation’s deemed intangible income (DII) multiplied by the corporation’s foreign-derived ratio. A domestic corporation’s DII would be the excess (if any) of the corporation’s deduction eligible income (DEI) over its deemed tangible income return … Continued

Court Defines “Financial Interest” and Makes Other FBAR Rulings

Court Defines “Financial Interest” and Makes Other FBAR Rulings Under the Law Every U.S. citizen who has a financial interest in, or signature or other authority over, a financial account in a foreign country is required to report the account to the IRS annually. This is done by filing an FBAR. The Secretary of the … Continued

Make a deductible IRA contribution for 2018. It’s not too late!

Make a deductible IRA contribution for 2018. It’s not too late! Do you want to save more for retirement on a tax-favored basis? If so, and if you qualify, you can make a deductible traditional IRA contribution for the 2018 tax year between now and the tax filing deadline and claim the write-off on your … Continued

Still working after age 70½? You may not have to begin 401(k) withdrawals

Still working after age 70½? You may not have to begin 401(k) withdrawals If you participate in a qualified retirement plan, such as a 401(k), you must generally begin taking required withdrawals from the plan no later than April 1 of the year after which you turn age 70½. However, there’s an exception that applies … Continued

Litigation Support: One Right Approach to Wrongful Termination Suits

Causes of actions involving employment at will are often tested in the courtroom, and defending against wrongful termination lawsuits requires industry expertise, exhaustive research and complete analysis. Our firm provides the litigation support essential to the process. Specifically, when working on wrongful termination cases, our professionals can:  Audit management policies and procedures.  Review personnel files … Continued