What to do if your business receives a “no-match” letter

What to do if your business receives a “no-match” letter In the past few months, many businesses and employers nationwide have received “no-match” letters from the Social Security Administration (SSA). The purpose of these letters is to alert employers if there’s a discrepancy between the agency’s files and data reported on W-2 forms, which are … Continued

Truckers: Highway Use Tax Return Is Due By September 3

The IRS is reminding truckers and other owners of heavy highway vehicles that, in most cases, their next federal highway use tax return is due on September 3, 2019. The deadline generally applies to IRS Form 2290 and the accompanying tax payment for the tax year that began on July 1, 2019. Returns must be … Continued

Changing Jobs? What Will Become of Your 401(k) Balance?

Most private sector employers, for better or worse, put you in the driver’s seat when it comes to saving for retirement. If you’re a genuinely savvy and diligent investor, you might prefer the flexibility of rolling over your accumulated retirement savings into an IRA. This choice assumes, however, that your next employer’s 401(k) plan allows … Continued

How to Structure a Business Asset Purchase with Taxes in Mind

Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either: 1.     An asset purchase. The buyer can purchase all or some of the assets of the business. 2.     A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in … Continued

The tax implications of being a winner

The tax implications of being a winner If you’re lucky enough to be a winner at gambling or the lottery, congratulations! After you celebrate, be ready to deal with the tax consequences of your good fortune. Winning at gambling Whether you win at the casino, a bingo hall, or elsewhere, you must report 100% of … Continued

Latest Update – Paid Sick Leave for Every Business

Visiting State District Judge Sol Casseb called for an abatement in a lawsuit filed by dozens of business groups against the city of San Antonio over its new paid sick leave ordinance that was to come into effect/effect? August 1, 2019. With the judges’ abatement, the city will not implement the paid sick leave ordinance … Continued

The “kiddie tax” hurts families more than ever

The “kiddie tax” hurts families more than ever Years ago, Congress enacted the “kiddie tax” rules to prevent parents and grandparents in high tax brackets from shifting income (especially from investments) to children in lower tax brackets. And while the tax caused some families pain in the past, it has gotten worse today. That’s because … Continued

Proposed Regs Look To Close CFC Loopholes

The IRS is concerned that, in certain situations, the current rules and regs could produce inappropriate results when defining a “related person” for purposes of Internal Revenue Code Sec. 954(d)(3). The proposed regs would provide that the applicable rules and related regulations wouldn’t apply for purposes of Sec. 954(d)(3) and related regulations. However, this wouldn’t … Continued

District Court Refuses To Dismiss FBAR Penalty Action Against Decedent’s Family

In the recent case of U.S. v. Park, a federal district court refused to dismiss an action to collect an FBAR penalty from a decedent’s family. In the court’s view, the IRS provided sufficient factual detail about the penalty and assessment, the penalty didn’t exceed the statutory maximum, and the assessment survived the decedent’s death. … Continued

Final Regs Exclude Corporate U.S. Shareholders From Application of Section 956

Allocation of Hypothetical Distribution Under Sec. 957, a controlled foreign corporation (CFC) is one under which more than 50% of the total combined voting power of all classes of stock entitled to vote or of the total value of the stock of the corporation is owned (directly, indirectly, or constructively) by U.S. shareholders. A U.S. … Continued