Tax Update: January 2019

TRENDING IN TAX

Post-tax reform: Obtaining capital gain treatment on sale of patents
Clarity on how capital gain treatment is available on the sale of patents, in certain scenarios.

Opportunity zones and the ripple effect on credits and incentives
In the rush to take advantage of the qualified opportunity zones program, taxpayers may overlook the benefits of state and local tax credits.

California reverses position on limited partnership tax and filings
The California Franchise Tax Board ruled that limited partnerships disregarded for federal income tax purposes are not subject to minimum tax or filing requirements.

Retailers must be mindful of gift card tax pitfalls
Retailers should assess gift card procedures including an annual review of reporting, sales tax, unclaimed property and more.

 

 

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
https://rsmus.com/what-we-do/services/tax/additional-tax-resources/tax-ideas-insights.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Insero is separated from other CPA firms by our client service model which offers you year-round interaction and proactive advice from your client service partner. Yes, we’re sticklers about deadlines and compliance, but among our larger objectives is to help clients with tax management. So we keep an eye on federal, state, local, and international tax laws, including those which are pending and alert you to changes and help you respond in a timely way.

Tax Update: December 2019

TRENDING IN TAX

Top 5 reporting and withholding actions to take before year-end
There are five key actions to take now to prepare to file information returns in January to ensure compliance with FATCA. From reviewing your structure to evaluating your 1099 and 1042 processes, conducting a self-assessment to identify and remediate gaps in your processes for complying with reporting and withholding requirements before year-end ensures that you file accurate and complete returns and do not under or over withhold taxes next year.

Regulations on acquired corporate life insurance policies
Favorable rule for corporate stock acquisitions where life insurance contracts are less than 50 percent of the target corporation’s assets. This exception applies upon the acquisition of any interest in a C corporation. It thus applies to an interest acquired via a tax-free reorganization structured as a stock acquisition. It does not, however, apply to an acquisition made via a tax-free reorganization structured as an asset acquisition.

 

op 5 reporting and withholding actions to take before year-end

 

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
https://rsmus.com/what-we-do/services/tax/additional-tax-resources/tax-ideas-insights.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Insero is separated from other CPA firms by our client service model which offers you year-round interaction and proactive advice from your client service partner. Yes, we’re sticklers about deadlines and compliance, but among our larger objectives is to help clients with tax management. So we keep an eye on federal, state, local, and international tax laws, including those which are pending and alert you to changes and help you respond in a timely way.

Tax Update: November 2019

TRENDING IN TAX

IRS proposes regulations for the switch from LIBOR
Guidance would facilitate transitions of existing debt and derivatives to alternative benchmark rates without creating taxable exchanges.
Replacing a key benchmark interest rate, the London Inter-Bank Offered Rate (LIBOR) is a stated goal of financial regulators. LIBOR rates are quoted for many different currencies, including U.S. dollars, and are referenced in lending and derivative transactions throughout the world. Trillions of dollars of transactions are based, in whole or in part, on U.S. dollar LIBOR.

EU’s VAT action plan ‘Quick Fixes’
More than $750bn VAT revenue has been lost across the EU over a 5-year period from VAT fraud and more significantly to noncompliance.
U.S. businesses with operations and transactions across the European Union (EU) are required to comply with EU VAT rules and regulations.  U.S. businesses that, directly or through subsidiary operations, are involved in the movement of goods across EU borders will be impacted by these upcoming changes. Failure to comply can lead to penalty exposure and further scrutiny by the tax authority.

 

IRS proposes regulations for the switch from LIBOR

 

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
https://rsmus.com/what-we-do/services/tax/additional-tax-resources/tax-ideas-insights.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: October 2019

TRENDING IN TAX

Emerging issues for the family office
From taxation complexity to understanding cyberthreats, what are today’s top five concerns for family offices?
Family offices come in all shapes and sizes and the differences from one to another can be vast. It’s been said that if you’ve seen one family office, you’ve truly seen just one family office. From single-generation members focused on mutual goals to a multigenerational family with complex interests and diverging investment and philanthropic objectives, variations of the family office construct are endless.

State and local gross receipts taxes a new trend in state tax law
Recent activity among state and local gross receipts taxes may signify that a historic approach to taxation is ready to be a new trend.
As states continue to face the uncertain impact of federal tax reform on their budgets, a possible downturn in the economy, and several years of lackluster state and local tax collections, many state legislatures have been considering new (or bringing back old) methods of revenue generation. In addition to rolling back spending, increasing tax rates, and broadening sales tax bases, one trend that may be developing is state and local gross receipts taxes. Gross receipts taxes are generally levied on a company’s gross receipts instead of its net income and are imposed with a low tax rate on a broad tax base with fewer exemptions and deductions than an income tax.

 

State and local gross receipts taxes a new trend in state tax law

 

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
https://rsmus.com/what-we-do/services/tax/additional-tax-resources/tax-ideas-insights.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: September 2019

TRENDING IN TAX

Qualified opportunity funds: Estate and gift tax planning implications
Exploring ways to incorporate qualified opportunity fund (QOF) investments into your overall estate and gift tax plan. While it is certainly possible to do some effective wealth transfer planning with QOFs, these assets provide a narrower bandwidth for planning than many other types of assets. Here is an overview of the essential estate and gift tax planning aspects of QOFs.

Opportunity knocks, will investors answer the call?
The IRS and Treasury Department released the second round of Qualified Opportunity Zone (OZ) regulations that may spur taxpayer confidence and financial implications will drive investment and set the stage for capital deployment into these designated areas. The OZ program also offers a large incentive related to those investments held at least 10 years.

U.S. partners to determine their own GILTI inclusion
Final regulations issued in late June 2019 on GILTI inclusion could have a considerably differently impact on PE and VC fund structures. GILTI is a new anti-deferral provision of the U.S. tax law that results in current taxation of offshore earnings for U.S. shareholders of a controlled foreign corporation (CFC) regardless of whether the income is distributed or retained offshore.

 

Estate and gift tax planning implications exploring ways to incorporate qualified opportunity fund investments

 

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
https://rsmus.com/what-we-do/services/tax/additional-tax-resources/tax-ideas-insights.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: August 2019

TRENDING IN TAX

Cash balance plans may boost benefits for small business owners
Small business owners may be able to increase tax-beneficial retirement contributions with a combination 401(k) cash balance plan. While 401(k) plans are in wide use, cash balances plans and their potential for significant wealth accumulation for owners may be new to most people.

California enacts changes to recent remote seller provisions
California amends the effective date for district remote seller nexus requirements; offers penalty relief for certain marketplace sellers. California is offering a limited penalty abatement to retailers with “inventory nexus” for sales made between April 1, 2016 and March 31, 2019.

New tax transparency rules will have an impact on the auto industry
The work of the OECD regarding tax transparency has been substantial. The new rules will affect car manufacturers in particular, as they represent the industry with the largest volume of intercompany transactions.

10 success tips for the family business and its next generation
Get key tips for bringing the next generation into the family business. Here are some lessons learned and tips that, if addressed, are likely to improve the likelihood that your business can be one of those success stories where the next generation develops the right traits to propel the enterprise to greater heights.

 

Cash balance plans may boost benefits for small business owners

 

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
https://rsmus.com/what-we-do/services/tax/additional-tax-resources/tax-ideas-insights.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: July 2019

SUPREME COURT DECISION

U.S. Supreme Court finds in-state beneficiary inadequate for trust tax
The unanimous decision in the highly anticipated trust taxation case (North Carolina v. Kaestner) considers whether a state can tax a trust based on the residency of a beneficiary. In the wake of this decision, trustees, trust administrators and trust planners should consider broad-scope trust residency reconciliations to determine whether past residency decisions are still applicable going forward and whether refund claims are available.

TRENDING IN TAX

Don’t put your employee stock ownership plan on autopilot
Companies often need to review ESOPs as changes arise in the business, employee demographics and in the economic environment. Company leaders may not realize plan provisions can be changed (within some limits) or may not fully understand how changes may benefit the company or its employees.

IRS finalizes certain temporary foreign currency tax regulations
Treasury and the IRS finalize and withdraw certain provisions contained in previously issued temporary section 987 regulations. The final regulations were published in the Federal Register on May 13, 2019.

 

 

books, computer and phone on a desk for tax updates

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: June 2019

Trending in Tax

Are a dip in rates and an uptick in tax proposals a call to action?
Favorable estate planning rules in place to 2026 would be less so in 2021 under some Democrats’ proposals. The applicable federal rates used for intra-family loans, sales to defective trusts and other planning techniques also decreased a bit. Time to consider the what ifs?

Tax implications of hard forks and airdrops
Not all digital assets are received through an exchange; airdrops and hard forks create another layer of complexity for taxpayers. These new elements trigger a key question that every taxpayer who engages with the blockchain and digital asset marketplace should want answered.

10 mistakes business owners make when thinking about whether to exit
Alleviate the stress of your business sale or transition by addressing 10 key missteps many business owners make.

Health savings accounts: A tax-free way to pay for medical expenses
Health savings accounts are a valuable tool for saving money for medical expenses since they offer a triple tax benefit. These personal accounts also offer opportunities for individuals to accumulate funds for their retirement years.

 

Computer with phones and pens

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: May 2019

Trending in Tax

IRS offers further clarity in opportunity zone regulations
The new revenue guidance has cleared the way for businesses and investors to invest in opportunity zones and drive economic growth.

International tax considerations for the blockchain industry
Carefully consider international blockchain enterprise structuring in light of the Tax Cuts and Jobs Act.

The verdict is in: Weighing GILTI is key for multinational businesses
Understanding the impact GILTI will have on your multinational organization may maximize tax planning opportunities and minimize risk.

Exploring the undefined: Trade or business
The enactment of TJCA creates pressure on taxpayers to distinguish what qualifies as a trade or business for tax purposes.

Section 1202: Effects of capital contribution on closely held corps
Understanding the importance of section 1202 and consequences of capital contributions to closely held corporations.

Revisiting at-risk rules for partnerships
Proposed sec. 465 regulations provide significant guidance and detailed examples of the application of the at-risk rules for partnerships.

Qualified transportation fringe benefit under tax reform
Review the changes made to the qualified transportation fringe benefit and loss of deductions by the TCJA under tax reform.

Proposed regulations contain key foreign tax credit transition rules
Changes to the international tax system will require U.S. taxpayers to navigate important foreign tax credit transition rules.

 

person sitting by computer holding pencil

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: April 2019

Trending in Tax

Wayfair, sales tax, and economic presence laws
Economic sales and use tax nexus laws are gaining momentum as states make a direct challenge to traditional physical presence standards.

District Court decision uploads imposition of willful FBAR penalty
Court imposes substantial “willful” penalty for failure to file FBAR where taxpayer fails to consult tax advisor regarding foreign account.

Structuring deals in the era of TCJA and BEPS
Legislation relating to the Base Erosion and Profit Shifting (BEPS) Action Items has resulted in expanded tax due diligence engagements.

Top tax considerations for manufacturers in 2019
Tax planning in an evolving marketplace can be challenging. What are the top tax issues and new rules that manufacturers should focus on?

man point to a printed chart with computer and calendar out

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.