As the renewable energy industry continues to grow and alternative forms of clean energy (wind, solar, hydro, geothermal, biomass, etc.) proliferate nationwide, state lawmakers are more than ever discussing comprehensive approaches to energy policy. Indeed, states across the country are rapidly reconsidering the diverse array of laws that impact energy developers / public utilities, including …
IRS Beginning to Send Affordable Care Act Notices to Religious Organizations
According to statements made by the acting director of exempt organizations at the IRS, churches and other religious organizations will soon start to receive questions from the IRS about potential liabilities under the Affordable Care Act. Over the last few years, the IRS has sent letters to employers that it suspects have failed to comply …
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Protect Your Assets by Having a Will or Trust in Place
Has a client decided to leave their bank account or entire estate to one of their children, who will “do the right thing, and distribute it equally among all of my children”? Discuss with your client that this scenario creates 2 problems: 1) Child receiving the account/inheritance is not legally obligated to give any of …
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Automatic Allocation of GST Tax Exemption
The Generation-Skipping Transfer (“GST”) tax is designed to prevent taxpayers from avoiding estate tax on a child’s inheritance at the child’s death by “skipping” inheritances over children to grandchildren. Each person currently has a lifetime GST exemption amount of $11,400,000 (in 2019, and indexed for inflation). If you make a transfer during lifetime or at …
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How Long Should You Keep Your Tax Records?
The length of time you should keep tax records depends on the action, expense, or event which the records will substantiate. Generally, you should keep records until the statute of limitations period for an audit or assessment of that tax return expires: 3 YEARS from the date you filed your original return or 2 years …
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IRS General Counsel Opinion on Deductibility of Health Insurance Premiums Paid for Family Members of S Corporation Shareholders
The IRS recently issued a Chief Counsel Memorandum clarifying when a family member of a 2% shareholder in an S corporation is entitled to a deduction under Section 162(l) of the Internal Revenue Code (the “Code”) for health plan insurance premiums paid for coverage provided to the family member by the S corporation. Chief Counsel …
IRS Expands Self-Correction Procedures for Retirement Plans
Certain qualified retirement plan errors are now easier to fix under the new expanded IRS self-correction procedures. On April 19, 2019, the IRS released the revised Employee Plans Compliance Resolution System (“EPCRS”) under Revenue Procedure 2019-9. EPCRS allows employers of all sizes to identify and correct retirement plan errors under the Self-Correction Program (“SCP”), Voluntary …
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Are You My Partner?
Like the poor little bird in the Dr. Seuss book that struggled to identify its mother, it can sometimes prove difficult for partners in a partnership to identify their partners for federal income tax purposes. Partnerships for tax purposes include general partnerships, limited partnerships and limited liability companies taxed as partnerships. The federal income tax …
IRS Announces Expanded Penalty Waiver for Individuals with Underpayment of 2018 Estimated Income Taxes
With the 2018 deadline for filing of individual income tax returns just around the corner, taxpayers should be aware of the recent announcement by the Internal Revenue Service (IRS) of expanded relief from penalties for individuals whose 2018 federal income tax withholding and estimated tax payments fell short of their tax liability for the year. …
New Tax Bill Introduced to Improve IRS and Taxpayer Protections
On March 28, 2019, U.S. Senate Finance Committee Chairman Chuck Grassley (R-IA) and Senator Ron Wyden (D-OR) introduced new tax legislation referred to as the Taxpayer First Act of 2019. This legislation is largely aimed at improving and modernizing the IRS as well providing taxpayers with greater protections. Highlights of the proposed bipartisan legislation include: Creating …
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