United States

The Tax Exchange - April 2016

IRS will begin to contact employers that fail to deposit payroll taxes

It is not uncommon for employers to experience issues in remitting amounts due for payroll taxes. Often, these issues go unnoticed by the employer and the IRS for long periods of time. As a result, corrective actions may occur well after payroll tax returns are due or filed and may result in additional tax and penalties.

  • April 28, 2016

Family limited partnership failure—lessons learned

The U.S. Tax Court has restated the ground rules for what is required to use a family limited partnership to transfer wealth from an estate. The case is a reminder that intrafamily transfers need to be founded upon sound business reasons and respected accordingly.

  • April 18, 2016

A reminder on the tax treatment of advance payments

The IRS recently concluded that a taxpayer could defer for up to two years the recognition of certain advance payment income received from the sale of unredeemed gift cards for goods or services. While this conclusion hinged on the facts and circumstances related to the specific taxpayer, it serves as a timely reminder of the tax treatment of advance payments received by companies.

  • April 04, 2016