United States

The Tax Exchange - January 2016

Late with your taxes? You may lose your passport.

If you owe back taxes of $50,000 or more, the IRS may seek to revoke your international traveling privileges. If key employees travel internationally, it may be prudent to understand their risk as well.

  • July 12, 2016

Why use an LLC for charitable gifts rather than a private foundation?

Mark Zuckerberg, the 31-year-old co-founder of Facebook and billionaire, and his spouse, Priscilla Chan, pledged recently to donate 99 percent of their Facebook stock to charity. Instead of immediately funding a private foundation with Facebook stock and beginning to make charitable gifts from the foundation, the couple opted to transfer the Facebook stock to a wholly owned LLC, which is disregarded for tax purposes.

  • January 28, 2016

IRS continues to examine worker classification

It is the age-old conundrum for a small business owner: making the determination as to whether your worker is an independent contractor or an employee. Recently, the IRS has renewed its efforts to identify misclassified workers and collect associated tax liabilities. How do you know if your worker is properly classified?

  • January 22, 2016

Real estate fund sponsors: New fractions rule guidance may be coming

A long-awaited Treasury regulations project focusing on the fractions rule is reportedly underway. At its core, the fractions rule aims to prevent the shifting of losses to taxable entities (or the shifting of income to tax-exempt entities) when they co-invest in real estate assets through partnership structures.

  • January 14, 2016

Middle market businesses may benefit from tax extenders package

President Obama signed a massive spending and tax bill on Friday, Dec. 18, 2015. The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) makes permanent several popular tax incentives, extends most others for two years or more, and adds some important new, permanent tax provisions.

  • January 07, 2016