United States

The Tax Exchange - July 2016

Potential tax traps for employees who become partners

Recently proposed regulations have renewed discussions regarding the IRS position that a partner in a partnership cannot also be an employee of that partnership.

  • July 13, 2016

Grantor's death can compromise S corporation's status

For estate tax purposes, individuals often establish living or ‘grantor’ trusts to hold their assets. Although the assets are held in trust, the grantor is typically treated as the owner of the assets for income tax purposes.

  • July 06, 2016

Missouri Supreme Court takes narrow view of grocery exemption

Missouri and many other states provide reduced sales tax rates and exemptions for groceries that are not intended to apply to prepared food sold in restaurants and similar establishments, and a wide variety of definitions and thresholds are used to distinguish between the two.

  • July 01, 2016