Latest Articles

  • Guaranteed 10-Pay Whole Life Insurance Contracts

    By:
    G. Dean Goodwin, CLUT, AEPT
    |
    May 1, 2014
    Most advisors and clients utilize the benefits of life insurance for the traditional purposes of replacing income or providing liquidity to pay estate taxes through the income tax-free death benefit; however, permanent insurance is often perceived as being expensive and not providing a competitive rate of return compared to other asset classes. In order to provide policyholders with a sense of certainty, a number of mutual insurance companies have introduced guaranteed 10-pay whole life contracts that are contractually paid-up with 10 years of premium payments, regardless of dividend performance.
  • A CPA’s Guide to Life Insurance

    By:
    Chad L. Reyes
    |
    Apr 1, 2014
    Even during the depths of the Great Depression, the U.S. Supreme Court noted that life insurance for dependents is “kept up very often at the cost of painful sacrifice, and abandoned only under dire compulsion” (Burnet v. Wells). Because of the socially beneficial role life insurance plays in families that have lost a loved one, it has been afforded very favorable tax treatment by the IRC.
  • The New York Nonprofit Revitalization Act: 10 Things to Know

    By:
    David G. Samuels, JD, and Themes Karalis, JD
    |
    Apr 1, 2014
    The Nonprofit Revitalization Act of 2013 was signed into law by Governor Andrew M. Cuomo on Dec. 18, 2013, after unanimous passage by the New York State Senate and Assembly on Jun. 21, 2013. The act, which was introduced at the request of Attorney General Eric T. Schneiderman, generally takes effect on Jul. 1, 2014.
  • Settling a Dispute over Statutory Residency Leads to More Questions

    By:
    David A. Shuster, JD, LLM
    |
    Apr 1, 2014
    In February 2014, the New York Court of Appeals rejected the determination of the New York State Tax Appeals Tribunal (TAT) that there was “no requirement that the taxpayer actually dwell in [an] abode, but simply that he maintain it” when determining whether the taxpayer maintained a permanent place of abode (PPA), a prerequisite to statutory residency for nondomiciliaries (Matter of Gaied v. New York State Tax Appeals Tribunal).
  • To Throwback or Not to Throwback: California Nexus and Allocation Rules

    By:
    Brian Gordon, CPA
    |
    Apr 1, 2014
    The first thing a company must determine is whether it is required to file a California tax return. One longstanding part of California’s nexus law seemed simple: companies conducting business for profit in California had to file a tax return. But beginning in 2011, California established new economic nexus rules that made this process more complex.
  • Feared PFIC Regs Get New Twist - Tax Stringer March 2014

    By:
    Lisa S. Goldman, CPA, and Thomas V. Ruta, CPA
    |
    Mar 1, 2014
    Late last year, the IRS released Temporary Regulation 1.1298-1T under IRC Section 1298(f) dealing with the complicated and troublesome rules surrounding passive foreign investment companies (PFICs). These new regulations require certain U.S. taxpayers who own shares in PFICs to report information about their investments on an enhanced Form 8621. The rules also have a complex history, and CPAs practicing in the international arena should pay close attention to the fine print.
  • The Nitty-Gritty of the ACA

    By:
    Daniel G. Mazzola, CPA, CFA
    |
    Mar 1, 2014
    The Affordable Care Act has received a lot of political attention, regarding the everything from controversial mandates to difficulties signing up to political opposition. But after a Supreme Court ruling, it’s undeniably here, and the more they know, the more CPAs can help their clients. Below is a brief summary and some examples of the major provisions of the ACA.
  • With Net Investment Income, as Many Questions as Answers

    By:
    Mary Ho, CPA
    |
    Mar 1, 2014
    Life has become both more complex and simpler for the investor, thanks to the release of the much anticipated final net investment income (NII) tax regulations last November, along with a new set of proposed regulations that provide guidance on the computation of net investment income. Although the regulations clarify many issues, the rules can be complicated in its application and no doubt new questions will crop up as CPAs prepare returns in 2014.
  • Special Report: Important New York Initiatives to Fight Tax Fraud

    By:
    Mark S. Klein, Esq. and Ariele R. Doolittle, Esq.
    |
    Feb 1, 2014
    The New York State Department of Taxation and Finance has begun mining an unprecedented amount of readily-accessible data to help identify and stop potential tax cheats. The goal is to provide the greatest rate of return on the department's data and hardware investment. Or to put it in the vernacular, to make sure every person and every company pays every dime they owe.
  • New Rules Reinstating Tax Exempt Status—Retroactively

    By:
    David A. Shuster, JD, LLM
    |
    Feb 1, 2014
    Has there been any good news lately for organizations that have had their exempt status automatically revoked for failing to file required annual returns or notices for three consecutive years? Well, 2014 began with a resounding "yes." A new Revenue Procedure will make it easier for organizations to regain their exempt status retroactively to the date of revocation so that, in effect, there is no lapse in exempt status.

Tax Quote

“I shall never use profanity except in discussing house rent and taxes.” 


- Mark Twain

Death, taxes and childbirth! There's never any convenient time for any of them.
*Outside the Box is a new addition to the TaxStringer featuring important articles on financial and investment management topics by top authors who have expertise both inside and outside the realm of taxation.

 

 

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