• 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.
  • Defending New York Residency Audits that Target Capital Gains

    By:
    Jack Trachtenberg, Esq.
    |
    Feb 1, 2014
    It is no secret that New York maintains one of the most aggressive residency audit programs in the country. By some accounts, the New York State Department of Taxation and Finance generates more than $300 million per year in personal income tax revenue to a large extent by challenging the residency status of taxpayers who claim to have made their homes in other states. The largely subjective nature of the inquiry, combined with a high burden of proof for the taxpayer and frequent lack of available records to meet that burden of proof, feeds the aggressiveness of the department’s efforts to collect revenue. CPAs should be aware of the department's history and policies in this area.
  • Foreign Investment in the U.S.: A FIRPTA Introduction

    By:
    Alicea Castellanos, CPA, TEP
    |
    Jan 2, 2014
    They love us overseas. Yes, foreign investors want to buy U.S. real estate because of the weakening dollar, but there's more to it than that: The United States offers economic and legal transparency, backed by appropriate legal protections and a predictable regulatory environment. It’s no wonder that according to a 2013 survey from the Association of Foreign Investors in Real Estate (AFIRE), four of the five top global cities for investment are in the United States. But to take advantage of such desirable opportunities, investors, and the CPAs who serve them, need to familiarize themselves with the complex tax rules.
  • Executive Compensation Limits under NYS Executive Order #38

    By:
    James E. Rocco Associates, Inc.
    |
    Jan 1, 2014
    In January 2012, New York Governor Andrew Cuomo issued Executive Order #38 (“EO38”), the latest in a series of regulatory actions to curb the use of public funds for excessive administrative expenses or executive compensation in exempt organizations. The rules are strict--and complex.
  • Planning for the ACA Net Investment Income Tax

    By:
    Chad L. Reyes and Cliff C. Keeling
    |
    Jan 1, 2014
    Somewhat overlooked in the Supreme Court’s decision upholding the Patient Protection & Affordable Care Act—“Obamacare”—is the fact that individuals, trusts and estates will be subject to a new 3.8 percent healthcare surtax on “passive investment income” effective as of Jan. 1, 2013.
  • Tanenblatt v. Commissioner: Valuation Methods in Real Estate

    By:
    Martin Greene, CPA/ABV, ASA
    |
    Jan 1, 2014
    Tanenblatt v. Commissioner involved the fair market value of a 16.67 percent minority membership interest in a New York LLC whose principal holding was a commercial building. The resulting decision has important implications for the valuation—and taxation—of real estate and the use of experts.
  • Tax Implications of Foreign Pension Plan Participation

    By:
    By James Cassidy, CPA
    |
    Mar 1, 2012
    As a result of IRS offshore compliance initiatives, recently enacted legislation, and new informational reporting requirements, tax preparers and U.S. participants in foreign pension plans must carefully evaluate how a foreign-based retirement plan is structured and valued. Because many U.S. citizens who have repatriated or are currently residing and working abroad, as well as foreign nationals currently residing in the United States, either have retirement assets abroad or are currently participating in a foreign plan, practitioners and taxpayers should evaluate the reporting requirements, follow guidance for preparing accurate tax and information returns and strive to minimize both taxes and onerous penalties.

 
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