Latest Articles

  • Doing Business in New York: The Post-Pandemic Tax Landscape

    By:
    Elizabeth Pascal, JD, and Katherine Piazza
    |
    Oct 1, 2021
    Over the past 18 months or so, we’ve been writing and speaking about the ways in which the COVID-19 pandemic has precipitated or hastened many changes that businesses were already facing:  reimagining the workplace; relocating offices and their owners; and operating within an increasingly complex multistate tax and compliance landscape.
  • College Tuition and the Pandemic Impact in New Jersey

    By:
    Mark H. Levin, CPA, MS (Taxation)
    |
    Oct 1, 2021

    On June 29, 2021, New Jersey Governor Phil Murphy signed P.L. 2021 Ch. 128, the New Jersey College Affordability Act (CAA). The CAA makes several changes to the gross income tax, the aim of which is to make a college education more affordable to New Jersey taxpayers.

  • Gift Tax Return Tips

    By:
    Joy Matak, JD, LLM, Steven B. Gorin, CPA, Esq., CGMA, and Martin Shenkman, CPA, MBA, AEP, JD
    |
    Oct 1, 2021
    Gift tax returns appear to be seductively simple. Failure to file a gift tax return timely and disclose transactions “in such return, or in a statement attached to the return, in a manner adequate to apprise the Secretary of the nature of such item” in accordance with regulations that impose specific requirements for “adequate disclosure” can delay the tolling of the statute of limitations.
  • New Planning Opportunities for Inherited IRAs

    By:
    Kenneth Horowitz, CLU, ChFC, RICP
    |
    Oct 1, 2021

    The impact of the SECURE Act of 2019 has created a game change for high-net-worth clients. The Setting Every Community Up for Retirement (SECURE) Act requires beneficiaries of inherited IRAs to withdraw all assets of the IRA account within 10 years in most cases. This can create a significant income event resulting in giving back most of the income tax benefits accumulated over the years. Additionally, post-death control and resulting lack of asset protection is greatly minimized.

  • Federal and Tri-State Area Income Tax Treatment of Amortizable Bond Premium

    By:
    David M. Barral, CPA/PFS, CFP®, MS (taxation)
    |
    Sep 1, 2021

    A bond investor generally recognizes two characters of income during the bond’s term: interest income from the coupon payments, and a capital gain/loss when the bond matures (or is disposed of). During the bond’s term, they may have to address any Amortizable Bond Premium (ABP) for income tax purposes. ABP is equal to the excess of the purchase price over the face/par value, and is typically incurred when the interest rate on the bond is paying more than the prevailing interest rates on bonds.

  • Recent Administrative and Judicial Developments in IRS Appeals

    By:
    Frank G. Colella, Esq., LLM, CPA
    |
    Sep 1, 2021
    Since enactment of the Taxpayer First Act (TFA) in July 2019, the IRS has issued subregulatory guidance to implement the major new provisions affecting appeals, including a memorandum on taxpayer access to the appeals office and a memorandum on taxpayer access to case files prior to scheduled appeals conferences.  In addition, recent court decisions have also dealt with appeals-related issues, including challenges over the scope of the right to appeal under the TFA.
  • The Decision to Transfer One’s Residence to Loved Ones or a Trust Requires Consideration of Many Factors

    By:
    Anthony J. Enea, Esq.
    |
    Sep 1, 2021
    Clients regularly call and advise me that they have decided to take steps to protect their home and/or vacation home for long-term care purposes. However, the decision to do so raises a number of significant and complex issues and concerns for both the attorney and client; for example, every potential transfer creates estate and gift tax, capital gains tax as well as Medicaid eligibility issues for the client, particularly a senior. A complete and thorough review of all available options should be made prior to making the transfer.  
  • International Activities Conducted by Tax-Exempt Organizations, Center of Attention at the Internal Revenue Service

    By:
    Eva Mruk, CPA, EA, and Garrett M. Higgins, CPA
    |
    Sep 1, 2021

    International activities conducted by tax-exempt organizations have been a high-focus area for decades. Today, this subject continues to be a high enforcement priority for the IRS, who actively seeks to ensure that foreign assets and expenditures are used for charitable purposes. Tax laws prohibit the diversion of charitable assets to any noncharitable purpose; this includes financial support of terrorist organizations and activities. Needless to say, cooperation and partnerships with other federal agencies are crucial to combat the existing abuses in this area.

  • Minimizing the Risks of a New York State Residency audit After COVID

    By:
    Karen Tenenbaum, Esq., LLM. (Tax), CPA
    |
    Aug 1, 2021
    COVID-19 caused millions of people to make a change in where and how they were living. To get away from crowds, they left cities in favor of the suburbs. Others sheltered in place free of the obligation to travel to an office. In many cases, this did not affect their taxes. However, where taxpayers lived and worked in different states, an opportunity arose to revisit their taxes. 
  • The Double-Tax Whipsaw: Some Problems with Resident Credits

    By:
    Elizabeth Pascal, JD and Ariele R. Doolittle, Esq.
    |
    Aug 1, 2021
    We would like to think that states give their residents a full tax credit for taxes paid to other state jurisdictions so that individuals won’t be subject to double taxation. Although this is often the case—for example, a state gives its resident a credit for taxes paid to a neighboring state on wages earned there—it isn’t always the case.
Tax Quote
  

“Accountant after reading a nursery rhyme to his child: “No, son. It wouldn't be tax deductible when Little Bo Peep loses her sheep. But I like your thinking.”

 – Unknown

*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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