Latest Articles

  • The Deemed Realization Proposal in the Biden Administration’s “Green Book”

    By:
    Kevin Matz, Esq., CPA, LL.M. (Taxation)
    |
    Jul 1, 2021
    On May 28, 2021, the U.S. Treasury Department released its General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals (which is popularly called the “Green Book”). Significantly, the Green Book does not propose any changes to federal estate and gift taxes—in stark contrast to the previous Green Book that the Obama administration had released back in 2016, which had proposed vast changes to the estate and gift tax system.
  • New Power of Attorney Law

    By:
    Pauline Yeung-Ha, Esq.
    |
    Jul 1, 2021

    For over a decade, New Yorkers have been using the New York State Statutory Short Form Power of Attorney (“2010 POA”) which also contained the Statutory Gifts Rider. The implementation and execution of the 2010 POA have been confusing and complex for most New Yorkers. 

  • New York Cybersecurity Laws and Regulations

    By:
    Andrew M. Garlick
    |
    Jul 1, 2021

    The first computer virus appeared shortly after Apple introduced its first computer in the 1970s. In the early 1980s after the PC was introduced, viruses immediately followed. Some of the early malware did no real damage–they were created just to prove it could be done. Yet some did real damage, and the history of malware began.

  • Buy-Sell Agreements: The Accountant’s Holistic Primer Part 2

    By:
    Joshua P. Friedlander, Matthew E. Rappaport, Esq., LLM and Daniel J. Gershman, JD
    |
    Jun 1, 2021

    For companies where ownership is vested exclusively in one individual, there is often a need to address continuity of the company in the event of the sole owner’s death or incapacity. The surviving spouse of an owner may not want to be encumbered with a business foreign to him, and an unclear line of succession could lead to in-fighting or panicking among employees at all levels of the business; in this way, an asset that has produced income for loved ones in the past now becomes a potential liability. 

  • Section 958(b)(4) Repeal and the Proliferation of the Constructive CFC

    By:
    Summer A. LePree, Esq., JD, LLM (taxation) and Jeffrey L. Rubinger, Esq., JD, LLM (taxation), CPA (inactive)
    |
    Jun 1, 2021
    The impact of the Tax Cuts and Jobs Act (TCJA) was particularly significant in the cross-border context, where taxpayers and practitioners saw drastic changes come into effect almost overnight. One of the most disruptive and wide-reaching changes was the repeal of Section 958(b)(4), which historically had prevented the downward attribution of stock from foreign persons to U.S. entities in the context of the U.S. controlled foreign corporation (CFC) provisions.
  • "The IRS Decries No More Chances: Removal of the Delinquent Information Submission Procedure"

    By:
    Alicea Castellanos, CPA
    |
    Jun 1, 2021
    In a recent article, there was a discussion of the IRS offshore voluntary disclosure program (OVPD). In a metaphorical comparison, the IRS Wealth Squad was likened to the famed Mod Squad of the popular ‘70s television series. Both squads had a mission to accomplish, with the IRS mission to bring taxpayers into compliance with their reporting requirements for foreign income, accounts, and assets. 
  • Retirement Plan Distributions – New Guidance From The Department of Labor

    By:
    David A. Guadagnoli, Esq., JD, LLM (taxation)
    |
    Jun 1, 2021
    Whether you audit retirement plans, assist employers or individual clients with retirement benefits or are responsible as a fiduciary for your own retirement plan, you know that the proper distribution of benefits is at the very heart of tax-favored retirement plans, which broadly encompass Section 401(k) and 403(b) plans, profit sharing plans, employee stock ownership plans (ESOPs), defined benefit plans, and various other forms of plans, programs, and arrangements.
  • Buy-Sell Agreements: The Accountant’s Holistic Primer, Part 1

    By:
    Joshua P. Friedlander, Matthew E. Rappaport, Esq., LLM, and Daniel J. Gershman, JD
    |
    May 1, 2021
    This is the first of a two-part article on buy-sell agreements. The second part will be featured in the June TaxStringer.

    Most accountants are familiar with the concept of Buy-Sell Agreements, and after practicing long enough, most accountants are involved in planning several Buy-Sell Agreements and administering at least a few of them. Buy-Sell Agreements create the mechanism for an entity and its owners to experience an orderly transition of equity ownership and governance upon a wide range of events that might include death, disability, retirement, voluntary withdrawal, or an impasse among the owners.
  • How to Determine the Section 199A Deduction for Your Client

    By:
    Cameron Williams, CPA
    |
    May 1, 2021

    The qualified business income (QBI) deduction under Internal Revenue Code (IRC) Section 199A introduces challenges and benefits for owners of pass-through businesses. Although the deduction can provide a significant tax opportunity, navigating the many rules and limitations associated with it can be complicated and time consuming. Here, learn key applications and requirements when determining the QBI deduction for taxpayers who receive QBI from multiple sources, such as Schedule K-1s and rental properties.

  • FDII Qualification and Substantiation Requirements in the Final 250 Regulations

    By:
    Fernando Lopez, JD, MBA
    |
    May 1, 2021

    Enacted by the Tax Cuts and Jobs Act of 2017, IRC Section 250 (Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI)) provides a favorable 50% U.S. tax deduction to shareholders of controlled foreign corporations (CFCs) on their GILTI deemed dividends.  In addition, Section 250 provides domestic C corporations a favorable 37.5% deduction on Foreign Derived Intangible Income that is derived from serving foreign markets via sales, services and licensing. This article primarily addresses issues related to the FDII deduction.

Tax Quote
  

A person doesn't know how much he has to be thankful for until he has to pay taxes on it.

 – Ann Landers

*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.

 

 

Interested in writing for the TaxStringer? Click here for Submission Guidelines and contact TaxStringer@nysscpa.org.


 
Views expressed in articles published in Tax Stringer are the authors' only and are not to be attributed to the publication, its editors, the NYSSCPA or FAE, or their directors, officers, or employees, unless expressly so stated. Articles contain information believed by the authors to be accurate, but the publisher, editors and authors are not engaged in redering legal, accounting or other professional services. If specific professional advice or assistance is required, the services of a competent professional should be sought.