Latest Articles

  • Estate Planning for Founders and Investors in Venture-backed Companies: Transfers of Qualified Small Business Stock by Gift

    By:
    Michael S. Arlein and Brian M. Sweet
    |
    May 1, 2020
    Congress first enacted IRC section 1202 in 1993 to encourage investment in specific types of small businesses by providing an exclusion of certain gain from the sale or exchange of qualified small business stock (QSBS). The original benefits of IRC section 1202 attracted moderate attention, but those benefits were significantly enhanced in subsequent decades, most notably under the Small Business and Jobs Act of 2010.
  • Penalty Avoidance: When Can Taxpayers Rely on Their Advisors?

    By:
    Ellen S. Brody, JD, Esq., CPA and Menahem M. Grossman, Esq.
    |
    May 1, 2020
    The IRC imposes various penalties on taxpayers who fail to comply with the obligations it sets forth for them. However, taxpayers can often avoid penalties if they can prove that their failure was due to reasonable cause and that they acted in good faith [IRC section 6664(c)(1)].
  • Tax Exemption: What Nonprofit Executives, Board Members, and Auditors Need to Know (Part 2 of 2)

    By:
    Allen L. Fetterman, CPA, MBA
    |
    May 1, 2020
    Published in the April issue of TaxStringer, part 1 of this series provided a beginning overview of the basics of tax exemption. This article will continue that discussion, focusing especially on tax exemption with respect to jeopardizing tax-exempt status, lobbying, the Form 990 series, and state laws.
  • Telecommuting During and After COVID-19: What Every Employer Should Know

    By:
    Elizabeth Pascal, JD and Emma Savino
    |
    Apr 1, 2020

    Last month, the TaxStringer published our article, The Multistate Tax Implications of a Mobile Workforce, on various tax considerations facing employers with an increasingly mobile workforce. How the world has changed in just a few weeks!

  • Tax Exemption: What Nonprofit Executives, Board Members, and Auditors Need to Know (Part 1 of 2)

    By:
    Allen L. Fetterman, CPA, MBA
    |
    Apr 1, 2020

    Many nonprofit executives, board members, and their auditors are familiar with Form 990—some auditors might even prepare it. Yet many of these professionals don’t know enough about what needs to be done to obtain and maintain tax-exempt status, and they’re not aware of actions that could jeopardize that status. For that reason, this discussion provides a beginning overview of the basics of tax exemption—and will be continued in an upcoming article in next month’s TaxStringer.

  • IRC Section 1202 Ignites Investor Interest

    By:
    Amy Bloom, CPA
    |
    Apr 1, 2020
    Alan Patricof, a vanguard in the venture capital industry, was instrumental in the enactment of IRC section 1202 as part of the Revenue Reconciliation Act of 1993 in order to encourage investment in small businesses. IRC section 1202 only applies to stock in C corporations, and initially it did not receive a lot of attention. Since its enactment, though, it has undergone several changes. The 2017 Tax Cuts and Jobs Act (TCJA), however, reduced the corporate tax rate from 35% to 21%, making operating as a C corporation more attractive to investors.
  • The IRS’s Offshore Voluntary Disclosure Program Has Ended—Now What?

    By:
    Christopher M. Ferguson
    |
    Apr 1, 2020

    On Sep. 28, 2018, the IRS’s Offshore Voluntary Disclosure Program (OVDP) came to an end; however, offshore tax and reporting noncompliance persists in today’s increasingly global economy. Tax advisors are still helping clients who have been—or continue to be—noncompliant with their offshore tax and reporting obligations. This Q&A addresses some of the common issues that taxpayers and their advisors are dealing with in a post-OVDP world.

  • A Primer on Qualified Business Income under IRC Section 199A

    By:
    Dean L. Surkin, JD, LLM
    |
    Mar 1, 2020
    The 2017 Tax Cuts and Jobs Act (TCJA) allows owners of pass-through entities and sole proprietors to deduct a portion of their qualified business income (QBI), codified in IRC section 199A. In general, the deduction is the lesser of 20% of qualified business income or the greater of 50% of W-2 wages or the sum of 25% of W–2 wages with respect to the qualified trade or business and 2.5% of the unadjusted basis immediately after acquisition of all qualified property.
  • Automobiles under the Tax Cuts and Jobs Act of 2017

    By:
    Ellen S. Brody, JD, CPA, Esq., and Cory M. Paul, JD
    |
    Mar 1, 2020

    The Tax Cuts and Jobs Act (TCJA) has dominated headlines since its passage in late 2017. More than two years later, the tax and accounting community are still trying to implement all of its changes, as final regulations are issued piecemeal for various IRC provisions modified by the TCJA. While much press coverage is given to clarifications of big-ticket items, such as qualified opportunity zones and the long-term effects of the TCJA as a whole, it is important to remain aware of the myriad smaller changes that were also enacted.

  • The Multistate Tax Implications of a Mobile Workforce

    By:
    Mark Klein and Emma Savino
    |
    Mar 1, 2020

    In 2019, Americans took an estimated 470 million domestic business trips, and spent more than $327 billion on business travel, which has increased year after year. In fact, global business travel is forecasted to increase by 6.9% in 2020. Surveys suggest that 85% of companies have employees who work outside their resident jurisdiction—and more employees are travelling away from their home business location than ever before.

Bonus Article on Federal Taxation

The Infrastructure Investment and Jobs Act


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 – Conan O'Brien

*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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