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Tax Court Case Highlights New Jersey Inheritance Tax “3-Year Rule” (6/12/2017) by Glenn A. Henkel, Esq. -   Much has been written about the pending repeal of the New Jersey Estate Tax in 2018. As is usually noted, the repeal of the estate tax does not have an effect on the New Jersey inheritance tax, which will remain in effect. The New Jersey inheritance tax will not […]
Can a Partner/LLC Member be Treated as an Employee? (6/7/2017) by Arthur A. DiPadova, Esq. -   We are often asked whether an LLC, which is treated as a partnership for income tax purposes, can pay a member as an employee on a W-2 rather than simply making gross distributions from which the member pays self-employment taxes and makes quarterly estimated payments for income taxes.  The […]
Haas Presents Extreme CLE ’17 (5/22/2017) by Gina DiMaio -   K&D associate, Briele Haas, was among a group of speakers who took part in the Camden County Bar’s successful CLE program “Extreme CLE ‘17”, on March 24, 2017. Mrs. Haas presented the program on IRA’s and Estate Planning. The one-day event, which offered 16 programs, gave attorneys the opportunity to earn […]
Key Estate Planning Concepts for International Clients (4/18/2017) by Patrick J. McCormick, Esq. - K&D associate, Patrick J. McCormick, authored the below article, “Key Estate Planning Concepts for International Clients”, which will appear in the forthcoming June 2017 issue of Estate Planning, a nationally recognized journal published by Thomson Reuters, and again in a Summer 2017 issue of the Journal of International Taxation, also published […]
New Jersey Estate Tax Repeal: What You Need to Know! (3/10/2017) by Glenn A. Henkel, Esq. - Glenn A. Henkel authored the following article “New Jersey Estate Tax Repeal: What You Need to Know!” which has been featured in the March 2017 (Vol. 65, No. 7) issue of The Barrister, a monthly circular published by the Camden County Bar Association. Last October, Governor Christie signed legislation raising the state’s […]
PODCAST: When Civil Tax Cases Become Criminal (3/6/2017) by Patrick J. McCormick, Esq. -   K&D associate, Patrick J. McCormick recently recorded a podcast, “When Civil Tax Cases Become Criminal“, with the Pennsylvania Institute of Certified Public Accountants on basics of criminal tax exposure. From the PICPA website: “Civil tax failures that elevate to criminal tax exposure is a scary thought for CPA practitioners. […]
Changes to the New Jersey Tax Laws Warrant Immediate Attention! (2/6/2017) by Glenn A. Henkel, Esq. - Glenn Henkel’s most recent article, Changes to the New Jersey Tax Laws Warrant Immediate Attention!, originally appeared in the Philadelphia Estate Planning Council’s Winter Newsletter Vol. XXVI, No. 2., posted on January 12, 2017. Mr. Henkel is currently a member of the Board of Directors of the Philadelphia Estate Planning Council, a […]
IRS Releases Notice 2016-66 To Further Contest Small Captive Structures (11/15/2016) by Patrick J. McCormick, Esq. - On November 1, 2016, the Internal Revenue Service released Notice 2016-66, identifying “micro-captive transactions” (including certain small captive insurance companies) as transactions of interest.  Involvement in such transactions can, under Treas. Reg. § 1.6011-4, necessitate heightened reporting requirements, both for participants and for their advisors.  More important from an overarching […]
NJ Estate Tax Repealed, Whats Next? (11/1/2016) by Glenn A. Henkel, Esq. - On October 14th, New Jersey Governor Chris Christie signed legislation raising the state’s gas tax by 23 cents per gallon, from the 49th highest in the nation to the sixth, to help replenish the state’s expired transportation trust fund. As a trade off, the bill will lower the New Jersey […]
Use of Trusts in Planning for Possible Divorce of Trust Beneficiary- MASSACHUSETTS CASE: PFANNENSTIEHL (10/21/2016) by Glenn A. Henkel, Esq. -   BACKGROUND One common discussion point clients ask about is “What can I do to protect my child’s inheritance (or gift) due to a child’s bad marriage?” In that discussion, clients can consider placing assets in a trust because the assets maintained in the trust should receive more protection. The […]
OVDP or Streamlined: Choosing an Offshore Disclosure Program (7/25/2016) by Patrick J. McCormick, Esq. - Patrick McCormick published a featured article in the July 11, 2016 edition of Tax Notes International, the most-cited international tax journal in the United States.  The article, republished with permission from Tax Notes International, can be downloaded in PDF format using the link below. Click Here to download the full […]
Pending Legislative Update (6/24/2016) by Kulzer & DiPadova, P.A. - A proposal to phase out the New Jersey estate tax passed Senate and Assembly committees on June 23. The proposal would increase the New Jersey estate tax exemption from $675,000 in 2016 to $1 million for 2017 decedents, $2 million for 2018 decedents and $3 million for 2019 decedents. After 2020, the State’s estate […]
Directed Trusts – Jewel Inside the UTC (4/1/2016) by Glenn A. Henkel, Esq. - The following article written by K&D shareholder, Glenn A. Henkel, and was recently featured in The Barrister (April 2016, Vol. 64, No. 9)  published by the Camden County Bar Association. On January 19, 2016, Governor Christie signed Assembly Bill 2915/Senate Bill 2035, known as the “Uniform Trust Code” (“UTC”), as Chapter 276, […]
The New Jersey UTC: The Time Has Come (1/26/2016) by Glenn A. Henkel, Esq. - The following article by K&D shareholder, Glenn A. Henkel, was originally published in the New Jersey Law Journal on July 24, 2014. The Uniform Trust Code was fully enacted in New Jersey on January 19, 2016, and will go into effect on July 17, 2016. Mr. Henkel, a main advocate […]
New Partnership Level Audit Rules (12/16/2015) by Arthur A. DiPadova, Esq. - On November 2, 2015, the President signed into law the Bipartisan Budget Act of 2015 (the “Act”).  The Act had numerous provisions, none of which relate to tax except almost the very last provision which now provides new rules for auditing partnerships.  Under the Act, absent elections discussed below, all […]
New Code Section 7345 Could Jeopardize Passports for Taxpayers with Significant Tax Debts (12/10/2015) by Patrick J. McCormick, Esq. - On December 4, 2015, President Obama signed into law the “Fixing America’s Surface Transportation Act” (officially labeled the “FAST Act”) – P.L. 114-94.  The bill’s primary takeaway is a 5-year, $305 billion plan to modify and modernize American transportation systems.  However, hidden within the bill is a new Internal Revenue […]
Tax Court Upholds Farmer’s Current Year Deduction for Packing Materials Used in Subsequent Year (8/20/2015) by Michael A. Kulzer, Esq. - Agro-Jal Farming Enterprises, Inc. is a family owned farming corporation that produces strawberries and vegetables (the “Taxpayer”).  The Taxpayer deducted the amounts paid for the packing materials in the year they were purchased even though they were not used until the following year.  The IRS claimed that the Taxpayer was […]
Tax Court Upholds IRS Allocation of NOL Among Members of Consolidated Group (8/20/2015) by Michael A. Kulzer, Esq. - Four members of Marvel Entertainment Consolidated Group had Cancellation of Indebtedness (“COD”) income totaling $171,000,000 under IRC Section 108.  The Taxpayer took the separate entity approach in reducing the group’s net operating loss carryforward by the amount of COD income.  The Taxpayer first allocated to the four members their share […]
IRS To Focus Criminal Investigations On Employment Tax Cases (5/22/2015) by Michael A. Kulzer, Esq. - Rebecca Sparkman, the Director of the IRS Criminal Investigation Division, said that criminal investigations will devote additional resources to employment tax cases.  Employment tax cases are ones where the responsible person withholds income and employment taxes from its employees but does not remit the withheld funds to the United States […]
Reasonable Compensation for Personal Service Corporations (4/13/2015) by Dan Mellor, Esq. - In Midwest Eye Center, S.C. v. Commissioner, T.C. Memo. 2015-53, the Tax Court held that $1 million of a $2 million bonus paid to the physician sole shareholder of a personal service C corporation was a non-deductible dividend distribution. Factual Background. The taxpayer, Midwest Eye Center, Inc. (“Midwest”), was a […]