News, Articles & Resources


The Tax Consequences of Expatriation (1/11/2018) by Patrick J. McCormick, Esq. - K&D shareholder Patrick J. McCormick authored “The Tax Consequences of Expatriation”, appearing in the November 2017 issue of the Journal of Taxation and the January 2018 Journal of International Taxation as their cover article.  Mr. McCormick specializes in all areas of international taxation, regularly assisting clients with all aspects of […]
Consider Prepaying 2018 Property Taxes by December 31, 2017 (12/26/2017) by Michael A. Kulzer, Esq. -   The Tax Cut and Jobs Act (the “Act”) limits the deduction for state property and income taxes to $10,000 per year starting in 2018.  Many taxpayers will be over that just for NJ income taxes and will get no benefit from paying property taxes going forward.  If that is […]
Comparison of House and Senate Versions of Tax Cuts and Jobs Act (12/4/2017) by Dan Mellor, Esq. -   On December 2, 2017, the Senate passed its version of H.R. 1, the Tax Cuts and Jobs Act.  While the bill must now go to conference committee to reconcile the differences between the House and Senate versions, the following chart summarizes the major provisions of the bill and where […]
Fundamentals of Probate Litigation (10/24/2017) by Dan Mellor, Esq. -   Administration Procedure and Timing According to an article in the AAA Dispute Resolution Journal, an estimated $41 trillion of wealth will be transferred from the “Greatest Generation” to their children, the Baby Boomers, between 1998 and 2052.  This massive transfer of wealth through estates both large and small has […]
October is the Right Time to Consider Property Assessment Appeals (10/17/2017) by Eric Feldhake, Esq. - October 1 is the time of year the fair value of property is assessed for the following year, providing essentially the “snapshot” of fair value for the 2018 property assessment. Additionally, municipal budgets for the next tax year are typically set in December, making this time of year particularly opportune […]
Reform or Repeal – Regulations Identified as Imposing Undue Burden on Taxpayers (10/3/2017) by Kristin Schmid, Esq. - The Secretary of the Treasury has identified eight regulations that it intends to modify or repeal as instructed by Executive Order 13789.  Under the Executive Order, the Treasury was given sixty (60) days to review all “significant tax regulations” issued on or after January 1, 2016 in order to identify […]
International Reporting Failures Create Penalty and Statute of Limitations Problems (9/14/2017) by Patrick J. McCormick, Esq. - An ever-growing number of businesses and individuals are going global. Familiarity with the U.S. tax forms that are necessary to properly disclose foreign assets and interests is thus paramount. Four critical forms – Foreign Bank Accounting Re-port (FBAR), 8938, 8621, and 3520 – are summarized, including applicable penalties. K&D associate, Patrick […]
A Whiff of Fraud? (8/30/2017) by James B. Evans, Jr. -   The New Jersey Tax Court recently addressed, for the first time, the State’s civil fraud tax penalty. The New Jersey Division of Taxation may impose a civil fraud penalty if any part of a state tax assessment is due to the taxpayer’s fraud. The penalty is 50% of the […]
IRS Announces Automatic Late Portability Election Relief for Eligible Estates IRS Announces Late Portability Election Relief for Eligible Estates (7/6/2017) by Briele N. Haas, Esq. - On June 9, 2017 the Internal Revenue Service (the “IRS”) published Revenue Procedure 2017-34 (“Rev. Proc. 2017-34”) to announce a new simplified procedure for particular estates to obtain an extension of time to file a federal estate tax return and make a “late” portability election. First introduced into federal law […]
Airbnb Rentals in New Jersey May Soon be Subject to Tax Christie Vetoes ‘Home-Sharing’ Tax Bill (6/27/2017) by Samantha Heaton, Esq. - UPDATE: On Friday, July 21, 2017, Governor Christie vetoed Assembly Bill No. 4587, which bill would have imposed State sales and use tax and hotel and motel occupancy fees on transient accommodations like those provided through Airbnb. In support of the veto, Governor Christie stated “I strongly believe that levying new […]
Tax Court Case Highlights New Jersey Inheritance Tax “3-Year Rule” Tax Court Case Highlights New Jersey Inheritance Tax “3-Year Rule” (6/12/2017) by Glenn A. Henkel, Esq. - Estimated Read Time: 3.7 minutes. 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 […]
IRS Can a Partner/LLC Member be Treated as an Employee? (6/7/2017) by Arthur A. DiPadova, Esq. - Estimated Read Time: 4.7 minutes. 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 […]
FBAR FBAR Penalty Assessment and Enforcement (5/31/2017) by Patrick J. McCormick, Esq. -   K&D associate, Patrick J. McCormick, authored the below article, “FBAR Penalty Assessment and Enforcement“. This article, published here with permission, will appear in the July 2017 issue of the Journal of International Taxation (Thomson Reuters/Checkpoint). Mr. McCormick specializes in the areas of international tax and tax compliance.   Introduction […]
Briele Haas 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 […]
Estate Planning International Clients 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 […]
tax amnesty Pennsylvania Tax Amnesty Begins April 21, 2017 (3/30/2017) by Samantha Heaton, Esq. - Estimate read time: 3.7 minutes. The Pennsylvania Department of Revenue (“Department”), through Act 84 of 2016, is offering a Tax Amnesty Program (“Program”) which will run for sixty (60) days, beginning on April 21, 2017 and ending on June 19, 2017 (the “Amnesty Period”). The Department will waive all penalties […]
new jersey New Jersey Estate Tax Repeal: What You Need to Know! (3/10/2017) by Glenn A. Henkel, Esq. - Estimated Read Time: 5.4 minutes. 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 […]
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. - Estimated Read Time: 10.9 minutes. 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 […]
sales tax Sales Tax Transition Rules (12/30/2016) by James B. Evans, Jr. - Estimated Read Time: 2 minutes. The New Jersey sales and use tax rate decreases from 7% to 6.875% beginning January 1, 2017. Effective January 1, 2018, the rate is further reduced to 6.625%. On and after January 1, 2017, but prior to January 1, 2018, sellers authorized to charge the […]
IRS Releases Notice 2016-66 To Further Contest Small Captive Structures (11/15/2016) by Patrick J. McCormick, Esq. - Estimated Read Time: 3.1 minutes. 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.  […]
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 […]
Tax Reporting Implications of Foreign Mutual Funds (9/15/2016) by Patrick J. McCormick, Esq. - Due to the increased prevalence of foreign mutual funds, tax practitioners should be familiar with the related reporting requirements. Patrick J. McCormick authored the below article in the September issue of Practical Tax Strategies, a national tax journal published by Thomson Reuters (and distributed electronically through RIA Checkpoint).  The following article […]
International Taxation: Common Forms, Requirements, and Hazards (8/15/2016) by Patrick J. McCormick, Esq. - Patrick J. McCormick authored the cover article of the August issue of Practical Tax Strategies, a national tax journal published by Thomson Reuters (and distributed electronically through RIA Checkpoint).  The following article has been republished with permission from Practical Tax Strategies. INTRODUCTION International tax is a rapidly expanding area, no […]
IRS Issues Final Regulations Eliminating the Need to Submit a Copy of an I.R.C. §83(b) Election with Tax Return. (8/8/2016) by Michael A. Kulzer, Esq. - The tax consequences of a transfer of property in connection with the performance of services is covered by I.R.C. §83.  In general terms, I.R.C. §83(a) provides that the fair market value of the property transferred over the amount of any payment for the property is included in the service provider’s […]
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 […]
REMINDER: Different Rules, Requirements, and Deadlines Can Apply for Taxpayers with Foreign Connections (4/14/2016) by Patrick J. McCormick, Esq. - As tax season winds down, individual taxpayers and their accountants usually breathe a large sigh of relief on April 15 (or, this year, April 18): Unless due dates for returns are properly extended, they will generally (and hopefully) be filed by the aforementioned deadline.  However, filing becomes more complicated for […]
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, […]
New “Repair Reg” Safe Harbor for Remodel-Refresh Expenses (2/10/2016) by Dan Mellor, Esq. - On November 19, 2015, the Internal Revenue Service issued Revenue Procedure 2015-56.   Rev. Proc. 2015-56provides certain retailers and restaurants a safe harbor method of accounting for remodel or refresh expenditures on qualified buildings, and helps eliminate confusion around which costs may be deducted immediately and which must be capitalized and […]
Other Recent NJ Estate Legislation (1/26/2016) by Glenn A. Henkel, Esq. - On January 19, 2016, Governor Christie signed 93 bills just before the 2014/2015 legislative session deadline ended.  Bills that were not signed by noon on January 19th would have expired and would have needed to be reintroduced in the new legislative session.  Nevertheless, among the bills signed are several affecting […]
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 […]
Extenders Package Makes Various Credits & Deductions Permanent (12/29/2015) by Dan Mellor, Esq. - On the morning of Dec. 18, the U.S. House of Representatives passed a $1.1 trillion spending bill and accompanying legislative package of tax extenders (the “Protecting Americans from Tax Hikes (PATH) Act of 2015”) by a vote of 316 to 113. A short time later, the U.S. Senate voted 56 […]
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 […]
NJ Reduces Sales and Use Tax on Boats and Vessels (12/14/2015) by James B. Evans, Jr. - On December 9, 2015, Governor Christie signed into law, as P.L. 2015, c. 170, Senate Bill 2784 which provides a partial exemption and maximum sales and use tax imposition for sales and uses of boats and vessels.  The new law also establishes 30-day grace period for use tax imposition on […]
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 […]
FATCA and the New Frontier in Offshore Reporting Enforcement (10/14/2015) by Patrick J. McCormick, Esq. - * This article originally appeared in the October 2015 issue of Practical Tax Strategies, published by Thomson Reuters. Checkpoint Contents, Federal Library, Federal Editorial Materials, WG&L Journals, Practical Tax Strategies/Taxation for Accountants (WG&L) Practical Tax Strategies, 2015, Volume 95, Number 04, October 2015, Articles, FATCA AND THE NEW FRONTIER IN OFFSHORE REPORTING ENFORCEMENT, Practical Tax Strategies, Oct 2015 […]
Tax Provisions from Congress’s New Highway Funding Bill (8/24/2015) by Kulzer & DiPadova, P.A. - On July 31, President Barack Obama signed the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, H.R. 3236, into law. The Act makes many important changes to the Internal Revenue Code. For example, it requires additional information be included on mortgage interest returns, modifies basis reporting and […]
Proposed Regulations Eliminate Need to File IRC Section 83(b) Election with Individual Income Tax Return (8/20/2015) by Michael A. Kulzer, Esq. - BACKGROUND Section 83(b) provides in general that if in connection with the performance of services property is transferred to the person performing the services, the excess of the fair market value of the property as of the first time the transferee’s rights in the property are transferable and not subject […]
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 […]
Draft of Revised Form 3115 Released (7/27/2015) by Dan Mellor, Esq. - On July 15, 2015, the IRS released a draft of a revised Form 3115, Application for Change in Accounting Method. Form 3115 is used for accounting method changes including those made to comply with the Tangible Property Regulations (“TPRs”) and those made for depreciation adjustments resulting from Cost Segregation studies.  Prior to […]
ALERT: Form BE-10 Required for Clients with Foreign Rental Real Estate By June 30, 2015 (6/17/2015) by Patrick J. McCormick, Esq. - In recent years, tax practitioners who have clients with foreign assets have been inundated with information regarding offshore filing requirements.  The vast majority of information publicized focuses on the FBAR filing requirement, with supplementary focus on forms required to be filed with a taxpayer’s Form 1040 (such as Forms 8938 […]
The Cadillac Tax: The End of Employer-Sponsored Healthcare? (6/16/2015) by Brian O'Neil, Esq. - Signed into law on March 23, 2010, The Patient Protection and Affordable Care Act, more commonly referred to as the Affordable Care Act (ACA) or Obamacare, represents a major overhaul of the United States healthcare system.  Leading up to the 2008 presidential election, then Senator Barack Obama promised to make […]
IRS Clarifies FBAR Penalty Assessment Amounts & Criteria for Agents (6/11/2015) by Patrick J. McCormick, Esq. - On May 13, 2015, the Internal Revenue Service issued SBSE-04-0515-0025, titled “Interim Guidance for Report of Foreign Bank and Financial Accounts (FBAR) Penalties.”  The issuance provides limitations for assessment of FBAR penalties under the vast majority of circumstances presented by taxpayers.  The issuance provides both clarity as to worst-case scenarios […]
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 […]
Duty of Care in Legal Malpractice Issues (5/19/2015) by Glenn A. Henkel, Esq. - Cottone v. Fox Rothschild, LLP, 2014 WL 4287002 (September 2, 2014), cert denied 220 NJ 207.   Eric Michaels, Esquire (Michaels) was the attorney for Robert Cottone (Cottone) in connection with several complex business transactions.  Cottone had sold his business “Brokerage and Insurance Consulting, Inc.” (BIC) and received an equity […]
Offshore Disclosures: How to Choose the Right Program for You (5/19/2015) by Patrick J. McCormick, Esq. - Taxpayers who uncover a retroactive need to file and amend returns in relation to offshore assets (based on failures to file forms such as FBARs and Form 8938, and failures to include income from foreign assets on Form 1040) are inundated with options regarding remedying their prior omissions.  Individuals who […]
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 […]
FBAR Filing: When is it Required? (4/2/2015) by Patrick J. McCormick, Esq. - One common refrain from taxpayers who hold foreign accounts and learn of the need to file an FBAR (FinCEN Report 114) years after the account was opened is that they never knew the FBAR existed.  Their initial knowledge can come from many sources: a newspaper report, an online article, an […]
In re Andolino: New Jersey Inherited IRAs Are Excluded from Bankruptcy Estate (4/2/2015) by Dan Mellor, Esq. -   An “inherited IRA” is an individual retirement account (“IRA”) that is left to a beneficiary upon the IRA owner’s death. If the IRA owner started receiving required minimum distributions (RMDs) at the time of his or her death, the beneficiary must continue to receive distributions from the inherited IRA […]
Interesting Developments Concerning Income Taxation of Resident and Nonresident Trusts (3/26/2015) by Glenn A. Henkel, Esq. - The Pennsylvania Department of Revenue recently changed its instructions for filing of an income tax return for trusts and estates.  While many people are aware that an individual must file Form 1040, a trust or estate will typically file IRS Form 1041. On the state level, corollary returns are prepared […]
Deadline Approaches for Local Real Property Tax Appeals (3/13/2015) by Dan Mellor, Esq. - Local real property taxes in New Jersey are assessed according to value.  A municipal assessor makes his or her determination of real property value as of each October 1. The tax assessor must notify each taxpayer of the current assessment and preceding year’s taxes by mail prior to February 1st […]
IRS Disagrees with Tax Court on Partner Excluding Debt Cancellation Income (2/20/2015) by Arthur A. DiPadova, Esq. - The IRS has recently announced a non-acquiescence in four Tax Court cases involving the cancellation of partnership indebtedness.  Generally, the discharge of indebtedness gives rise to gross income to the obligor.  However, Code Section 108 provides a number of exceptions.  Section 108(a)(1)(A) provides an exclusion if the cancellation of indebtedness […]
NJ Opportunity to Compete Act Affects Job Applications (2/18/2015) by Robert H. Williams, Esq. - On March 1, 2015 New Jersey’s Opportunity to Compete Act (the “Act”) will take effect. In essence the law restricts employers with 15 or more employees from inquiring, either verbally or in writing (e.g. employment application) about a potential employee’s criminal record. However, this restriction applies only during the initial […]
IRS Issues Relief from Repair Regulations and Form 3115 Filing Requirement for Small Taxpayers (Rev. Proc. 2015-20) (2/17/2015) by Dan Mellor, Esq. - On Friday, February 13, 2015, the IRS released an advance version of Rev. Proc. 2015-20, 2015-5 I.R.B. 450, that allows a “small business taxpayer” to make certain tangible property and dispositions changes in methods of accounting with an I.R.C. § 481(a) adjustment that takes into account only amounts paid or […]
K&D Sponsors Philadelphia Estate Planning Council Ethics forum (2/10/2015) by Kulzer & DiPadova, P.A. - Kulzer & DiPadova is a proud sponsor of this year’s Philadelphia Estate Planning Council Annual Ethics Forum. Hosted at the Union League, the program will take place on April 22, 2015. Attracting many estate planning professionals, this meeting is an annual meeting to focus on Ethical dilemmas that arise in […]
Notice 2015-9: Penalty Relief for Excess APTC Payments (2/4/2015) by Dan Mellor, Esq. - On January 26, 2015, the IRS released an advance copy of Notice 2015-9, 2015-6 I.R.B. 1, which provides certain penalty relief for taxpayers who have a balance due on their 2014 income tax return as a result of reconciling advance payments of the premium tax credit (as allowed for coverage […]
Bross Trucking Inc. v. Commissioner of Internal Revenue (1/29/2015) by Glenn A. Henkel, Esq. - T.C. MEMO 2014-107 (2014). Bross Trucking is a fascinating case from an estate planning perspective because it presents facts that occur frequently in the representation of family businesses and the planning issues confronting the entrepreneur.  In estate planning for families, advisors often encounter circumstances where the family business is growing, […]
Uncertainty Still Looms – Tax Increase Prevention Act of 2014 (1/20/2015) by Brian O'Neil, Esq. - With only two weeks remaining in 2014, Congress did the expected and passed the Tax Increase Prevention Act of 2014 (TIPA), with President Obama signing the Act into law soon thereafter.  For the 2014 tax year, TIPA extends certain business and individual tax breaks, most commonly known as the “extenders.” […]
Personal Service Corporation Flat Tax Rate Not Applicable to Consolidated Group Income (11/14/2014) by Michael A. Kulzer, Esq. - Under Internal Code Section 11(b)(2) the taxable income of a qualified professional service corporation is taxed at the flat tax rate of 35%.  The graduated rates of Internal Code Section 11(b)(1) do not apply.  In Applied Research Associates, Inc. et al. v. Commissioner, the Tax Court held that the graduated […]
Back-to-Back Loans Under Federal Regs (10/8/2014) by Michael A. Kulzer, Esq. - Background Corporate losses and deductions that can pass-through and be deducted by a shareholder are limited by I.R.C. §1366(d)(1). This limit is the shareholder’s total adjusted basis in the corporation’s stock and debt.  If a shareholder’s share of losses and deductions exceeds such basis, the excess losses are suspended and […]
Revised Streamlined Program Offers Resident Taxpayers Options Regarding Foreign Assets (7/28/2014) by Patrick J. McCormick, Esq. - On June 18, 2014, the Internal Revenue Service announced revisions to the Streamlined Domestic Offshore Procedures (the “Streamlined Program”).  The revised Streamlined Program offers reduced penalties for certain taxpayers with offshore reporting issues as compared to the higher penalties imposed under the Offshore Voluntary Disclosure Initiative (the “OVDI Program”).  The […]
Attorney Eric A. Feldhake Successfully Represents Client Before Pennsylvania Appellate Court (6/19/2014) by Eric Feldhake, Esq. - Attorney Eric A. Feldhake Successfully Represents Client in Real Estate Contract Litigation Before Pennsylvania Appellate Court   Toll Naval Assoc. v. Chun-Fang Hsu, PICS Case No. 14-0214 (Pa. Super. Jan. 30, 2014) Bender, J. (15 pages.) Eric A. Feldhake of Kulzer & DiPadova, P.A. appeared before the Pennsylvania Appellate Court […]
Powers of Attorney & IRS FBAR Reference Guide (6/3/2014) by Robert H. Williams, Esq. - FBAR Filing and Powers of Attorney: The recently published “IRS Reference Guide on the Report of Foreign Bank and Financial Accounts (FBAR)” explains the purpose of the FBAR, who must file, and provides a host of definitions relating to the FBAR regulations. Perhaps most notably, the reference guide explains that […]
Booth vs. Division of Taxation – Important Decision Effect New Jersey Planning (5/30/2014) by Glenn A. Henkel, Esq. -               BACKGROUND Booth vs. Director, Division of Taxation, 27 N.J. Tax 600, decided February 11, 2014 is a far reaching and significant opinion that will change the way tax planners view the “New” New Jersey Estate Tax.  The New Jersey Estate Tax, enacted in June 2002 for individuals passing […]
The New Jersey UTC – The Time Has Come (5/28/2014) by Glenn A. Henkel, Esq. - What is the Uniform Trust Code (UTC) and why should it be adopted in New Jersey? The Uniform Trust Code is, as the name denotes, an attempt to codify rules related to trust administration and planning.  It was originally proposed by the National Conference of Commissioners on Uniform State Laws […]
The Ship May Not Have Sailed: It May Not be Too Late to Make a Portability Election (5/8/2014) by Briele N. Haas, Esq. - Recently, the Internal Revenue Service provided estate representatives and their advisors additional time to revisit and reconsider making a “portability” election for Decedents passing away in 2011, 2012 and 2013 opening up additional post-mortem planning opportunities. The concept of “portability” was introduced in December of 2010 under the Tax Relief, […]
Tax Court Determines that a Trust Can Materially Participate (4/4/2014) by Arthur A. DiPadova, Esq. - by Arthur A. DiPadova On March 27, the Tax Court issued a decision in Frank Aragona Trust, et al. v Commissioner, 142 TC 9 (2014).  The case is very significant in that it held that a trust, through the activities of its trustees, could materially participate in an activity for […]
Kulzer & DiPadova, PA Estate Planning in a Decoupled State Post-ATRA for Married Clients Under the Federal Exclusion Amount (3/19/2014) by Glenn A. Henkel, Esq. - One of the more difficult challenges practitioners face is advising clients who are domiciled in decoupled states as to how to minimize state estate taxes and maximize the increases in available income tax basis to reduce the impact of the now higher capital gains taxes, all while addressing clients’ personal […]
Kulzer & DiPadova, PA THE IC-DISC (Interest-Charge Domestic International Sales Corporation) (3/19/2014) by Michael DeLaurentis - Background Tax incentives to exports have been a feature of the Internal Revenue Code for decades, as it relates to IC-DISC.  But considered by U.S. trading partners to be export subsidies, these incentives came into conflict with international free trade agreements.[i]  So the tax incentives have morphed over the years […]
New Jersey Institute for Continuing Legal Education Seminars (1/3/2014) by Kulzer & DiPadova, P.A. - Attorneys from Kulzer & DiPadova will be presenting at upcoming seminars this year. Glenn A. Henkel and Arthur A. DiPadova will be presenting at several New Jersey Institute for Continuing Legal Education seminars in the next few months. Mr. Henkel will be speaking at the 2014 Heckerling Institute Review on […]
New Jersey Society for Certified Public Accountants’ Annual Tax Seminars (12/27/2013) by Kulzer & DiPadova, P.A. - Attorneys from Kulzer & DiPadova are once again presenting in a series of seminars surrounding tax and law changes and updates. This year, James B. Evans, Jr., Daniel L. Mellor, Briele N. Haas, Patrick J. McCormick, Douglas R. Madanick, Joseph M. Kempter, Glenn A. Henkel and Michael A. Kulzer spoke […]
OVDP Allows Clients with Foreign Assets to Avoid Drastic Tax Consequences (6/14/2013) by Patrick J. McCormick, Esq. - In recent years, the Internal Revenue Service has amped up enforcement of rules regarding offshore accounts held by United States residents.  In many situations, parties who were unaware of reporting requirements can be assessed a crippling combination of back taxes owed, interest, and penalties.  In certain circumstances, criminal prosecution for […]
Estate Planning in New Jersey in 2013 (5/28/2013) by Glenn A. Henkel, Esq. - BACKGROUND The 2012 American Taxpayer Relief Act (“ATRA”), signed into law in 2013 (or, as a 2012 Act, on December 31, 2012) has dramatically changed estate planning in many ways.  The federal changes, an increased exemption of $5,250,000 per person and the concept of “portability” of estate tax exemptions, have […]
Built-In Gains Holding Period for 2012 and 2013 (4/12/2013) by Kulzer & DiPadova, P.A. - If a corporation that was previously a C-corporation files its S election after December 31, 1986 it is subject to the built-in gains tax under the Tax Reform Act of 1986.  As enacted, the tax was imposed on any built-in gain resulting from the sale of any assets owned at […]
American Taxpayer Relief for Business (2/7/2013) by Kulzer & DiPadova, P.A. - The recently enacted American Taxpayer Relief Act of 2012 (“ATRA”) includes a wide-ranging assortment of tax changes affecting both individuals and business.  On the business side, two of the most significant changes provide incentives to invest in machinery and equipment by allowing for faster cost recovery of business property. Enhanced […]
Limits on Deductions and Exemptions (2/7/2013) by Kulzer & DiPadova, P.A. - PEP limitations (Deductions and Exemptions) to apply to “high earners”.  Taxpayers claim exemptions for themselves, their spouses and their dependents.  Last year, each exemption was worth $3,800.  Under the new law, for tax years beginning after 2012, the Personal Exemption Phaseout (PEP), which had previously been suspended, is reinstated with […]
Social Security and Personal Income Taxes (2/7/2013) by Kulzer & DiPadova, P.A. - The Social Security tax rate on wages and self-employment income will revert to its previous rate of 6.2% for employees and 12.4% for self-employed individuals beginning January 1, 2013.  The Social Security tax rate for 2012 was 4.2% for employees and 10.4% for self-employed individuals. All wages and self-employment income […]
Permanent Estate Tax Relief (2/7/2013) by Kulzer & DiPadova, P.A. - One of the major elements to ATRA 2012 is the fact that it has finally given the estate and gift tax a permanent law upon which taxpayers can rely.  By way of background, the estate tax has been in a state of constant uncertainty since the 2001 tax law that […]
Healthcare Taxes (2/7/2013) by Kulzer & DiPadova, P.A. - Addressing Healthcare Taxes in 2013, new taxes included in the 2010 Patient Protection and Affordable Care Act will take effect, broadening the Medicare tax base for higher-income taxpayers by: Imposing an additional Hospital Insurance (HI) tax rate of 0.9 percent on earned income in excess of $200,000 for individuals and […]
Individual Tax Extender (2/7/2013) by Kulzer & DiPadova, P.A. - Tax Extender: Prior to the enactment of the American Taxpayer Relief Act of 2012 (“ATRA”), the potential expiration of a variety of credits and deductions caused individual taxpayers and tax return preparers to face unprecedented uncertainty for the 2012 and 2013 tax years which helped to carve the so-called “fiscal […]
Tax Rates on Capital Gains & Qualified Dividends (2/7/2013) by Kulzer & DiPadova, P.A. - For tax rates on capital gains and qualified dividends, the 2012 Act largely left intact the existing tax rates applied to long term capital gains and qualified dividend income that existed through the end of 2012, with an increase for high income individuals. Old Law Prior to the 2012 Act, […]
American Taxpayer Relief Act of 2012 Update (2/7/2013) by Kulzer & DiPadova, P.A. - Just in time to replace the expired 2011 “patch” for the Alternative Minimum Tax (“AMT”) the American Taxpayer Relief Act of 2012 (“ATRA”) permanently extends AMT relief while retroactively increasing the AMT exemption for 2012. The ATRA increases the AMT exemption for 2012 for unmarried individuals to $50,600; for married taxpayers filing […]
American Taxpayer Relief Act of 2012 ATRA (1/16/2013) by Kulzer & DiPadova, P.A. - Just in time to replace the expired 2011 “patch” for the Alternative Minimum Tax (AMT) the American Taxpayer Relief Act of 2012 (ATRA) permanently extends AMT relief while retroactively increasing the AMT exemption for 2012. The Wall Street Journal reported that “The bill represented the largest tax increase in the past […]
President Signs Small Business Tax Bill (11/20/2012) by Kulzer & DiPadova, P.A. - President Obama signed H.R. 5297, the Small Business Lending Fund Act of 2010 (click link to download). The bill includes eight new small business tax cuts – all effective immediately, and applying to small businesses’ taxes for 2010 – providing an immediate incentive for businesses to make new investments and expand. […]
NJ Announces Private Ruling Procedures (11/20/2012) by Kulzer & DiPadova, P.A. - Beginning September 15, 2010, the New Jersey Division of Taxation will initiate a private letter ruling procedure. The new procedure will allow taxpayers to obtain a written determination from the Regulatory Services Branch of the Division. The private rulings will be based on the law and Division policies in effect […]
NJ Voluntary Compliance Policy Improved (11/20/2012) by Kulzer & DiPadova, P.A. - New Jersey’s Voluntary Disclosure Policy Program allows certain taxpayers to come forward and file appropriate tax return(s), registration materials, and to pay outstanding tax obligations when they determine that their activity creates a taxable presence, or nexus, for New Jersey state tax purposes. The Division of Taxation has announced a […]
NJ Unclaimed Property Law Expanded (11/20/2012) by Kulzer & DiPadova, P.A. - New Jersey modified its unclaimed property laws to adjust the time periods for presumptions of abandonment, limit issuer imposed dormancy fees, and provide for related administration of certain unclaimed property.  The new law extends the state’s unclaimed property rules to “stored value cards” – more commonly known as gift cards, gift certificates and […]
President Homebuyer Credit Extension (11/20/2012) by Kulzer & DiPadova, P.A. - The Homebuyer Assistance and Improvement Act of 2010 (H.R. 5623) was signed on July 2, 2010, by President Obama. The bill permits first-time homebuyers to qualify for the $8,000 credit. It also allows who have lived for five years in their current residence to purchase a new home and receive a […]
Estate Planning in 2010 (11/20/2012) by Kulzer & DiPadova, P.A. - As 2009 drew to a close, most trust and estate practitioners believed that Congress would freeze the estate tax threshold at the 2009 exemption and rate structure of $3.5 million for estate planning in 2010.  This “fix” never happened! As a consequence, for individuals who pass away in 2010 there […]
IRS Voluntary Classification Settlement (11/20/2012) by Kulzer & DiPadova, P.A. - The Internal Revenue Service has announced a new Internal Revenue Service Voluntary Classification Settlement program that provides partial relief from federal employment taxes for eligible taxpayers that agree to prospectively treat workers as employees. The Voluntary Classification Settlement Program (VCSP) allows eligible taxpayers to voluntarily reclassify their workers for federal […]
NJ Bulk Sales Law Revised (11/20/2012) by Kulzer & DiPadova, P.A. - The NJ Sales Law was signed into law A-2748 by Governor Christie on September 14, 2011.  The new law exempts individuals, estates and trusts from bulk sales notification requirements that would otherwise apply to the purchasers of one- and two-family residential and certain seasonal rental properties.  Corporations, partnerships and  LLC’s involved in the purchase of one- and two-family […]
2011 Offshore Voluntary Disclosure Deadline (11/20/2012) by Kulzer & DiPadova, P.A. - In a news release, IR-2011-84, Aug. 8, the IRS reminds taxpayers that the August 31 Deadline is fast approaching for the second special voluntary disclosure deadline initiative of offshore accounts. U.S. taxpayers are running out of time to take advantage of a soon-to-expire opportunity to come forward and get their taxes current […]
December 2010 Tax Law Makes Estate Tax Changes (11/20/2012) by Kulzer & DiPadova, P.A. - On December 17, 2010 President Obama signed into law the “Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.”  The new law: Extends for two years the current income tax rates and other income tax rates commonly called the “Bush Tax Cuts.” Provides tax incentives to businesses Cuts […]
Partnership Filing Fee (11/16/2012) by Kulzer & DiPadova, P.A. - The Division has issued Technical Bulletin TB-55R which discusses the partnership filing fee.  In general, if a partnership has 3 or more owners and New Jersey source income or loss, it must pay a $150 per owner filing fee (to a maximum of $250,000). Due Date The filing fee must […]
Back Pay Withholding (11/16/2012) by Kulzer & DiPadova, P.A. - The Appellate Division held that an employer may deduct state and federal withholding taxes from back pay arbitration awards when a union employee is reinstated. The payments made as a direct consequence of the plaintiff’s employment constituted wages subject to federal and state withholding taxes.  Amalgamated Transit Union Local 880 […]
Diagnosing the AMA (11/16/2012) by Kulzer & DiPadova, P.A. - The alternative minimum assessment (AMA) was enacted as part of the 2002 Business Tax Reform Act.  The AMA requires taxable corporations to pay the greater of their New Jersey corporation business tax (CBT) regular liability or the AMA. For corporations subject to the regular CBT, the AMA rates were reduced […]
A Checklist for Changing Your Domicile (11/16/2012) by Kulzer & DiPadova, P.A. - Although it is a person’s subjective intent that establishes changing their domicile, taxing authorities and the courts may place substantial weight on objective factors. However, a list of objective factors does not reduce a domicile determination to a mathematical test. A change of domicile to another state may be challenged […]
Where Is Your State Tax Home? (11/16/2012) by Kulzer & DiPadova, P.A. - Where to live has traditionally been a decision based on personal factors such as quality of life and proximity to family and friends.  However, as state and local income and death tax rates rise, high income and high net worth individuals are increasingly asking “how do I change my tax […]
Treatment of Madoff Losses Under GIT Explained (11/16/2012) by Kulzer & DiPadova, P.A. - The New Jersey Division of Taxation has revised a previously reported notice clarifying how taxpayers should report losses from the Bernard Madoff Ponzi scheme for purposes of the gross (personal) income tax. In a recent ruling, the IRS stated that the investment losses resulting from the Madoff Ponzi scheme should […]
What Every Pennsylvania Estate Planner Needs to Know about the New Jersey Estate Tax (11/16/2012) by Kulzer & DiPadova, P.A. - In 2002, the Commonwealth of Pennsylvania, like the State of New Jersey, “decoupled” the state estate tax from the federal state death tax credit amount allowed by 2011 of the Internal Revenue Code.  This may be where the similarity between the two states ends.  After the Economic Growth Tax Relief […]
Many More Taxpayers Will Create Trusts Because of IRS Ruling (11/16/2012) by Kulzer & DiPadova, P.A. - In Revenue Ruling 2004-64, the IRS settled a long-standing question about the gift and estate taxation of grantor trusts. As a result of this favorable ruling, many more advisers will recommend that clients place income-producing assets into irrevo­cable trusts in order to achieve estate tax benefits. A grantor trust is a […]
Estate Planning and Circular 230 (11/16/2012) by Kulzer & DiPadova, P.A. - “Circular 230” is the body of federal government regulations which regulate individuals that “practice before” the Internal Revenue Service on tax matters.  By now, many professionals have either adopted firm procedures for dealing with “Circular 230” or have begun to notice Circular 230 “disclaimers” plastered over letters, memos and even […]
New Rules Proposed for NJ Death Tax Escrows (11/16/2012) by Kulzer & DiPadova, P.A. - The New Jersey Division of Taxation has proposed new rules for title insurance companies holding escrow amounts from real estate closings for the payment of transfer inheritance and/or estate taxes. New  N.J.A.C.18:26-11.21 would require title companies to notify the Division in writing, within 10 days of receipt of the transfer […]
New Jersey Tax Amnesty – 2009 (11/15/2012) by Kulzer & DiPadova, P.A. - New Jersey recently enacted its fourth State tax amnesty.  New Jersey tax amnesty began May 4, 2009 and will end on June 15, 2009. It is an effort to collect at least $100 million. The amnesty collection goal was recently recreased to $200 million.  The last amnesty program, which was in […]
New Jersey Modifies Voluntary Disclosure Program (11/15/2012) by Kulzer & DiPadova, P.A. - The New Jersey Division of Taxation announced it has modified the terms of its Voluntary Disclosure Program effective after June 15, 2009. The new terms and conditions of its Voluntary Disclosure Agreements under the program will be more stringent than its prior policy. Overview New Jersey’s Voluntary Disclosure Program allows […]
2009 NJ Composite Tax Return Rates (11/15/2012) by Kulzer & DiPadova, P.A. - For the 2009 NJ Composite Tax Return Rates, recent legislation (P.L. 2009, c. 69) temporarily raises the Gross (Personal) Income Tax rates for high income New Jersey taxpayers. Taxpayers with income of more than $400,000 per year will see their New Jersey income tax rate rise from 6.37% to 8%. Those […]
Delaware Offers Tax Amnesty Program (11/15/2012) by Kulzer & DiPadova, P.A. - The Delaware Division of Revenue is offering a State of Delaware Tax Amnesty Program this fall. From September 1 to October 30, 2009, any individual or business taxpayer who pays their current outstanding State of Delaware tax liability administered by the Division of Revenue will have their interest and penalty […]
Military Spouses Residency Relief Act (11/15/2012) by Kulzer & DiPadova, P.A. - The New Jersey Division of Taxation issued guidance regarding the New Jersey tax consequences of the recently enacted federal law S. 475, the Military Spouses Residency Relief Act.  The federal law allows a military servicemember’s spouse to keep a tax domicile throughout the marriage and keep it while moving from state […]
1% Realty Transfer Fee – Mixed Class Properties (11/15/2012) by Kulzer & DiPadova, P.A. - In The Ridgewood Commons Group, LLC, v. Director, Division of Taxation, (Docket No. 010859-2007) (NJ Tax Court, 2009), the New Jersey Tax Court held that where a grantee elects to combine the consideration paid totaling in excess of $1,000,000 for more than one property in a single deed without separately stating […]
New Jersey Confirms Roth IRA Rules (11/15/2012) by Kulzer & DiPadova, P.A. - The New Jersey Division of Taxation has confirmed that New Jersey will follow federal tax deferral rules governing the taxation of Roth IRA conversions. Specifically, New Jersey will follow the Federal Tax Increase Prevention and Reconciliation Act of 2005 provision regarding the federal income tax reporting of a distribution from a traditional […]
Gov. Christie Transition Team Outlines Tax Goals (11/15/2012) by Kulzer & DiPadova, P.A. - Governor Christie’s Transiton Team released a series of subcommittee reports regarding tax goals.  The report of the Subcommittee on Economic Development & Job Growth offered a number of state tax-related recommendations. Institutionalize tax restraint Require super-majority legislative approval to enact any new or increased taxes and support a constitutional amendment to institutionalize this discipline […]
Deadline for 2010 New Jersey Property Tax Appeals (11/15/2012) by Kulzer & DiPadova, P.A. - In municipalities where a revaluation or reassessment has been undertaken, real property tax appeal petitions must be filed and received by May 1st. All property owners have the right to file tax appeals with the County Board of Taxation, regardless of the amount of their assessment. For properties with assessments greater […]
Philadelphia Tax Amnesty to begin May 3rd (11/15/2012) by Kulzer & DiPadova, P.A. - The City of Philadelphia will offer a tax amnesty program from May 3rd to June 25th, 2010.  During amnesty, Philadelphia will waive all penalties and half the interest due on eligible delinquent tax bills. This will allow taxpayers the opportunity to clear up their debts and avoid further enforcement activities, including additional […]
Pennsylvania Tax Amnesty Begins (11/15/2012) by Kulzer & DiPadova, P.A. - Pennsylvania’s Tax Amnesty period from April 26 to June 18, 2010. During this limited, 54-day timeframe, the Pennsylvania Department of Revenue will waive 100 percent of penalties and half of the interest for anyone who pays his/her delinquent state taxes. Individuals, businesses and other entities with Pennsylvania tax delinquencies as of […]
New Jersey Recordkeeping Rules Proposed (11/15/2012) by Kulzer & DiPadova, P.A. - The New Jersey Division of Taxation has proposed new rules to clarify a Corporation’s recordkeeping requirements under state tax laws. The proposal would provide that corporations are required to maintain all records used to determine their Corporation Business Tax liability and such other records as the Director of the Division […]
New Jersey Offers UI/DI Amnesty (11/15/2012) by Kulzer & DiPadova, P.A. - The New Jersey Department of Labor and Workforce Development (“LWD”) will be offering amnesty to employers subject to the New Jersey Unemployment Compensation and Temporary Disability laws. New Jersey’s prior tax amnesties did not cover taxes or contributions due to LWD. The amnesty offer covers unemployment, disability; workforce, healthcare, and […]
IRS Enforcement Budget to Quadruple (11/15/2012) by Kulzer & DiPadova, P.A. - Reuters New Service reports that President Barack Obama proposed nearly doubling funds to enforce the federal tax laws next year and plans to quadruple funding for tax compliance to $2.1 billion within five years. The budget plan seeks a 5.2 percent increase over the IRS budget for 2009.  The IRS is responsible for […]
Differential Pay for Active Military Duty (11/15/2012) by Kulzer & DiPadova, P.A. - In Revenue Ruling 2009-11, the IRS ruled that the differential pay that employers pay to their employees while on active duty in the United States uniformed services for more than 30 days is subject to income tax withholding, but is not subject to Federal Insurance Contributions Act (“FICA”) or Federal Unemployment Tax Act […]
COBRA Compliance Mandates Seminar (11/15/2012) by Kulzer & DiPadova, P.A. - Joseph M. Kempter, J.D., LLM, CPA presented on COBRA compliance mandates of the American Recovery and Reinvestment Act of 2009 (ARRA) to the Estate and Financial Planning Council of Southern New Jersey on May 1, 2009 in Mt. Laurel, New Jersey. The ARRA was enacted on February 17, 2009. It contains important new compliance mandates for […]
IRS Issues Series of Savings Incentive Rulings (11/15/2012) by Kulzer & DiPadova, P.A. - The IRS has released seven new pieces of guidance for incentive rulings. The several revenue ruling and notices are intended as savings initiatives to make it easier and more automatic for employees to save. The guidance looks to encourage individuals to save more by: Providing guidance for employers to automatically enroll and increase the […]
Guidance for Required Minimum Distribution Waivers (11/15/2012) by Kulzer & DiPadova, P.A. - Individuals must generally begin taking distributions from their qualified retirement accounts and IRAs beginning in the year they turn age 70½.  Under a law passed in late 2008, the required minimum distribution (“RMD”) rules mandating distributions were suspended for 2009.  The change was in response to the financial crisis.  Under the change, taxpayers […]
Roth IRA Conversions in 2010 and Beyond (11/15/2012) by Kulzer & DiPadova, P.A. - Introduction Roth IRA’s were first established under the Taxpayer Relief Act of 1997 which added I.R.C. §408A to the Internal Revenue Code as a new retirement savings vehicle.  Unlike traditional Individual Retirement Accounts (“IRAs”), distributions from which are subject to ordinary income tax, certain “Qualifying Distributions” received from Roth IRAs […]
Small Business Health Care Credit Explained (11/15/2012) by Kulzer & DiPadova, P.A. - On May 17, 2010, the IRS released Notice 2010-44, which provides comprehensive guidance to small businesses that are eligible for a new health care tax credit under the recently passed health care reform legislation. The Patient Protection and Affordable Care Act (PL 111-148) enacted new I.R.C. § 45R, effective for […]
IRS Extends 2010 Tax Filing Deadlines for Flood Victims (11/15/2012) by Kulzer & DiPadova, P.A. - Victims of severe storms, floods, mudslides and landslides beginning March 12 in New Jersey may qualify for tax relief from the Internal Revenue Service. The President has declared the following New Jersey counties federal disaster areas qualifying for individual assistance:  Atlantic  Middlesex  Bergen  Monmouth  Cape May  Morris  Essex  Passaic  Gloucester […]
Current Applicable Federal Rates (11/15/2012) by Kulzer & DiPadova, P.A. - Each month, the IRS provides various prescribed rates for federal income tax purposes. These rates, known as Applicable Federal Rates (or AFRs), are regularly published as revenue rulings. Click here for the IRS Index of Applicable Federal Rates (AFR) Rulings
Is the AMT in need of a fix? (11/15/2012) by Kulzer & DiPadova, P.A. - New Jersey ranks first among the states in the percentage of Alternative Minimum Tax filers.  273,589 New Jersey taxpayers, 6.5% of all New Jersey taxpayers paid the AMT in 2006.  The Joint Committee on Taxation projects that without another legislative patch or AMT reform, more than 1.6 million New Jersey […]
Special Federal Loss Carryback Option to Expire (11/15/2012) by Kulzer & DiPadova, P.A. - IR-2009-72, Aug. 13, 2009 WASHINGTON — “CARRYBACK OPTION”. Time is running out for many small businesses wishing to take advantage of the expanded business loss carryback option included in this year’s recovery law, the Internal Revenue Service said today. Eligible individuals have until Oct. 15 to choose this expanded carryback […]
Tax Reform Advice for President’s Task Force (11/15/2012) by Kulzer & DiPadova, P.A. - On March 25 President Obama announced the creation of a special task force to review the shortcomings of the U.S. tax system. The group is part of the President’s Economic Recovery Advisory Board.  Headed by Paul Volcke, the task force has come to be known as the Volcker task force […]
2009 Tax Break for Haiti Relief Donations (11/15/2012) by Kulzer & DiPadova, P.A. - Tax Break for Haiti Relief Donations – On January 12, 2010, a massive earthquake struck the nation of Haiti, causing catastrophic damage inside and around the capital city of Port-au-Prince. President Obama promised the people of Haiti that “you will not be forsaken; you will not be forgotten” and ordered an […]
Non-profit Organizations Filing Deadline (11/15/2012) by Kulzer & DiPadova, P.A. - The Pension Protection Act of 2006 mandates that all non-profit organizations, other than churches and church related organizations, must file an information form with the IRS.  This requirement has been in effect since the beginning of 2007, which made 2009 the third consecutive year under the new law. Any organization […]
NJ Corporate Dissolutions Required (1/1/2009) by Kulzer & DiPadova, P.A. - It is essential that the corporation be dissolved with the New Jersey State Treasurer through the Division of Revenue to avoid future Corporation Business tax, penalty, and interest. Every corporation subject to the New Jersey Corporation Business Tax Act must file New Jersey Corporation Business Tax Returns whether the corporation discontinued […]
Creating a Profits Interest in an S Corporation (1/1/2005) by Kulzer & DiPadova, P.A. - Assume Glenn and Art are equal shareholders in Allen, Inc., an S corporation.  Bob is employed by Allen and manages one aspect of its business, but not all business is conducted by Allen.  All of the parties would agree to give Bob a profits interest as incentive for performance and […]