Tax Court Upholds Farmer’s Current Year Deduction for Packing Materials Used in Subsequent Year
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…
Proposed Regulations Eliminate Need to File IRC Section 83(b) Election with Individual Income Tax Return
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…
Draft of Revised Form 3115 Released
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
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?
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
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 faced by…
IRS To Focus Criminal Investigations On Employment Tax Cases
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 Treasury. …
Offshore Disclosures: How to Choose the Right Program for You
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…
Duty of Care in Legal Malpractice Issues
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 interest in the continuing company called NIA Group, LLC (NIA). Subsequently, NIA was restructured into a new…
Associate Mellor Appointed Representative NJSBA YLD
Thursday May 14, 2015, K&D Associate Daniel, L. Mellor was appointed as the Camden County representative to the Executive Committee of the NJSBA Young Lawyers Division (YLD). Mr. Mellor had also previously served as the Burlington County representative. For attorneys who are younger than 36 or have practiced for less than ten…