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…
Shareholder Evans Elected Chair of NJSBA Taxation Section
K&D Shareholder James B. Evans, Jr. was recently elected Chair of the Taxation Law Section of the New Jersey State Bar Association (NJSBA). The Taxation Law Section studies and disseminates information on developments in federal and state tax law and provides a forum for discussion of these tax issues among attorneys who…
Henkel to Serve Another Term: PEPC Board of Trustees
On May 7 2015, K&D Shareholder, Glenn A. Henkel was sworn into another three year term as a member of the Board of Trustees of the Philadelphia Estate Planning Council (PEPC), expiring August 31, 2018. The Philadelphia Estate Planning Council is the largest estate planning council in the country. Mr Henkel will…
Kulzer & DiPadova 2015 Super Lawyers
Five attorneys at Kulzer & DiPadova were recognized by New Jersey SuperLawyers Magazine for 2015. Kulzer & DiPadova attorneys recognized as New Jersey Super Lawyers for 2015: Arthur A. DiPadova and Glenn A. Henkel were named in the area of Estate Planning & Probate James B. Evans, Jr. in the area of Taxation Robert H. Williams in…
Reasonable Compensation for Personal Service Corporations
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 C corporation…
In re Andolino: New Jersey Inherited IRAs Are Excluded from Bankruptcy Estate
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 in…