New Jersey PTE/BAIT – Planning for 2022
New Jersey PTE/BAIT – Planning for 2022. Significant revisions to the elective New Jersey Pass-Through Business Alternative Income Tax (PTE/BAIT) are effective for tax years beginning in 2022. The PTE/BAIT, first effective for tax years beginning in 2020, is a work around for the federal $10,000 state and local…
Employee Retention Credit: You Got Your Check. Now What?
Employee Retention Credit: You Got Your Check. Now What? Included in the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was a new refundable employment tax credit, also known as the employee retention credit (ERC), which could amount to as much as $26,000 per qualified employee….
K&D Upcoming Tax Seminars
Kulzer & DiPadova, P.A. is once again presenting a number of annual tax seminars reviewing the major changes and legislative trends in taxation throughout 2022. Join us virtually or in person to explore the latest in federal and state legislation, estate tax developments, international taxation requirements, and more! NJCPA 2022…
Inflation Reduction Act of 2022 – Part 2
Inflation Reduction Act of 2022 – Part 2 The primary stated purposes of the recently-passed Inflation Reduction Act of 2022 is to reduce inflation and ward off an economic recession. The legislation spans 273 pages and dozens of subjects from tax policy to environmental regulations to extensions of the Affordable…
Inflation Reduction Act of 2022 Highlights
Inflation Reduction Act of 2022 Highlights This month, Congress passed and the President signed the Inflation Reduction Act of 2022, a bill which has the primary stated purpose of reducing inflation and warding off an economic recession. The legislation is lengthy and dense, spanning 273 pages of the congressional…
Tax Update
New Jersey Enacts Bill to Curb the Use of “Refund Anticipation Checks” by Tax Return Preparers Governor Murphy signed into law P.L.2022, c.90 (S891) that prohibits specified tax preparers from engaging in certain practices involving refund anticipation checks and loans. An income tax refund is the largest lump-sum payment that…
Zeroing Out of Profits by Closely Held Corporations
Shareholders of C corporations sometimes pay themselves bonuses in an amount that eliminates corporate profits, thereby eliminating the corporate tax that would result if paid on dividends (resulting in a “double tax”). However, several recent cases shed light on how paying supplemental shareholder compensation may backfire if not properly implemented….
IRS Offers Penalty Relief for Certain Taxpayers Filing Tax Returns for the 2019 and 2020 Years
The Internal Revenue Code (Code) imposes various penalties on taxpayers for failure to comply with certain return-filing and taxpaying obligations, including the following: Section 6651(a)(1) of the Code generally imposes an addition to tax for a failure to file (on or before the date prescribed) a tax return that is…
IRS releases technical advice memorandum impacting significant participation activities under the passive loss rules
The IRS has released a Technical Advice Memorandum (TAM)[1] addressing the question of whether, for passive loss limitation purposes, an activity qualifies as a significant participation activity in a taxable year where the taxpayer previously satisfied the significant participation activity test for material participation with respect to that activity in…
IRS Issues New Form 7203 to Track and Report S Corporation Basis
The subchapter S rules apply basis limitations in various circumstances, including the ability of an S corporation shareholder to deduct S corporation losses. An S corporation shareholder has basis in his/her stock and if he/she is also a creditor of the corporation, he/she has basis in her debt. Basis is…