Category: Tax Planning & Compliance
“NEW” RULES IMPLEMENTED ON INHERITED INDIVIDUAL RETIREMENT ACCOUNTS (“IRAs”)
Beginning in 2025, individuals must begin taking withdrawals from IRAs they inherited in 2020 or thereafter. The Internal Revenue Service has finally provided guidance on the implementation of the “ten-year rule” that was part of the Secure Act of 2019 (“Secure Act 1.0”). The Secure Act 1.0 was enacted to…
New Jersey GIT Adds IRC § 1202 Exclusion for QSBS Gains
New Jersey has aligned its Gross Income Tax with the federal exclusion of capital gains on Qualified Small Business Stock (QSBS) under Section 1202 of the federal Internal Revenue Code of 1986 (“IRC”). The New Jersey exclusion is effective for tax years beginning January 1, 2026. IRC § 1202 allows…
QSBS Tax Benefits Enhanced Under the OBBBA
Since its enactment as part of the Omnibus Budget Reconciliation Act of 1993, Section 1202 of the Internal Revenue Code has provided an exclusion for gain from the sale of qualified small business stock (QSBS) held for more than five years. To qualify as QSBS, the stock must be from…
The Expiring TCJA Provisions and the Political Path Forward
On the minds of many tax-conscious Americans is the looming December 31, 2025 expiration of the Tax Cuts and Jobs Act (the “TCJA”) provisions. The TCJA was passed by a Republican Congress and signed into law by President Donald Trump in 2017. Since its enactment, the Act has significantly reduced…
Tax Court reminder – IRS levies on IRA accounts are taxable
The United States Tax Court recently issued a Memorandum opinion reminding taxpayers that when the Internal Revenue Service (IRS) seizes an Individual Retirement Account (IRA), the seized IRA needs to be included as taxable income. Lonnie Wayne Hubbard v. Commissioner of Internal Revenue (T.C. Memo. 2024-16). In 2017, disgraced…
New Priority Guidance Plan Announced For Limited Partner Exception to SECA
NEW PRIORITY GUIDANCE PLAN ANNOUNCED FOR LIMITED PARTNER EXCEPTION TO SECA For a number of years there has been an ongoing challenge by the IRS of taxpayers claiming limited partner status and exemption from the Self-Employment Contributions Act (SECA) tax. The activity in this area has greatly increased in…
IRS Announces Withdrawal Process for Employee Retention Credit Claims
On October 19, 2023, the IRS announced the details of a special withdrawal process to help those who filed an Employee Retention Credit (ERC) claim and are concerned about its accuracy. The process has been announced as part of a larger effort to protect small businesses and organizations from scams,…
Want to Make an Impact?—A Win-Win: Using Retirement Funds to Support Your Favorite Cause
Want to Make an Impact?—A Win-Win: Using Retirement Funds to Support Your Favorite Cause Introduction In December 2022, Congress passed the Secure 2.0 Act of 2022 (the “Act”). Included in the Act is a provision that allows certain individuals to make a one-time transfer of up to $50,000 directly from…
IRS Taxes Gain On Sale of Shares Gifted to Charity to Donor
The recent case of Estate of Hoensheid v. Commissioner of Internal Revenue, decided in March 2023, shows that the IRS is continuing to aggressively attack gifts of shares of stock to a charity, followed by a sale of those shares by the charity. The object of the taxpayer is to…
Supreme Court’s Non-Willful FBAR Holding Allows Taxpayers to Sleep at Night
Supreme Court’s Non-Willful FBAR Holding Allows Taxpayers to Sleep at Night During 2021, two different Appeals courts in the United States heard cases with similar fact patterns on a sensitive tax issue but held completely opposite decisions. Specifically, the Fifth and Ninth Circuits both ruled on cases dealing with taxpayers…