Kulzer & DiPadova, P.A.
76 E. Euclid Avenue, Suite 300
Haddonfield, New Jersey 08033-2342

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News, Articles & Resources

Category: Tax Planning & Compliance

Payment of tax generated by partnership audits at the partnership level – adjusting partnership items

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In the 2015 Bi-Partisan Budget Act (“2015 Act”), Congress enacted new centralized audit procedures for entities taxed as partnerships for Federal Income Tax purposes.  Because these rules are fairly complex, both for taxpayers and the IRS, they did not become effective until tax years beginning in 2018. The default rule…

RMD Proposed Regulations – The Good, The Bad, and The Ugly

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The proposed regulations consist of 64 pages printed in the Federal Register and are subject to a comment period which ended on May 25, 2022.  Once the IRS considers the comments it will move towards finalization and adoption after which they will become effective.  The IRS has received 119 comments…

New Jersey Deductions for Higher Education Expenses and Savings

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Beginning in 2022, the New Jersey College Affordability Act allows New Jersey taxpayers tax deductions for certain educational expenses. The deductions are targeted for taxpayers with gross income of $200,000 or less. Deductions are allowed for contributions to the NJBEST college savings plan, in-state higher education tuition costs and NJCLASS…

Failure to Carefully Review Tax Return Results in Costly Mistake for Taxpayers

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Whether you prepare your tax return yourself with tax preparation software or rely on an accountant to prepare your return, it is important to remember to meticulously review your returns before filing.  The cost of such failure to review could potentially lead to substantial penalties, including a twenty (20%) percent…

New Jersey Property Tax Assessment Appeals

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Many New Jersey property owners believe their property tax assessments are uncompromising. The truth is property assessments are not. Property assessments hinge on the tax assessor’s calculation of the market value of a property, and often such calculations may not be accurate or reflective of current market value. Tax assessors…

Expenses Paid with PPP Loan Proceeds Reduce Other Adjustment Accounts, According to Draft Instructions for S-Corporation Returns (Form 1120-S)

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Background. The Coronavirus Aid, Relief, and Economic Security (CARES) Act did not specify whether expenses paid using funds  received from a Paycheck Protection Program (PPP) loan would be deductible for federal income tax purposes.  Congress subsequently passed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic…

Split Among Federal Circuit Courts on the Application of the “Non-Willful” FBAR Penalty

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Any individual that has direct ownership, signatory authority or beneficial ownership over a foreign bank account that has a balance of $10,000 during any point of the year is required to file a Report of Foreign Bank and Financial Accounts (“FBAR”).  The penalties for failing to file an FBAR can…

President Biden Prepares to Sign into Law the Infrastructure Investment and Jobs Act

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On November 5, 2021, the House of Representatives passed the Infrastructure Investment and Jobs Act (H.R. 3684) (the “Act”) by a 228-206 vote after the Act was passed in the Senate by a 69-30 vote in August. The Act was presented to President Biden on November 8, 2021, and he…

IRS updates its process for frequently asked questions

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The Internal Revenue Service (IRS) recently published a News Release in which it addresses its process for publishing frequently asked questions (FAQs) on tax legislation and taxpayers’ concerns regarding relying on such FAQs. With the enactment of the CARES Act and other coronavirus-related tax legislation providing taxpayer relief during the…

When Gifting to Save Estate Taxes, it is Essential to Consider Loss of Step-Up in Basis

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Since the House Ways and Means committee proposed reducing the estate and gift tax exemption from $11,700,000 to approximately $6,000,000 (as adjusted for inflation) effective January 1, 2022, there has been a rush by many wealthy individuals to make gifts by utilizing the $11,700,000 exemption while it is still available…

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