Category: Taxes
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…
Responsible Officers and Employees Can Be Held Personally Liable for New Jersey Sales Tax Collection Obligations Even When the Seller Corporation is No Longer “On the Hook”
An Explanation of Responsible Person Liability: The New Jersey Sales Tax is known as a “trust fund tax.” While sales tax is imposed upon the purchaser, it is the seller that has the obligation to collect and remit the tax to the New Jersey Division of Taxation (the Division). This…
Form 5471 Late Filing Penalties and Protective Refund Claims
The Internal Revenue Service (“IRS”) Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, is one of the most complicated international information reporting forms that some U.S. taxpayers may have to file each year depending on the U.S. taxpayer’s direct or indirect ownership in a foreign…
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…
Unseen Tax Consequences for Fraud Victims
Thieves and fraudsters have always been taxed on their ill-gotten gains. Now, their victims may also be taxed on the losses suffered at the hands of the scammers. As reported by the Majority Staff of the Senate Special Committee on Aging, fraud victims must pay income taxes on funds that…