Monthly Archives: May 2016

Under temporary regulations issued by the IRS on May 4th, partners in partnerships that own disregarded entities may not be considered employees entitled to benefits from those entities nor exempt from federal self-employment tax.  While the disregarded entity may be considered a corporation for federal employment tax purposes, the IRS will treat the partners, themselves, […]

Under the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), businesses that hire veterans and other qualified workers who face barriers to employment will have an additional five years to claim a federal tax credit equal to $1,200 and $9,600 per qualifying employee. The updated guidance extends the Work Opportunity Tax Credit (WOTC) […]

The Internal Revenue Service recently issued final regulations concerning which investments made by private foundations do not jeopardize the foundation’s tax-exempt status and are therefore not subject to excise tax. Section 4944 of the Tax Code imposes an excise tax on a private foundation that makes an investment for the primary purpose of producing income […]

According to federal tax laws, all income is considered taxable. This includes money earned through wages and tips, investment gains and bartered transactions that involve an exchange of property or services. Yet, there are some exceptions to this rule, for which individuals may avoid tax liabilities. Under certain circumstances, the following types of income may […]

When an individual sells a capital asset he or she owns, such as personal property or investment property, the sale typically results in a capital gain or loss. A gain represents the profit an individual earns by selling the asset for more than the price they paid to acquire it. Conversely, a capital loss occurs […]

Self-insured employers and applicable large employers with 100 or more full-time equivalent employees must remember to file with the IRS Affordable Care Act (ACA) information returns that detail the health care coverage they offered, or did not offer, to employees in 2015. While these employers should have provided their workers with individual copies of informational […]

Among the many financial issues that arise following a divorce is the allocation of estimated tax payments and prior year overpayments. Often overlooked during the throws of divorce negotiations is who gets credit for estimated payments already made and prior year overpayments elected to be applied to next year’s liability.  While married, many couples file […]

Disputes involving breach of contract and commercial tort claims are not uncommon in the normal course of business. When brought before the courts, the burden to prove damages rests with the plaintiff.  However, a defendant has an opportunity to reduce or eliminate entirely its obligation to pay damages when it can demonstrate that the injured […]