Getting Married? Consider Year-End Tax Planning

Prospective spouses have the opportunity to save money by taking income tax considerations into account before tying the knot. That’s particularly true for those who plan to marry late this year or early next year. As this article explains, from the federal income tax standpoint, some individuals marrying next year may come out ahead by either deferring or accelerating income, depending on their circumstances. Others may find it to their advantage to defer a year-end … Read More

Bank Executives being Targeted by Department of Justice

The Department of Justice is now targeting bank executives that are not complying with FATCA reporting requirements for their customers.  The following is the first bank employee who has been convicted of criminal charges. Adrian Baron, the former Chief Business Officer and former Chief Executive Officer of Loyal Bank Ltd, an off-shore bank with offices in Budapest, Hungary and Saint Vincent and the Grenadines, pleaded guilty to conspiring to defraud the United States by failing … Read More

RICs Can Postpone the Inclusion of Code Sec 965 Transition Tax to 2018

In a Revenue Procedure, IRS has allowed regulated investment companies (RICs) to postpone to 2018 the inclusion of the Code Sec. 965 transition tax in gross income, for purposes of computing the RIC required distribution. A regulated investment company (RIC) can be any one of several investment entities – for example, a mutual fund or exchange-traded fund (ETF), a real estate investment trust (REIT) or unit investment trust (UIT) – that is deemed eligible by … Read More

Offshore Voluntary Disclosure Program Ending Sept 28

On Mar. 26, 2009, IRS announced its first OVDP, a form of a tax amnesty program. It permitted U.S. taxpayers with unreported foreign accounts to avoid criminal charges and pay reduced civil penalties by making a voluntary disclosure to IRS. The first OVDP ran through Oct. 15, 2009. Thereafter, on Feb. 8, 2011, IRS announced a second OVDP. The second OVDP closed on Sept. 9, 2011. On Jan. 9, 2012, IRS reopened the OVDP, which … Read More

Pensions Find New Life as Tax Strategy for Service Professionals

Pensions, also known as defined-benefit plans, can be used by doctors, law partners and wealth managers to stash hundreds of thousands of dollars in income a year. By doing so, they’ll get around the income limits Congress created to bar them from a generous new tax break for owners of pass-through entities, who report the firms’ income on their individual tax returns. With a cash balance plan, participants know each year how much they individually … Read More

U.S. Treasury Proposes Tax Rules on Pass-Thru Businesses

The IRS has issued proposed reliance regs that explain the operation and calculation of the Code Sec. 199A pass-through, or “qualified business income” (QBI), deduction. The U.S. Treasury recently proposed tax regulations for a new 20 percent income tax deduction for owners of businesses organized as pass-through entities, including rules to prevent the measure from becoming a tax loophole for wealthy Americans. The regulations are intended to provide everything pass-through owners need to comply with … Read More

Your Tax Withholding May Fall Short in 2018

Based upon a study by the Government Accountability Office (GAO), more people will owe tax because too little was withheld from their earnings during 2018, based on updated IRS withholding tables that implement tax law changes. The GAO released a report on July 31st stating that a Treasury Department recommendation for a $4,150 withholding allowance would “result in a slightly lower proportion of overwithheld taxpayers and a slightly higher proportion of underwithheld taxpayers under the … Read More

New Rules on Repatriating Overseas Corporate Income

The U.S. Treasury recently unveiled regulations proposing the repatriation of more than $2.5 trillion in United States corporate foreign income.  Experts predict that this would be a vital step in returning money to U.S. soil. The 2017 Republican tax bill that President Donald Trump signed into law in December allows major corporations, which have been stockpiling income abroad for decades, to repatriate the money at special low-interest rates of 15.5 percent on cash and cash … Read More