When 50% is Not Half

You own 50% of a closely-held (not publicly traded) company that has been determined to have a fair market value of $3 million. Your ownership interest is worth $1.5 million, right? Maybe, maybe not. The value of a 100% ownership interest in a business includes the value of “control” – that is, the owner has …

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Let’s Break Out the Cake for Tax Credits

What were you doing on January 29th? If you’re like me, you’re always looking for a reason to celebrate (and eat cake)! If you weren’t celebrating, you should have been, because it was the 10th anniversary of EITC Awareness Day – a nationwide effort to alert millions of individuals who may be missing out on …

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Don’t Fall Victim to these Tax Scams! Part 2

Each year, the IRS updates their “Dirty Dozen” list of tax scams to watch out for during the filing season. We listed the first six scams here. Here are six more scams that taxpayers dealt with during the previous year. #7 – Fake Charities Scam artists masquerade as charitable organizations to attract donations from unsuspecting …

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What every trustee should know: the 65 day rule

Trustees interested in managing the tax burden of a complex trust should be familiar with the 663(b) election, also known as the “65 Day Rule”. Making this election can often help to lower the overall tax burden of the trust and its individual beneficiaries. Trusts pay the highest tax rate at the very low amount …

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Reporting Health Insurance Coverage on IRS Tax Forms

The majority of taxpayers have health insurance coverage for all of 2015 and simply check a box on their tax return. For those who don’t, the IRS shared the below hints on reporting your health insurance related information: Form 8965, Health Coverage Exemptions Complete this form if you need to claim an insurance coverage exemption …

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Do You Have a Donor Privacy Policy?

As accumulating personal information such as names, addresses, and credit card numbers from donors and special event attendees becomes both easier and more useful due to the implementation of donor databases, nonprofits should consider implementing a donor privacy policy. A donor privacy policy can be a simple paragraph, or as detailed as the nonprofit chooses, …

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Don’t Fall Victim to these Tax Scams!

Each year, the IRS updates their “Dirty Dozen” list of tax scams to watch out for during the filing season. The list highlights the most common scams that taxpayers have dealt with during the previous year. #1 – Identity Theft Tax-related identity theft occurs when someone uses your stolen Social Security Number (SSN) to file …

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Does Your EBP Have a True-Up Provision?

Plan sponsors have an option to incorporate a true-up provision into their employee benefit plan(s). True-up adjustments are done at the end of the plan year in order to ensure that the amount of employer matching contributions is grossed up to maximum allowable benefit per the plan document; they protect the less savvy participants from …

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New York State Partnership, LLC and LLP Filing Fees

Complying with federal tax law is challenging enough with so many forms to complete. Complying with multi-state tax law is even more challenging since you have so many jurisdictions to take into account. With that said, it is easy to miss filing simple forms such as annual reports or other fees that may be due …

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Criminals Attack IRS Website, Generate 101,000 E-Filing PINS

The IRS recently announced it had identified and halted an automated attack on its e-filing PIN application available on IRS.gov. Using personal information stolen elsewhere, thieves used malware to generate E-file PINs for stolen social security numbers. When you attempt to e-file a tax return, the IRS verifies your identity using either the e-file PIN …

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