Can you defer the payment of estate tax?

According to Internal Revenue Code Section 6166, a personal representative (PR) may defer payment of federal estate tax if the decedent’s equity interest in a closely held business exceeds 35 percent of his adjusted gross estate. In order to be eligible for a Section 6166 election, the closely held business must qualify as an active …

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IRS gon’ give it to ya. DMX arrested for alleged tax fraud

The latest in a string of celebrities in trouble with tax authorities is none other than rapper DMX, known for his 2003 hit “X Gon’ Give it to Ya.” DMX, whose real name is Earl Simmons, is charged with attempting to evade taxes by setting up accounts in different names, avoiding his personal checking accounts, …

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Retirement plan prohibited transactions – timely remittances

There are numerous types of prohibited transactions. Prohibited transactions are defined as certain transactions between a retirement plan and a disqualified person (broadly a person with some involvement with the retirement plan) that would cause the plan/plan sponsor to be in violation of Employee Retirement Income Security Act of 1974 (ERISA). One type of prohibited …

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2017 annual Giving USA Report released

The Giving USA Foundation (a public service initiative of The Giving Institute) has released their 2017 annual Giving USA Report on Philanthropy in collaboration with The Indiana University Lilly Family School of Philanthropy. Using data from calendar year 2016, the Giving USA report compiles and analyzes data on charitable giving in the U.S in order …

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Nixing the stereotype. Accountants are creative too!

On Saturday, July 15th, twenty-nine of our team members volunteered to craft “Chemo Covers” to benefit Amanda Hope Rainbow Angel’s. Chemo covers are used to cover the toxic warning labels found on chemo bags in order to help reduce children’s anxiety of receiving treatment. Chemo covers are typically decorated with a funny face, felt stickers …

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Payroll tax credit for increasing research activities

The PATH Act has a provision that may be beneficial to companies just starting out that do not have any taxable income yet, but are doing research and development (R&D). This provision allows qualified small businesses to take the R&D credit against the employer portion of Social Security payroll tax. A qualified small business is …

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ADOR revises thresholds for mandatory EFTs

To increase e-filing and e-paying by business taxpayers, the Arizona Department of Revenue (ADOR) decreased the mandatory electronic funds transfer (EFT) threshold for businesses. A business must make electronic payments if it has an annual transaction privilege tax (TPT) liability of $20,000 (down from $1,000,000). In addition, the withholding tax liability threshold was lowered to …

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401(k): Simple steps to invest in your future

Everybody always hears how they need to invest in their 401(k) as soon as they start working. Other than that initial advice, further guidance usually is not provided. Investing in a 401(k) is undoubtedly good advice, but investing in a 401(k) (or anything for that matter) should be a much different experience for someone just …

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Going the way of the dinosaur? Endangered tax regulations

While we may wish that all tax regulations were endangered and soon to be extinct, there are certainly some that are more worthy for extinction than others. In April of 2017, President Trump issued an executive order designed to reduce tax regulatory burdens. The order instructed Treasury Secretary Steven Mnuchin to review “all significant tax …

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FIRPTA withholding on sale of U.S. real estate

The Foreign Investment in Real Property Tax Act of 1980 – a.k.a FIRPTA – gave rise to the withholding requirement when a foreign person sells U.S. real estate. The withholding requirement, which increased from 10% to 15% for sales on or after February 17, 2016, applies to the gross sale price of the property, not …

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