Do you qualify for the Employee Retention Credit?

With all the changes 2020 has brought us, the IRS figured why not add another to the seemingly never-ending list. Here comes the Employee Retention Credit (“ERC”). The ERC is a refundable payroll tax credit for qualified wages paid and health coverage provided by an employer whose operation was fully or partially suspended from the …

Keep Reading

Ending a partnership

Unfortunately, due to COVID-19, a lot of businesses have made the difficult decision to close their doors. If you are a partner in a partnership structure, several steps need to be taken and boxes checked to make sure the business is permanently closed. Below are the steps the IRS lays out to close a partnership …

Keep Reading

Partnership audit rules, changes for 2018 and beyond

With news about the sweeping tax reform known as the Tax Cuts and Jobs Act grabbing most of the tax-related media attention, it’s easy to forget that big changes to the partnership audit process have also gone into effect for 2018. These changes have major implications for partnerships at both the entity level and partner …

Keep Reading

Interest Expense Related to Acquisition of a Pass-through Entity

When acquiring an interest in a pass-through entity, such as an interest in a partnership or an S corporation, an acquisition made by an individual using borrowed funds leads to the question of if/how you deduct the interest expense on the acquisition debt. First, yes, you can get tax benefits from the interest expense incurred …

Keep Reading

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 …

Keep Reading

Determination of Income for Child Support: Consider Income Control When A Parent Holds an Interest in a Closely Held Business

When a parent has income generated from an ownership interest in a closely held corporation or partnership, it is important to determine how the earnings of the entity flow through to the parent.   Both Subchapter S-Corporations and Partnerships are pass-through entities.   The income or loss from operations flows through to the parent’s individual return based …

Keep Reading