Marcum LLP
Insights

Tax Alerts 2017

Three Men Standing
 

Featured


As Seen In

If you have an existing home equity line-of-credit or second mortgage, do you have to fold that into a new first mortgage for it to remain tax deductible under the new tax laws?


Tax Flash - The Tax Cuts and Jobs Act

On December 22, 2017, New York State Governor Andrew Cuomo issued an emergency Executive Order authorizing local governments to issue warrants for the collection of 2018 property taxes, to allow property owners to pay at least a portion of their bills prior to the end of 2017.

 


As Seen In

Fox Business invited Tax Leader Joseph Perry onto Closing Bell to discuss prepaying certain 2018 expenses before the end of 2017.

 


Tax Flash - The Tax Cuts and Jobs Act

President Trump signed this legislation into law today. The act is the most significant tax legislation since the Tax Reform Act of 1986.

 


Tax Flash - International Taxation

The transition tax is a mandatory one-time tax to be imposed on U.S. shareholders that own 10 percent or more of the shares of a controlled foreign corporation and U.S. corporate shareholders that own 10 percent or more of the shares of a foreign corporation, collectively referred to as specified foreign corporations, on unremitted and previously untaxed earnings and profits of such SFCs.

 


As Seen In

Edward Reitmeyer, a partner at the Philadelphia accounting firm Marcum LLP, typically prepares between 800 and 1,200 tax returns for small business clients each year.

 


As Seen In

President Trump signed into law a major $1.5 trillion tax plan that Congress had earlier passed, the first re-writing of our tax laws in over 30 years. The big question now is, who wins and who loses?

 


Tax Flash - Tax Reform

This week, Republicans agreed on a final version of the tax reform bill and filed a conference agreement on December 15, 2017.

 


As Seen In

From New York to Kentucky to Florida, accountants and tax lawyers are scanning the 1,000 page measure, fielding a swirl of questions from clients and swapping tips via email in their efforts to fully grasp the bill's far-reaching changes.

 


As Seen In

Earlier this month, The Times reviewed tax returns submitted by a handful of readers to see how the House and Senate tax plans would have affected their 2016 taxes had they been law at the time.

 


As Seen In

Bloomberg Markets Radio had Tax Leader Joseph Perry on the show to discuss aspects of the new tax reform plan.

 


Financial Institutions Alert

Today appears to be the day that the historic Tax Cuts and Jobs Act will get the final votes needed to pass and send to President Trump for enactment.

 


Tax Flash - State & Local Taxation

On November 13, 2017, the Florida Department of Revenue released a Tax Information Publication (TIP No: 17A01-14), reminding taxpayers that effective January 1, 2018 there will be a reduced sales tax rate imposed on commercial rent.

 


As Seen In

Some lawmakers had predicted that the steep corporate tax cuts in the Republican tax bill could cause pass-through entities to convert to corporations to take advantage of the lower rates.

 


IRS Certified Acceptance Agent

The Protecting Americans from Tax Hikes Act, enacted on December 18, 2015, included provisions that affect the Individual Taxpayer Identification Number application process.

 


As Seen In

Congress was poised this week to pass the most sweeping overhaul of the federal tax code in three decades. The Republican legislation, which President Trump has promised to sign before Christmas, delivers most of its benefits to corporations and the wealthy, but there are key changes that affect individuals.

 


As Seen In

While both the Republican House and Senate proposals would drastically alter the nation's tax regulations for individuals, changes to the code for business may prove to be the centerpiece.

 


Tax Flash - State & Local Taxation

While we all anxiously awaited the finalizing of the proposed tax legislation, The Tax Cut and Jobs Act, many tax advisors were suggesting clients prepay state and local income and property taxes related to year end 2018 in 2017.

 


Corporate Taxation

Earlier this year, the Large Business and International Division of the IRS ("LB&I") announced 13 campaigns aimed at specific compliance issues. One of these campaigns is directed at S corporation shareholders incorrectly claiming losses and deductions in excess of their stock and debt basis in the corporation.

 


As Seen In

The Senate and the House closed in on a final version of the tax bill on Friday, as Republican leaders stay on track for final votes on the consensus bill next week.

 


As Seen In

WCBS-TV 2 interviewed Tax Partner Robert Spielman about pre-paying 2018 state and local taxes to offset the loss of these deductions expected next year.

 


As Seen In

Do you have a big IRA? And live in a soak-the-rich state? Run, don't walk, to your accountant. You've got two weeks left to do a Roth conversion that just might save you a bundle.

 


As Seen In

Some small business owners may pay lower taxes under the Republican tax overhaul, but accountants and consultants will want to read the fine print carefully - once the details are finally settled. And some owners may want to consider changing their corporate structure if parts of the proposed changes go through.

 


As Seen In

With the hand-scribbled ink still wet on Washington's shifting legislative efforts, accounting executives such as Joseph Perry and his team at Marcum are fielding an onslaught of inquiries.

 


Tax Return Compliance

A personal service corporation is a C corporation, the principal activity of which is the performance of personal services, with such services being substantially performed by employee-owners.

 


As Seen In

Republican tax plans are working their way through Congress. If the House and Senate can agree on a final bill, will you owe more or less? The answer, of course, is it depends.

 


As Seen In

The AMT, a much-hated provision of the tax code, requires corporations and individuals to recalculate their tax liability if they took too many credits or deductions.

 


As Seen In

Pass-through taxation represents one of the biggest rifts between the House and Senate tax reform plans, a difference that will have to be resolved before a bill can become law.

 


As Seen In

The Senate and House may spend most of the month ironing out the differences in their tax bills. Or they may be delayed by other legislation and not enact a new tax code until the new year.

 


As Seen In

After a frenzy of congressional action to rewrite the tax code, salesclerks and chief executives are calculating their gains. Business was treated with the everyone's-a-winner approach that ensures no summer camper goes home without a trophy.

 


As Seen In

Republicans are moving a tax reform bill through Congress that could have both short-and long-term impacts on housing prices and trends. Real estate lobbies are concerned that bills crafted in the House of Representatives and the Senate eliminate incentives for homeownership and put the ability to purchase a home out of reach for many individuals.

 


Tax Compliance

The Tax Cuts and Jobs Act was passed by the House of Representatives on November 16, 2017. The Senate Finance Committee also passed its own bill.

 


As Seen In

Radio America's Made in America spoke with State & Local Tax Leader Paul Graney about whether taxpayers in high rate jurisdictions will flee to low- or no-tax states.

 


As Seen In

As Senate Republicans moved closer to an overhaul of the nation's tax code, the prospect of sharp cuts to corporate taxes loomed larger.

 


As Seen In

Opponents of the Republican tax proposal moving through Congress are focusing in part on one particular billionaire as they seek to rally Americans against it: President Donald Trump.

 


As Seen In

By eliminating the deduction for most state and local taxes, an individual making a yearly salary of $1,000,000 - a figure not uncommon in the financial industry - would owe the Internal Revenue Service an additional $21,000.

 


As Seen In

On Oct. 31, Gov. Dannel P. Malloy signed a trick-or-treat bipartisan budget agreement that provided for a number of new tax changes. He also vetoed a hospital provider tax, but offered new language to revise it.

 


Tax Flash - Tax Credits & Incentives

The California Competes Tax Credit program is an award-based program that is funded through the state's general fund. The purpose of the California Competes Tax Credit is to offer incentives to employers who are creating new jobs in California or making significant capital investments in the state.

 


Research & Development Credit

Effective September 11, 2017, the Internal Revenue Service introduced a Research and Development Credit Directive for taxpayers that report R&D costs on GAAP audited financial statements, pursuant to ASC730 reporting standards.

 


As Seen In

The Joint Committee on Taxation, Congress' official nonpartisan budget analysts, reported that a pending Senate bill would give large tax cuts to millionaires while raising levies on American families earning $10,000 to $70,000 over 10 years.

 


As Seen In

NBC Nightly News interviewed New York Tax Leader Maury Cartine for a story about how much President Trump stands to potentially save under the GOP tax plan.

 


As Seen In

The rewrite of the tax code, which the House passed on Thursday, proposed a 25 percent tax rate for small businesses for owners who report their profits as income on their tax returns. It was slightly higher than the 20 percent rate for corporations but a break from the top individual rate of 39.6 percent.

 


As Seen In

President Donald Trump has insisted, for months, that the Republican tax plan he supports won't benefit him. In fact, Trump and his heirs potentially could save more than $1 billion overall under the GOP tax proposal that the House of Representatives passed Thursday, with most of that amount coming from a repeal of the estate tax, according to an analysis NBC News commissioned of Trump's one known 2005 tax return and his estimated net worth.

 


Tax Flash

Last week, the Senate Finance Committee issued its version of the recently released House Tax Cuts and Jobs Act.

 


State & Local Taxation

Many Tennessee businesses have an interest in flow through entities subject to Tennessee taxation. The flow through income is reported by both the parent and the income producing entity.

 


As Seen In

Shaun Blogg, Marcum's office managing partner in West Palm Beach, FL, discussed the impact of tax reform for businesses and individual taxpayers with Bloomberg Markets.

 


Tax Flash - State & Local Taxation

On October 30, 2017, Pennsylvania Governor Tom Wolf signed into law House Bill 542, a $1.6 billion revenue bill aimed at addressing the state's $2.3 billion budget deficit.

 


As Seen In

Bloomberg Markets asked Tax Principal Michael D'Addio onto the program to discuss the prospects for the House and Senate tax bills.

 


As Seen In

The GOP's tax plan contains a little-noticed tax hike on big earners that could add another $12,000 to their annual tax bill.

 


Tax Flash

On September 27, 2017, the Trump Administration and Republican leaders released a unified framework for tax reform that would make changes to both individual and business taxation including suggested cuts in rates. The unified framework was a nine-page blueprint of proposals for tax relief that was not very specific or detailed.

 


Tax Flash - State & Local Taxation

On October 31, 2017, Governor Malloy signed a bipartisan budget agreement highlighting important reforms and other key initiatives.

 


Tax Flash

The Internal Revenue Service has announced new additions to the cost of living and inflation rate increases for several tax-related attributes for the 2018 year.

 


As Seen In

Wall Street can't be happy about Congress' proposal to cap our yearly 401k contributions at $2,400 - thats the tax-deferred amount we would be able to sock away in a retirement plan, down from $18,000.

 


Construction

California Gov. Jerry Brown signed AB 1223, "Construction Contract Payments: Internet Website Posting," on October 8, 2017.

 


Tax Flash

On September 29, 2017, the Disaster Tax Relief and Airport and Airway Extension Act of 2017 was signed into law, providing certain temporary tax relief for the victims of Hurricanes Harvey, Irma and Maria.

 


Tax Flash

On October 2, 2017, The Trump Administration issued Executive Order 13789. Included in this Executive Order, the IRS and the Treasury establish that they will withdraw the Section 2704 proposed regulations in their entirety.

 


As Seen In

Homeowners would get a choice between deducting property taxes or mortgage interest on their federal tax returns as Republicans on Tuesday discussed modifications to the sweeping tax code overhaul proposed last month.

 


Tax Flash

On September 27, 2017, the Trump Administration and Republican leaders released a unified framework for tax reform that would make changes to both individual and business taxation, including suggested cuts in rates.

 


Tax Flash

The Equifax data breach, which disclosed sensitive personal of an estimated 140 million individuals, has raised questions concerning what defensive measures should be taken now. The exposed information includes names, social security numbers, dates of birth, home addresses, driver’s license numbers, and credit card numbers.

 


Tax Compliance

The IRS has provided real estate owners with a juicy tax deduction. The de minimis safe harbor election is an annual tax return election that permits a taxpayer to deduct, as ordinary and necessary business expenses, purchases of items that would normally have to be capitalized.

 


Tax Flash

The IRS is providing help to the victims of Hurricane Irma. Special tax relief and assistance is available to taxpayers in the Presidential Disaster Areas. Hurricane Irma victims in parts of Florida and elsewhere will now have until January 31, 2018, to file certain individual and business tax returns and make certain tax payments, according to the Internal Revenue Service announcements.

 


Tax Compliance

On August 15, 2017, the Internal Revenue Service reiterated a warning urging businesses to be wary about a proliferating W-2 email scam.

 


Tax Flash

As a result of the devastation caused by Hurricane Harvey, IRS has granted two significant forms of relief for those affected by the storm. The Service is granting an automatic extension of time to file and pay taxes due before January 31, 2018.

 


Tax Compliance

The Boston Bruins just concluded a center ice battle with the IRS that could affect all major sports teams and other businesses that have employees provide services at offsite premises.

 


Tax Compliance

The Internal Revenue Code imposes a 20% penalty on any portion of a tax underpayment that is attributable to negligence or disregard of rules and regulations.

 


Tax Compliance

April 18 was the deadline this year for most people to file their annual federal income tax returns and pay any taxes they owed.

 


Tax Flash - State & Local Taxation

Amazon FBA (fulfilled by Amazon) is commonly used by companies that sell via the ecommerce giant. As part of the arrangement, companies send their inventory to Amazon, but maintain access to the inventory via their Amazon portals.

 


Tax Compliance

Self-employed U.S. taxpayers file a Form Schedule C Profit or Loss from Business along with their Form 1040 in order to report activity from sole proprietorship businesses.

 


Tax Compliance

An individual who experiences the full process of prosecution and conviction by the Department of Justice for a tax crime has the obligation to pay the owed taxes.

 


Tax Flash

The U.S. Treasury Department issued Notice 2017-38 on July 7, 2017, identifying eight Treasury Regulations considered to be burdensome and which may be modified or eliminated pursuant to an Executive Order issued April 21, 2017.

 


Healthcare Alert

A Health Savings Account (HSA) is a medical savings account with a multitude of tax advantages. Established in 2003 for the 2004 tax year, the popularity of HSAs has exploded in recent years, as health insurance premiums continue to rise over time.

 


As Seen In

Joseph Perry, tax and business services leader at Marcum LLP, discusses the issues that he feels need to be tackled in order to achieve U.S. tax reform. He speaks with Bloomberg's David Westin on Bloomberg Daybreak: Americas.

 


Currency

Cryptocurrency is a form of digital money that is created from code and encrypted.

 


Tax Flash - State & Local Taxation

Facing the unprecedented threat of a junk bond status credit rating, billions of dollars of unpaid bills, and mounting fiscal pressure on the State's institutions and programs, on July 4, 2017, the Illinois Legislature voted to override the veto of Governor Bruce Rauner in order to pass the state's first budget since 2015.

 


Research & Development

In 2016, the Internal Revenue Service issued final regulations (T.D. 9786) regarding guidance on software that is developed primarily for a taxpayer’s internal use in computing the credit for increased research activities.

 


Tax Return Compliance

Ah, the American Dream: Apple pie, a chicken in every pot and….. home mortgage debt. Or, has home mortgage debt become something to be a wee bit wary of?

 


Real Estate

Income or loss derived from the rental of real estate is generally considered a passive activity. One of the main consequences of a rental activity being treated as a passive activity for tax purposes is that losses can only be deducted against passive income.

 


Tax Return Compliance

The IRS generally issues refunds within a timeframe of 21 days or less. However, exceptions do apply. Incomplete or inaccurate returns can delay a refund.

 


Tax Flash

New York Governor Andrew Cuomo signed the 2017-2018 budget bill on April 10, 2017.

 


Construction

All taxpayers strive to determine and use the tax accounting method that results in paying the least amount of tax allowed by law. Because of the many different methods available, contractors should continually review the rules to ensure they are using the most beneficial methods. An understanding of the qualifying tests for each method is essential.

 


Tax Return Compliance

Infertility today is estimated to affect approximately 10 percent of Americans who are of reproductive age.

 


Tax Return Compliance

Homeowner and condominium associations are essential for managing residential properties, upholding the communities’ by-laws, and of course, collecting resident dues in order to fund operations.

 


Tax Return Compliance

During the course of business, exchanges and sales of partnership interest are not uncommon. These transactions have little or no effect on business operations.

 


Tax Return Compliance

On April 13, 2017, the Internal Revenue Service ("IRS") issued an official Action on Decision ("AoD") regarding its defeat in the case of Stine, LLC v. USA ("Stine"). The case addressed whether a building can be considered "placed in service" before it is "open for business." Generally, a building is placed in service when it is substantially complete and in a state of readiness and availability to carry out its specified function.

 


Tax Return Compliance

Discerning communication with a legitimate IRS representative is proving to be a much more difficult task for taxpayers today as a result of an increase in tax fraud.

 


International Tax

Transfer pricing is a simple concept, yet can result in many complex tax implications. One of the most significant areas of dispute concerns the tax associated with the valuation of intangibles transferred by U.S. corporations to foreign entities and the value of the transferred intangibles.

 


Tax Flash

Multiple states have recently passed laws or announced directives that imply that sales tax nexus can be created in a state without a physical presence.

 


Tax Flash - State & Local Taxation

The Pennsylvania Department of Revenue issued revised guidance on the extent to which support services associated with prewritten computer software may be taxed.

 


Tax Flash

On March 6, 2017, the South Dakota Sixth Judicial Circuit, as a result of South Dakota v. Wayfair LLC., enjoined the state from enforcing the sales tax economic nexus provision previously adopted in March 2016.

 


Tax Return Compliance

Proposed regulations have been issued by the IRS updating the dependency exemption rules. These proposed regulations build on the dependency requirements previously amended by the Working Families Tax Relief Act of 2004, as well as the Fostering Connections to Success and Increasing Adoptions Act.

 


Tax Flash

House Republicans released their version of health care reform this week - the American Health Care Act (AHCA).

 


Tax Flash

For tax years beginning after December 30, 2015, New York State and New York City require certain corporations, including C Corporations, to use the second preceding year's tax to determine if a mandatory first installment is needed and to determine the amount of such MFI.

 


Tax Flash

On February 21, 2017, the U.S. Supreme Court declined to hear a case challenging a Florida Supreme Court ruling on an interstate sales tax matter involving a Florida florist, and in so doing, potentially paved the way for interstate sales transactions to become taxable in multiple states.

 


Tax Return Compliance

Here we are in the midst of another tax return filing season. You are a business owner and are planning to gather information for the entity's tax return.

 


Trusts & Estates

Fiduciary entities, other than specific charitable entities such as charitable remainder trusts, charitable lead trusts, or private foundations, are allowed many of the same deductions as an individual.

 


Tax Flash

On January 31, 2017, the Large Business and International division of the IRS rolled out the latest phase in a new effort aimed at improving compliance and updating the agency's approach to taxpayer examinations.

 


Tax Flash

The passing of the Protecting Americans from Tax Hike (PATH) Act of 2015 introduced many exciting changes related to the Research and Development (R&D) Tax Incentive program.

 


Tax Flash

On January 18, 2017, the Internal Revenue Service ("IRS") published administrative guidance in Notice 2017-15, providing specific policy and procedures for retroactively changing the tax treatment of federal estate, gift and generation-skipping transfers (GST) in the estates of same-sex married couples whose marriages were not legally recognized prior to the United States Supreme Court's decision in United States v. Windsor.

 


Tax Flash

It's tax filing season time again! As if trying to figure out what forms to file isn't hard enough for taxpayers, the IRS and many states have changed their official filing deadlines.

 


Assurance Alert

Suppose you are the CFO of a small public company, and you're having a conversation with a peer who is the CFO of an accelerated filer. "How are you handling SOX at your company?"

 


Tax Flash

For individual filers who are required to e-file their income tax returns, don't be surprised to hear your accountant tell you she needs a copy of your driver's license or state ID in order to process your filing.

 


Tax Return Compliance

On April 16, 2016, the IRS released an updated version of Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities), along with Instructions.

 


Tax Flash

The IRS issued Notice 2016-66 on November 1, 2016, identifying certain transactions relating to small captive insurance companies as "transactions of interest."

 


Tax Return Compliance

IRS Notice 2017-9, explains the scope of a new de minimis error safe harbor for information returns and payee statements created by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act).

 


Construction

When it comes to construction contracts and the IRS, the rules can be very complex. The IRS specifically addresses tax matters and construction industry issues within Internal Revenue Code Section 460.

 


International Taxation

The IRS has recently issued final regulations regarding the treatment of U.S. disregarded entities wholly owned by foreign persons. These final regulations became effective December 13, 2016.

 

 
 
HAVE A QUESTION? ASK MARCUM
 
STAY IN TOUCH.

SIGN UP TODAY FOR MARCUM'S NEWSLETTERS.

ABOUT MARCUM LLP

Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as Grand Cayman, China and Ireland.

Learn More

CONNECT WITH US
OFFICES

Headquarters
750 3rd Avenue, 11th Floor
New York, NY 10017

Find an Office

(855) MARCUM1
info@marcumllp.com

FOUNDATION

Marcum Foundation

AFFILIATIONS

Leading Edge Alliance