Creating a financial technology (fintech) firm comes with a host of tax considerations and implications. Decisions about the business's structure, along with the location of both the business itself as well as its employees, can affect the entity's tax...
Although many of the benefits for employers can be found in the Internal Revenue Code’s tax provisions (e.g., the Disabled Access Credit, at I.R.C. § 44 ), some states provide incentives, too, for hiring individuals with disabilities and for enhancing...
Employee stock ownership plans (ESOPs) can be a wonderful tool. They allow employees to share in the employer’s stock growth, put employer stock in (presumably) friendly hands, permit tax-advantaged payback of an ESOP loan and ESOP distributions, and allow...
The IRS formally proposed rules targeting a type of monetized installment sale as a potential tax avoidance deal that would require participants and material advisers to provide additional reporting under the threat of penalty. The IRS says that the sole economic...
IRS recently issued guidance concerning the stock repurchase excise tax, or "buyback tax," introduced under the Inflation Reduction Act ( Pub. L. No. 117-169 ) and set forth under Section 4501 of the Internal Revenue Code . The guidance, appearing in...
States need money to provide services and government. That comes from all sorts of taxes on individuals, businesses, and other entities. For businesses, absent residency, taxes may apply based on some connection of activities within the state. It may be tenuous...
One of the biggest challenges that businesses face, particularly in the start-up stage, is obtaining the requisite amount of funding to establish and sustain the business. In today's economy, a business has several avenues through which to obtain that funding...
The IRS Whistleblower Office’s Annual Report is in for its 2022 fiscal year! The whistleblower compliance function receives and considers specific, timely, and credible whistleblower claims that identify non-compliance with tax laws or other laws the IRS...
Boot is an old English term meaning "something given in addition to.” In tax lingo, it means cash or non-cash consideration, including other property that is not "like-kind," like promissory notes, debt relief (mortgage boot), or other property...
The 2022 Form 1040 asks: ”At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?” Later...
Mergers and other corporate transactions create complexities in many ways, payroll included. Should FICA restart or is the new corporation a successor to the former entity? In an asset purchase transaction, two methods exist by which a predecessor (seller) and...
Congressional bills have been introduced that address the taxation of digital assets (e.g., Lummis-Gillibrand Responsible Financial Innovation Act and the Virtual Currency Tax Fairness Act). And, IRS has provided recent guidance on the topic. The bills, which are...
S corporations allow small business owners to enjoy the limited liability and other advantages afforded by corporations while, at the same time, obtaining the flow-through benefits of partnerships or sole proprietorships. However, the tax treatment of S corporations...
Online retailers had largely escaped state sales and use taxes before the U.S. Supreme Court decided South Dakota v. Wayfair, Inc. in 2018. Wayfair overruled the previous physical presence test which required sufficient nexus to impose a sales tax on electronic...
Managers of profit-sharing or retirement plans, IRAs, annuities, pensions, and other similar plans must be mindful of reporting obligations to the IRS. Learn more about how to complete, file, and amend IRS Form 1099-R (Distributions from Pensions, Annuities, Retirement...