Legislation called The Tax Relief for American Families and Workers Act of 2024 (TRAFA) is intended to spur innovation and economic growth, allowing corporate taxpayers greater deductions in research and development and interest expense. It also would increase...
Taxes are hard to avoid! More than 40 states levy individual income taxes which, with state corporate income taxes, and sales and use taxes, comprise the major source of most state government revenues. Like the federal income tax, individuals are responsible for...
The IRS Office of Chief Counsel recently considered consolidated group membership in determining the arm’s length rate of interest chargeable for intragroup loans and making a section 482 adjustment. Under the section 482 regulations, the arm’s length...
Statutes of limitation provide the IRS time to review and seek redress for errors in tax returns, whether intentional or not. Under the general rule, the IRS must assess income taxes, estate taxes, and gift taxes within three years from the later of the date the...
Where wages are paid outside ordinary salary, most employers choose to withhold at an optional flat percentage, instead of using the withholding tables. The current flat rate is 22%. Then again, special rules apply to the extent supplemental wages are paid to any...
There are over 100 penalties in the Internal Revenue Code. Learn more about the penalties the IRS asserts most frequently, and that can apply to all types of taxpayers (individuals, corporations, partnerships, trusts and estates, etc.) and all types of federal...
The Treasury Department recently proposed regulations providing guidance on the ability of taxpayers to transfer by sale certain federal income tax credits derived from investments in renewable energy projects. This article provides an overview of the fundamental...
The American Rescue Plan Act of 2021 (also called the COVID-19 Stimulus Package), Pub. L. No. 117-2 , raised the de minimis threshold for Form 1099-K reporting on third party settlement organizations (TPSOs), like PayPal and Venmo, under I.R.C. § 6050W(e)...
A real estate investment trust (REIT) is a tax-favored investment vehicle focused exclusively on real estate interests. The Internal Revenue Code strictly regulates REITs to ensure that the form stays true to its mission. So, if a REIT meets all of the IRC’s...
Closely following the IRS’s announcement of 2024 inflation-adjusted limits for retirement plans ( Notice 2023-75 ), the IRS also has announced its 2024 inflation-adjusted limits for health FSAs, qualified transportation fringes, income tax rates, and other...
The Internal Revenue Service recently announced its 2024 inflation adjustments to many retirement plan limits. For example, the amount individuals can contribute to their 401(k), 403(b), and most 457 plans will increase to $23,000 in 2024, up $500 from the 2023...
Corporate income taxes are levied in 44 states with rates ranging from 2.5% in North Carolina to 11.5% in New Jersey. Of the total, 11 states have top rates at or below 5%, four have rates at or above 9%, and 29 states and the District of Columbia have single-rate...
The demanding aspect of the U.S. income tax system is that taxable income starts with gross income (in all its forms) unless otherwise excepted. For executives—perquisites can abound. Are they taxable? Free lunch? Not necessarily. Country club membership...
The exit tax implications for certain covered expatriates in choosing to permanently leave the U.S.’s worldwide taxation system are economically unpleasant. The IRC applies an exit tax to the net unrealized gains on the covered expatriate’s worldwide...
Section 30D of the Internal Revenue Code was enacted by Section 205(a) of the Energy Improvement and Extension Act of 2008, Division B of Public Law 110-343 (October 3, 2008), to provide a credit for purchasing and placing in service new qualified plug-in electric...