Archive: Tax

Proving the U.S. Tax Efficiency of the GILTI High-Tax Exception

The Tax Cuts and Jobs Act (TCJA) brought significant changes to the U.S. international tax rules in December 2017. A new GILTI reporting rule currently applies to U.S. shareholders of controlled foreign corporations (CFCs). GILTI prevents U.S. shareholders from deferring U.S. federal tax on earnings of CFCs. U.S. shareholders of CFCs are subject to GILTI […]
January 14, 2021

IRS Expands Identity Protection PIN Program to All Taxpayers

Starting in Mid-January, 2021, the Internal Revenue Service will begin allowing all taxpayers to receive an Identity Protection Personal Identification Number (IP PIN). The IP PIN is a six-digit number assigned by the IRS to eligible taxpayers to assist in minimizing federal tax refund fraud. The purpose of the IP PIN is to help the […]
December 9, 2020

Maryland Pass-through Entity Election Can Create Additional Federal Income Tax Deduction

Maryland residents that own a pass-through entity (i.e., partnership or S corporation) can create an additional federal income deduction by making the new Maryland pass-through entity tax election. In response to the $10,000 state and local tax (SALT) deduction limitation enacted as part of the federal Tax Cuts and Jobs Act of 2017, Maryland, as […]
December 8, 2020

What Could Biden’s Proposed Tax Plan Mean for the Hospitality Industry and Its Operators?

With former Vice President Joe Biden now considered to be the President-Elect, there are rumors of potential tax and other legislative changes that could be implemented in the near future. Most of Biden’s proposed changes have the potential to greatly affect restaurants, hotels, distributors, and other retail business owners. Below is a summary of the […]
November 16, 2020

The Biden Tax Plan – How it Affects You

With Joe Biden’s presidency all but official certifications away, a hard look at his tax plan should be done between now and the end of 2020. Certainly, no one can predict whether this plan or any parts of it could be passed into law during 2021. The Georgia senatorial race slated for a run-off in […]
November 12, 2020

Virtual Currency – New 1040 Disclosure

In 2019 the IRS introduced a new question on Schedule 1 of Form 1040 specifically asking if the taxpayer did any trades with virtual currency. This question was meant to assist in the determination of whether the taxpayer properly reported such trades, and to put others on notice that the IRS is taking virtual currency […]
October 28, 2020

Dollar Limits on Compensation and Benefits Announced

The Internal Revenue Service has announced the 2021 cost-of-living adjustments for various limits affecting employee benefit plans. The more common limits are detailed below for 2021 and 2020. 2021 2020 401(k) & 403(b) Elective Deferrals $19,500 $19,500 Catch-Up Contribution for participants age 50 and over $6,500 $6,500 Defined Contribution Plans-IRC 415 (Including SEP and Keogh […]
October 27, 2020

Payroll Tax Deferral – Guidance Issued

The IRS has issued Notice 2020-65 to provide guidance on President Trump’s memorandum deferring the employee’s portion of Social Security taxes normally withheld from gross wages.   The summary of the guidance is as follows: The term “Affected Taxpayers” means the employer who is otherwise required to withhold the Social Security tax. This definition is very important later on in […]
September 1, 2020

COVID-19 Relief Provided for Qualified Opportunity Funds and Investors

To provide relief in response to the COVID-19 pandemic for Qualified Opportunity Funds (QOFs), Qualified Opportunity Zone Businesses (QOZBs), and investors, the IRS issued Notice 2020-39. This notice provides expanded timelines for investors to make eligible investments, provides the QOFs and QOZB’s expanded timelines surrounding testing for investment standards, working capital safe harbors, and time […]
August 31, 2020

Is your ITIN Expiring?

Is your ITIN Expiring? At the end of this year, certain Individual Taxpayer Identification Numbers (ITINs) will expire unless renewed.  The ITIN must be renewed if one of the following criteria is met: The ITIN has not been used on any tax filing for 2017, 2018, or 2019. The ITIN was issued before 2013 and […]
August 31, 2020