Tax Planning Articles

Tax Planning Articles

Tax Watch

IRS Issues Standard Mileage Rates for 2020

The Internal Revenue Service today issued the 2020 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be…

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Taxpayer Certainty and Disaster Tax Relief Act and the SECURE Act

On 12/20/2019, the President signed The Further Consolidated Appropriations Act (H.R. 1865), which included several bills. A few have tax implications, which we will discuss here. Included in the omnibus spending legislation was the “Taxpayer Certainty and Disaster Tax Relief Act of 2019” (the “Disaster Act”, for short). This is a summary of what is in the Disaster Act.

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IRS Heightens Focus on Tax Liabilities of S Corporations

One outcome of the Tax Cuts and Jobs Act (TCJA) is the increased scrutiny by the IRS of S corporations and their shareholders with regard to certain tax liability issues. Specifically, the IRS is examining activities regarding unrealized built-in gains (BIG) from the sale of assets, as well as distributions and loan repayments.

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Taxing Non-Resident Trusts—New Boundaries Defined by Supreme Court Ruling

The Supreme Court’s June 2019 decision to aggressively tax trusts didn’t exactly surprise many experienced tax practitioners. The notion was foreshadowed by the Wayfair vs. South Dakota decision one year prior. In North Carolina Department of Revenue vs. The Kimberley Rice Kaestner 1992 Family Trust (herein referred to as the Trust), Justice Sonia Sotomayor wrote the Supreme Court’s unanimous opinion in which the Court affirmed all lower courts’ decisions and held for the taxpayer, the Trust.

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Retaining Your Most Valuable Asset – Your Employees

In the transportation industry, studies reflect a driver shortage in 2018 of over 60,000 with that number to grow to over 160,000 by 2028. As a result of the driver shortage, the average cost to hire a new driver has increased and ranges from $6,420 to $8,612 per driver. With the combination of the lack of drivers and increased hiring cost, it is essential to retain the company’s most valuable asset – its employees.

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U.S. Expats May Still Owe Taxes

Many former American citizens who live outside the U.S are not aware that they still may owe U.S. taxes. To remedy this situation and collect back taxes, the IRS released the Relief Procedures for Certain Former Citizens in September 2019. It provides certain expats with relief for back taxes and the chance to comply with their U.S. tax and filing obligations.

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