New York State’s Employer Compensation Expense Program Provides Workaround to the $10,000 Limited SALT Deduction Under the Employer Compensation Expense Program (ECEP) adopted in the State of New York in 2018, employers can elect to pay a fixed percentage of employee wages…
Thinking of Changing Your State Residency to Mitigate State Income Taxes? Be Aware of the Potential Pitfalls The thought of moving to a lower-tax state is more prevalent than ever in light of the federal Tax Cuts and Jobs…
Uber Fined $649 Million for Classifying Drivers as Independent Contractors New Jersey has demanded that Uber pay $649 million for years of unpaid employment taxes going back as far as 2015 for its drivers, arguing that the ride-hailing company has…
Using an IC-DISC Structure to Reduce Taxes on Foreign Exports Companies in the manufacturing industry that are involved in foreign transactions, particularly exporting, need to be aware that they can reduce their U. S. tax liability using an Interest-Charge Domestic…
The Section 1202 Small Business Stock Gain Exclusion Section 1202 of the Internal Revenue Code allows non-corporate taxpayers to exclude from federal income tax 100% of the gain on the sale of certain qualified small business stock (QSBS), limited to…
The Tax and Other Benefits of Forming a Captive Insurance Company Captive insurance companies are often used by large corporations to lower their insurance costs and are often created in offshore tax havens. However, small, closely held companies can take…
IRS increases 401(k) contribution limits for 2020 The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500. The catch-up contribution limit for employees aged…
FASB Votes to Delay Effective Dates for Accounting for Leases Effective dates will be delayed for private companies and certain other entities for FASB’s standards on accounting for leases after a unanimous vote by FASB. Under the Accounting Standards Update…
State and Local $10,000 Tax Cap Challenge Rejected by Court The 2017 federal tax law included a provision that limited to $10,000 the state and local tax payments that families can write off on their federal income taxes if they…
IRS Budget Cuts Could Result in Businesses Engaging in More Aggressive and Questionable Tax Mitigation Strategies A series of budget cuts at the Internal Revenue Service has led to relatively little funding being designated for increasing IRS tax audits, even…