Jul 162012
 

Assuming that the new healthcare law survives this year’s election in the current form, the new Medicare tax found within its provisions will likely complicate the tax consequences that stem from the sale of certain business interests.  Beginning in 2013, Section 1411 of the Internal Revenue Code will impose a new Medicare tax equal to 3.8% on the “net investment income” of U.S. individuals, estates and trusts.  Section 1411(c)(4) applies a “deemed asset sale” approach to the disposition of a partnership or S corporation interest in order to determine the amount of net investment income which arises from the transaction. More…

Jul 112012
 
Questions Abound Regarding IRS’ Ability To Enforce Healthcare Law

Now that the U.S. Supreme Court has ruled affirmatively on the new healthcare law and its most controversial measure, the individual mandate, the IRS must prepare to enforce the new legislation while still maintaining its customary obligation of collecting the taxes necessary to run the federal government.  Some have called into question if the problem-stricken agency can handle this new obligation, as well as whether the IRS has maintained adequate transparency in preparing for the role. As the IRS seeks funding to build a system to oversee the healthcare mandate, Republicans suspect the agency is already diverting resources away from More…

Jul 022012
 
New Taxes In The Healthcare Law

Now that the United States Supreme Court has ruled on the constitutionality of the Patient Protection and Affordable Care Act (“PPACA”), President Obama’s signature healthcare legislation, we will all have to become more familiar with the taxing provisions contained within the bill.  Beyond the individual mandate, which now has the dubious distinction of being perhaps the most famous “tax” imposed by the PPACA, there are numerous other revenue-raising provisions found within the law’s hundreds of pages of statutes, rules, and regulations. The vast majority of the PPACA’s revenue raising potential will come from just a few of the many tax More…

Jun 282012
 
Supreme Court Upholds Healthcare Law By Finding Individual Mandate Qualifies As A Tax

In a surprising conclusion to a constitutional challenge that has gripped the nation for the past two years, U.S. Supreme Court Chief Justice John Roberts joined with Justices Ruth Bader Ginsburg, Stephen Breyer, Sonia Sotomayor, and Elena Kagan today to uphold the linchpin of the Patient Protection and Affordable Care Act (“PPACA”), President Barack Obama’s healthcare bill, the individual mandate requiring citizens to carry insurance or pay a penalty.  The court held the mandate valid under the authority granted to Congress under Article 1, Section 8 of the U.S. Constitution “to lay and collect Taxes” to provide for the “general More…

May 292012
 
Florida Tax Structure Ranked As One Of The Most Attractive For Businesses

A new survey of corporate chief financial officers released by Alvarez & Marsal Taxand, LLC, a tax consulting firm based in New York, ranks Florida among the top three states with the most competitive business taxes. According to the survey report, “amidst political, economic and regulatory change, CFOs say certainty in the tax code has become even more important than a reduction in corporate tax rates.  While CFOs generally believe tax rates should be reduced to ensure the U.S. remains competitive in an increasingly global economy, when given the opportunity to eliminate or significantly change one aspect of the tax More…

Nov 282011
 
End Of The Year Tax Planning - Making The Most Of The Gift & Estate Tax Exemptions

We are now nearly a year removed from the expansion and unification of the gift and estate tax credits, and now is the time to take advantage of this liberal tax exemption.  Currently, the exemption amount is $5 million for both gift and estate tax purposes.  This exemption is scheduled to sunset on December 31, 2012, after which it will revert to a much harsher $1 million exemption if no legislative action is taken.  The estate tax rate will also rise from 35% to 55% if no action is taken. Before the end of 2012, a married couple may transfer More…

Oct 142011
 
Large Corporations Lobby For Tax Holiday

Yesterday, we posted a blog describing a recent IRS investigation into Google’s method of reducing their tax bill by transferring intellectual property assets into overseas entities where the income from those assets are taxed at rates which are more favorable.  One of the obvious problems with this strategy is that, in order to avoid paying United States taxes on this income, the money must be left in those entities and outside of the United States.  Which is exactly  where companies such as Google would like to put all that money to use.  Unfortunately, if these funds are brought back to More…

Jul 262011
 
IRS Eases Restrictions On Innocent Spouses

The IRS recently announced that they would be easing the 2 year deadline on taxpayers seeking innocent spouse relief.  A taxpayer who is a party to a joint tax return and later requests innocent spouse relief may be relieved of responsibility for paying taxes, interest, and penalties if their spouse (or former spouse) improperly reported or omitted items on their returns.  If a taxpayer qualifies for innocent spouse relief then the taxes, interest, and penalties at issue can only be collected from the spouse who is deemed responsible. The previous 2 year limitation began to run from the date of More…

Apr 272011
 
579 Changes to the U.S. Tax Code in 2010

Is it any wonder that few people understand the tax code in the United States? How do you keep up when more than 500 changes are made in one year? At Ourednik Law Offices, we make it our priority to stay up to date on tax code changes so that we may competently represent our clients. Tax laws impact almost every transaction in our society. When you buy things from the store, you pay sales tax. If you order items from out of state and have them shipped to your home, you may be subject to use tax. Own a More…