Monthly Archives: December 2016

Your Business Loses Money; Tax Benefits or Concerns?

I’m often asked by nervous new business owners if they can recover a tax refund for a business loss. Receiving a tax benefit from a business loss depends on the type of entity formed and whether the investment in the business is “at risk” in whole or in part. It also depends on the presence of other income.

Owners of a corporation are not taxed directly on business profits and losses because the corporation’s taxes are taxed separately. For other types of enterprises, business income and loss passes through to the owner’s personal tax return. These business types are:

IRS Is Outsourcing Tax Debt Collection: Good News Or Bad News?

In September of 2016, the Internal Revenue Service announced that it plans to begin outsourcing the collection of some overdue federal tax debts in the spring of 2017 to private contractors, and has contracted with four collection outfits to implement this new program.

Authorized under a federal law enacted by Congress last December, the new program enables the following designated contractors to collect, on the government’s behalf, outstanding inactive tax receivables. As a condition of receiving this contract, these agencies must respect taxpayer rights, which includes observing the consumer protection provisions of the Fair Debt Collection Practices Act.

Can You Claim Your Child As A Dependent On Your Tax Return?

If you support children, relatives, or even non-relatives, you may be able to claim them as dependents on your tax return. Specifically, if someone qualifies as a dependent, you may claim them on your tax return unless you or your spouse qualifies as a dependent for another individual. It is important to remember that if someone else may claim you (or your spouse, if filing jointly) as a dependent, whether or not they actually claim you, then you may not claim any dependents nor take any tax exemptions, even for yourself.

$21 Million Gift Tax, IRS Subpoenas And The Indiana Pacers

The case involving the Indiana Pacers, the sister-in-law of the team’s owner and a $21 million IRS tax bill isn’t over yet. In 2009, a few months prior to his death, Mel Simon gave his half of the Indiana Pacers to his brother, Herb Simon. As this transaction is scrutinized by many, the IRS has subpoenaed the Indiana Pacers for documents that assist in providing details of this alleged gift. The team, former general manager Donnie Walsh and Herb Simon have requested a federal court to issue a protective order against the IRS.

Tax Law Changes In The New York State Budget Act, Part 3

In early spring of 2016, Governor Cuomo of New York signed into law the 2016-2017 Budget Act (S6409C/A9009C) (“Budget Act” or “Act”). This legislation includes amendments to the New York tax reform legislation contained in the 2014-2015 New York State Budget and the New York City tax reform legislation contained in the 2015-2016 New York State Budget. It also contains provisions which affect certain state credits and incentives, and state sales tax provisions. This is the third part of a three-part series summarizing some of the more significant provisions of the Budget Act.

Interest or bad debt deductions

Tax Law Changes In The New York State Budget Act, Part 2

In early spring of 2016, Governor Cuomo of New York signed into law the 2016-2017 Budget Act (S6409C/A9009C) (“Budget Act” or “Act”). This legislation includes amendments to the New York tax reform legislation contained in the 2014-2015 New York State Budget and the New York City tax reform legislation contained in the 2015-2016 New York State Budget. It also contains provisions which affect certain state credits and incentives, and state sales tax provisions. This is the second part of a three-part series summarizing some of the more significant provisions of the Budget Act.

Change in due dates for filing

Tax Law Changes In The New York State Budget Act, Part 1

In early spring of 2016, Governor Cuomo of New York signed into law the 2016-2017 Budget Act (S6409C/A9009C) (“Budget Act” or”Act”). This legislation includes amendments to the New York tax reform legislation contained in the 2014-2015 New York State Budget and the New York City tax reform legislation contained in the 2015-2016 New York State Budget. It also contains provisions which affect certain state credits and incentives, and state sales tax provisions. This is the first part of a three-part series summarizing some of the more significant provisions of the Budget Act.

Tax credits and incentives

New York State Property Tax Cap Will Be Under 1 percent In 2017

In July of 2016, New York Comptroller Tom DiNapoli announced that local governments in New York State may only raise their property-tax levies by no more than 0.67 percent unless they vote to override the state’s cap. This is a slight decrease from 2016. Currently, the cap for local government in the state of New York is 0.73 percent this year, and thus will remain below 1 percent again in 2017.

France Promises 1 Billion Euro Tax Cut In 2017

In September 2015, French President Francois Hollande promised households a 1 billion-euro ($1.1 billion) tax cut next year. Why such benevolence?  Hollande’s government was attempting to make up for the glut of gross domestic product (GDP) that was taken by his government in taxes in 2014.

Finance Minister Michel Sapin said “we’re doing it because it’s both fair and necessary.” Both France and Belgium collected the equivalent of 47.9 percent of gross domestic product in 2014. France’s finance ministry estimated that taxation and social charges have fallen from 44.9 percent of GDP in 2014 to 44.5 percent this year.

What To Do If You Haven’t Received Your Refund

Of course, none of us “prefer” to pay taxes. Once we do pay our taxes, if we expect a refund, we hardly exhibit any patience awaiting it in the mail. But the IRS is a mega-bureaucracy, which means that things get lost, overlooked, mishandled, and, well I shudder to think. Thus, delays are not altogether uncommon, and failures to process and mail returns actually occur, albeit infrequently. So what do you do if you haven’t received your tax refund?

Testimonials

Categories