In 2009, the IRS shocked the business community by advising taxpayers (by making a change to a form’s instructions) that anyone “doing business” in the U.S. could be subject to the Foreign Bank Account reporting (“FBAR”) rules, and, therefore be required...

From Ron Cohen: As of 2/13/10, U.S. estate tax outcomes -- (and capital gains tax for the heirs) -- for taxpayers who pass away in 2010, are becoming more confusing each day Congress does not act to replace expired laws. The following is a Wall Street...

By alliantgroup, LP On January 29th, the U.S. District Court for the Northern District of Texas (Dallas) issued its ruling in Trinity Industries, Inc. v. U.S. The legal holdings in the case provide yet another victory for taxpayers claiming the R&D...

Dear Clients & Friends: In these troubled economic times, many financially distressed borrowers may have had some or all of their debt cancelled or forgiven by their lender last year. While such relief was no doubt welcome to people who received it,...

Entities have one year from the date their final return is filed to formally dissolve with the Secretary of State. The FTB no longer assesses the $800 minimum franchise tax, or the $800 annual tax, for the year after a corporation, LP, LLP, or LLC ceases...

Remember to File by April 15 California imposes “Use” tax on the purchase of tangible personal (non-real estate) property purchased in another state and transported into California for “use”…hence the “Use” Tax name. While taxpayers play various games...

We are working with a number of clients to establish or move technology businesses from the U.S. to the U.S. Virgin Islands. (“USVI”) There are very substantial tax benefits. Unlike other tax havens, the tax system in the U.S. Virgin Islands is in...

IRS Announcement 2010-9 http://www.irs.gov/pub/irs-drop/a-10-09.pdf     Comment from Ron Cohen:  Unfortunately, with the absurd complexity of U.S. tax laws, tax audits are an adversarial, confrontational, and litigious process. ...

  Comment: I don’t think even the worst bureaucrats of the U.S.S.R. could have devised a more convoluted, complex, time-wasting, form-producing way to send a few dollars of tax credit to the hard-working population. Payroll systems need reprogramming, ...

Be careful to consider these rules for payments from a California taxpayer to a person earning income that is California “Source.” The penalties mount quickly on this type of reporting. “Starting January 1, 2010, individuals and other payers that are...

A new tax credit of $3,000 for each additional full-time employee hired is available to small businesses with 20 or less employees beginning January 1, 2009. The credit is not subject to the 50% limitation for business credits. The total amount of...

Dear Clients & Friends: The following is a summary of the most important tax developments that have occurred in the past three months that may affect you, your family, your investments, and your livelihood. Please call us for more information about...

The following is an excellent summary of the sad state of the U.S. tax system at this moment in time on 1/8/10. We completely agree with the author about “Congressional dereliction of duty.” My sources tell me that Congress will not resolve the tax law...

Wall Street Journal, 12/23/09, Page C3 http://online.wsj.com/article/SB10001424052748704157304574612532368682034.html?ru=yahoo&mod=yahoo_hs Summary of the article & comments: 1) Sell Stock Now Before the Law Changes? A shareholder sold shares in...

This is an excellent article in the L.A. Times, December 24, 2009, Page B1. Their has been confusion in the minds of tax and non-tax people about their tax obligation for California Use Tax on internet purchases, when the internet seller does not charge...

See the new Form 1099-B for 2011 that requires “cost basis” information. Form 1099-B 2011 In the past, client’s sometimes don’t know or can’t find their cost basis in stocks they have sold. Major stock brokers have, in recent years, attempted to get...

From the Department of Consumer Affairs, California Board of Accountancy Newsletter of 12/2009: “CPA X was grossly negligent and committed repeated acts of negligence in preparation of the complainant’s corporate tax returns for the years 2004 through...

Sec. 761(f) Article  The attached article above reviews how husband and wife businesses may file for federal tax purposes. This seemingly simple issue is complex. Filing a partnership return is estimated by the IRS to require 200 hours of tax return...

Here’s the link to Tax Court case decided 12/10/2009. The U.S. Internal Revenue Service (IRS) may appeal to the 9th Circuit Federal Court of Appeals. Tax years involved: 1999 – 2001. http://www.ustaxcourt.gov/InOpHistoric/Veritas.TC.WPD.pdf BACKGROUND...

The House bill exempts the first $3.5 million of an estate, or $7 million for married couples, and taxes inherited wealth above that at 45%. The House bill would add $233 billion to the deficit over 10 years. Please see the link below for more information...

Dear Clients & Friends: The Worker, Homeownership, and Business Assistance Act of 2009 (the Act), which was signed into law on Nov. 6, 2009, makes it easier for most businesses to get immediate tax savings from net operating losses (NOLs)....

Dear Clients & Friends: If your traditional IRA has dropped in value and you expect to pay higher federal income tax rates in future years, now might be a very good time to consider converting all or part of your traditional IRA balance into...

To Our Clients and Friends: As we approach year-end, it’s again time to focus on last-minute moves you can make to save taxes—both on your 2009 return and in future years. The federal income tax environment is very favorable right now, but it is...

Dear Client & Friends: On November 6, the President signed into law H.R. 3548, the ''Worker, Homeownership, and Business Assistance Act of 2009.'' The new law extends and generally liberalizes the tax credit for first-time homebuyers, making...

Dear Clients & Friends: As year-end approaches, taxpayers generally are faced with a number of choices that can save taxes this year, next year or both years. Employees too are faced with these choices. However, employees have some special considerations...