The Internal Revenue Service (“IRS”) announced on March 25, 2020, an extensive series of steps to help taxpayers on a number of issues, including easing payment guidelines and postponing compliance actions, through the enactment of the People First Initiative.

People First Initiative

The People First Initiative is designed to help people facing uncertainty over taxes and is expected to take effect April 1 and run through July 15. Below are some of the notable aspects (for the complete list, click here):
Continue Reading COVID-19: IRS unveils the new “People First Initiative”

March 28 Update

Please note that the original post has been updated in its entirety to provide a more comprehensive and final review of the CARES Act tax-related provisions. 

On March 25, the Senate unanimously passed a $2 trillion stimulus package to help individuals, states and businesses devastated by the coronavirus pandemic. On March 27, the House passed the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act” or the “Act”), and later that day, the President signed it into law.

Below are some of the notable tax-related impacts the CARES Act will provide:
Continue Reading The Impact of the Coronavirus Aid, Relief and Economic Security Act

There is a significant increase in businesses receiving letters from the Ogden, Utah, office of the Internal Revenue Service (the “IRS”). Whether you are a business owner, member of the c-suite or HR professional, this notice is not a scam and should be taken seriously.

Below is a brief overview to help address this letter and the potential significant penalties.

Typically, the letter states the following:

“Dear [Employer],

We have made a preliminary calculation of the Employer Shared Responsibility Payment (ESRP) that you owe.

Proposed ESRP                    $X,XXX,XXX.XXX …”

When you look at the notice and realize that the amount of the proposed ESRP quite high, questions of “how” and “why” begin to formulate in the midst of unleveled anxiety. In our experience, we have found that the proposed ESRP penalties are a result of filing incorrect or incomplete Form 1094-C (“Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns”) and/or Form 1095-C (“Employer-Provided Health Insurance Offer and Coverage”).

ESRP Summary Table – Minimum Essential Coverage


Continue Reading Addressing Employer Shared Responsibility Payment Penalties under the Affordable Care Act

As the laws change, we strive to share how they will affect our clients and readers of this blog. Thus, we are pleased to share the following guest post by Florida Bar Board Certified Wills, Trust and Estate Planning Attorney Eric Gurgold.

The Tax Cuts and Jobs Act does not repeal the Federal estate tax. Instead, the Act doubles the amount of wealth that is exempt from the estate tax. In 2018, the new estate tax exemption will be $11,200,000 per individual. A married couple may be able to shield $22,400,000 from Federal estate taxes. The exemption is indexed to increase each year with inflation. However, the changes to the exemption will sunset and revert to today’s numbers after 2025.

Given the high estate tax exemptions, it is possible that not enough estate taxes will be paid to justify retaining the Federal estate tax; and Congress may repeal it.

Would Repeal of the Estate Tax be Good for Your Bottom Line?


Continue Reading The Tax Cuts and Jobs Act Does Not Repeal the Federal Estate Tax!

There is a change in the federal partnership audit rules that take effect for tax years on or after January 1, 2018, that may impact you.

Who is Affected?

All entities classified as partnerships for federal tax purposes. This includes, for example, multi-member LLC’s that have not elected to be taxed as corporations (C or

Guest post by Beth T. Vogelsang, Esquire, Florida Bar Board Certified Divorce, Marital and Family Law Attorney

On November 2, 2017, House Republicans released an income tax reform bill known as the “Tax Cuts and Jobs Act.” There has been much publicity about the bill’s proposed corporate tax cuts and the purported reduction and simplification of individual income tax rates. One provision of the 492-page bill, which has gone largely unnoticed, is the proposed repeal of the deductibility of alimony payments.

Current IRS Regulations on Alimony


Continue Reading Will Tax Reform Eradicate the Alimony Tax Deduction?

As the year-end approaches, you may want to consider steps to reduce your federal income tax bill, especially as Congress weighs tax reform. The current proposals would reduce income tax rates for most businesses and individuals, and increase the available business deductions. Whether or not the proposed tax reforms become law, the following tax tips should help you save on federal income taxes.

Tips for Business Owners: Expensing and Depreciation


Continue Reading Tax Planning and Proposed Tax Reform