Taxes

by Benjamin M. Willis and Ryan Dobens Now that the House has passed the Build Back Better Act (H.R. 5376), the bill makes its way to the Senate for further consideration, possibly to become law. While the Biden administration has trumpeted the legislation as being able to “rebuild the backbone of the country,” it seems that rebuilding the American start-up wasn’t a

Many plaintiffs win or settle a lawsuit only to be surprised that they have to pay taxes. Some don’t realize it until tax time the following year when IRS Forms 1099 arrive in the mail. A little tax planning, especially before you settle, can go a long way. It’s even more important now with higher taxes on

In the 2021 3rd District Court of Appeals case of Segal v. Forastero, Inc., an investor who bought and sold real estate used an LLC he had to enter into a purchase agreement and then walked away from the deal, claiming that he had no personal liability because it was the LLC and not him

The announcement by the United States Attorney’s Office of the Southern District of New York of the indictment of Joshua Burrell on charges of securities fraud, wire fraud and aggravated identity theft is very saddening. Joshua Burrell was an advocate of making Opportunity Zone investments serve social purposes while providing superior returns to investors. His concept seemed

Most Americans have a lot to be thankful for this year. The economy is doing well, jobs are plentiful, and most small businesses are doing much better than had been expected. Things were much worse in the year 2020, when the Coronavirus shut down thousands of businesses, and deprived them of sales revenues, while expenses

As the holidays draw near, what do you think about, sugarplums, hot toddies, Eggnog? A visit to the tree lot, gifts, visits from relatives? Nope, you start fretting about those little IRS Forms 1099. These critical tax forms arrive in late January or early February and report how much you were paid in the prior

On Friday, November 5, 2021, the House of Representatives passed H.R. 3684, otherwise known as the Infrastructure Investment and Jobs Act, with 228 votes in favor and 206 votes opposed. The bill passed the Senate in August and was signed by President Biden on November 15th. A great many employers are very concerned, as described

In the second of a two-episode series, professor Richard D. Pomp of the University of Connecticut School of Law discusses his views on the federal lawsuit challenging Maryland’s digital advertising tax. This transcript has been edited for length and clarity. David D. Stewart: Welcome to the podcast. I’m David Stewart, editor in chief of Tax Notes Today

After rejecting corporate income tax rate increases to help pay for President Biden’s Build Back Better plan, House Democrats passed a 15 percent alternative minimum tax on the income very large corporations report to their shareholders. This tax on book income would raise about $300 billion over 10 years. But it creates a mess of policy

Americans may be divided over the necessity and efficacy of gun control, but it is hard for anyone to deny that the healthcare costs for victims of gun violence are substantial. State and local governments must spend a significant amount of tax dollars for law enforcement, ambulance services, and more, which can cut deeply into

Tuesday November 30, 2021, is “Giving Tuesday.” Both last year and this year taxpayers who typically take the standard deduction can deduct cash contributions made to qualifying charities. For 2020 taxpayers were allowed to make an up to $300 adjustment per tax return for cash charitable contributions. For 2021 the amount has been increased to

Higher tax brackets and a larger standard deduction in 2022 may offer some relief for taxpayers who are seeing their budgets busted by inflation. The IRS has announced new standard deductions and new tax brackets for 2022, reflecting higher price levels thanks in part to inflation. Top Tax Bracket for 2022 While the top federal

Today’s Social Security column addresses questions about what effect not working in the years before filing might affect benefit amounts, switching from Social Security disability benefits to retirement benefits and on the process of starting spousal benefits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security

The gig economy is alive and well. Even as COVID-19 upended the typical workforce norms, with more employees gaining the flexibility to work remotely, millions are still choosing to find a way to go into business for themselves. According to the freelancing platform Upwork, 59 million Americans performed freelance work in 2020, with that number

Topline The House on Friday passed one of the largest social spending proposals in history to help “restore the middle class” by tackling many of Democrats’ policy priorities—including free universal preschool for children and an expanded child tax credit—and even though the bill will almost certainly undergo changes in the Senate to appease spending-hesitant moderates,

A friend recently asked about retiring overseas and succumbing to the lure of an exotic lifestyle. The proposed move would have involved him retaining U.S. citizenship while establishing a permanent foreign residence. I told him not to bother, in no small part because the U.S. tax system makes his considered move burdensome. True, the IRC

Topline The Congressional Budget Office on Thursday finished assessing Democrats’ sweeping $1.8 trillion social spending proposal and concluded it would add about $367 billion to the nation’s budget deficit over the next decade, falling short of claims the package would fully pay for itself—even with additional revenue from tax enforcement activities.  Key Facts Enacting the

Congress seems to be considering two ways to address the Tax Cut and Job Act’s $10,000 cap on the state and local tax (SALT) deduction. The House version of President Biden’s Build Back Better (BBB) bill would raise the cap to $80,000. An alternative plan, first proposed by the Institute on Taxation and Economic Policy

This segment of What’s Ahead challenges the White House’s approach to reducing cigarette smoking. Democrats are pushing massive increases—15-fold or more—in federal taxes on far less lethal tobacco products, such as snuff, snus, cigars and pipes. Why in the world would you make safer alternatives to cigarettes so expensive?  Worse, the President’s proposed new head

Failure to understand the subtle differences in different sorts of tax entities can lead to disastrous results. Sometimes you can plead with the IRS and they will provide a deus ex machina that will avert the disaster. PLR 202142003 is an example of that sort of IRS dispensation. It is worth looking at this ruling to reflect