Good Reasons to File Extensions for 2017 Returns
The countdown to Tax Day has begun! The deadline for filing your 2017 individual income tax return this year is Tuesday, April 17, 2018. Drawbacks to a Filing Extension Before you file for an extension, be aware of three potential pitfalls: 1. Underpayment penalties. You still must pay your estimated tax liability for 2017 by…
Last Chance to Claim the Domestic Production Activities Deduction
The U.S. corporate tax rate has historically been among the highest in the world. Years ago, Congress created the domestic production activities deduction (DPAD) primarily to help level the playing field between American manufacturers and foreign competitors that operate in countries with lower tax rates. Prior to the Tax Jobs and Cuts Act (TCJA), C…
Relief from Student Loan Debt: What Are the Tax Implications?
Today’s college students often leave school with an overwhelming amount of debt. In some cases, student loans are discharged (also known as being cancelled or forgiven). In other cases, these loans are paid off by an employer. Both actions have tax consequences for the student loan borrowers. We’ll explain the tax implications, but first, let’s…
Audits Are Essential to Your Organization’s Health
Audits have become more important due to increased public and government scrutiny of not-for-profit organizations, their management and their boards. Audits not only provide you with a fair assessment of your organization’s financial health, but also can reveal vulnerabilities such as weak internal controls, insufficient cash reserves and poor investment policies. Perhaps most important, regular…
The Employer’s Role in Documenting Workers
The employer’s role in documenting alien employees is a balancing act. Under the Immigration Reform and Control Act (IRCA) you must verify through examination of certain documents that your employees are authorized to work in the United States. At the same time, you must avoid unfair employment practices. “If an employee can’t complete Section 1…
Last-Minute Tax Planning Tips for 2017
This year, Tax Day for individuals, sole proprietors and C corporations is Tuesday, April 17. You still have time to consider some moves in 2018 to potentially save federal (and possibly state) income taxes for 2017. Here are three last-minute planning ideas. 1. Choose to Deduct State and Local Sales Taxes Individuals have the option…
Reverse Mentoring: Moving Seasoned, Younger Workers into High Gear
Reverse-mentoring isn’t a new concept, nor is it widespread, though many companies could benefit from such a program. Pioneered at General Electric some two decades ago, the basic concept is that younger employees have a lot to teach older ones about work-related matters. In some corners of the business world, the idea is broadened to…
Do I Have to Allow Grandparent Visits after My Divorce?
Q. I am getting divorced and my ex-spouse’s parents say they want formal visitation rights with our children. Do I have to allow this? A. Not necessarily. Under the law, it is presumed that whatever parents’ decide about grandparents’ visitation is in the best interests of their children. Consequently, in order to obtain legal visitation,…
Got Bitcoin? Virtual Currency Complicates Tax Reporting
Bitcoin has been around for nearly a decade. But the tax rules related to “virtual currency” are still evolving. In fact, some Bitcoin investors may be in for a surprise when they file their 2017 returns. Tax matters will become even more complicated for 2018 returns because relevant provisions of the new tax law (the…
The Limits of a Successful Daubert Challenge
In the wake of a 1993 Supreme Court case, challenges against expert witnesses have found greater success. In that case, two minor children and their parents alleged in a lawsuit that the children’s serious birth defects had been caused by the mothers’ prenatal ingestion of Bendectin, an antinausea prescription drug marketed by Merrell Dow Pharmaceuticals….