Main Menu Back to Page
{ Banner Image }

IRS Reboots Previously Unsuccessful Private Debt Collection Efforts

This week, the IRS announced that it has selected four private debt collection contractors to begin collecting certain overdue federal tax debts, as required by Congress. The contractors include:

  • CBE Group
    1309 Technology Pkwy
    Cedar Falls, IA 50613
  • Conserve
    200 CrossKeys Office park
    Fairport, NY 14450
  • Performant
    333 N Canyons Pkwy
    Livermore, CA 94551
  • Pioneer
    325 Daniel Zenker Dr
    Horseheads, NY 14845

The contractors' efforts will begin in the spring of 2017, and will be focused only on debts that the IRS had stopped trying to collect.  We note three important takeaways in the wake of this news. Read More ›

Categories: News & Events, Tax

Michigan Department of Treasury Sheds Light on Nexus Standards Related to Michigan Business Taxes

Some businesses are (unpleasantly) surprised when they learn they are responsible for taxes -such as sales and income taxes - in states in which they have no physical presence. What gives rise to liability in these situations is “economic nexus,” which relates to a business’ activity, such as the generation of sales without a physical presence, in a state. Nexus, therefore, can be a hidden trap for businesses with multistate sales and other activities, particularly because what gives rise to nexus is often uncertain and unexplained by a state’s taxing authority.

Michigan Department of Treasury (the “Treasury”) has shed light on what constitutes nexus in Michigan through the issuance of a release that explains the nexus standards for Michigan business taxes. The release (the “Release”) addresses the sales and use tax presumption for out-of-state sellers; the nexus standards for the corporate income tax; and the nexus standards for flow-through entity withholding. Read More ›

Categories: Corporate Income Tax, News & Events, Sales Tax, Use Tax

Reevaluating Valuation: IRS and Treasury Propose Rules Restricting Valuation Discounts

On August 2, 2016, the IRS and U.S. Department of Treasury issued highly anticipated proposed regulations concerning the valuation of interests in certain family-controlled businesses for estate, gift and generation skipping transfer tax purposes. The proposed rules would curb the use of most discounts that are applied when valuing intra-family transfers.  Read More ›

Categories: Compliance, News & Events, Tax

Time to Review Your Deferred Compensation Agreements – IRS Issues Proposed Regulations on Section 409A

The IRS recently released proposed regulations regarding the application of Internal Revenue Code Section 409A to nonqualified deferred compensation plans (“NDCP”). The proposed regulations modify and clarify previous guidance. The proposed rules will not be applicable until issued as final, but the IRS explained that taxpayers may now rely on the proposed rules and the IRS will not assert positions that are contrary to the position set forth in them. This summary highlights many of the important issues raised in the proposed rules. Read More ›

Categories: Compliance, News & Events

New Michigan Legislation Repeals the Flow-Through Entity Withholding Requirement

Flow-through entities (“S” corporations and most limited liability companies) are no longer required to withhold Michigan income tax on members’ distributive shares. (See Michigan Public Act 158 of 2016). This change is effective for tax years beginning on or after July 1, 2016.

The prior withholding requirements continue in effect for tax years that began before July 1, 2016. Under the prior requirements, flow-through entities had to withhold Michigan income tax from each individual nonresident owner’s reasonably anticipated distributive share of the entities’ taxable income. Accordingly, this change is friendly to Michigan businesses with out-of-state owners. Read More ›

Categories: Employment Tax & Withholding

Lower Application Fee for 1023-EZ Charity Filers

In 2014, the IRS introduced a new streamlined tax-exempt application that gave certain charitable organizations the opportunity to bypass the longer Form 1023 tax exempt application.  Some organizations now can apply for tax-exempt status through the Form 1023-EZ. Benefits of Form 1023-EZ include its shorter length and fewer questions regarding the details of a charity's specific operations. However, there are some restrictions as to whether a charitable organization qualifies to submit a Form 1023-EZ.  The IRS has provided an Eligibility Worksheet (pages 11-20 of the Form 1023-EZ instructions) that taxpayers can complete in order to determine if a charity is eligible to use Form 1023-EZ. Read More ›

Categories: News & Events, Tax-Exempt Organizations

Nonprofit vs. Tax Exempt

When working with charities and other nonprofit organizations, two terms are frequently used interchangeably that actually do not mean the same thing.  Watch this video to learn the difference between nonprofit and tax exempt.

Categories: Nonprofit, Tax-Exempt Organizations

Why You Must File a Form 990

Generally a Form 990 must be filed by nearly all tax exempt organizations. If you do not know the specific exception as to why you wouldn't have to file a Form 990 then you must file. If you do not file this form on time there could be some very significant financial penalties. Furthermore, the IRS has a revocation program, which means that if you do not file the Form 990 for a certain number of years, then the IRS will automatically, without telling you, terminate your organizations tax exempt status. Learn more in the short video clip below.

Categories: Nonprofit

Tax Planning for Family Businesses

Was your tax bill higher than what you had wanted it to be this year? It may be time to consider either changing your business structure or your business operations to be more tax efficient. Learn some quick tips from Attorney Mike Zahrt in the short video below.

Categories: Compliance, Tax

Do I have to Pay a Fee for Filing My Taxes Late?

Taxes DueWhat penalties accrue if you don't make the deadline to file your taxes? If you are due a refund, there is no penalty if you file a late tax return; however, if you owe tax you will most likely owe interest and penalties on the tax you pay late. The IRS breaks down two penalties that may apply in this short article titled "Things You Should Know about Filing Late and Paying Penalties."

If you have questions about your taxes please contact one of Foster Swift's knowledgeable tax attorneys.

Categories: Compliance, News & Events, Tax