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Showing 10 posts in Compliance.

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

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

SEC Adopts CEO Pay Ratio Rule for Public Companies

ceo pay ratio ruleThe U.S. Securities and Exchange Commission "SEC", in a 3-2 vote, recently adopted final rules implementing “CEO pay ratio” disclosure requirements (the “Rules”). The Rules were proposed in 2013 and mandated by Congress pursuant to Section 953(b) of the Dodd-Frank Act, and require public companies to disclose how their principal executive officer’s pay compares to that of all company employees. Companies will be required to begin complying with the Rules during a company’s first full fiscal year beginning on or after January 1, 2017  (the 2018 proxy season for calendar fiscal year companies). The full text of the Rules is available here.

Before adopting the Rules, the SEC solicited comments on the proposed pay rules. Despite considerable negative feedback, the SEC - voting along party lines - adopted Rules that are consistent with its initial proposal, leaving largely intact many of the most debated and controversial issues.

The Rules require public companies to disclose: Read More ›

Categories: Compliance, News & Events

Online Retailers Beware: Michigan “Click-Through” and Affiliate Nexus

Are you an out-of-state business making Internet sales into Michigan? If so, take notice.

The Michigan Main Street Fairness Act (the “Act”) is now effective. Designed to level the playing field between “brick and mortar” retailers and out-of-state Internet sellers, the Act creates two new tests whereby out-of-state sellers are presumed to have Michigan nexus. 

A quick reminder – if an out-of-state seller has Michigan nexus, then it is required to collect and remit 6 percent Michigan sales tax on all sales to Michigan residents.

Test #1 is the affiliate nexus test. Under the affiliate nexus test, an out-of-state retailer will be presumed to have Michigan nexus (i.e., required to collect and remit 6 percent Michigan sales tax on all Michigan sales) if the seller or an affiliate of the seller:  Read More ›

Categories: Compliance, Sales Tax

What do I do if I receive a Notice of Deficiency from the IRS?

What should you do when the Internal Revenue Service (IRS) notifies you that you owe additional taxes? The most important thing to know is that you, as the taxpayer, have options on how to handle the situation, as long as you remain in compliance with the procedures set forth by the IRS. For that reason, it is important to contact a tax attorney who can provide options and represent you in front of the IRS. Read More ›

Categories: Compliance, Tax Disputes

Failure to Follow Michigan Tax Requirements Creates Personal Liability for Corporate Officers

A commonly-recognized feature of many business entities is the "shield" that protects officers, members, managers, and partners from personal liability for the business's actions. However, that "shield" does not protect the officers of a company from all liability. Importantly, if a business fails to pay its taxes, then the key officers of the business can be held personally liable for the unpaid taxes of the business. Read More ›

Categories: Compliance, Sales Tax, Tax

IRS Announces New 1023-EZ Form to Simplify Tax-Exempt Applications

Simplify Tax-Exempt Applications with the 1023-EZThe IRS recently announced a new and shorter 1023-EZ form to help small charities apply for 501(c)(3) tax-exempt status.

The new form is described by IRS Commissioner John Koskinen as a "common-sense approach that will reduce lengthy processing delays for small tax-exempt groups and ultimately larger organizations as well." The announcement comes at a time when the IRS is currently evaluating more than 60,000 applications for 501(c)(3) status, with many pending for at least nine months. Read More ›

Categories: Compliance, Tax-Exempt Organizations

IRS Auditing Deferred Compensation Plans for Section 409A Compliance

The Internal Revenue Service recently announced that it has begun a new audit initiative to test taxpayers’ compliance with Section 409A of the Internal Revenue Code. Section 409A applies complex rules to “deferred compensation,” which generally includes compensation that is payable in a year after the year in which it is earned. This includes benefits provided under traditional nonqualified deferred compensation plans, such as SERPS and phantom stock plans, as well as some bonus and severance benefits and benefits provided under typical employment and consulting agreements. Read More ›

Categories: Compliance