Blog » August Tax Law, P.C.

Tax Act First Look: The Complex New World of the Qualified Business Deduction Rule: Implications for Partnerships, S Corporations, and Sole Proprietorships

January 1st, 2018

President Trump signed the Tax Cuts and Jobs Act (TCJA), H.R. 1, into I law on December 22, 2017. The law was passed by Congress two days earlier, on December 20, 2017. In general, the effective date of the TCJA is January 1, 2017. Many of the provisions of the TCJA will sunset on January 1, 2027, although some provisions are permanent. While the conference committee resolved the differences between the House and Senate bills- and there were indeed many differences-the Conference Committee selec… Read More

Repatriation of foreign-sourced accumulated earnings in transitioning to a participation exemption system for reporting foreign-sourced dividends under the Tax Cuts and Jobs Act

December 24th, 2017

On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (TCJA) of 2017, P.L. 115-97, which introduced a wholesale set of tax cuts and other reforms that affect substantially all U.S. taxpayers, both corporate and individual. One of the highlights of the new law is the repatriation of foreign-sourced accumulated earnings and profits with respect to controlled foreign corporations (CFCs) as defined.[1] Newly enacted section 965 imposes a transition tax on the accumulated (a… Read More

Repatriation of Foreign-Sourced Accumulated Earnings in Transitioning to a Participation Exemption System for Reporting Foreign Sourced Dividends Under the Tax Cuts and Jobs Act of 2017

December 22nd, 2017

On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (TCJA) of 2017, P.L. 115-97, which introduced a wholesale set of tax cuts and other reforms that affect substantially all U.S. taxpayers, both corporate and individual. One of the highlights of the new law is the repatriation of foreign-sourced accumulated earnings and profits with respect to controlled foreign corporations (CFCs) as defined.[1] Newly enacted section 965 imposes a transition tax on the accumulated (a… Read More

Congress gets ready to pass historic "Tax Cuts and Jobs Act"; a look at the complex new world of the qualified business deduction rule applicable to partnerships, S corporations and sole proprietors

December 21st, 2017

Adapted from an article to be published in the January, 2018 issue of the CPA Journal which is the official journal of the NY State Society of CPAs By the time this article is published, we will know whether the new tax law was enacted by Congress and signed into law by President Trump. While the conference committee resolved the differences between the bills, and there indeed were many differences, at this point the conference agreement has selected the provisions going forward for the final vo… Read More

The Repeal and Replacement of the TEFRA Partnership Audit Rules

December 15th, 2017

From: ALI-The Practical Tax Lawyer (Winter 2017) The Bipartisan Budget Act of 2015 made fundamental changes to how the IRS will conduct audits of partnerships. This article by Jerald David August discusses the partnership audit rules prior to and as a result of TEFRA, drafting for three regimes involving IRS audits of partnerships, the partnership “pushout” election, election out of the Budget Act partnership audit rules, procedural issues/judicial review, the need for guidance in the form o… Read More

Chairman Brady issues official "Chairman's Mark" of the Tax Cuts and Jobs Act; House Ways and Means Committee passed the historic tax bill; Senate GOP tax plan released

November 30th, 2017

House GOP Bill, H.R. 1 and Chairman’s mark amendments of November 9, 2017 On November 2, 2017, the Republican GOP released a comprehensive tax reform plan which introduced a set of individual and corporate tax reforms that have received much attention and criticism from both sides of the aisle. Summaries of the proposed legislation were described in this forum in “House Republicans Release Tax Reform Plan: Ways And Means Committee Chair Brady Suggests Flex Rate Package” posted on Novem… Read More

House Republicans Release Tax Reform Plan: Ways and Means Committee Chair Brady Suggests Flex Rate Package

November 2nd, 2017

As reflected in Tax Notes Today for November 2, 2017, Ways and Means Committee Chair, Kevin Brady, R-Texas, stated that it may not be so easy for the House Republicans to get to a permanent 20% corporate tax rate which is a key, if not the centerpiece, provision of President Trump’s tax reform initiative, and that it may take several steps in the process to get there. Read More

Government fires back its defense to large tax refund suit recently filed by Perrigo Co. (USA), alleging elaborate assignment of pharma licenses from U.S. subsidiary to Israeli controlled foreign corporation and related transactions were shams.

October 24th, 2017

Perrigo Company and Subsidiaries (“Perrigo”) on August 15, 2017, filed a tax refund suit against the United States in the United States District Court for the Western District of Michigan, Southern Division, No. 1:17-cv-00737. [1] Perrigo alleged it overpaid Federal income taxes, penalties and interest, for its 52-53 week tax years ending in the last week in June for the years 2009 through 2012 by over $163 million. Read More

US Treasury Department issues second report on identifying and reducing tax regulatory burdens; repeal of section 2704 regulations and revisions pending to the regulations issued on partnership debt

October 10th, 2017

As recently set forth in a post to K&F, LLP Business and International Tax Developments, in Executive Order 13789, President Trump directed the Treasury Department to undertake a detailed review of certain tax regulations projects that were either in proposed or final form on or after January 1, 2016 that imposed financial burdens on U.S. taxpayers, overly complicate the Federal tax laws, or exceed the statutory authority of the IRS in issuing regulations and report back to the President on… Read More

Executor and Beneficiary Liability for Unpaid Income, Gift, and Estate Taxes of a Decedent

October 1st, 2017

Tax advisors of estates are generally aware that the executor or personal representative of the estate is personally liable for the payment of federal estate taxes not only with respect to the probate estate, but also for estate taxes attributable to other assets includible in the taxable estate [Internal Revenue Code (IRC) section 2202; Treasury Regulations section 20.2002-1]. This duty applies not only to the entire estate, but also to any outstanding unpaid gift taxes, regardless of whether t… Read More