Articles

IRS settles abusive insurance schemes

The IRS recently offered settlements to a select number of taxpayers involved in what are known as “micro-captive” insurance schemes. Tax law generally allows businesses to create “captive” insurance companies to protect against certain risks. In abusive “micro-captive” structures, accountants or wealth planners convince owners of closely held entities to engage in schemes that actually lack the protections of real insurance. Under IRS Notice 2016-66, taxpayers are mandated to disclose such transactions due to their potential

New rules for required minimum distributions

The amount of time banks and other financial institutions have to notify people with retirement accounts about new rules for taking required minimum distributions (RMDs) has been extended. Under IRS Notice 2020-06, financial institutions have until April 15 to notify certain people with retirement accounts that no RMD is due for 2020. The new rule was recently enacted under the SECURE Act, increasing the age for RMDs from 70 1/2 to 72. Before passage of the

No tax on large gifts when exemption sunsets

Taxpayers making large gifts no longer have to worry about big taxes coming back to bite them years from now. The IRS finalized regulations confirming that gifts made under the increased lifetime exemption under the Tax Cuts and Jobs Act of 2017 will not be subject to tax when the exemption returns to the rates that existed before the law went into effect (slated to occur on Jan. 1, 2026). The TCJA temporarily increased the gift

Final rules issued for ‘opportunity zones’

The Treasury Department recently issued final regulations regarding investments in so-called opportunity zones. The Qualified Opportunity Zone program, which offers tax incentives for investing in economically blighted communities, was created under the 2017 Tax Cuts and Jobs Act. Investment vehicles known as Opportunity Zone Funds allow investors to defer capital gains for up to 10 years, and possibly receive greater tax advantages, when they reinvest capital gains (from any investment, such as stocks, real estate or

DOL makes it easier for small businesses to offer 401(k) plans

A new final rule from the Labor Department makes it easier for small businesses to join together to offer their workers 401(k) plans. The rule goes into effect on Sept. 30. As a result of the new rule, smaller companies can now leverage the bigger scale of a combined group of businesses to negotiate lower fees on their 401(k) plans. Under the rule, companies in different industries, for example marketing firms and landscaping companies, can create

When you need a collection agency

It’s a real drain on a business when you can’t get clients to pay. It’s ideal when you can take matters into your own hands and see results, but when you’ve tried everything else, sometimes you need to hire a collection agency. A collection agency is helpful if you haven’t been able to successfully contact the debtor on your own, if several debts have been difficult to collect or if a debt is too big to

Supreme Court ruling likely to restrict public access to business records

The U.S. Supreme Court has issued a ruling that is likely to make it harder for the public to access confidential business records. The court ruled on a longtime exemption under the federal Freedom of Information Act (FOIA), known as Exemption 4, which allows the government to withhold “trade secrets and commercial or financial information obtained from a person [that is] privileged or confidential.” While federal law doesn’t define the term “confidential,” courts have regularly said

Preventing suits over website accessibility

Suits claiming that business websites and/or mobile apps aren’t fully accessible to people with disabilities are increasing rapidly. In 2019, a quarter of such suits were brought against companies that had already been sued under the same cause of action. The suits were brought under the federal Americans with Disabilities Act. The key to protecting your business from such lawsuits is to ensure that your website complies with Web Content Accessibility Guidelines 2.0. In a recent

Supreme Court: Businesses can register scandalous trademarks

The Lanham Act, a federal law that prohibits scandalous and immoral trademarks is unconstitutional, according to a ruling by the U.S. Supreme Court. Registering a trademark has its benefits. Someone who owns an registered trademark can use it in commerce and enforce it. Registering a trademark provides “constructive notice of the registrant’s claim of ownership,” thereby protecting the owner against certain defenses if a patent infringement action arises. With a registered trademark, the owner has constructive

Ease the Pain of Repaying Student Loans

Student loan debt is a hot topic and for good reason. Managing the burden that comes during repayment is very difficult. Fortunately, there are ways to get some relief while taking advantage of timely tax breaks at the same time. Here are four ways to help lessen the strain of repaying your student loans. Deduct your student loan interest. The IRS allows you to deduct up to $2,500 in student loan interest payments on your tax

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