IRS Notice 2013-54 provides that an employer’s reimbursement of healthcare insurance premiums paid by an employee on an individual health insurance contract of the employee on a pre-tax basis (an “employer payment plan”) may violate: Continue reading “Employer Reimbursement of Employee’s Individual Medical Insurance May Subject Employer to Penalty”
Unfortunately, just about every employer has to deal with claims made by employees or former employees. These claims can be for a variety of alleged “wrongs” such as failing to pay overtime, age discrimination and sexual harassment. In most cases these matters are resolved between the parties without a trial. Continue reading “Tax Issues Related to Settling Employment-Related Claims”
A recent IRS ruling illustrates the application of the IRC § 4943 excise tax on excess business holdings, as well as the tax on unrelated business taxable income (UBTI), in the context of an apartment building owned by a private foundation. Continue reading IRS Rules on Private Foundation Ownership of Apartment Building
People who do not think that Donald Sterling is being impacted sufficiently by the NBA fine and being forced to sell the Los Angeles Clippers are not taking into account the significant federal and California income taxes that the Sterlings are going to be required to pay on the sale of the team. Continue reading “Sale of Clippers Will Cost Sterlings Significant Income Taxes”
The recent death of Hollywood legend Mickey Rooney immediately was followed by a fight over the disposition of his remains. While Mr. Rooney’s body remained at a funeral home, various factions within his family fought for the right to determine where and how he would be buried. Fortunately for the dignity of Mr. Rooney, the fight was settled quickly, before a court could decide the matter. Continue reading “Hey Kids, Let’s Have An Advance Health Care Directive”
The already complicated subject of how to handle Individual Retirement Accounts following the death of an IRA holder just got a little more complicated with the recent Supreme Court decision in Clark v. Rameker. The issue in this case was whether an “inherited IRA” enjoyed the same protections under federal bankruptcy law as other IRAs. The Supreme Court held that it did not, making it easier for creditors to reach the assets held in these types of IRAs. Continue reading “Bankruptcy Protection for Inherited IRA”
With the advent of smartphones, handheld devices function as information kiosks. Search upcoming movie showings and order tickets with the click of one button. Open a second window on your phone to review menus and make dinner reservations. But what if you decide that you want to change the dispositive provisions of your existing estate plan, or alternatively, create a brand new estate plan? Can you be just a few clicks away from making a legally enforceable bequest to dear Aunt Sally? Continue reading “Where There’s An iWill, Is There A Way?”
Companies who rely on third-party vendors to make their federal and state payroll tax deposits need to be diligent when selecting the vendor. A bad choice can be very expensive.
Processing payroll and remitting the required federal and state income and employment taxes to the appropriate government authorities is burdensome. As a result, many companies delegate these tasks to a third-party payroll company. In most situations, this arrangement works out well. The payroll company withdraws the required funds from the company’s bank account and ensures that employees and the various government agencies are timely paid. This allows company management to focus on more important things, such as satisfying its customers/clients and making money. Continue reading “Using an Outside Vendor to Process Payroll Has Risks”
For more than four hundred years, the concepts of death and taxes have been consciously coupled. According to The Yale Book of Quotations, Christopher Bullock wrote the following in The Cobbler of Preston, in 1716:
“Tis impossible to be sure of anything but Death and Taxes.”
This refrain reappeared in 1724, when Edward Ward wrote the following in The Dancing Devils: Continue reading “Welcome to “Death & Taxes and everything in between””
Following a wealthy decedent’s death, a primary concern of beneficiaries is the ability to generate sufficient liquidity to pay what can sometimes be a massive estate tax bill. Sophisticated pre-death estate planning approaches can create a situation in which estate tax liability is minimized, and even creative post-death planning can help keep the tax bite down. But what can be done when the tax assessment value of estate assets is high, but the ability to liquidate those assets is nil? Continue reading Illegal Eagles and Scandalous Scrimshaw
