This Spring, the Social Security Administration (SSA) began mailing Employer Correction Request Notices (known informally as “No-Match Letters”) to employers that submitted at least one Form W-2 where the name and Social Security Number (SSN) did not match SSA records. These letters contain specific instructions for employers, but employers should be cautious when responding to these letters.  Below are three reminders for employers to consider.
Continue Reading

startup moneyThe new business idea is coming together, the circle of friends and advisors is tightening and it’s time to pull the proverbial trigger on this thing. The questions arise, “who’s in?” “who’s out?” and “how do we set this up?” During the initial startup phase, it is important to keep key players involved, and maintain the flexibility to let them go if things aren’t working out.  Most startups don’t have the cash to pay salaries high enough to keep people involved, so a mix of compensation options is often on the table.  A common solution is restricted stock (or restricted units in the LLC context), which is equity that is subject to certain contractual restrictions on its ownership, typically including:
Continue Reading

airplane jetThe U.S. Department of Transportation recently revised the SIFL rates that are used to value an employee’s personal use of a company aircraft, as required by the Internal Revenue Code Section 61 and the Federal Tax Regulations Section 1.61-21(g). The Department announced that the following rates will apply for the 6-month period January 1, 2017 through June 30, 2017:

Continue Reading

taxAs party goers rang in 2017 this past holiday weekend, owners of Bitcoins had additional reason to celebrate as the value of the digital currency soared past $1,000 USD on Monday. The surge in Bitcoin price, up from just $200 USD in January 2015, may provide additional fodder for the IRS, who has its crosshairs set on Bitcoin users who do not properly report their income related to the buying, selling, and/or exchanging of the digital currency.

Continue Reading

Digital BusinessIn its Technology Vision 2016 report, Accenture predicts that 25% of the world’s economy will be digital by 2020.  The global consulting firm contends that we are witnessing a major technology revolution, specifically a digital revolution.  It’s a revolution of emerging “digital platforms” comprised of cloud services, artificial intelligence, cognitive computing, predictive analytics and intelligent automation.

These platforms transform and replace traditional business processes in areas such as finance & accounting, HR, marketing, procurement, supply chain and more.  To quickly leverage these digital solutions, companies increasingly look to outsource traditional in-house functions to third party providers in what are referred to as Business Process Outsouring (BPO) transactions.


Continue Reading

safe moneyThe following is Part VI of a six-part series of blog postings regarding whether a captive insurance subsidiary or one owned by the owners or affiliates of a company may represent an effective risk management tool that also provides economic benefits. Although there are various types of captive insurance, this posting will focus primarily on single parent/pure captives and how they might provide economic benefits for you or your food and agribusiness company. Part I, Part II, Part III, Part IV and Part V of the blog series are here.

This posting provides an overview of certain other considerations to forming a single parent or pure captive.    

PART VI – COSTS, EXPENSES AND OTHER CONSIDERATIONS IN FORMING A CAPTIVE

As any experienced business owner, executive or manager understands, risks, costs and expenses are associated with almost every business opportunity. The opportunities and benefits that may be realized through a single parent captive subsidiary are no different; they, too, are subject to costs and expenses.


Continue Reading

The following is Part II of a six-part series of blog postings regarding whether a captive insurance subsidiary or one owned by the owners or affiliates of a company may represent an effective risk management tool that also provides economic benefits. safe moneyAlthough there are various types of captive insurance, this posting and the four to follow will focus primarily on single parent/pure captives and how they might provide economic benefits for you or food and agribusiness company. Part I of this series can be found here.

This posting discusses an alternative to ownership of the captive by the holding company itself — how a business’s owners considering implementing captive insurance as an enterprise risk management tool can also use it as an estate planning or family wealth transfer tool.


Continue Reading

AirplaneHouse and White House negotiators have agreed to two provisions of the Protecting Americans from Tax Hikes Act of 2015, which may provide an incentive for business aircraft owners. Under the act, which is expected to pass Congress and be signed by the President, “bonus deprecation” is extended and the “expensing” provisions of the Internal Revenue Code are made permanent.
Continue Reading

Tax FormsOn December 4, 2015, President Obama signed legislation authorizing the federal government to revoke, deny, or limit passports for individuals with a “seriously delinquent tax debt.” The law defines “seriously delinquent tax debt” as owing the IRS more than $50,000 in tax, penalties, and interest. The measure, slipped into the enormous–more than 1,300 pages–highway funding bill [Fixing America’s Surface Transportation Act (“Fast Act”)], gives the State Department the authority to revoke, deny or limit passports for anyone the IRS certifies as owing more than $50,000 in tax debt. Taxpayers with current installment agreements with the IRS, whereby they have agreed to pay their tax debt over time, are exempted from the law.

Continue Reading

TaxForms_179606301

There has been much debate recently about state income tax rates and/or states having no income tax at all. Recently on MSNBC’s Morning Joe, Joe Scarborough said he knows a lot of people who do what they can to avoid spending 180 plus days in his current state of Connecticut in order to avoid paying income tax there (Connecticut is currently considering hiking its state income tax rate). The reality is that while spending 183 days in a no income tax state like Florida can help establish residency there, meeting this threshold does not completely resolve the residency question or eliminate the legal requirement to file tax returns and/or pay income tax in other states. Indeed many states with income taxes are cracking down on “snowbirds” who attempt to claim residency in places like Florida and Nevada (no income tax states), but who also maintain homes in income tax states like Missouri, Ohio, and Michigan.


Continue Reading