First Steps to Establishing Your New Business: Know Your Business Taxes!

Your company is responsible for various types of business taxes, and if you don’t comply you could be assessed hefty tax penalties and you risk possible litigation with the IRS. What types of business taxes are there? There are five general categories of business taxes: (1) Income tax, (2) estimated...

First Steps to Establishing Your New Business: Other Filings, Other States

Establishing a new business is more than just submitting some initial paperwork to register with the state. There are some other filings that you might need to take into consideration. Do I need a business license or permit? Business licenses and permits serve two purposes: (1) they help the government...

First Steps to Establishing Your New Business: Choosing the Right Business Structure for You, Part II

In Part I, we described four types of business structures: informally structured sole proprietorships and general partnerships, and two common corporate entities (S Corporations and C Corporations) that provide their owners and managers with limited liability. Aside from “S” or “C” corporations, what other business entities offer limited liability? The...

First Steps to Establishing Your New Business: Choosing the Right Business Structure for You, Part I

Turning your business idea into reality can be exciting and gratifying. Before you get started, however, you need to decide how your new venture will be structured. Your choice will determine how your business is owned, operated and taxed. The structure you choose will also determine your potential personal liability...

$125,000 State Tax Problem Fixed by Correcting Previous Years’ Tax Returns

A Moskowitz LLP Success Story A business owner came to us after receiving a Franchise Tax Board (FTB) Notice. The Notice stated that the FTB was disallowing a $1,204,541 million corporate loan to shareholder, and consequently assessed $125,197 in additional state income taxes. There is a long history of IRS...

Taxpayer Win: Failure to File Accurate FBAR Deemed Not Willful, Part IV

The story of Arthur Bedrosian, CEO of Lannett Company, Inc., and his Swiss bank accounts shows how a taxpayer’s cooperation with an IRS investigation and the court’s belief in the taxpayer’s honesty can be significant factors in the outcome of an FBAR penalty case. In Part III, we provided an...

Taxpayer Win: Failure to File Accurate FBAR Deemed Not Willful, Part III

Before the Offshore Voluntary Disclosure Program (OVDP), it was rare for a taxpayer to pay penalties when they voluntarily came forward with information regarding their foreign accounts. Most tax practitioners, therefore, recommended that their clients do a “quiet” disclosure, which involved simply amending their previous years’ returns, and paying any...

Taxpayer Win: Failure to File Accurate FBAR Deemed Not Willful, Part II

In Part I, we described the background of Bedrosian v. United States, 3d Cir., No. 17-3525, in which the CEO of a pharmaceutical company was pursued for willful FBAR penalties. The IRS didn’t go after Arthur Bedrosian for his many years of noncompliance with foreign reporting obligations, but rather for...