The Corporate Inversion: From Obscure Strategy to Hot Trend

Posted on by Moskowitz LLP Posted in Business Law, Tax Planning & Compliance
Capitalist ideals of “free enterprise” and “competition” make great debate topics, but when compared to the business-friendly tax codes of other nations the United States Tax Code cannot compete. With the highest corporate income tax rate in the developed world, many businesses and longstanding American icons have made the move...
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Tax Inversions: Tax Savings Strategies for Corporations and What Political Calls for Tax Reform Mean

Posted on by Moskowitz LLP Posted in Business Law, Tax Planning & Compliance
Corporate inversion is defined as an international corporation reincorporating in a different country, changing from a U.S. corporation to an offshore jurisdiction that is usually a tax haven and therefore potentially reducing tax liability. U.S. Corporations have availed themselves to the policy and have reaped the rewards of lower tax...
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Another Way to Identify Income Underreporting – 1099K

Posted on by Moskowitz LLP Posted in Business Law, Tax Planning & Compliance
Form 1099-K is a new information return sent to businesses by "payment settlement entities" (i.e., organizations responsible for reporting payments made by credit cards) reporting the amount of credit card and other electronic receipts that were processed for the business. The IRS also receives a copy of Form 1099-K and...
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IRS Targets: Tax Audits of Partnerships, LLCs, and other Pass-through Entities

Posted on by Moskowitz LLP Posted in Business Law, Tax: Audits, Litigation & Collection
The Internal Revenue Service announced on November 7, 2013, that it intends to make auditing and examining partnership and other pass-through entities, such as LLCs, S-Corporations, and sole proprietorships a top priority in 2014.  This comes after years of targeting corporations for exam. Pass-Through Entity returns are subject to the...
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Restaurant Owner Audited – Triggered by Tip Report

Posted on by Moskowitz LLP Posted in Business Law, Tax: Audits, Litigation & Collection
Because restaurants deal in cash and tips, the Internal Revenue Service (IRS) has devised systems to enforce tax compliance by requiring employers bear the ultimate burden for Federal Insurance Contribution Act (FICA) taxes owed by employees under reporting the tips they receive. It does this by requiring restaurant to file...
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Tax Shelters (Section 6707A)

Posted on by Moskowitz LLP Posted in Tax: Audits, Litigation & Collection, Business Law, Tax Planning & Compliance
Relief from Penalties Imposed by Section 6707A The Small Business Jobs Act of 2010 ("SBJA"), signed into law in September of last year provides enormous relief for those who would have suffered penalties from not disclosing certain tax shelters to the IRS. Internal Revenue Code section 6707A imposes strict penalties...
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