Tax Articles

Asset protection is an important aspect of your overall financial picture, especially in today’s litigious society. Without proper planning, you risk losing significant portions of wealth to lawsuits or creditor claims, which could undermine years of financial progress and affect your heirs' futures.

A New York court ruled that Public Law (P.L.) 86-272 does not protect non-solicitation internet activities from state taxation and cannot be applied retroactively to its 2015 proposal date. The court upheld New York's revised regulations but agreed that their retroactive application violated due process for businesses unaware of the new tax liabilities.

On May 14, 2025, the House Ways and Means Committee approved a large tax bill that would make expiring provisions of the Tax Cuts and Jobs Act (TCJA) permanent.

When a person dies, their estate is responsible for managing and settling their debts. The executor must take inventory of assets and debts, prioritize payments, and handle exempt assets and debt assumptions. Executors should seek professional guidance to navigate the complex process, especially if the estate is insolvent.

The federal tax code offers a strategy to mitigate business downturns by allowing certain losses to reduce taxable income in future years. The Net Operating Loss (NOL) deduction helps businesses average their income and losses over several years, ensuring fair tax payments. Recent changes under the Tax Cuts and Jobs Act (TCJA) have introduced new limits and rules for NOLs, including the elimination of carrybacks and a cap on the deduction at 80% of taxable income.

Coordinating estate plans between spouses is crucial to avoid unintended consequences such as conflicting provisions, unexpected tax implications, or assets passing in ways that don't align with shared wishes. This approach ensures that both spouses' documents and strategies work together harmoniously, enhancing tax efficiency, streamlining estate administration, and adhering to state laws. Proactive planning strengthens financial security and the shared legacy of married couples.

Owners of C corporations and S corporations must ensure their compensation is reasonable to avoid IRS scrutiny, which can lead to penalties, back taxes, and interest. By conducting market research, maintaining detailed job descriptions, and documenting annual reviews, owners can justify their pay levels and stay compliant with tax laws.

Selecting the right trustee is crucial in estate planning, as they manage trusts and ensure assets are handled according to the trust's terms and in the best interests of the beneficiaries. Trustees must possess qualities such as knowledge of tax and trust law, investment management experience, bookkeeping skills, integrity, and objectivity to effectively fulfill their responsibilities.

Section 127 educational assistance plans allow businesses to provide up to $5,250 annually in tax-free educational benefits to employees. These plans cover a wide range of educational expenses, including graduate coursework, and can help attract and retain talented employees.

Members of the sandwich generation, who care for aging parents while supporting their own children, face unique financial and emotional pressures. Estate planning is a critical yet often overlooked task that can help manage these challenges effectively.