TaxThink

The purpose of TaxThink is to bring to light important issues affecting Federal tax that are often overlooked and/or not properly understood.

 

Schedule F Audit Activity Likely to Increase

Mar 10, 2017
By TaxThink Team Blog
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After relatively low audit activity for Schedule F filers in recent years, it’s likely that some farmers may be receiving audit notices soon. The IRS’s Small Business/Self-Employed Division recently released a memo announcing a “Pilot Program Auditing Schedule F Expenses” (February 27, 2017). This memo outlines scrutiny surrounding expenses taken on Form 1040, Schedule F, Profit or Loss From Farming.  
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An IRS audit isn’t the end of the world

Mar 03, 2017
By TaxThink Team Blog
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As you’re working on filing your 2016 tax return, you might be wondering what would happen if you were audited. It’s fair to say that most Americans dread getting word that the IRS intends to audit their tax returns. In fact, it’s unlikely most of us ever will — only a small percentage of individual tax returns are audited each year. Of these, more than half are correspondence audits, while the rest are field audits.

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Increase in the de minimis safe harbor for tangible property helps small businesses

Feb 10, 2017
By TaxThink Team Blog
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If your business regularly purchases products like personal computers, small equipment or mobile devices, you’ll be happy to learn that accounting for these transactions may now be easier. IRS Notice 2015-82, issued late in 2015, increased the de minimis safe harbor for deducting (rather than capitalizing) the amounts paid to acquire, produce or improve tangible property from $500 to $2,500 per item for small businesses that don’t have “applicable financial statements.”

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Sales Tax Reporting Laws: Many Changes Expected in 2017

Jan 25, 2017
By TaxThink Team Blog
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In 2017 expect a surge in the number of sales tax reporting laws being enacted throughout the United States.  States are looking for ways to combat significant losses of tax revenue from e-commerce transactions.  Two hot button topics will be common throughout 2017 for states—seller notice requirements and economic nexus.
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Property Tax Reporting of Leasehold Improvements in Wisconsin and States That Tax Personal Property

Jan 25, 2017
By TaxThink Team Blog
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Recently we have had a handful of clients experience unexpected tax increases when they receive their property tax bills.  In examining the facts, we have determined that the state assessors converted the clients’ leasehold improvements from nontaxable, as personal property, to taxable.  Since the notice of assessed value issued in June was not appealed, the client has limited or no recourse to reduce the taxes billed in December of that year and payable by the end of January of the following year.
 

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2017 Pennsylvania Tax Amnesty Program

Jan 24, 2017
By TaxThink Team Blog
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The Pennsylvania Department of Revenue has authorized a tax amnesty program that will run from April 21, 2017, through June 19, 2017.  During this 60-day time frame, many individuals and businesses that have outstanding tax liabilities with the State of Pennsylvania can participate in the amnesty program and obtain relief from certain charges.  For a limited time, Pennsylvania will waive half of the interest due and all of the penalties, liens, filing fees, and collection agency fees owed as of December 31, 2015, for eligible taxpayers.
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Hot Topic for Wisconsin Nonprofits – Expansion of Occasional Sales Rules

Jan 24, 2017
By TaxThink Team Blog
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In April 2016, Governor Walker signed into law an expanded occasional sale exemption that applies to nonprofit organizations.  The provisions of the law took effect on January 1, 2017.  

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Is a Calendar Year or Fiscal Year Better for Your Business?

Jan 20, 2017
By TaxThink Team Blog
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Many business owners use a calendar year as their company’s tax year. It’s intuitive and aligns with most owners’ personal returns, making it about as simple as anything involving taxes can be. But for businesses whose primary operating season doesn’t fall neatly within a single calendar year, choosing a fiscal year end can make more sense.

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Addressing Prior-Year Exposure Issues: Voluntary Disclosure Agreement Versus Tax Amnesty

Dec 29, 2016
By TaxThink Team Blog
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Nexus is a concept that many businesses do not understand from sales/use tax and income/franchise tax perspectives or in relation to those states which impose some type of entity-level tax on business receipts. Let’s define nexus: The degree of business activity or connection that an out-of-state business must have before a state can enforce a right to file and either collect or pay taxes. Nexus is established when a business has a physical connection with (or in some cases an economic presence in) a state through employees, property, volume of sales, or other action. Many businesses will address prior risk through either a voluntary disclosure agreement or a tax amnesty program and then register at the same time to ensure compliance on a prospective basis. This blog post will discuss each program.

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Addressing Prior-Year Exposure Issues: Nexus Studies

Dec 22, 2016
By TaxThink Team Blog
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Nexus is a concept that many businesses do not understand from sales/use tax and income/franchise tax perspectives or in relation to those states which impose some type of entity-level tax on business receipts.  Let’s define nexus:  The degree of business activity or connection that an out-of-state business must have before a state can enforce a right to file and either collect or pay taxes.  Nexus is established when a business has a physical connection with (or in some cases an economic presence in) a state through employees, property, volume of sales, or other action.  

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Do You Know the Tax Impact of Your Collectibles?

Dec 16, 2016
By TaxThink Team Blog
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Many collectibles are more sought after, and more valuable, than ever. But that value has tax consequences when collectibles are sold at a profit, donated to charity or transferred to the next generation. This article explains those tax consequences and some of the applicable IRS rules.
 

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Extension of Due Date for Furnishing Statements to Participants of Forms 1095 and Related Relief

Nov 28, 2016
By TaxThink Team Blog
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Especially at this time of year, it is important to be grateful for the many gifts and blessings in our lives. As we reflect on that thought, there is one additional item to be thankful for this year:  Internal Revenue Service (IRS) Notice 2016-70, https://www.irs.gov/pub/irs-drop/n-16-70.pdf.  For employers subject to 2016 information reporting on Forms 1095-B and 1095-C under the Affordable Care Act, the IRS has granted taxpayers an automatic extension from January 31, 2017 to March 2, 2017, to furnish the forms to employees, without the need to file an application with the IRS. This is welcome relief.

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Mobile Workforce Alert

Nov 18, 2016
By TaxThink Team Blog
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Employers with employees who work in multiple states are often frustrated by the administrative burden and cost of compliance associated with proper multistate payroll tax withholding and compliance.  It is equally burdensome for the employees, who are required to file returns in multiple states to meet their own state tax compliance burdens.
 
On September 21, 2016, the U.S. House of Representatives passed H.R. 2315, the Mobile Workforce State Income Tax Simplification Act of 2015.  Supporters of the bill believe the law provides a reasonable solution to the myriad of state income tax withholding laws—and varying de minimis exemption periods—that make compliance extremely difficult and time consuming for employers and their employees.
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Captive Insurance Transactions Declared "Transactions of Interest” by the IRS

Nov 10, 2016
By TaxThink Team Blog
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On November 1, 2016, the IRS issued Notice 2016-66 (the “Notice”), which identifies certain “micro-captive transactions” and substantially similar transactions as “transactions of interest.” Taxpayers entering into those transactions (or who have entered into them since 2006) are required to disclose the transactions according to Treas. Reg. Section 1.6011-4, which are the tax shelter disclosure rules. Also, “material advisers” who are involved in such transactions will have to disclose and satisfy list maintenance requirements under Sections 6111 and 6112.
 

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Lowering Tax Liability in Stock Trading

Nov 04, 2016
By TaxThink Team Blog
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When is a loss actually a gain? When that loss becomes an opportunity to lower tax liability, of course. Now is a good time to begin your year-end tax planning and attempt to neutralize gains and losses by year end. As you do so, it might make sense to use any capital losses incurred in 2016 to offset capital gains that also occurred this year.

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2016 Federal Tax Update: The Calm Before the Storm (WICPA)

Oct 24, 2016
By TaxThink Team Blog
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On Thursday, November 3, 2016,  Ryan Laughlin and Rick Taylor will have the pleasure of presenting their annual tax update at the WICPA Tax Conference in Milwaukee, Wisconsin.
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3 Year-End Tax-Planning Tips for Business Owners

Oct 20, 2016
By TaxThink Team Blog
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Before the end of the year, many business owners can take a few steps to ensure their businesses pay no more than their fair share of taxes. This article shares three tips that aren’t difficult to implement and could make a significant difference, including deferring income into next year or accelerating expenses into this year, and using the research credit.
 

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Form 1095-C Error Message: Missing or wrong SSN/TINs

Oct 11, 2016
By TaxThink Team Blog
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When information on the new Forms 1094/5-B and -C series, reporting employee health coverage, is incorrect, the IRS considers it a failure to file a correct return or furnish a correct statement to the employee (i.e., failure to file). The 2015 filings showed that this is especially true with employee or dependent individual Taxpayer Identification Numbers (TINs), or in other words, social security numbers. The IRS may waive penalties if the failure to file is due to reasonable cause and not due to willful neglect. You can meet the reasonable cause standard in regards to social security numbers by following the procedure outlined in the most recent proposed regulations released by the IRS which is summarized in this post.
 

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Taxation of Software Downloads: Infrastructure and Platform as a Service

Sep 27, 2016
By TaxThink Team Blog
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This blog post concludes our discussion of the taxation of software downloads by looking at Infrastructure as a Service and Platform as a Service. Infrastructure as a Service (IaaS) is a form of cloud computing that provides virtualized computing resources over the Internet. In a Platform as a Service (PaaS) situation, a cloud provider delivers hardware and software tools (usually those needed for application development) to its users as a service.

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Taxation of Software Downloads: Software as a Service

Sep 20, 2016
By TaxThink Team Blog
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Software as a Service (SaaS), or “cloud computing,” is software that is licensed on a subscription distribution model in which a third-party provider hosts the applications and makes them available to customers over the Internet.  This post discusses the taxability of SaaS.

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Taxation of Software Downloads: Canned Software

Sep 16, 2016
By TaxThink Team Blog
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Online software purchases are facing increased scrutiny during sales and use tax audit examinations. How closely do you monitor your online software purchases for compliance with state sales and use tax laws? 

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On the Right Path - Adjustments to Depreciation Rules

Aug 30, 2016
By TaxThink Team Blog
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The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) significantly changed two depreciation tax breaks — Section 179 expensing and bonus depreciation — in ways favorable to many companies. To the extent possible, you’ll want to consider these changes when planning investments in depreciable assets.

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What’s an IC-DISC and why would you want one?

Aug 18, 2016
By TaxThink Team Blog
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The interest-charge domestic international sales corporation (IC-DISC) is one of the last remaining opportunities that can provide tax incentives for exporters. Historically, IC-DISCs have been used primarily by private companies, but public companies shouldn’t overlook this potentially significant tax break available through the creation of such a corporation. A properly structured and operated IC-DISC allows companies to defer taxes on as much as $10 million in export sales.

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New IRS Proposed Rules Severely Limit Wealth Transfer Techniques

Aug 11, 2016
By TaxThink Team Blog
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Last week, the IRS released long-awaited proposed regulations related to the valuation of interests in family-controlled entities such as family limited partnerships, corporations, limited liability companies, and others. The proposed regulations are broad and comprehensive. If the rules become final, the tax cost of transferring interests in family-controlled entities will increase sharply.

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Wisconsin Manufacturers: Upcoming Property Tax Assessment Appeal Deadline

Jul 20, 2016
By TaxThink Team Blog
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Even though Forms M-P and M-R were filed by April 1, the formal notices usually are not issued until early June.  In April and May, the state assessors are desk auditing the return data and reviewing real estate sales and comparables.  When the formal notice is issued, the property owner has 60 days to formally appeal to the State Board of Assessors.

If you miss this deadline, it is virtually impossible to adjust the value when the actual tax bill is issued in December. 

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How to Prepare for the Ensuing IRS Enforcement Staffing Increase

Jul 15, 2016
By TaxThink Team Blog
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According to a memo from IRS Commissioner John Koskinen, the IRS will hire 600 to 700 new employees to focus on tax enforcement in the near future. With increased staffing levels comes increased scrutiny of gift and estate tax returns. It is likely that additional employees will allow more of these returns to be reviewed, resulting in more audits and challenges. This post will look at ways to prepare.

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Should your auditor do your taxes?

Jun 21, 2016
By TaxThink Team Blog
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It’s not unusual for public companies to have the same firm perform their external audits and prepare their tax returns. But does this practice raise auditor independence issues?

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IRS Partnership Audit Rules are Changing

Jun 10, 2016
By TaxThink Team Blog
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The Bipartisan Budget Act of 2015, signed into law in November 2015, substantially changes the way the IRS may audit partnerships and, unless they’re not treated as partnerships for tax purposes, multimember limited liability companies (LLCs). The goal of the changes is to streamline the current partnership audit process.

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IRS continues to crack down on corporate inversions

May 05, 2016
By TaxThink Team Blog
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IRS Notice 2015-79 represents the latest attack on corporate inversion transactions. According to the Notice, the IRS intends to issue regulations designed to make it more difficult for U.S. companies to invert and to limit the tax benefits of this strategy.

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What’s the tax impact of owning a vacation home?

Apr 26, 2016
By TaxThink Team Blog
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A vacation home can be a place to relax and recharge with family and friends. It also will impact your taxes, especially if you rent the home to others when you’re not using it. The rules are complex, so you should consult your tax advisor for details, but this post will give you a brief overview.

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Excise Taxes – What Are You Missing?

Apr 18, 2016
By TaxThink Team Blog
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Periodically, I refer to certain taxes as poor orphan step children. By that, I mean they are the taxes that aren’t talked about, researched, measured, or evaluated. Our clients ask us to help them reduce their income tax, property tax, and sales tax burden, but few ask us whether there are means to ensure they pay the appropriate amounts of excise tax, no more or no less than what is required.

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Tax Return Changes are Just Around the Corner

Apr 12, 2016
By TaxThink Team Blog
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You probably just filed your tax return and have been looking forward to thinking about anything other than taxes for a few months. While that’s understandable, be aware that several important deadline changes have been made for some types of tax returns.

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Sales and Use Tax Return Filings: Understanding and Avoiding the Impact of Negligence Penalties

Mar 30, 2016
By TaxThink Team Blog
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To encourage on-time filing and payment of sales and use taxes, states impose negligence penalties on any sales and use tax returns filed or paid late. The penalty amount can vary greatly from state to state and can be quite costly, with the penalty rate ranging from 1% to 30% of the tax due. For example, Minnesota imposes a penalty of 5% of the tax due on a return filed late, while Wisconsin imposes a penalty of 5% per month of the amount due up to 25% plus a $20 late filing fee. These penalties can add up quickly and can be very costly for a business.

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Assessing the Taxability of Advertising Service Purchases can be Tricky

Mar 21, 2016
By TaxThink Team Blog
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Advertising services include the creation and development of websites, company branding services or advertising themes, production of radio or television commercials, obtaining media space and time, and email blasts. The taxability of services varies greatly from state to state. Many states have specific statutes or regulations that impose sales tax on certain enumerated services provided by advertising companies. More

Are You Monitoring Your Advertising Purchases for Proper Taxability?

Mar 17, 2016
By TaxThink Team Blog
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Advertising-related purchases are facing increased scrutiny during sales and use tax audit examinations. How closely do you monitor your advertising-related purchases for compliance with state sales and use tax laws? 

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State Tax Filings – Important Year-End Tax Review Tips

Mar 04, 2016
By TaxThink Team Blog
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This time of year, companies with a calendar year-end are busy gathering information for tax preparation. This article outlines important tips to keep in mind. 

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How to Recover Your Stolen Tax Identity

Feb 25, 2016
By TaxThink Team Blog
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Tax-related identity theft can occur in many ways. First, a thief may steal someone’s Social Security number, file a tax return and fraudulently claim a refund. In fact, during the 2014 tax filing season, the IRS suspected and stopped more than 3.6 million returns filed by identity thieves. A victim of tax-related identity theft should work with the IRS to help remove fraudulent, inaccurate information from their account and ensure that their actual return is processed correctly. This article explains how to do just that.

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Don't Ignore the Domestic Production Activities Deduction - It May Work For You

Feb 16, 2016
By TaxThink Team Blog
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The domestic production activities deduction, also known as “DPAD,” is meant to encourage domestic manufacturing. It’s often referred to as the “manufacturers’ deduction” (or “Section 199 deduction”). But, as this article notes, this potentially valuable tax break can be used by many other types of businesses besides manufacturing companies.

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“Re-Energized” Tax Credits That Will Keep Businesses Warm This Winter

Feb 09, 2016
By TaxThink Team Blog
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In an attempt to reduce energy consumption and expand the use of clean energy, tax credits enable taxpayers to lower their tax bill while taking a bit of the bite out of the initial investments in green energy systems. Businesses are not left out in the cold with respect to tax savings from energy tax incentives.  This blog post will explore different ways that businesses can slice their tax bill.

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“Re-Energized” Tax Credits That Will Keep Homeowners Warm This Winter

Feb 02, 2016
By TaxThink Team Blog
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To reduce energy consumption and expand the use of clean energy, the IRS has provided incentives for taxpayers to live greener, more energy-efficient lives through tax credits. These credits enable homeowners and businesses to lower their tax bill by taking a bit of the bite out of the initial investments in green energy systems. In this blog post, we look at tax incentives for taxpayers who upgrade their homes to improve energy efficiency or make use of renewable energy

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Compensating Owners - Is Your Company at Risk?

Jan 15, 2016
By TaxThink Team Blog
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Compensation to corporate shareholders is truly not that complicated, right?  After all, your business deducts the wages, and the owner reports the income on his or her tax return.  End of story.  Not so fast.  Compensation to corporate shareholders is one of the more scrutinized audit issues because the IRS and taxpayers may have competing interests.  To make matters more complicated, the determination of the “correct” amount of compensation is situationally driven and impacted by everything from business results (which makes sense to most business owners) to what type of entity is paying the compensation (which may make sense only to a tax practitioner).

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IRS Extends Due Dates of Forms 1094-B/C and 1095-B/C

Dec 31, 2015
By TaxThink Team Blog
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The IRS released Notice 2016-4, which grants an automatic extension of the due dates for the 2015 1094 and 1095 forms for all of those required to file, both insurers and employers. The IRS has said it is ready to accept the filings but realizes insurers and employers need more time to gather the information necessary to prepare the forms. The IRS is therefore encouraging employers to file as soon as they are ready.

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Research Tax Credit is Permanently Extended and Enhanced

Dec 18, 2015
By TaxThink Team Blog
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Businesses have been waiting all of 2015 for Congress to move forward on passing an “extenders package,” which would extend the research credit as well as a number of other significant tax-saving provisions. Earlier today, Congress passed the Protecting Americans from Tax Hikes (PATH) Act of 2015, and the President is expected to sign the bill into law. View Wipfli Alerts & Updates: URGENT – Congress Passes PATH Act.

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Employee vs. independent contractor: Make sure you get it right

Dec 07, 2015
By TaxThink Team Blog
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Classification of workers as either employees or independent contractors has become a heated issue. One reason is the growth of companies like Uber and Handy, which rely on networks of workers the companies say are independent contractors.

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Got Kids? Then you need a good tax advisor

Nov 12, 2015
By TaxThink Team Blog
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Although most tax planning focuses on adults — after all, they’re usually the ones with taxable income — minors also can be affected by taxes. Parents should become familiar with the “kiddie tax,” certain tax implications of hiring their children and the merits of starting an IRA for teenagers.  This blog post will look at these three areas of potential concern.

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2015 Federal Tax Update: IRS Double Standards Pushing Tax Practitioners to the Brink! (PKF North America Summit)

Nov 06, 2015
By TaxThink Team Blog
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On Monday, November 16, 2015, I will again have the pleasure of presenting my annual tax update at the PKF North America Summit in Charleston South Carolina.

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2015 Federal Tax Update: IRS Double Standards Pushing Tax Practitioners to the Brink! (WICPA)

Nov 05, 2015
By TaxThink Team Blog
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On Thursday November 12, 2015, I will again have the pleasure of presenting my annual tax update at the WICPA Tax Conference in Milwaukee, Wisconsin. The format will be the same as last year with the key points summarized in a Powerpoint presentation - which references the page numbers in the more detailed outline.

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2015 Federal Tax Update: IRS Double Standards Pushing Tax Practitioners to the Brink! (elliott davis decosimo)

Nov 04, 2015
By TaxThink Team Blog
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On November 10, 2015, I am presenting a half-day version of my 2015 Annual Tax Update for our friends at elliott davis decosimo in Chattanooga, Tennessee.

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Be in the know when it comes to travel expenses

Oct 23, 2015
By TaxThink Team Blog
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When employees travel for work, they expect to be reimbursed for costs they incur. Developing a travel policy that dovetails with IRS regulations and is understood by workers can help prevent misunderstandings. This article examines accountable and nonaccountable reimbursement plans, travel policy guidelines and per diem reimbursements.

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Use Tax Issues When Selling a Business

Oct 15, 2015
By TaxThink Team Blog
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When we talk about use tax, it refers to situations when a vendor is not registered to collect sales tax on your billing invoice for a particular state and the burden falls on you, the purchaser, to self-assess and pay the proper tax to the state. This blog post looks at state and local use tax issues to be mindful of when selling a business including non-capital purchases, capital purchases, refund claims, overpayment review, exemption certificates, and inventory.
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Sales Tax Issues When Selling a Business

Oct 08, 2015
By TaxThink Team Blog
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In the previsous blog post, we looked at state and local tax issues business owners face when selling their business.  In this post, we look more closely at specific sales tax issues affecting business sales.

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Tax Issues When Selling a Business

Oct 01, 2015
By TaxThink Team Blog
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Most of the time, state and local tax is not at the forefront when a business owner or management team puts a company up for sale. However, our experience dictates that it should be addressed early in the process because of the potentially significant impact state and local tax can have on the seller’s side of the transaction.

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SALT-ED Q&A: How do I avoid paying sales tax on the purchase of exempt items?

Sep 18, 2015
By TaxThink Team Blog
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In most states, all sales of tangible personal property are deemed taxable unless an exemption exists. Situations in which an item is exempt by statute are limited, regardless of the purchaser or use of the item. Unless an exemption falls into the category of an item exempt by statute, regardless of purchaser, in order to avoid tax you are required to provide an exemption certificate or another document that contains all the items necessary to be treated as an exemption certificate.

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SALT-ED Q&A: How Do You Claim the Exemption for Utilities Used in Manufacturing/Industrial Processing?

Jul 28, 2015
By TaxThink Team Blog
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Many states allow a sales tax exemption for fuel and electricity used in manufacturing.  There are various standards that states utilize to determine the exemption including:
 
Predominant use.  If the utilities are used greater than 50% for manufacturing, then an exemption is allowed for 100% of that utility.
Proportionate use.  An exemption is allowed only for the percentage that meets the state’s standard.
Direct use.  The utilities must be used directly by manufacturing machinery.  Indirect uses like plant lighting and general facility heat and cooling would likely not qualify.

 

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Benefits of Hiring Your Children

Jul 15, 2015
By TaxThink Team Blog
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Owning your own business and being self-employed gives you the unique opportunity to hire your children as employees, creating a variety of tax benefits for you, your child, and your business.
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SALT-ED Q&A: When is the proper time to contest the assessed value on my property tax bill?

Jun 12, 2015
By TaxThink Team Blog
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When is the proper time to contest the value for your property?

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Are You Properly Classifying Workers?

May 22, 2015
By TaxThink Team Blog
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Proper classification of workers is a hot topic with the IRS because it is costing the government millions of dollars in lost revenue every year.

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Most Common Sales and Use Tax Audit Adjustments

May 05, 2015
By TaxThink Team Blog
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Sales and use tax audits are common these days and on the rise. More and more states are hiring auditors to find unreported taxes. What could you expect during a sales and use tax examination?

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What We’re Watching Now: The Mobile Workforce State Income Tax Simplification Act

Apr 09, 2015
By TaxThink Team Blog
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Do you have employees performing services in states where you are not currently registered to collect and remit state withholding taxes on their income? An issue currently moving through federal legislation relates to the standardized collection of state income tax for multistate employees, known as the Mobile Workforce State Income Tax Simplification Act.

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Watch Out! FATCA requires disclosures of foreign accounts

Apr 01, 2015
By TaxThink Team Blog
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If you hold assets such as bank and other financial accounts or securities from companies outside the United States, you may need to report them to the IRS. The Foreign Account Tax Compliance Act (FATCA) requires some U.S. taxpayers who have interests in “specified foreign financial assets,” or SFFAs, to provide information on them to the IRS via Form 8938, “Statement of Specified Foreign Financial Assets.”

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Work Opportunity Tax Credit (WOTC)

Mar 27, 2015
By TaxThink Team Blog
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The Work Opportunity Tax Credit (WOTC) program is a Federal tax credit available to employers for hiring individuals from certain target groups. Your company could earn from $2,400 to $9,600 per qualified associate when hiring individuals within the following categories; Veterans, Food Stamp Recipients, Public Assistance Recipients, Vocational Rehabilitation Referrals, Ex-felon, Residents living in certain counties or census tracts, Supplemental Security Income Recipients. A variety of other lucrative federal and state tax credits exist for employers.

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What We’re Watching Now: The Illinois Manufacturer’s Purchase Credit

Mar 20, 2015
By TaxThink Team Blog
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The Illinois Manufacturer’s Purchase Credit (MPC) expired on August 30, 2014. While companies still have time to use properly earned and available MPC, no legislation has yet been introduced to extend the MPC.

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Did You Take Advantage of the Tax Increase Prevention Act of 2014?

Mar 09, 2015
By TaxThink Team Blog
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On December 19, 2014, President Obama signed H.R. 5771, known as the Tax Increase Prevention Act of 2014. The tax bill brought back into law over 50 tax benefits that had expired as of December 31, 2013. The President and Congress gave us only 12 days to take advantage of these tax breaks, as they were only extended to December 31, 2014. The Tax Increase Prevention Act of 2014 extended tax benefits for businesses and individuals.

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Tax breaks you can get from Uncle Sam when caring for a parent

Feb 20, 2015
By TaxThink Team Blog
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Providing care for a parent, grandparent or other older relatives can be rewarding. But it can also be expensive. Fortunately, some federal tax breaks can help ease the financial strain.

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Automating and Simplifying Your Sales Tax Compliance

Feb 13, 2015
By TaxThink Team Blog
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In today’s marketplace, software technology solutions have become an increasingly important component to achieving both productivity and profit. This is especially true when companies automate their sales tax reporting function.

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Ten Tips to Help Navigate Sales Tax Treatment of Technology Solutions

Feb 02, 2015
By TaxThink Team Blog
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In the 21st century business world, technology has become an increasingly important component to achieve both productivity and profit. Nowhere is that more evident than in the purchase of software solutions. While some software purchases may come with a small price tag, quite often investments in software involve both significant effort and dollars. Effort goes into ensuring the solution purchased meets the business need and is implemented as successfully as possible. However, one area that is often overlooked in a software and technology implementation is the sales tax treatment of the transaction. Often, the implications of failing to address the sales tax impact of the transaction are not discovered until the business is under audit or the ability to file refund claims has passed. This blog post includes 10 tips to consider up front, that will help you navigate the complex sales tax world of technology solutions.

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Tax Alert: President Obama proposes “Simpler, Fairer Tax Code That Responsibly Invests in Middle Class Families."

Jan 20, 2015
By TaxThink Team Blog
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President Obama will deliver his State of the Union address tonight. According to a six page Fact Sheet released by the White House on Saturday January 17, 2015, the President’s speech will “outline his plan to simplify our complex tax code for individuals, make it fairer by eliminating some of the biggest loopholes, and use the savings to responsibly pay for the investments we need to help middle class families get ahead and grow the economy.” According to the White House Fact Sheet, “middle class families today bear too much of the tax burden because of unfair loopholes that are only available to the wealthy and big corporations.”

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Tips to Manage Your Sales and Use Tax Audit

Jan 15, 2015
By TaxThink Team Blog
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In this blog post, we will explore some best practices to consider if facing a Sales and Use Tax Audit.

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Handling a Sales and Use Tax Audit

Jan 13, 2015
By TaxThink Team Blog
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You didn’t ask for it, but you have been selected for and notified of a sales tax audit! You immediately ask yourself, “What should I do?” Most companies are not regularly audited by the state for sales and
use tax purposes, so it is unlikely you have previously handled an audit. While the requested lists of records and documents that will be reviewed appear straightforward, there is much more to handling a sales tax audit. There are a lot of potential pitfalls during the interaction with auditors that may occur as you address the questions they typically ask. 
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SALT-ED Q&A: When do I pay taxes in another state?

Jan 07, 2015
By TaxThink Team Blog
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A question frequently addressed by Wipfli’s State and Local Tax Practice Group is whether a business must file a tax return in another state. The question is actually answered by addressing whether a business has acquired “nexus” in a state. 

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Developments in Estate Planning

Jan 05, 2015
By TaxThink Team Blog
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Proper estate planning involves maximizing the value transferred to intended beneficiaries while minimizing estate and income taxes, expenses, and delays. Numerous developments over the last several years have impacted how estate planning is viewed and conducted. Most notably, in January 2013, Congress passed the American Taxpayer Relief Act (ATRA) of 2012, which essentially allows most clients the freedom to plan their estates without much concern for future estate taxes; and, in some cases, allows married clients to rely on spousal portability. However, all clients can still benefit from proper estate planning by minimizing income taxes, administration expenses, and delays; and, thus, maximizing the value transferred to intended beneficiaries. A periodic review of core estate planning documents and forms is recommended for all clients.

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2014 Tax Planning Opportunities

Dec 29, 2014
By TaxThink Team Blog
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In this blog post, we will look at possible tax planning opportunities you should explore before the end of the year.

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2014 Tax Planning: Repair Regulations & Affordable Care Act

Dec 18, 2014
By TaxThink Team Blog
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With the new Repair regulations taking effect in tax years beginning in 2014, most businesses will be affected and have changes to their historical accounting methods for buildings and their component units.
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2014 Tax Planning: Extender Legislation

Dec 16, 2014
By TaxThink Team Blog
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If year-end tax planning was a major challenge in 2013, planning for the 2014 tax year may be next to impossible. With all the “Bush tax cuts” ending last year, one would think we would be in for a relatively smooth ride. However, with the additional Affordable Care Act requirements, the implementation of the Repair regulations, and the uncertain fate of the “extender legislation,” there is a lot to think about!
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What We’re Watching Now: The Wisconsin Manufacturing and Agriculture Credit

Dec 11, 2014
By TaxThink Team Blog
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The Wisconsin Manufacturing and Agriculture Credit was implemented for tax years starting on or after January 1, 2013. This credit can be a significant tax incentive for qualifying Wisconsin manufacturers and agriculture businesses.

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Corporate Anti-Inversion Developments

Dec 09, 2014
By TaxThink Team Blog
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This year there has been a lot of buzz about large companies such as Burger King and Walgreens seeking to move their headquarters from the United States in search of a more competitive, foreign tax structure known as an inversion.  
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SALT-ED Question & Answer

Dec 02, 2014
By TaxThink Team Blog
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Question:  My vendor is being audited, and I'm being asked for information.  What should I do?

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Are You Complying With Unclaimed Property Reporting Requirements?

Nov 18, 2014
By TaxThink Team Blog
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Have you been sending out letters to your unclaimed property customers? Nearly every business has a legal duty to notify customers that you are holding unclaimed property. In addition, nearly every business has a legal requirement to file an annual report and remit unclaimed funds to the state. If your business hasn’t been taking these steps, be aware—the cost of noncompliance is steep, and the risk of audit is dramatically increasing. 

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U.S. Tax Competitiveness Ranking

Nov 13, 2014
By TaxThink Team Blog
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Recently, the Tax Foundation’s International Tax Competitive Index (ITCI) found that the United States ranked as the 32nd most competitive tax system out of 34, with an overall score of 44.3 out of 100.
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2014 Federal Tax Update: IRS Reaches the “Tipping Point” (PKF North American Summit)

Nov 05, 2014
By TaxThink Team Blog
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On November 10, 2014, I am presenting a shortened version of my 2014 Annual Tax Update at the PKF North American Summit in Atlanta, Georgia. 

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Top Ten Red Flags for a Sales Tax Audit

Nov 04, 2014
By TaxThink Team Blog
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Are you aware of the most common items/actions that could trigger or increase the likelihood of a possible sales tax audit? This article features a ‘top ten’ list of red flags you should be mindful of.

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2014 Federal Tax Update: IRS Reaches the “Tipping Point” (WICPA)

Nov 04, 2014
By TaxThink Team Blog
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On November 6, 2014, I will again have the pleasure of presenting my annual tax update at the WICPA Tax Conference in Milwaukee, Wisconsin.  The format will be the same as last year with the key points summarized in a Powerpoint presentation - which references the page numbers in the more detailed outline (which can be downloaded below).  
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What We’re Watching Now: The Marketplace and Internet Tax Fairness Act

Sep 04, 2014
By TaxThink Team Blog
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On July 15, the Marketplace and Internet Tax Fairness Act (S. 2609) was introduced into the Senate. The new bill combines the objectives of the original Marketplace Fairness Act with the Internet Tax Freedom Forever Act (S. 1431), which bans taxes on Internet access.

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Comprehensive Tax Reform Proposals Would Significantly Raise Your Taxes

Feb 26, 2014
By TaxThink Team Blog
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With lots of fanfare, today House Ways and Means Chairman Dave Camp released a 979-page draft "Tax Reform Act of 2014" that would lower corporate and individual tax rates, reform US international tax rules, and (in my view) increase the tax burden of most business owners, executives and investors.    
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2013 Federal Tax Update: Getting Ready for the Largest Tax Increases in a Generation (WICPA)

Oct 29, 2013
By TaxThink Team Blog
Comments (1)
On November 7, 2013, I have the pleasure of presenting my annual tax update at the WICPA Tax Conference in Milwaukee, Wisconsin.
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2013 Tax Seminar: Getting Ready for the Largest Tax Increases in a Generation (CPAAI)

Oct 28, 2013
By TaxThink Team Blog
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On October 28, 2013, I have the pleasure of presenting my annual tax update at the CPA Associates International North America Annual Meeting at the Cosmopolitan, Las Vegas, Nevada.

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Gain from Related Party Installment Sales May Be Accelerated

Sep 30, 2013
By TaxThink Team Blog
Comments (1)
Even when a sale to a related person qualifies for installment treatment, some or all of the gain will be accelerated if the buyer disposes of the property within two years.   
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New Repair Regulations Upend Decades of Settled Law and Significantly Increase Administrative Burdens

Sep 16, 2013
By TaxThink Team Blog
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In a fitting manner, IRS released comprehensive final regulations governing what constitute a repair on Friday the 13th (9/13/13). Typically, the IRS releases important new regulations immediately before the Christmas holiday to impose further burdens on practitioners as they try to comply with year-end deadlines. In this case, the National Office of the IRS could not wait until Christmas to “spring” this on practitioners and instead decided to do so on the busiest day of the year for most corporate filers.

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Consult your tax advisor first to avoid losing tax benefits

Mar 25, 2013
By TaxThink Team Blog
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Small and seemingly minor decisions can have a major impact on your federal and state tax burden. 

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Anti-taxpayer Tone Increases at IRS as IRS is Now Wavering on Intentionally Defective Grantor Trusts

Jan 09, 2013
By TaxThink Team Blog
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In February 2012, the President’s Revenue Proposals for Fiscal Year 2013 included a provision to eliminate intentionally defective grantor trusts. This was the first time that this provision has been floated.

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2012 Federal Tax Update: We’re Going Over the Cliff!!!

Nov 07, 2012
By TaxThink Team Blog
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On November 13, 2012, I have the pleasure of presenting my annual tax update at the PKF North American Summit in San Francisco.

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2012 Federal Tax Update: We’re Going Over the Cliff!!!

Oct 24, 2012
By TaxThink Team Blog
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On November 1, 2012, I have the pleasure of presenting my annual tax update at the WICPA Tax Conference in Milwaukee, Wisconsin.  The format will be the same as last year with the key points summarized in a Powerpoint presentation which then references the page numbers in the more detailed outline.
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2012 Federal Tax Update: We’re Going Over the Cliff!!!

Oct 23, 2012
By TaxThink Team Blog
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On October 30, 2012, I have the pleasure of presenting my annual tax update at the Decosimo 2012 Tax Seminar in Chattanooga, Tennessee. The format will include a half-day Federal Tax Update in the morning, followed by a half day of breakout sessions offered in the afternoon featuring  both a Tax Track and a Business Leaders Series Track.
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The Committee for a Responsible Federal Budget Responds to Joint Committee of Taxation “Experiment”

Oct 17, 2012
By TaxThink Team Blog
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On October 15, the Committee for a Responsible Federal Budget (CRFB) issued a response to the highly unusual “experiment” discussed in a letter sent to Senate Finance Committee leaders saying that if several major tax preferences are ended and revenue neutrality is maintained, statutory rates could be lowered by only 4 percent.  A number of commentators used the letter as “proof” that Mitt Romney’s tax proposals will not work.  The CRFB issued its paper to demonstrate why such conclusions are false and to illustrate why most comparisons between the JCT experiment and existing comprehensive tax reform plans are highly misleading.
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The Joint Committee of Taxation Releases Highly Unusual “Experiment”

Oct 16, 2012
By TaxThink Team Blog
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On October 12 the Joint Committee on Taxation (JCT) sent a letter to Senate Finance Committee leaders saying that if several major tax preferences are ended and revenue neutrality is maintained, statutory rates could be lowered by only 4 percent. Funny thing is, apparently no one asked the JCT to perform this highly unusual “experiment” a month before the election. 
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Cutting Edge Strategies to Save Taxes During Uncertain Times

Sep 27, 2012
By TaxThink Team Blog
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On Friday, September 28th, I have the privilege of presenting at the 49th Annual Fall Seminar at the Estate Planning Council of Northeast Wisconsin.   Based on the attendance list, I need to bring my “A game” because this is a group of folks that know the business and the need to add value every time they touch a client.  Hope to see you there – if not read on. 
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Don't be Fooled by Phony Arguments

Feb 22, 2012
By TaxThink Team Blog
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The Obama Administration is expected to release a provision to reduce the top corporate tax rate to 28% (from 35%).  This will lead to all kinds of “experts” saying this will result in businesses converting from passthroughs to regular C corporations.  This is an inaccurate statement when you factor in all of the disadvantages of C corporations. 

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President's 2013 Budget - More of the Same

Feb 14, 2012
By TaxThink Team Blog
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My commentary on key proposals that President Obama's released his Fiscal 2013 Budget which includes over 100 proposed tax changes.

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10 Powerful Tax Planning Ideas You May Have Overlooked - PKF North American Summit

Nov 14, 2011
By TaxThink Team Blog
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On November 14, I presented to an group of fabulous tax professionals at the PKF North American Summit in Washington DC. It was great to see everyone again and to renew old friendships. More importantly, we had time to share ideas and look for ways to add value to our clients. My presentation reviewed 10 often overlooked ideas.

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WICPA’s 75th Annual Tax Conference Presentation

Oct 30, 2011
By TaxThink Team Blog
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Rick's 20th annual tax update presentation at the WICPA’s 75th Annual Tax Conference. This presentation focuses on the relation of current year developments (whether legislative, judicial, or regulatory) to practical planning that will help you add value to your clients.  More

2011 Federal Tax Update: Back to the Future (Again)

Oct 23, 2011
By TaxThink Team Blog
Comments (0)
Rick's Annual Tax Update presentation at the CPA Associates International 54th Annual meeting. This presentation focuses on the relation of current year developments (whether legislative, judicial, or regulatory) to practical planning that will help you add value to your clients.

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Installment Sales Treatment Generally Unavailable for Related Party Sales

Oct 19, 2011
By TaxThink Team Blog
Comments (6)

The installment method of reporting income generally is unavailable for sales of depreciable property between related parties. Related parties may include individuals for purposes of denying installment sales treatment. 

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Unexpected Tax Consequences of Related Party Sale Requires Careful Navigation

Jul 27, 2011
By TaxThink Team Blog
Comments (19)

Normal tax rules are suspended in the case of certain sales between related parties.  Related party sales generally create negative tax consequences for sellers including recharacterizing capital gains as ordinary income, denying installment sales reporting, disallowing realized losses and restricting the use of like-kind exchanges.

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Reduction in Key IRS Interest Rate for June Offers Planning Opportunities

May 27, 2011
By TaxThink Team Blog
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The interest rate that must be used by taxpayers to calculate the amount of taxable gifts when using certain planning strategies will decline to 2.8% for transfers made during the month of June. This reduction generally benefits taxpayers looking to transfer assets to their junior family members. 

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2011 Auto Depreciation Deduction Limitations - IRS Gives Certain “Luxury Auto” Owners a Break

Apr 26, 2011
By TaxThink Team Blog
Comments (4)

Depreciation deductions for most new automobiles will be dramatically reduced unless a special election is made in the first tax year following the auto’s placed-in-service date. 

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Real property foreclosures require careful planning to avoid unexpected consequences

Mar 15, 2011
By TaxThink Team Blog
Comments (2)

Real property foreclosures can produce dramatically different (and unexpected) tax consequences depending on the type of debt that is involved. 

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2010 Tax Relief Act Dramatically Reduces the Residential Energy Credit

Feb 14, 2011
By TaxThink Team Blog
Comments (0)

The 2010 Tax Relief Act dramatically reduces the residential energy credit for individuals to 10% of qualified expenditures with a lifetime limit of $500.  If you did not take advantage of the $1,500 limitation available in 2010, you may have lost the ability to claim an extra $1,000 credit forever. 

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Now May be the Time to Buy a New SUV for Business

Dec 21, 2010
By TaxThink Team Blog
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New bonus depreciation and expensing rules can be used to deduct the entire cost of a new SUV placed in service during 2010 or 2011 provided certain requirements are met.

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2010 Tax Relief Act – Finally some Holiday Cheer!

Dec 13, 2010
By TaxThink Team Blog
Comments (1)

Despite all of the protests being expressed in the media by House Democrats, expect the 2010 Tax Relief Act to be sent to the President for his signature this week. 

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Increase the Benefits of Year End Planning for Your Business by Using the Tax Provision to Identify Tax Planning Opportunities

Dec 01, 2010
By TaxThink Team Blog
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Regardless of your level of expertise, it seems that the best tax planning opportunities are often found as a result of pure serendipity. 

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2010 Federal Tax Update: Dancing with the IRS

Nov 03, 2010
By TaxThink Team Blog
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2010 continues the annual tradition of piling tax change upon tax change and allowing important provisions to expire (only to re-enact them retroactively) making it next to impossible to understand, much less comply with our Federal income tax law.

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Pass-Throughs with Research Credit Opportunities Reap Significant Benefit from Recent Tax Act

Sep 28, 2010
By TaxThink Team Blog
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There are two provisions in the recently passed tax Act which can have a significant impact to shareholders of S corporations and partners of partnerships, including LLCs treated as partnerships, who are eligible to claim a tax credit for research and development activities but have been limited due to problems with the Alternative Minimum Tax (AMT).

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Most Taxpayers Will Benefit from Accelerating Capital Gains to 2010

Sep 09, 2010
By TaxThink Team Blog
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One of the most beneficial decision taxpayers can make this year is to accelerate capital gains.

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2010 Year-end Tax Planning Requires New Strategies

Aug 29, 2010
By TaxThink Team Blog
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Effective year-end tax planning for 2010 should focus on accelerating income and postponing deductions other than itemized deductions.

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Getting Ready for Large Tax Increases – Taking Stock of what is in Store

Jul 13, 2010
By TaxThink Team Blog
Comments (0)

It is time to review precisely where tax rates are going over the next few years as we are exactly six months away from the biggest tax increase in nearly 17 years.

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House Passes Small-Business Tax Bill

Jun 16, 2010
By TaxThink Team Blog
Comments (0)

The House on June 15 passed a small-business tax bill that essentially would eliminate the use of GRATs as an effective estate planning tool for most senior family members.

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Business and Real Estate Owners May be Missing Valuable Opportunity

May 26, 2010
By TaxThink Team Blog
Comments (2)

Certain taxpayers may be overpaying their current taxes because they misclassify deductible repairs and maintenance expense as capital improvements.

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Passive Activity Loss Rules May Disallow Deduction of Current Losses Unless Taxpayer is a Qualifying Real Estate Professional

Apr 27, 2010
By TaxThink Team Blog
Comments (3)

An individual's rental real estate activities, including those owned through pass-through entities, automatically fall under the passive activity loss (PAL) rules regardless of whether the taxpayer materially participates in the activity. 

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Employers Who Hire or Rehire Employees May Qualify for Important Tax Break

Apr 02, 2010
By TaxThink Team Blog
Comments (0)

Employers who previously laid off employees as a result of a lack of work, or due to a change of season, may be able to take advantage of this new provision. 

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Don’t Jump from the Bridge… yet… President signs Patient Protection and Affordable Care Act

Mar 24, 2010
By TaxThink Team Blog
Comments (0)

Tax increases resulting from health care legislation will not take effect until 2013.

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What are your chances for being audited?

Mar 15, 2010
By TaxThink Team Blog
Comments (0)
IRS data book provides valuable information about where the IRS is focusing its attention and how many tax returns the IRS audits. 

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If You Like Challenges – Choose a Career in Tax

Mar 01, 2010
By TaxThink Team Blog
Comments (0)

A relative newcomer to the profession says it’s the thrills and spills that make this career choice worthwhile.

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Second Shot at a “Once in a Lifetime” Benefit

Feb 23, 2010
By TaxThink Team Blog
Comments (0)

Special tax benefit originally aimed at Chrysler could benefit your closely held C Corporation. 

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Beneficiary Designation Forms: The most important estate planning form that you don’t know about.

Feb 07, 2010
By TaxThink Team Blog
Comments (0)
Proper planning requires the completion and continual review of a Beneficiary Designation Form (BDF).  More

President’s Budget for Fiscal 2011 Will Significantly Increase Your Taxes

Feb 02, 2010
By TaxThink Team Blog
Comments (0)
On February 1, Treasury released the General Explanations of the Administration’s Fiscal Year 2011 Revenue Proposals indicating it’s time to get your wallet out.  More

IRS Proposed to Require Notification of FIN 48 Uncertain Positions

Jan 26, 2010
By TaxThink Team Blog
Comments (0)

The IRS is now proposing that taxpayers provide them with a roadmap to potential audit adjustments and to provide them with worse case estimate.

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Favorable IRS Interest Rates Create Estate Planning Opportunities

Jan 06, 2010
By TaxThink Team Blog
Comments (0)

With IRS interest rates at historic lows and legislative changes in the air, now is the time to lock in significant tax savings by moving your estate planning forward by utilizing one of these techniques.

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Tax Extenders Act of 2009 Extends a Variety of Pork Barrel Provisions

Dec 14, 2009
By TaxThink Team Blog
Comments (0)

Every year Congress enacts a one-year extension for a variety of politically popular provisions for which it has to scramble to pay. 

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Energy Credits Saving More Valuable in 2009 than 2010

Dec 03, 2009
By TaxThink Team Blog
Comments (2)

Nonbusiness energy credit can be used to offset alternative minimum tax in 2009, so you should not put off buying qualifying property until 2010. 

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Generous Education Tax Credits Available to Certain Taxpayers in 2009

Nov 20, 2009
By TaxThink Team Blog
Comments (1)

An overlooked provision included in 2008 Stimulus legislation may generate significant benefits for certain individuals attending a higher education institution located in a Midwestern Disaster Area in 2008 and 2009.

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Home Buyer’s Credit Provisions Vary Greatly

Nov 13, 2009
By TaxThink Team Blog
Comments (1)

The popular first time home buyer’s credit has undergone significant changes since enactment.

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Comparison of NOL Carryback Provisions Summary - Tax changes occur so frequently it's difficult to keep them straight.

Nov 11, 2009
By TaxThink Team Blog
Comments (0)

Because there have been so many tax changes that revise recently enacted legislation with different effective dates, its difficult to keep the changes straight. 

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Congress passes Worker, Homeownership, and Business Assistance Act of 2009

Nov 07, 2009
By TaxThink Team Blog
Comments (0)
On November 6, 2009, the President signed new legislation that gives businesses of all sizes an expanded net operating loss carryback and extends and liberalizes the home buyers tax credit.
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2009 Federal Tax Update

Nov 05, 2009
By TaxThink Team Blog
Comments (0)
2009 has turned out to be a fairly routine year as we’ve only had to deal with 300-400 tax law changes. 
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How IRS Interest Rates Affect Your Transfer Tax Planning

Oct 21, 2009
By TaxThink Team Blog
Comments (0)
Special interest rates determined monthly by the IRS can dramatically affect your transfer tax planning.
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Numerous Expiring Tax Provision May Significantly Increase Your Future Tax Bill

Oct 12, 2009
By TaxThink Team Blog
Comments (0)

Expiring provisions give Congress and the President a way to raise taxes without debating the tax increases. 

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Does a Roth Conversion Make Sense Next Year?

Aug 19, 2009
By TaxThink Team Blog
Comments (0)
High income taxpayers should consider converting their traditional IRA to a Roth IRA in 2010.
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Courts Reject IRS Unreasonableness on Passive Losses

Jul 28, 2009
By TaxThink Team Blog
Comments (6)

The Tax Court and the Court of Federal Claims in separate cases this month have held that LLC and LLP members are not automatically presumed to lack material participation.

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IRS Changes Position on Reporting for Investments in Foreign Hedge Funds and Private Equity Funds

Jul 06, 2009
By TaxThink Team Blog
Comments (0)

IRS “announces” major change in reporting rules on obscure conference call three weeks before filing deadline creating havoc and uncertainty for taxpayers. 

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Plan Now to Take Advantage of the One Person 401(k) - Part 1 - Overview of the Strategy

Jun 16, 2009
By TaxThink Team Blog
Comments (0)

One person 401(k) plans can provide extraordinary benefits to individuals with full-time positions and unrelated self employment income. 

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Far Ranging Tax Proposals will Radically Alter Individual and Corporate Taxes

May 20, 2009
By TaxThink Team Blog
Comments (0)

Proposed tax law changes will significantly increase taxes for individuals, families, and businesses beginning in 2011 and individuals dying on or after the date of enactment.

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Get Your Tax Planning Started Now or Risk Significant Increases in Coming Years

May 15, 2009
By TaxThink Team Blog
Comments (0)

Proposed tax law changes will significantly increase taxes for individuals, families, and businesses beginning in 2011 and individuals dying on or after the date of enactment.

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Surviving an IRS Audit

Apr 29, 2009
By TaxThink Team Blog
Comments (0)

If you are contacted for an IRS audit, you need to act immediately to resolve the matter. You should use a tax professional to level the playing field.

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It's Not Too Late to Reduce Your 2008 Taxes: Establish a Simplified Employee Pension

Mar 31, 2009
By TaxThink Team Blog
Comments (2)

Certain small business owners and self-employed individuals may reduce their 2008 taxes by establishing a SEP by the due date of their tax return, including extensions.

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COBRA Provision Imposes New Burdens on Employers

Mar 10, 2009
By TaxThink Team Blog
Comments (0)

COBRA provisions included in the 2009 Economic Stimulus Act will increase administrative burdens to the employer by requiring the employer recover the cost via a tax credit and requiring retroactive coverage. 

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Individual Provisions Included in the 2009 Economic Stimulus Act

Feb 24, 2009
By TaxThink Team Blog
Comments (0)

The individual provisions of the 2009 Economic Stimulus Act are too narrow and targeted to provide any measurable tax relief to middle-class two-wage-earner families. 

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Business Provisions Included in 2009 Economic Stimulus Act

Feb 18, 2009
By TaxThink Team Blog
Comments (1)

The 2009 Economic Stimulus Act primarily extends existing tax benefits and provides little or no stimulus for business. 

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Senate Holds the Upper Hand - Comparison of Provisions

Feb 11, 2009
By TaxThink Team Blog
Comments (0)

Expect a stimulus bill sometime this week (before Monday). 

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Strategies for a Troubled Economy

Feb 05, 2009
By TaxThink Team Blog
Comments (0)

You'll sleep better at night if you address the issues head on.   

 More

House and Senate Stimulus Provisions Have Important Differences

Jan 29, 2009
By TaxThink Team Blog
Comments (0)

Important differences exist between the House passed Stimulus Bill and Senate provisions working their way to a vote. 

 More

Stimulus Bill Provides Few Business Incentives

Jan 19, 2009
By TaxThink Team Blog
Comments (0)

Business tax provisions included in the new stimulus bill offer few incentives for business to expand. 

 More

Six More Planning Ideas for Reducing 2008 Taxes After Year End

Jan 12, 2009
By TaxThink Team Blog
Comments (1)

Earlier this week, we focused on six planning ideas that can be implemented after year end.  Here are six more strategies that can be used to reduce 2008 taxes even though we are well into 2009.  

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Tax Planning Moves Still Possible After Year End for Businesses

Jan 05, 2009
By TaxThink Team Blog
Comments (0)

Although year-end has passed, there are still a number of tax-saving moves a company can make to reduce its tax burden for 2008. 

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Should I Accelerate My Capital Gains to 2008?

Dec 21, 2008
By TaxThink Team Blog
Comments (1)

Will Obama and the Democratic Congress raise capital gains rates in 2009 thereby making it beneficial for me to accelerate capital gains to 2008?

The only way to be absolutely certain you will not be subject to a tax increase in 2009 on capital gains is to accelerate them to this year. At the same time, it seems clear that because the economy is in worse shape than originally thought, it is unlikely that President-elect Obama and the Democratic Congress will push through a capital gains tax increase in 2009. Based on recent statements made by close advisors, it appears there is support among them to simply let the Bush tax cuts expire at the end of 2010. That would mean no tax increases until 2011...

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Hello - Welcome to TaxThink-Dispatches from the front lines of our tax system

Dec 19, 2008
By TaxThink Team Blog
Comments (2)

Welcome to TaxThink.  We're glad you stopped by.  Our purpose is to discuss and explain serious tax topics in an offbeat and interesting manner.  Can't be done?  Maybe; but lets reach high.  Please stop back often to review the latest post, and if the mood strikes you, comment on the topic at hand.  Your comments and questions are welcome and I will do my best to address them as quickly as possible.  In the coming months, we'll also be adding interesting links to expand your knowledge...

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