Estate Planning Options Might Get More Expensive for Family-Owned Businesses
If transferring shares of a family-owned entity plays any role in your estate planning, you may want to think about making those transfers sooner rather than later. That’s because the Internal Revenue Service (“IRS”) released new proposed regulations under Internal Revenue Code (“IRC”) § 2704. These regulations will limit certain valuation discounts when interests in limited liability corporations (“LLCs”), partnerships, and corporations are transferred among family members. This restriction will apply to interests in both active business entities and passive investment vehicles. And that could mean a bigger tax bill for you and ultimately less wealth passed to certain family. Read More.
IRS Sends Failure-to-Deposit Letters by Mistake
The Internal Revenue Service (“IRS”) incorrectly sent failure-to-deposit notices to taxpayers who made timely employment tax deposits on Tuesday, May 31, or on Thursday, June 2, 2016. The Memorial Day holiday observed on May 30, 2016, moved the due dates for both next-day and semi-weekly deposits back by one day. However, the IRS systems didn’t recognize the changes and counted payments made on these days as late. The good news is that taxpayers don’t need to take any action at this time. If you received a letter, you may disregard it. The IRS has corrected the problem and is updating. Read More.
Conducting Business in Nevada? New Nevada Commerce Tax Due August 15
Do you do business in Nevada? Nevada has a new commerce tax return Nevada businesses are required to file, and the deadline is Monday, August 15, 2016. If your return isn’t ready, you can request a 30-day extension and mail or fax your request to the Nevada Department of Taxation. This year only, you may also request a six-month extension until February 15, 2017, if you provide reasonable cause for needing the extra time. However, the request for an extension must be made before August 15, 2016. The filing instructions also say that penalties and late charges may be waived. Read More.
Game Changer: New Rules on Deferred Compensation for Tax-Exempt Employers and Governments
The whole point of deferred compensation plans is to let independent contractors and employees put off receiving wages they’re earning now – so they can (hopefully) be taxed at a lower rate down the road AND save their earnings for years when they otherwise wouldn’t be earning as much (like at the end of a contract or after retirement, for example). Save money and pay less in taxes. What’s not to love? As an employer, offering deferred compensation plans can make a big difference in your ability to attract and retain employees and independent contractors. But the rules governing deferred. Read More.
What Employers Need to Know About New Excepted Benefits Rules
Newly proposed regulations by the Departments of the Treasury, Labor, and Health and Human Services are likely to impact employers and plan sponsors offering or considering excepted benefit plans next year. Cherry Bekaert Benefits Consulting’s latest Health & Benefits Update provides details Read More.
New Must-Know Info Employers Need Before Offering Travel Insurance, Plan Limits and Short-Term Insurance
This month’s Health & Benefits Update by Cherry Bekaert Benefits Consulting shares insights on regulations recently proposed by the Departments of the Treasury, Labor, and Health and Human Services. The Update addresses the government’s latest guidance on travel insurance, lifetime annual limits and short-term limited-duration insurance, which could become effective for plan years starting on or after January 1, 2017. Download the July Health & Benefits Update here.
What North Carolina-South Carolina Border Change Means for Taxpayers
After 20 years of negotiations, geological surveys, and research into the historical border, the governments of North Carolina and South Carolina have finally reached an agreement about where the state border lies, based on historical documentation dating as far back as 1735. That means some taxpayers and businesses may wake up on January 1, 2017, to find themselves in a different state than where they started – without ever having moved! It’s not that they’re changing the border, according to government representatives. They’re simply enforcing the existing border. Over many decades, the landmarks for the original boundary between the states,. Read More.