Spouses who are or have been subjected to domestic abuse by their spouses (or ex-spouses) may find themselves dealing with threatening notices from the Internal Revenue Service (IRS) and the state taxing authorities seeking to collect tax from them for understatements or underpayments of tax on joint returns previously filed with the abusing spouse. Fortunately, … Continued
I recently wrote about structured legal fees for lawyers (see “Contingent Fee Tax Planning, Anyone?” NYSBA Journal, vol. 94, no. 5, Sept./Oct. 2022, p. 37). For nearly 30 years, plaintiff lawyers have been structuring contingent legal fees based on the seminal tax cases of Childs v. Commissioner.[1] Payments over time can flatten the peaks and … Continued
In DCH Auto v. Town of Mamaroneck, the New York State Court of Appeals unanimously reversed the Appellate Division, Second Department, and held that a “net lessee contractually obligated to pay the real estate taxes of the subject property is included within the meaning of ‘the person whose property is assessed’ under [Real Property Tax … Continued
If you’re careful, structured legal fees can allow tax-free compounding, defer taxes and help build a solid financial plan. There are estate planning advantages, too.
Tax laws must catch up with what has happened with the world as a result of COVID-19.
Law firm partners and S corporation investors who were hit hard financially by the Trump Administration’s tax reforms may be able to get some relief thanks to a relatively new provision in the New York Tax Code, but the firms must act by Oct.15 to take advantage of it this year.
COVID-19 shut down offices and sent employees home to work — often out of state — leaving a big question about state income taxes: Should they be paid where the employees are actually working, or where the employer is located? Alysse B. McLoughlin, a partner at McDermott Will & Emery in New York, led a … Continued
The shift towards remote work for millions of U.S. employees can have significant tax implications for businesses. There is potential long-term impact as employers rethink the need for expensive spaces and shift to partial or fully-remote workforces. Potential tax implications include payroll tax, corporate income and franchise tax, as well as taxes imposed based on … Continued
Lawyers and clients should care about IRS Forms 1099. Forms 1099 allow computer matching of Social Security numbers and dollar amounts paid and received, so IRS collection efforts are streamlined and automated.
If one were designing the measure of damages recoverable for negligent tax advice, the most obvious element of recoverable damages would be the avoidable extra taxes caused by the negligence. After all, minimizing taxes is at the heart of a tax representation. In most states, such avoidable taxes are recoverable. The situation in New York … Continued