Income Tax Alert for Landlords
By Cynthia L. Umphrey [Winter 2019]
If you own rental real estate, you may need to act now in order to take advantage of significant income tax deductions under the new Section 199A…
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New Tax Partnership Audit Rules
By William B. Acker [Summer 2017]
New tax rules will make sweeping tax partnership audit changes impacting all tax partnerships, may cause substantial inequities between members and may result in surprising tax liabilities…
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Because Language Matters – Sixth Circuit Reverses Tax Court and Applies the Language of the Code
By Ralph A. Castelli, Jr. [Summer 2017]
In mid-winter, our Sixth Circuit Court of Appeals, in Summa Holdings, Inc. v. Commissioner, upheld the taxpayer’s use of a domestic international sales corporation (DISC) to transfer amounts from a C corporation to Roth IRA’s of the sons of the controlling shareholder of the C corporation involved…
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IRS Viewpoint of the Tax Treatment of Crowdfunding
By Ralph A. Castelli, Jr.  [Fall 2016]
I remember Professor Geoffrey Lanning in my first tax law course in law school, explaining that a base premise under the Internal Revenue Code (the “Code”) is that gross income includes all amounts received from any source, unless there is a specific exclusion provided elsewhere in the Code. Crowdfunding is a recent phenomenon in which one engages in the funding of a project or cause by gathering on-line contributions, many of them small, from a large group of contributors.
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New Estate Tax Filing Requirements – Form 8971
By Brain R. Jenney  [Spring 2016]
The IRS has issued a new Form 8971 “Information Regarding Beneficiaries Acquiring Property From a Decedent” and instructions.  This increases the duties of a personal representative or executor of a decedent’s estate. Form 8971 is required to be filed if an estate has to file an estate tax return under Form 706 after July 31, 2015.
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Recent Federal Tax Updates
By Gloria M. Chon  [Spring 2016]
With tax season fast approaching (sorry), we would like to highlight a few recent tax updates that you may want to consider while you prepare and review your tax returns.
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Michigan’s “Main Street Fairness Act” (a/k/a “Amazon Law”)
By Gloria M. Chon and Christopher R. Martella  [Winter 2016]
‘Twas the night before October 1st, 2015 and all through the State, local retailers and tax officials were all snug in their beds, anxiously awaiting that special October date.  For when they awoke the very next day; there would be a new way to collect the sales tax we pay.  On that fateful day in October those of us who regularly shop on websites like Amazon, Wayfair, or Overstock noticed something new had snuck into our carts …
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Ponzi scheme loss deductions
By Brian R. Jenney    [Summer 2014]
Ponzi schemes are occurring all too often across the United States and Michigan. It is occurring so often that Attorney General Bill Schuette has issued a consumer alert to the citizens of Michigan ( and the IRS has developed two items of guidance to help taxpayers who are victims of losses from Ponzi-type investment schemes.
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Potential Tax Reform 2014
By Brian R. Jenney    [Spring 2014]
President Obama’s 2015 Federal Budget Proposal (FBP) and Rep. Dave Camp (R-MI) Tax Reform Act of 2014 (TRA) contain numerous similar provisions. This article highlights ten similar provisions that may actually go into effect since there is some agreement between Democrats and Republicans. Dave Camp plans to retire after his current term. The second section of this article reviews important and interesting provisions contained in the proposed Tax Reform Act of 2014.
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New IRS filing requirement for entities with EINs
By Gloria M. Chon    [Spring 2014]
The Internal Revenue Service (“IRS”) has a new filing requirement for any entity with an employer identification number (“EIN”). As of January 1, 2014, an entity with an EIN must file a Form 8822-B if there is a change in the entity’s address or responsible party (as defined below). If the entity’s responsible party has changed, use of this form is mandatory. Otherwise, use of the form is voluntary. The entity must file the form within 60 days of the change.
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Let us help reduce your taxes and increase your bottom line
By Jeremy R. Cnudde    [Winter 2013]
Property tax bills got you down? Get a free review of your business’ property tax assessment.
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Employers with self-insured health plans may owe new excise taxes
By Gloria M. Chon    [Spring 2013]
Under the Patient Protection and Affordable Care Act (“Affordable Care Act”), employers that are plan sponsors of self-insured health plans with plan years ending on or after October 1, 2012 and before October 1, 2019 may be subject to Patient-Centered Outcome Research Institute (“PCORI”) fees, which must be reported and paid as federal excise taxes.
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The tax obligations of a household employer
By Gloria M. Chon    [Summer 2013]
If you have a household employee to whom you will pay $1,800 or more in 2013, you need to be aware of your tax obligations as a household employer. Commonly referred to as “nanny taxes,” these taxes and procedures may seem overwhelming. However, the taxes are required by law and demand your attention. Below is a brief summary of the tax obligations of a household employer.
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IRS hot button issue
By Ralph A. Castelli, Jr.    [Winter 2012]
Historically, one of the reasons C Corporations were converted to S Corporations dealt with situations where the shareholder/employees were being paid such substantial salary and bonus compensation that there was a fear the IRS could successfully attack the compensation as being unreasonably high (allowing the IRS to disallow a portion of the compensation deduction by recharacterizing part of the payments as dividends). This then would result in double tax (the imposition of corporate tax, and then individual tax to the shareholder/employee recipient).
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American Taxpayer Relief Act of 2012
By William B. Acker, Earle E. Endelman, and Michael D. Umphrey    [Winter 2012]
The American Taxpayer Relief Act of 2012 continues important gift, estate and generation-skipping transfer tax provisions that were to expire on January 1, 2013, thus preventing substantial increases in these taxes in and after 2013. Of course, Congress can change the law at any time, but at least for now we have more certainty than before.
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Gift before cliff?
By Brian R. Jenney and Thomas V. Trainer    [Fall 2012]
It appears that the days are numbered on the current estate and gift tax exclusions allowing you to give large sums of money without owing any federal gift tax. The current $5.12 million lifetime gift and estate tax exclusion expires at the end of 2012 and is scheduled to drop to $1 million unless Congress acts. Unfortunately, Congress hasn’t been giving any indication how, or even if, its members intend to act. The maximum estate tax rate will also rise from 35% to 55%, again, absent Congressional action.
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The “Super Committee” and its effects
By Ralph A. Castelli, Jr.    [Fall 2011]
Unless you have been living in the wilderness, you know that Congress passed, and the President signed, the Budget Control Act of 2011 providing for an initial $1 Trillion round of deficit reduction over fiscal years 2012 through 2021.
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Impact of the 2010 Tax Act on your estate, gift and GST tax issues
By Cynthia L. Umphrey and Michael D. Umphrey    [Spring 2011]
The “Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010” (the “Act”) is complex, and this Alert only highlights features that are important to Estate, Gift and Generation-Skipping Transfer Tax (“GST Tax”) planning.
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Many recent tax developments may affect you
By Ralph A. Castelli, Jr. and Gloria M. Chon    [Winter 2010]
A summary of the most important recent tax developments which may affect you, your family, your investments, and your livelihood.
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