Tax Warrior Chronicles

While many tax advisors were busy working to wrap up September 15^th deadlines on Monday, House Ways & Means Committee Chairman Richard Neal released 881 pages of proposed legislative text intended to become part of the Build Back Better Act, a budget reconciliation bill forthcoming from Congress. That same day, Ways & Means Committee staff prepared and released an 18-page, section-by-section outline of the potential tax legislation required to cover the Biden administration’s $3.5 trillion spending plan. It’s still early in the legislative process and what will become law is still somewhat of a guessing game. But we are at the stage when we start following the proposals more closely, and

Jeremy Gussick, MBA, CFP, of LPL Financial, is no stranger to our subscribers.  He has become one of our Social Security and retirement planning go-to experts.  Today, he talks about Medicare and other Social Security benefits and when, where, and if taxation comes into play.

In its May 2018 decision, the U.S. Supreme Court opened the door for legalized sports betting. Since the ruling, companies like DraftKings, FanDuel, and BetMGM have built a national presence along with some states’ online casinos. However, many are still unsure how to report winnings and/or losses. Whether it is traditional or online gambling, or sports betting, the IRS treats it all the same. Let’s dive into how the IRS treats these winnings and how losses can be a tax benefit for certain individuals.

By: Sherri Sorbello, CPA

Among President Biden’s tax proposals is an increase in the long-term capital gain tax rate from 20% to the top ordinary tax rate (37% for 2021 or 39.6% for 2022) for taxpayers with adjusted gross income (AGI) over $1 million. At the time of the publication of this blog, it is unclear if this change, if enacted, will be retroactive to a yet-to-be determined date in 2021 or if it will take effect as of January 1, 2022. For those looking to sell a family business, planning for the potential higher tax rate is essential to ensure you net the greatest cash flow from the sale of a business.

A pressing question from clients has been around remote workforces and the related tax implications. As businesses weigh their options regarding from where an employee is required to work (home, office, or hybrid) there is a lot to consider. Our guest blogger today is Jennifer Karpchuk, an attorney and co-chair of the state and local tax controversy planning practice at Chamberlain, Hrdlicka, White, Williams & Aughtry in Philadelphia. She describes the issues businesses should know regarding remote workforces. If you have remote employees, this is a must read.

As guidance in this area is being released regularly, we recommend you read all of our blogs on this subject.  All the blogs in the Paycheck Protection Program series are here:  #1, #2, #3, #4, #5, #6, #7,#8,#9,#10,#11,#12,#13, #14, #15, #16, #17, #18,

#19, #20, #21, #22, #23

From the beginning, the Small Business Administration (SBA) has struggled with making the Paycheck Protection Program (PPP) process easy for borrowers to navigate. One confusing question has been do businesses work through the SBA or through their lender to secure forgiveness? A new portal launched on August 4th by the SBA targets borrowers with loans up to $150,000 and allows them to apply for forgiveness

By: Stefanie Ostrich, CPA

A Roth IRA is a retirement savings account in which after-tax dollars are invested and both the earnings and the principal withdrawals become tax-free qualified distributions, when taken after reaching age 59 ½ and after the Roth account has been open for 5 years. While it’s often thought Roth IRAs primarily benefit young people, they can also be a beneficial tool for Baby Boomers—in a big way. Here’s how…

By: Irina Moyseyenko, CPA, MT

Tax payment deadlines sneak up fast for most people. Many delay organizing their documents, postpone contacting their tax advisor, and then hope any potential tax balance due will be manageable. With some proactive tax planning you can reduce uncertainty, potentially minimize your tax liability, and better manage the tax cash flow needed to pay your tax liabilities. The best tool for this is a tax projection.

As the world fights through a devastating pandemic, tax scams and schemes have not stopped. In fact, they have grown. No theme is too low for these nefarious designers of deceit. The IRS tracks and releases a list of the most prominent scams each year. Taxpayers and tax professionals should know them well and how to avoid becoming a victim. Pandemic-related scams lead this year’s IRS “Dirty Dozen” list.

by: Cecilia Fernandes and Robert N. Polans, CPA, MT, PFS, ChFC

The COVID-19 pandemic unexpectedly took the lives of many loved ones. It made many of us stop and reflect deeply about what is most important: health and family! With that in mind, there is no better time than now to check your beneficiary designations related to your retirement plan accounts, traditional IRAs and Roth IRAs, tax-deferred annuities, and life insurance policies, to ensure they are all up to date and in line with your overall estate distribution goals.