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Release of Taxation Of IP & Technology Update for 2020

William Byrnes

Taxation of Intellectual Property and Technology 2020 edition is a 1,000 page analytical treatise to the federal tax consequences of the development, purchase, sale and licensing of intellectual properties and intangibles.  Primary author William Byrnes leads a team of America’s leading tax senior counsel to analyze tax risk challenges for business and investment decisions concerning intellectual property, technology, intangibles, and the digital economy. This 2020 update published in November (next update published in June 2020) contains:

  • Expands this treatise beyond 1,000 pages of analysis and planning research.
  • Provides in-depth analysis of the 2019 final and proposed regulations that impact intellectual property and intangibles, including GILTI and FDII.
  • Analyzes the new Cloud Computing Regulations.
  • Expanded analysis of the 2018 Supreme Court Wayfarer decision and its impact on interstate digital business models and trademark holding companies.
  • Analysis of several 2019 decisions cases including AmazonAlteraSlaughterhouse.

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How To Get Rid Of IRS Tax Penalties

Venar Ayar- IRS Penalty Relief
You may be able to get IRS tax penalty relief simply by asking for it. If you meet the criteria for first-time penalty abatement (FTA), reasonable cause penalty relief, or other types of penalty relief, you will need to submit a request to the IRS in order to have your penalties reduced.

IRS Penalty Relief Programs

Many taxpayers are eligible for FTA, but don’t know about the program. If you don’t ask for penalty relief, you won’t receive it.

You need to meet the following criteria to receive FTA:

  • You can only request penalty relief for one tax year, and you must have not penalties in the previous three tax years.
  • You must not have any unfiled returns.
  • You must have paid or arranged to pay any tax due. This includes agreeing to a monthly payment plan.

Reasonable cause penalty relief is another option. You can request this relief if your failure to file or pay taxes was caused by circumstances outside of your control.

Fires, natural disasters, death or serious illness of a taxpayer’s immediate family, or an inability to obtain records may all qualify for reasonable cause relief. You can request this type of relief for the failure-to-file penalty, failure-to-pay penalty, and the failure to deposit penalty.

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From The Front Line: How A Routine Form 3520 Filing Can Easily Go Wrong – And Did!

IRS Form 3520

It is perhaps not surprising to hear that non-U.S. (or “foreign”) trusts with U.S. owners can be tricky…

Individual U.S. citizens who hold such foreign trusts, for example, are expected to file a Form 3520, “Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts,” and the trusts themselves are required to file a Form 3520-A, “Annual Information Return of Foreign Trust With a U.S. Owner,” every year. If the trust doesn’t file a Form 3520-A, the U.S. owner of the trust is required to file a “substitute” Form 3520-A with their Form 3520. Definitely not for beginners. 

Still, Gary W. Carter, a certified public accountant based in Minnesota, with decades of experience as a tax adviser, professor and revenue agent, knew all this. So he filed such forms on behalf of some of his overseas clients last year without a further thought.

Below, Carter explains, in his own words, how easily – and disastrously – things went wrong for five of his clients (“so far”, he says), and speculates that the scale of similar penalty notices could be huge: and consequently, a huge, if not a particularly tax-payer-friendly, money-maker for the IRS. 

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199A Rental Real Estate Safe Harbor Excludes Certain Businesses

William Byrnes

Not all taxpayers will be able to take advantage of the Section 199A safe harbor for rental real estate. While the safe harbor does apply to residential rental real estate, taxpayers are not entitled to rely upon the safe harbor if the taxpayer uses the property as a residence during the tax year.

Notably, if the real estate is rented or leased under a triple net lease, the safe harbor remains unavailable under the final rule. When satisfying the “hours of rental real estate services” criteria, only certain activities are counted toward the 250-hour threshold. Activities such as rent collection, advertising the rental, property maintenance, negotiating leases and managing the real property generally count toward the threshold. However, the taxpayer’s activities as an “investor” are not counted.

Similarly, if any property within the rental real estate enterprise is classified as a specified service trade or business, the safe harbor is unavailable for the entire business. For more information on the final safe harbor rule, visit Tax Facts Online. Read More

Have a question? Contact William R Byrnes

 

Self-Employed Independent Contractor Or Employee?

IRS LOGO

It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.

Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.

Select The Scenario That Applies To You:
  • I am an independent contractor or in business for myself
    If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-employed. For more information on your tax obligations if you are self-employed (an independent contractor), see our Self-Employed Tax Center.
  • I hire or contract with individuals to provide services to my business
    If you are a business owner hiring or contracting with other individuals to provide services, you must determine whether the individuals providing services are employees or independent contractors. Follow the rest of this page to find out more about this topic and what your responsibilities are. Read more

Taxpayers Traumatized By Form 3520 And 3520-A (Please Add Your Personal Stories After Reading This Post)

Kat Jennings

It all started with the letter written by one of our members, Gary Carter who wrote an article titled Foreign Trusts: IRS Penalty Notices For Late Forms 3520-A Traumatize Many Innocent Taxpayers. The purpose of my post today is to share some of the stories that have followed and to call out all tax professionals and taxpayers to help by sharing their experiences with us by commenting on this blog post. The more we can explain what is occurring with Form 3520 and 3520-A the more we are able to bring this issue to the attention of the IRS and NTA. We will start by sharing the stories and comments that have already surfaced but we need more to be impactful. Please share this with anyone you know and ask them to contribute to the comments on this post. Everyone counts so your input is valuable!

Here are some of the stories that have emerged:
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Treat Yourself To A Tax Calendar Tour TODAY: Starts 10:00AM Central Time (Texas)

Treat

The smartest way to leverage your valuable time is preparing your Tax Calendar for the upcoming year. We took a tour of the AKORE Tax Calendar and were impressed by what we learned. We highly recommend you take the tour and learn why this new Tax Calendar is the best way to leverage your time in your tax practice.

It does not cost you anything to take a tour and we know it will certainly save you a lot of time and money. The tax professionals who have taken our suggestion to organize their tax professional lives are happy they listened,toured this Tax Calendar and learned how to best leverage their tax practice.

Everyone attending this session will receive an extra two months free with an annual AKORE TaxCalendar license. You will be pleasantly surprised at the very low cost of this software.

You will be given a nice treat at the end of the presentation today!

Register For Complimentary October 31st 2019 Tax Calendar Treat!

Register For Complimentary Tax Calendar Tour Treat On Thursday, October 31st 2019

FREE WEBINAR

The smartest way to leverage your valuable time is preparing your Tax Calendar for the upcoming year. We took a tour of the AKORE Tax Calendar and were impressed by what we learned. We highly recommend you take the tour and learn why this new Tax Calendar is the best way to leverage your time in your tax practice.

It does not cost you anything to take a tour and we know it will certainly save you a lot of time and money. The tax professionals who have taken our suggestion to organize their tax professional lives are happy they listened,toured this Tax Calendar and learned how to best leverage their tax practice.

Everyone attending this session will receive an extra two months free with an annual AKORE TaxCalendar license. You will be pleasantly surprised at the very low cost of this software.

Register For Complimentary October 31st 2019 Tax Calendar Treat!

Complimentary eBook Has 200+ Jokes And Fun IRS Tax Form To Share With Clients As A Treat This Week!

200+ JOKES eBook For Free

Each year, TaxConnections releases an eBook for tax professionals to enjoy 2019 Edition of 200+ Best Tax Jokes, Tax Quotes, Fun Tax Forms.

We like to give you all something to remind you to take a moment to enjoy life and laughter! There are many known health benefits to laughter including: lowers blood pressure, reduces  stress hormones, improves cardiac health, boosts T-Cells, triggers the release of endorphins, and produces a general sense of well-being. Laughing is also very good for your abs:)

Looking to add some laughter and exercise? We have included a fun tax form for those of you who would like a Halloween Tax Form in advance to share with clients.

Request your copy:

2019 Edition of 200+ Best Tax Jokes, Tax Quotes, Fun Tax Forms

 

You Are Invited – Award Winning TaxCalendar Tour!

FREE TOUR _ RED

You are invited to a tour of the award winning tax calendar that keeps you organized all year around! Thus easy to use, high quality, low cost tax calendar is tailor made to manage all your corporate tax or clients tax returns.

It tracks all taxes and tax deadlines and effectively manages any tax return, tax due dates, filing extensions, amended tax returns, notices and important dates and payments.

The TaxCalendar tracks all federal, state international, property, sales and use, excise, franchise, estimated tax payments, quarterly and annual tax payments, business licenses, HST/GST, value added tax and annual reports.

The TaxCalendar has a customizable electronic filing cabinet, built in document management system, customizable fields, manages multiple tax years, manages multiple clients, tracks all tax obligations and due dates, mass filing, editing and roll over functionality, reminders and alerts on all tax returns, reports tax department and staff progress, rollover data from prior years, tracks notices for companies, workflow management tool and sets and schedules staff tasks.

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Gig Economy Update: California Law AB5

William Rogers

Governor Gavin Newsom’s signature made it official. California’s Assembly Bill 5 (AB5) is now law. In case you missed the news leading up to this, AB5 is the law that can turn a freelancer into an employee. Under the law, which takes effect on January 1, 2020, a freelancer will be designated an employee of a company if they perform job duties as part of the core business offerings of the company, OR if the way they work is directed by a company boss, OR if the worker doesn’t have their own independent business. How does that sound to you?

In a letter, Governor. Newsom said, “Assembly Bill 5 is a landmark legislation for workers and our economy…a next step is creating pathways for more workers to form a union, collectively bargain to earn more, and have a stronger voice at work.” Obviously, the focus is on helping workers. But do freelancers see themselves as workers? Do they want to? One thing we know is they want more pay as well as some benefits and protections.

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Trick Or Treat! State Tax And Its Effect On Popular Treats

Monika Miles

Halloween is right around the corner. As you prepare to greet trick-or-treaters or dress in costumes for a party with friends, I thought it would be fun to look at how states are benefiting from the holidays, specifically through sales tax.

Obviously, certain Halloween items fall under standard taxes (e.g. Halloween costumes). But what about those treats? From candy for the kids to soda and adult beverages for the grown-ups, keep reading to learn how these sweets and drinks fall under state tax provisions.

Trick Or Treat! Candy Meets Sales Tax Laws

It’s estimated Americans will spend $2.6 billion dollars on Halloween candy this year. Although candy itself is small and fairly inexpensive, when you add up how many consumers are buying it, you can see why it becomes a state tax issue.

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