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Atlanta Tax Law Blog

Looking at President Trump’s proposed tax changes for businesses , P.2

In our last post, we began looking at some of the changes expected to occur with tax reform in the Trump presidency. As we noted, reduction of corporate income tax rate, ending taxing of overseas income returned to the United States, and implementing a border adjustment tax are all reportedly part of Trump’s plan, and these policies will impact many U.S. businesses.

Another change expected to come for businesses is full expensing of business investments. Under this reform, should it pass, businesses would be able to deduct the value of investments in new business the year the investments are made instead of over a longer period of time. The effect of the change is that it will reduce the cost of capital investments.

3 reasons to make a succession plan for your family business now

Whether you are close to retirement, want to change careers or are facing an illness , you should develop and implement a succession plan for your family business. Leaving your position requires more than just a last-minute transfer of ownership to a descendant or buyer. For the best outcome for you and your business, you need to begin the succession process years before these events occur. The longer you wait, the more likely you are to miss out on the following benefits of having a succession plan in place.

Looking at President Trump’s proposed tax changes for businesses

Many readers have, no doubt, been following the talk of the changes coming down the pipeline with respect to the federal tax system. The proposed changes are on multiple fronts, including individual income taxation, estate taxation and corporate taxation.

According to commentators talking about the proposed changes, President Trump started with a promise to reduce the corporate tax rate to 15 percent. Through discussion and debate, Trump’s team came to include within its proposed tax reform a number of other changes to the federal tax system. First of all, House Republicans have proposed moving the corporate income tax rate from 35 percent to 20 percent, which doesn’t quite hit Trump’s goal but gets closer. 

Be cautious of DIY approach to filing taxes, consider working with tax attorney, P.3

We’ve been discussing in our last couple posts the risks of DIY tax filing and the relative benefits of working with tax professionals to file tax returns. As we pointed out last time, both CPAs and tax attorneys have special competencies in handling tax filing. Information shared with a tax attorney is typically privileged, though there are ways privilege can be waived.

Correcting inaccuracies in tax filings is a particularly important area to work with an experienced attorney, because of the potential risks involved. While it isn’t necessarily that difficult to file an amended complaint to report omitted income or correct improper deductions, it can result in more problems if the amended complaint is inaccurate due to a failure to thoroughly examine the extent of the inaccuracies. 

Be cautious of DIY approach to filing taxes, consider working with tax attorney, P.2

In our last post, we began discussing do-it-yourself tax filing, and the risks taxpayers take when they go it alone. As we noted last time, working with a CPA is certainly a better way to ensure an accurate return is filed. Working with an experienced attorney has its own advantages over working with a CPA, but it isn’t the case that a taxpayer has to choose between working with a CPA and a tax attorney. In many cases, taxpayers work with both.

CPAs and tax attorney have their own areas of expertise when it comes to navigating income tax law and filings. A tax attorney is going to be able to provide sound advice and advocacy regarding particularly complex tax issues, and communications between attorneys and their clients are privileged, which can provide a taxpayer legal protection. On the other hand, having a CPA may be necessary in some cases to preserve attorney-client privilege. 

Know your rights as a taxpayer in the US

Folks across Atlanta are starting to receive W-2s and other tax documentation so they can file their returns in the next few months. As people prepare their taxes, it can become clear very quickly that no matter how many times you go through tax season, it never seems to get any easier.

It can also be easy to feel intimidated and overwhelmed by the tax code and various requirements of the IRS. However, before you get too frustrated, it can be a good time to remind yourself that you have rights, not just obligations, when it comes to filing taxes.

Be cautious of DIY approach to filing taxes, consider working with tax attorney

There is no shortage of resources for folks looking to take a do-it-yourself approach to filing federal income tax. For individuals with a relatively simple tax profile, this may not be such a problem, but for those who have a more complex situation, who have significant wealth, and for businesses, it is important to not be guessing when filing returns.

One thing that needs to be kept in mind about do-it-yourself tax filing, though, is that taxpayers are ultimately responsible for mistakes they make in their filing, whether or not they relied on published information about filing taxes. This is true even information provided by the IRS! So taxpayers cannot rely on the accuracy of the information they gather in doing their own taxes. Ultimately, they are responsible for any mistakes they make. 

Why you should not commit state tax fraud in Georgia

There are probably more jokes about taxes than there are tax laws. It is no secret that everyone wants to pay as little taxes as possible and will do anything to achieve that goal. Unfortunately, you may be tempted to do so through fraudulent means. No matter how common these practices are, they are illegal and can lead to severe consequences that may ruin your business. Avoid the following penalties and take a safer but just as satisfying approach to your taxes instead.

New tax rules aim to end corporate practice of “earnings stripping,” P.2

We previously began looking at the Treasury Departments recently announced rules aimed at ending the tax inversion practice of earnings stripping. By and large, corporations have not welcomed the new rules, for obvious reasons, though many tax experts are hopeful that they will be quickly overturned under a Trump administration.

Some in the field feel that Trump may end up retaining some aspects of the new rules, though, and are more cautious about the future. Corporations, in view of the uncertainty of the situation, should not expect that the new rules go away and are advised to mobilize compliance efforts.  

New tax rules aim to end corporate practice of “earnings stripping,” P.1

Back in October, the U.S. Treasury Department announced new regulations aimed at addressing corporate tax avoidance, particularly through the use of tax inversion. The term refers to common corporate practice of acquiring small foreign competitor companies in nations with low tax rates and then relocating the corporation’s legal domicile to the foreign nation.

The aim of tax inversion is to avoid tax liability. Companies that engage in tax inversion often make use of interest deductions to foreign corporate headquarters in order to reduce their corporate taxes in the United States. This is known as earnings stripping, and is a practice that the new rules seek to discourage.

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Located in Atlanta, The Peck Group, LC, represents clients nationwide. Regionally, we are committed to serving clients in Fulton County and throughout the state of Georgia.