Newsletters
Tax Alerts
May 18, 2021
Tax Briefing(s)

                                                                                                                        November 2015

 To our Friends and Clients:

          As the fall leaves have come down, we all begin to think about the approaching holiday season. As we have seen in the past, many of our clients use this season to reflect on their lives and to think about the legacy they will leave behind. Estate planning has been around since the days of Pharaoh and the building of Pyramids. Now it is of course much easier to plan your estate and we encourage you to contact us to assist you with this delicate but necessary topic.

          Every client that uses our legal services to devise their estate plan will complete what we like to call the triple play of estate planning. Each client executes:

1) Last Will and Testament;

2) Power of Attorney; and

3) Health Care Proxy.

      WHAT SHOULD YOU BE THINKING ABOUT?

  • A Plan For The Disposition Of Your Assets
  • Estate Tax Planning To Minimize Estate Taxes Paid
  • Naming An Executor To Administer Estate
  • Naming Guardians And Trustees To Raise Children & Manage Their Assets
  • Creating Trusts to Benefit Children and Grand Children
  • If Married, to Utilize Maximum Exemptions To Reduce Estate Taxes

      What Else Should You Be Thinking About

  • A Plan For The Succession Or Sale Of A Family Business Or Practice
  • A Plan For Charitable Giving
  • Life Insurance To Support Your Family Or Provide Liquidity For The Estate And Methods to Keep Life Insurance Free of Estate Taxes
  • A Durable Power Of Attorney To Manage Finances Without Expense & Publicity Of Guardianship Hearing
  • A Health Care Proxy Which Names An Agent To Make Healthcare Decisions In The Event You Can’t Make Those Decisions
  • Living Trusts to Avoid Probate

We recommend that estate plans be reviewed every 2-4 years. Please call myself or Andrew Kirwin, Esq. to get the proverbial ball moving. As a courtesy to our clients, we shall provide a free half hour consultation regarding estate planning.

                                    

                                                                                                  We look forward to hearing from you.

 

                                                                                                                    


The IRS has postponed the federal tax filing and payment deadlines, and associated interest, penalties, and additions to tax, for certain taxpayers who have been adversely affected by the Coronavirus Disease 2019 (COVID-19) pandemic. 


The IRS has provided guidance related to the temporary 100-percent deduction for business meals provided by a restaurant. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 ( P.L. 116-260) temporarily increased the deduction from 50 percent to 100 percent for a business’s restaurant food and beverage expenses for 2021 and 2022. All other food and beverage expenses are still subject to the 50 percent deduction limitation unless some other exception applies.


The IRS has issued guidance for employers claiming the employee retention credit under Act Sec. 2301 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) ( P.L. 116-136), as modified by Act Secs. 206 and 207 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act) (Division EE of P.L. 116-260), for the first and second calendar quarters in 2021. The guidance amplifies previous guidance which addressed amendments made by section 206 of the Relief Act for calendar quarters in 2020.


The IRS has issued guidance clarifying that amounts paid for personal protective equipment—such as masks, hand sanitizer and sanitizing wipes—for the primary purpose of preventing the spread of the Coronavirus Disease 2019 (COVID-19 PPE) are treated as amounts paid for medical care under Code Sec. 213(d).


The U.S. Department of Labor has published a new webpage with guidance implementing the Continuation of Health Coverage premium assistance provisions of the American Rescue Plan (ARP), to provide full COBRA premium assistance to certain individuals who experienced a reduction in hours or involuntary termination of employment.


The IRS has announced that, under the American Rescue Plan Act of 2021 (ARP) ( P.L. 117-2), the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (excess APTC) is suspended for tax year (TY) 2020.


The IRS has extended the penalty relief provided in Notice 2020-22, I.R.B. 2020-17, 664, for failure to deposit employment taxes, to eligible employers that reduce their required deposits in anticipation of the following credits.


Continuing an ongoing effort to help those experiencing homelessness during the pandemic, the IRS has reminded people who do not have a permanent address or a bank account that may still qualify for Economic Impact Payments (EIP) and other tax benefits.


Death benefits that an S corporation provided to its sole shareholder under a split-dollar life insurance arrangement were employee compensation rather than a corporate distribution. In reaching this decision, the Tax Court firmly rejected the contrary conclusion reached by the Sixth Circuit Court of Appeals in J.J. Machacek, CA-6, 2018-2 U.S.T.C. 50,447.


The termination date for an empowerment zone designation under Code Sec. 1391 is generally deemed to extend until December 31, 2025. However, the state or local government that nominated the zone may decline the deemed extension.