New survey reveals top audit committee concerns

Audit committees act as gatekeepers over the accounting and financial reporting processes, including the effectiveness of the company’s control environment. However, as the regulatory landscape becomes increasingly complex and organizations face evolving risks, the scope of an audit committee’s responsibilities may extend beyond traditional financial reporting. Top-of-mind list In March 2024, a survey entitled “Audit […]

Revocation of tax-exempt status?

The IRS regularly revokes the tax-exempt status of nonprofit organizations that violate its rules. Such revocations often carry dire consequences because itemizing donors may no longer claim tax deductions for their gifts. This can, in turn, dramatically reduce donations. To help protect your nonprofit from losing its exempt status, follow all applicable IRS rules. For […]

How Stiff Are Your State’s Distilled Spirits Taxes?

How Stiff Are Your State’s Distilled Spirits Taxes? https://bit.ly/4e5IULf

Encourage your heirs with an incentive trust

In the courts; US Tax Court finds donor not liable for gift tax

In a new U.S. Tax Court decision, a donor’s estate wasn’t liable for gift tax after the termination of a qualified terminable interest property (QTIP) trust and distribution of its assets. The QTIP owner’s widow funded it with closely held corporation shares. When she later terminated the trust, she received the assets and transferred stock […]

Is my Scholarship tax-free?

If a student receives a scholarship or grant, all or part of the amounts received may be tax-free. Scholarships and grants are tax-free if certain conditions are met. In two new Private Letter Rulings, the IRS approved two private foundations’ procedures for awarding scholarships and grants. The awards were made on a nondiscriminatory basis and […]

Are taxes too high?

Are taxes too high? In a survey taken earlier this year, roughly two-thirds of people said “yes” when asked about federal, state sales and local property taxes. The survey was taken by the University of Chicago Harris School of Public Policy and the AP-NORC Center for Public Affairs Research. Only about one-quarter of those polled […]

Beneficial Owner Reporting

Under the Corporate Transparency Act (CTA), certain companies are required to provide information related to their “beneficial owners” (the individuals who ultimately own or control the company) to the Financial Crimes Enforcement Network. Failure to do so may result in civil or criminal penalties, or both. In late March, a U.S. District Court ruled that […]

Growing your business with a new partner: Here are some tax considerations

There are several financial and legal implications when adding a new partner to a partnership. Here’s an example to illustrate: You and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to the business. Assume that your basis in […]

An update on the American Families and Workers Act

The Tax Relief for American Families and Workers Act has been stalled in the Senate since January. (It passed the House of Representatives by a vote of 357-70.) In recent remarks at a Tax Council Policy Institute meeting, Senator Ron Wyden (D-OR), Chair of the Senate Finance Committee, said Senate Republicans are inclined to wait […]