RSS Feed Take a look at our recent blog posts and client newsletter articles. en-us Fri, 01 Oct 2021 09:00:00 -0500 Fri, 01 Oct 2021 09:00:00 -0500 Use These Strategies To Pass on Wealth to Heirs Low interest rates and a volatile stock market create additional opportunities for wealthy individuals to transfer money to heirs tax-free. Fri, 01 Oct 2021 09:00:00 -0500 Small Business: Tips for Ensuring Financial Success Learn how cost accounting helps you make smarter business decisions and lead you to financial success. Fri, 01 Oct 2021 09:00:00 -0500 Marginal vs. Effective Tax Rates Understanding marginal and effective tax rates is important for tax planning purposes, but many taxpayers don't fully understand the difference. Fri, 01 Oct 2021 09:00:00 -0500 If You Receive an IRS Letter or Notice The IRS sends millions of letters and notices to taxpayers for a variety of reasons. Many of these letters and notices can be dealt with without calling or visiting an IRS office. Fri, 01 Oct 2021 09:00:00 -0500 Defer Capital Gains Using Like-Kind Exchanges If real estate's your game, did you know that it's possible to defer capital gains by taking advantage of a Section 1031 exchange that allows you to swap investment property on a tax-deferred basis? Fri, 01 Oct 2021 09:00:00 -0500 What Is a Designated Roth Account? If you are a high-income earner who participates in a 401(k), 403(b), or governmental 457(b) retirement plan that has a designated Roth account, making contributions to that account could be a smart move. Wed, 01 Sep 2021 09:00:00 -0500 Verifying Your Identity When Calling the IRS If you need to contact the IRS, you will be asked to verify your identity. Here's what you need to know before you call. Wed, 01 Sep 2021 09:00:00 -0500 Tax Rules for Divorce and Alimony Payments Tax rules regarding divorce and separation can and do change - as they recently did under tax reform - and the last thing on anyone's mind during a divorce or separation is its effect on their tax situation. Wed, 01 Sep 2021 09:00:00 -0500 Tax Relief for Those Affected by Natural Disasters Tax relief may be available if you've been affected by a natural disaster this year, but only if you meet certain conditions. Wed, 01 Sep 2021 09:00:00 -0500 Six Things To Know Before You Start a Business Starting your own business is an exciting prospect, but there is more to it than simply writing a business plan. Wed, 01 Sep 2021 09:00:00 -0500 Payroll Taxes Were Deferred by President Trump The IRS issued guidance, (Notice 2020-65) , on August 28, 2020 which implemented President Trump Presidential Memorandum on the deferral of the withholding, deposit and payment of the employee share of social security tax for Q4 2020. We anticipate further guidance from the IRS on the matter of this Notice. Thu, 10 Sep 2020 09:00:00 -0500 The SEC Expands the Accredited Investor Definition The SEC adopted amendments to the accredited investor definition on August 26, 2020. With the amendments, investors will be able to qualify as accredited investors established on distinct measures of professional knowledge, experience, or certifications added to the existing tests for net worth or income. Additionally, the amendments enlarge the list of entities that could qualify as accredited investors, including by allowing any entity that meets an investments test to qualify. Fri, 04 Sep 2020 09:00:00 -0500 RMD Relief and Estate Planning Opportunities Rollover relief provided by the CARES Act has been extended to August 31, 2020. Fri, 28 Aug 2020 09:00:00 -0500 Home Office Deductions During COVID-19 COVID-19 has greatly impacted how we work. Under this new normal, a wave of people started working from home. You may ask if you are qualified for the Home Office Deduction and if you can get tax benefits under the Home Office Deduction. Who Qualifies? Fri, 28 Aug 2020 09:00:00 -0500 The DOL Opens 401(k)s to Private Equity, but Not Hedge Funds The U.S. Department of Labor, DOL, made it possible for 401(k) contributors to invest in private equity funds. While there are limitations and 401(k)s do not have the same access as defined benefit plans, this change opens new opportunities for investors. Wed, 26 Aug 2020 09:00:00 -0500 Amended U.S. Individual Income Tax Return can now be filed electronically The IRS has announced that taxpayers will now be able to e-file Form 1040-X, Amended U.S. Individual Income Tax Return. For now, only tax year 2019 Forms 1040 and 1040-SR returns can be amended electronically. Mon, 24 Aug 2020 09:00:00 -0500 Tax Benefits for Real Estate Professionals Qualifying as a real estate professional will bring more tax benefits because the taxpayer can deduct passive losses against all ordinary income. ItÃ??Ã?¢??s recommended that the taxpayer prepares time logs that detail the services rendered, where the services were performed, and the time spent in performing the services and keep other accurate records (credit card expenditures, invoices, and phone records) as they occurred Fri, 21 Aug 2020 09:00:00 -0500 Master LLC Offers Benefits and Savings The master LLC is the only entity required to file a tax return which would include information for all of the series LLCâ??s. Your accounting firm should guide you through the complicated documentation, tax treatment at the federal level may be different than at the state level. Tue, 18 Aug 2020 09:00:00 -0500 The IRS Restricts Carried Interest Preferential Tax Treatment The IRS recently published a notice of proposed rulemaking (REG-107213-18) as guidance under section 1061 often referred as the carried interest rules. Wed, 05 Aug 2020 09:00:00 -0500 Offset Future Tax Hikes Using Trust and Estate Strategies The COVID-19 pandemic may lead valuation of your business and investment portfolios to a depressed level. However, it may be an ideal window of opportunity to manage your trust and estate planning strategies to achieve greater tax savings and preserve more wealth for your loved ones and next generation. Thu, 30 Jul 2020 09:00:00 -0500 Taxpayers Beware of Coronavirus Tax Relief Scams The IRS announced that aggressive and evolving schemes related to coronavirus tax relief are being emphasized on the "Dirty Dozen" list of tax scams to avoid for 2020. Wed, 22 Jul 2020 09:00:00 -0500 Potential Tax Refunds If SCOTUS Rules Against ACA The Affordable Care Act (ACA) was signed into law on March 23, 2010. ACA taxes include the 0.9% Medicare Surtax on earned income and 3.8% Net Investment Income Taxes on unearned income. Fri, 17 Jul 2020 09:00:00 -0500 Required Minimum Distributions (RMDs) for 2020 are waived and Additional IRS Guidance Rules governing retirement plans and RMDs are complex. Please contact Akram if you would like to review your own situation prior to making a decision. Mon, 13 Jul 2020 09:00:00 -0500 Unintended Consequences Cause Kiddie Tax Rules Change Congress repealed the TCJA kiddie tax for 2020 and going forward. Circumstances will determine whether taxpayers should pay the TCJA or the pre-TCJA kiddie tax for 2019 and whether they should amend their 2018 tax returns to secure possible refunds. Wed, 08 Jul 2020 09:00:00 -0500 IRS Posts FAQs Regarding Balances Due and Payment Options As part of its People First Initiative, the IRS has posted, on its website, answers to frequently asked questions (FAQs) on tax balances due and payment options. Fri, 03 Jul 2020 09:00:00 -0500 IRS Won't Postpone July 15 Filing and Payment Deadline The IRS has announced that the tax filing and payment deadline of 7/15/20 won't be postponed. Wed, 01 Jul 2020 09:00:00 -0500 Safe Harbor For Transfer of Real Property that Include Personal Property The IRS has issued proposed regulations (REG-117589-18) under Section 1031 in response to the changes under the Tax Cuts and Jobs Act for like-kind exchanges. Thu, 25 Jun 2020 09:00:00 -0500 New PPP Loan Forgiveness Applications Are Released The Treasury and SBA have released two new versions of the PPP Loan Forgiveness Application. A fully revised version and a new EZ version Fri, 19 Jun 2020 09:00:00 -0500 Economic Impact Payments (EIPs) Don't Belong to Nursing Homes The IRS has alerted nursing homes and other care facilities that Economic Impact Payments (EIPs) generally belong to the recipients, not the organizations providing the care. Tue, 16 Jun 2020 09:00:00 -0500 IRS Issues Proposed Regulations on Like-kind Exchanges The Section 1031 like-kind exchange rules are limited to exchanges of real property completed after 12/31/17. Fri, 12 Jun 2020 09:00:00 -0500 Tax Relief for Qualified Opportunity Funds and Investors The IRS has provided tax relief toQualified Opportunity Funds (QOFs) and their investors in response to the ongoing COVID-19 pandemic through Notice 2020-39 and News Release IR 2020-114. Wed, 10 Jun 2020 09:00:00 -0500 Paycheck Protection Flexibility Act was Passed by U.S. Senate The U.S. Senate passed the Paycheck Protection Flexibility Act on June 3, 2020, tripling the time allotted for small businesses and other PPP loan recipients to spend the funds and still qualify for forgiveness of the loans. Thu, 04 Jun 2020 09:00:00 -0500 Pending PPP Legislation will Impact PPP loan forgiveness and related compliance Impact of Pending PPP Legislation will significantly increase the ability to have PPP loan fully forgiven and will modify PPP loan forgiveness compliance. Fri, 29 May 2020 09:00:00 -0500 AKRAM Best Practices for PPP Loan Forgiveness Keeping in View of SBA Latest Guidance The Small Business Administration (SBA) issued two interim final rules on May 22, 2020 addressing loan forgiveness, loan review procedures, and borrower and lender responsibilities. The goal of this notice is to provide borrowers a high degree of certainty about the SBA's application review so they may take immediate steps to maximize their loan forgiveness. Tue, 26 May 2020 09:00:00 -0500 COVID-19 Rapid Recovery Loans are Available for Eligible Small Businesses in NC A consortium of public, private, and nonprofit partners have launched a lending program to support entrepreneurs in NorthCarolina. Wed, 20 May 2020 09:00:00 -0500 SBA Releases PPP Loan Forgiveness Application on Friday, May 15, 2020. PPP loan Forgiveness Application form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities. Sun, 17 May 2020 09:00:00 -0500 PPP Loan Repayment Deadline Has Now Been Extended to May 18 Borrowers with concerns as to this â??necessity of the loan requestâ? certification had been given until May 14, 2020 to repay their PPP loan. That deadline has now been extended to May 18. Borrowers do not need to apply for this extension. Thu, 14 May 2020 09:00:00 -0500 Paycheck Protection Program (PPP) Certification Requirement U.S. Department of Treasury has released additional guidance on the Paycheck Protection Program (PPP) certification requirement. Wed, 13 May 2020 09:00:00 -0500 A Potential Impact on Registered Investment Adviser Regarding PPP loans PPP loans would not be considered a disclosable event as it applies to its registered representatives while replying to Question 14K on Form U4 if the loan is entirely or partially forgiven under the terms of the PPP. Any forgiveness beyond the original conditions of the loan would be considered a compromise with creditors. Mon, 11 May 2020 09:00:00 -0500 Download Excel Sheet to calculate PPP Forgiveness Amount Section 1102 of the CARES Act creates a new lending program under Section 7(a) of the Small Business Act to provide low-interest loans to certain small businesses (generally those with 500 or fewer employees) and self-employed individuals for the purpose of covering payroll and other eligible expenses for an eight-week period. Mon, 04 May 2020 09:00:00 -0500 PPP Borrowers Should Document the Need for Relief The SBA has announced that borrowers may be asked to validate their need for relief through the PPP. Fri, 01 May 2020 09:00:00 -0500 The SBA has Issued Additional PPP loan Guidance for Hedge Funds and Private Equity Firms The SBA has published further guidance on April 24, 2020 to eradicate the uncertainty regarding eligible businesses that qualify for PPP loans through Interim Final Rule as well as FAQs. The updated guidance addresses hedge, venture capital, and private equity firms. Wed, 29 Apr 2020 09:00:00 -0500 Estate Planning Amid COVID-19 Dealing with the current impact of the COVID-19 on your personal and business finances the last thing you may be concerned with is your estate plans. Mon, 27 Apr 2020 09:00:00 -0500 Department of Education Announces Student Loan Relief On March 20, 2020, the Department of Education announced terms for student loan relief for tens of millions of borrowers in response to COVID-19. Fri, 24 Apr 2020 09:00:00 -0500 PPP Loan Forgiveness Requirements and Best Practices PPP loans can be forgiven under the CARES Act and get tax-free treatment at federal level up to 100% of the amount borrowed if the business meets certain criteria Wed, 22 Apr 2020 09:00:00 -0500 SBA Guidance for Sole Proprietors, Independent Contractors, and Other Self-Employed Individuals The SBA has issued guidance to clarify how independent contractors, sole proprietors and other self-employed taxpayers can apply PPP. Wed, 15 Apr 2020 09:00:00 -0500 Cash is king and credit is critical during COVID-19 crisis Small- and medium-sized businesses are especially vulnerable in times like COVID-19. To prevent layoffs, companies of every size should reduce costs, restrict discretionary spending and defer capital spending wherever possible. Mon, 13 Apr 2020 09:00:00 -0500 IRS Extends Additional Tax Deadlines to Individuals, Trusts, Estates, and Corporations Due to COVID-19 pandemic, the Internal Revenue Service issued a notice yesterday that allows additional tax deadline delays for individuals and businesses. Fri, 10 Apr 2020 09:00:00 -0500 SBA releases additional guidance regarding PPP loans SBA posted an 18- Point FAQ that addresses confusion among small business owners, and lenders Wed, 08 Apr 2020 09:00:00 -0500 Differences Between EIBL, PPP Loan Programs and Answers to FAQs The PPP provides $349 billion in lending capacity under the SBA Section 7(a) loan program. It was created to help small businesses (fewer than 500 employees) with funds to pay up to eight weeks of payroll costs, including benefits. Mon, 06 Apr 2020 09:00:00 -0500 Last Minute Changes to Paycheck Protection Program (PPP) by SBA The U.S. Small Business Administration has released additional guidance on April 2, 2020 regarding the PPP, making following material modifications to the loan calculation. Fri, 03 Apr 2020 09:00:00 -0500 Economic Impact Payments Under the CARES Act You have probably heard that IRS will be making millions of "economic impact payments" (also called "recovery rebates") in the coming months to help people stay afloat during this time of economic uncertainty related to the COVID-19 crisis. Here is what you need to know about this program. Thu, 02 Apr 2020 09:00:00 -0500 Paycheck Protection Program for Small Businesses, Sole Proprietorships, and Independent Contractors Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap. Wed, 01 Apr 2020 09:00:00 -0500 SBA Extends Disaster Loan Programs under CARES Act The Small Business Administration (SBA) is extending its disaster loan programs to businesses and nonprofits including charitable organizations such as churches and private universities impacted by COVID-19. Businesses can qualify regardless of whether they have suffered property damage, and can use the funds to help meet working capital needs and cover operating expenses as they recover from the pandemic's impact. Mon, 30 Mar 2020 09:00:00 -0500 Huge Tax Savings for Businesses and Individuals Under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act Summary of key tax and loan provisions in the CARES Act Fri, 27 Mar 2020 09:00:00 -0500 IRS Provides Clarity on Extended Filing, Payment and Postponement IRS Provides Clarity on Extended Filing, Payment and Postponement Tue, 24 Mar 2020 09:00:00 -0500 Families First Coronavirus Response Act President Donald Trump signed into law the Families First Coronavirus Response Act (the Act) on March 18, 2020. It requires employers with fewer than 500 employees to provide additional family leave and paid sick leave during 2020 for employees affected by the coronavirus. To compensate employers for the paid leave, the law provides a credit for the employer portion (i.e., the 6.2 percent employer portion of the Social Security Tax) but not the employee portion. Wed, 18 Mar 2020 09:00:00 -0500 IRS Extending the Filing and Payment Deadline from April 15 to July 15 The IRS announced today that most individuals and businesses will be allowed to defer their 2019 tax filings and payments for up to 90 days, interest and penalty free, in light of the disruption and losses caused by the COVID-19 pandemic. This moves the due date for returns and payments from April 15, 2020 to July 15, 2020. Tue, 17 Mar 2020 09:00:00 -0500 March 16 deadline is approaching to make "mark-to-market" 475(f) election Section 475(f) of the Internal Revenue Code provides trader in securities can make mark-to-market election to recognize ordinary income/ (losses) instead of capital gains / (losses) due to increases or decreases in the value of securities. All realized gains/losses will be treated as ordinary income/ (losses) instead of capital gains/ (losses). Sun, 08 Mar 2020 10:00:00 -0500 IRS Announces New Focus on High-Income Non-Filers The IRS has announced last week that it will increase face-to-face visits with high-income taxpayers who haven't filed returns for 2018 or previous years. High-income non-filers are generally those who didn't file a tax return for a year in which they received income in excess of $100,000. The visits are primarily aimed at informing these individuals of their tax filing and paying obligations and bringing them into compliance. Mon, 24 Feb 2020 09:00:00 -0600 Do 1256 Contracts Offer Favorable Tax Treatment? 1256 contracts are U.S. futures, options on futures, and options on broad-based indices (SPX, NDX, DJX and VIX etc.). They should be marked-to-market if taxpayer hold them through the end of a tax year (12/31). 60% of gains are taxed at the long term capital gains rate and 40% are taxed as short term capital gains regardless of how long taxpayers have held the trade. Index options allow you to save more on taxes because 2019 long-term capital gains rates ranging from 0-20% versus short-term capital gains rates of 10-37%. Fri, 07 Feb 2020 09:00:00 -0600 Akram & Associates Featured in Hedgeweek "Boutique accountancy service provides high responsiveness" Tue, 28 Jan 2020 09:00:00 -0600 Revenue Recognition Changes Are Here The effective date of the standard (ASU 2014-09) for private companies with a calendar year-end is January 1, 2019 (annual reporting periods beginning after December 15, 2018, and interim reporting periods therein). That means these changes will appear in financial statements in 2019. Fri, 24 Jan 2020 09:00:00 -0600 Why Investor vs. Trader Status Is More Important Under TCJA The Tax Cuts and Jobs Act of 2017 (the TCJA) which contained the most sweeping changes made to the tax code. Many investors, including those invested in the stock market, hedge funds, private equity funds, or other investment vehicles have impacted by the tax law changes. Wed, 15 Jan 2020 09:00:00 -0600 IRS Delays Tax Basis Reporting for 2019 Partnership Returns The IRS recently issued a Notice that provides interim relief for 2019 Partnership Returns. Mon, 30 Dec 2019 09:00:00 -0600 SEC Proposes to Update Accredited Investor Definition to Increase Access to Investments The Securities and Exchange Commission announced today that they have voted to propose amendments to the definition of accredited investor, which would modernize the approach that determines who is eligible to participate in private capital markets Wed, 18 Dec 2019 09:00:00 -0600 Department of Labor Releases Finalized Overtime Exemption Rules If you own your own business, these changes may impact your budget for next year and beyond. It may require shifting hours around between multiple employees to keep them under 40 hours per week to prevent overtime, or changing/increasing duties of a few employees to make sure they pass the Duties Test and increase their pay according to the new standards. Thu, 31 Oct 2019 09:00:00 -0500 Finally IRS Has Released Additional Tax Guidance On October 9, 2019, the IRS released additional guidance regarding the tax treatment of cryptocurrency through Revenue Ruling 2019-24. Initial guidance was issued by the IRS in 2014 (Notice 2014-21 ). Tue, 15 Oct 2019 09:00:00 -0500 Akram & Associates PLLC Shortlisted For Two Awards at the 2019 HFM US Hedge Fund Services Awards Akram & Associates has been shortlisted for the HFM US Services Awards 2019. Fri, 19 Jul 2019 09:00:00 -0500 President and Congress Expand Taxpayer Rights With Taxpayer First Act of 2019 President Trump has signed the Taxpayer First Act of 2019 (the Act) on July 1, 2019, which alters the management and oversight of the IRS with the aim of improving customer service and the independent appeals process. The ability for taxpayers especially individuals and small businesses to challenge the IRS position without having to undertake the cost and expenses of court is of great importance. Tue, 02 Jul 2019 09:00:00 -0500 Safeguarding Your Private Information, Family Limited Partnerships, and Intra-Family Loans Several topics to share with you regarding safeguarding customer records and information, Family Limited Partnerships and Intra-Family Loans how Akram & Associates can help you tax-savings topics. Tue, 11 Jun 2019 09:00:00 -0500 How to Reduce Your Tax Burden by Investing in Qualified Opportunity Funds The TCJA offers tax-saving incentives to investment partnerships and corporations willing to invest in economically distressed communities? Mon, 25 Mar 2019 09:00:00 -0500 The Holidays Are a Time for Giving Another Year of Gratitude & Giving to Our Community Mon, 24 Dec 2018 09:00:00 -0600 There's Still Time for Tax-Saving Adjustments 2018 Is Almost Over, but It's Not Too Late to Strategize. It has been a busy year and we have seen the largest overhaul to the tax code in the last 30 years. Despite all of the changes occurring, our end goal remains the same: To help you reduce your tax liability. Mon, 10 Dec 2018 09:00:00 -0600 TCJA: New QBI Deduction, Impacts to NOL & Cryptocurrencies The Tax Cuts and Jobs Act (TCJA) resulted in a myriad of changes to the Internal Revenue Code, including Sec. 199(A), better known as the Qualified Business Income (QBI) deduction. This month we address how the QBI deduction will impact those who have made the 475(f) Mark-to-Market election. We also address net operating loss (NOL) carryback for traders, and excess business loss limitation under the TCJA in addition to IRS guidance on Cryptocurrencies. Wed, 07 Nov 2018 09:00:00 -0600 Changes to Meals and Entertainment under the TCJA Five Criteria for These Deductions Mon, 15 Oct 2018 09:00:00 -0500 Tax Relief for Those Affected by Hurricane Florence In the aftermath of Hurricane Florence, Governor Roy Cooper and the North Carolina Department of Revenue (NCDOR), in conjunction with the Internal Revenue Service (IRS), have announced tax relief for those who have been affected. Thu, 20 Sep 2018 09:00:00 -0500 Pass-through vs. C Corporation Under the Tax Cuts and Jobs Act Is restructuring to C Corp the right move for your business? Under the Tax Cuts and Jobs Act (TCJA), C Corps now pay at the revised 21% tax rate. Pass-through entity owners can pay up to 37% effective tax rate on income, however, if they qualify for the new 20% pass-through deduction (Qualified Business Income Sec. 199 A), their highest effective rate will be reduced to 29.6%. Tue, 07 Aug 2018 09:00:00 -0500 Supreme Court Ruling in South Dakota v. Wayfair, Inc. This decision will impact other state taxes, such as corporate income taxes, which could apply to the income of an entity conducting significant business activities in a state without having a physical presence there. Thu, 28 Jun 2018 09:00:00 -0500 Important Reminders for June An e-File Deadline is Approaching Fast; Partnership Operating Amendments Required for 2018 Sat, 23 Jun 2018 09:00:00 -0500 Impact of EU-GDPR Regulations on Businesses Any organization that collects or processes personal data of European Union (EU) residents will need to comply with the new General Data Protection Regulation (Regulation (EU) 2016/1679) ("GDPR"), which goes into effect on May 25, 2018. Tue, 22 May 2018 09:00:00 -0500 The New Consolidated Appropriations Act, 2018 More new regulations signed into law Tue, 10 Apr 2018 09:00:00 -0500 IRS Closes Carried Interest Loophole IRS Continues to Issue Guidance on the TCJA Mon, 12 Mar 2018 09:00:00 -0500 Carried Interest Loophole: Possibilities & Pitfalls The Tax Cuts and Jobs Act (TCJA) continue to benefit individuals and businesses who have access to savvy accountants and tax professionals. But how creative should accountants and tax professionals be with regulations this new? Wed, 28 Feb 2018 09:00:00 -0600 Highlights of the TCJA for Businesses The newly approved Tax Cuts and Jobs Act (TCJA) provides numerous tax breaks for businesses. However, there are several tax cuts that have been scrapped or reduced. Read on to see how the TCJA might affect your business. Wed, 17 Jan 2018 09:00:00 -0600 The Tax Cuts and Jobs Act of 2017 Congress is enacting the biggest tax reform law in thirty years. Act now to save. Fri, 22 Dec 2017 09:00:00 -0600 Year-End Tax Planning Strategies For 2017 planning, it is important to understand the current tax law while keeping an eye on anticipated changes to come. These tips provide a good first step to dealing with your 2017 taxes, as good planning can lead to tax savings. Akram & Associates is here to help you avoid any unpleasant surprises come April, which is always a good thing. Tue, 12 Dec 2017 09:00:00 -0600 FATCA Registration Renewal, Cyber-security Alert, & Controversial DOL Fiduciary Rule Foreign investment funds (financial institutions for FATCA purposes) may be removed from the FFI list and lose their Global Intermediary Identification Number (GIIN) unless action has taken. The Internal Revenue Service (IRS) expects all foreign funds to visit the IRS website by July 31, 2017, to determine whether such renewal is required. Fri, 21 Jul 2017 09:00:00 -0500 PCAOB Adopts New Standard Expanding Auditors' Reports The PCAOB approved a new audit standard that will introduce changes to the content of the auditors' report on financial statements. Thu, 01 Jun 2017 09:00:00 -0500 Tax Planning Tips for Tax Year 2016 Tax planning strategies can defer taxpayer current year's tax liability to a future year. This can be accomplished by timing when certain expenses are paid, or controlling when income is recognized. Tax planning allows taxpayers to take advantage of tax rate differentials between years and help minimize, or even prevent the impact of the alternative minimum tax (AMT) and preserve the tax benefit of many of your deductions. Fri, 02 Dec 2016 09:00:00 -0600 Federal Court Issued Nationwide Injunction Against Overtime Rule On Tuesday, November 22, 2016, a federal judge in Texas issued a nationwide junction halting the changes to the Fair Labor Standards Act Wed, 23 Nov 2016 09:00:00 -0600 2017 FINRA Renewal Deadline has Approached Once your renewal statement has been filed, your annual amendment to Form ADV will be due within 90 days after your fiscal year end.   Sun, 23 Oct 2016 09:00:00 -0500 Will IRS Changes in Tax Return Due Dates Help Tax Preparers? There have been several changes in due dates for some federal tax returns, which will be effective for the 2017 filing season or the 2016 tax year for calendar year-end filers. These modifications relate mostly to flow-through entities, including S corporations and partnerships that provide Schedule K-1s (partner?s / shareholder?s share of income, deductions, credits, etc.), containing investment information of partners/shareholders. Fri, 30 Sep 2016 09:00:00 -0500 Should U.S. Admin Firms be subject to oversight? On June 16, 2016, a renowned fund administrator settled charges with the SEC regarding its failure of gatekeeping responsibility to identify and correct fraudulent financial accounting/reporting practices committed by its two investment adviser clients. The Administrator agreed to pay disgorgement of fees, penalties and fine without admitting or denying the allegations. Aforementioned administrator has been ignoring red flags of fraudulent accounting which allowed the investment advisory firm's scheme to continue and expand until the SEC involved. Thu, 25 Aug 2016 09:00:00 -0500 SEC Revises the Qualified Client threshold to $2.1 Million On June 14, 2016, the SEC issued an order approving an inflation adjustment regarding ?net worth? threshold to the definition of a "Qualified Client". The net worth threshold has been increased from $2 Million to $2.1 Million to adjust for inflation. Tue, 02 Aug 2016 09:00:00 -0500 PFIC Annual Statement & Qualified Electing Fund Passive Foreign Investment Company (PFIC). Any non-U.S. corporation with 50 percent or more of its assets being passive and/or more than 75 percent of its income being passive. Passive income is interest, dividends, capital gains, etc. Passive assets are assets that generate passive income. Generally, all non-U.S. investment funds that are formed as corporations will be PFICs. Fri, 01 Jul 2016 09:00:00 -0500 Foreign Bank & Financial Accounts Report (FBAR) The FBAR is not part of the Foreign Account Tax Compliance Act of 2010. One of the many implications of FATCA is that it requires U.S. individual taxpayers to report information about certain foreign financial accounts and offshore assets on Form 8938, and attach it to their income tax return, if the total asset value exceeds a specified reporting amount. Mon, 20 Jun 2016 09:00:00 -0500 New Partnership Tax Audit Rules Enacted Earlier enacted Budget Act of 2015 Act (the ?Act?) repealed the Tax Equity and Fiscal Responsibility Act (TEFRA) audit rules which were originally enacted in the year 1982 and the reporting and audit procedures for Electing Large Partnerships (ELPs) in 1998. The Act adopts new audit rules and procedures effective for partnership taxable years beginning after December 31, 2017. We have mentioned below a set of salient features of new audit rules & procedures: Tue, 31 May 2016 09:00:00 -0500 The Department of Labor ("DOL) has published final fiduciary rule DOL has published the final fiduciary rule which expands the scope to certain broker-dealers and investment advisers Sun, 01 May 2016 09:00:00 -0500 What is ERISA? fund manager should carefully consider whether or not to accept capital contributions by benefit plan investors. If such capital contributions are accepted, hedge fund managers should take steps to ensure that the hedge fund will abide by the 25% limit. Thu, 14 Apr 2016 09:00:00 -0500 Most Expensive Tax Errors Make By Traders & Tax Preparer Traders are better off working with CPA Firms having experience with tax laws dealing with hedge funds and traders. Many of the nuances involve thousands of dollars of tax breaks and pitfalls that can trigger Internal Revenue Service (?IRS?) notices, exams and audits. Here?s a list of most expensive tax errors make by traders and their tax preparers Sun, 10 Apr 2016 09:00:00 -0500 Liquidity Rules Proposed by SEC For Mutual Funds/ETFs Open-end mutual funds and exchange-traded funds (ETFs) may soon be subject to proposed liquidity rules by SEC to enhance effective liquidity risk management Thu, 03 Mar 2016 09:00:00 -0600 US Broker Violated AML /KYC Procedures The SEC has settled charges with a brokerage firm today, claiming that it violated anti-money laundering ("AML") rules by allowing foreign entities to buy and sell securities without verifying the identities of the non-U.S. citizens who beneficially owned them Thu, 04 Feb 2016 09:00:00 -0600 Expense Allocations are Front and Center For SEC The SEC continues to pay its attention on certain business practices and operational activities of the Private Equity Industry, private equity fund Advisers must acknowledge the SEC's original position that the legal, compliance and operational expenses of the Adviser should not be allocated to its fund clients in the absence of clear and explicit disclosure language in the Fund legal documents (PPM & LPA). Sat, 16 Jan 2016 09:00:00 -0600 FIRPTA & REIT Tax Law Changes FIRPTA and REIT Amended Provisions in the New Tax Law Open Door to Increased Foreign Investment in U.S. Real Property Interests Tue, 05 Jan 2016 09:00:00 -0600 Cayman Islands Self-certification forms required on or After January 1, 2016 The Cayman Islands has implemented Common Reporting Standard ("CRS"), which will require investment funds to collect tax identification information from all new investors who become investors on or after Jan. 1, 2016. Tue, 29 Dec 2015 09:00:00 -0600 Impact of State Tax Issues in the Asset Management Industry We want to update our friends and clients in the alternative investment industry regarding the recent trends in state and local taxation, including the states? aggressive pursuit of additional tax revenues, and the risk of state tax traps that investment managers may unknowingly be facing. Mon, 14 Dec 2015 09:00:00 -0600 Alert- SEC Fined RIA For Not Having Cyber Security Policies to Avoid Unauthorized Hacking SEC Fined RIA For Not Having Cyber Security Policies to Avoid Unauthorized Hacking Mon, 30 Nov 2015 09:00:00 -0600 Favoritism & Improper Disclosure by PE Firms Favoritism means favoring certain investors over the others in the Fund without proper disclosure. Sat, 07 Nov 2015 09:00:00 -0600 SEC Fined RIA For Not Having Cyber Security Policies to Avoid Unauthorized Hacking On September 22, 2015, the SEC announced that it agreed to settle charges against a registered investment adviser (the "RIA") that failed to adopt cyber security procedures. Sat, 24 Oct 2015 09:00:00 -0500 Impact of State Tax Issues in the Asset Management Industry We like to update our friends and clients in the alternative investment industry regarding the recent trends in state and local taxation, including the states? aggressive pursuit of additional tax revenues, and the risk of state tax traps that investment managers may unknowingly be facing. Wed, 16 Sep 2015 09:00:00 -0500 AML & SAR Filing Requirements for RIAs by FinCEN FinCEN published proposed rulemaking that would impose AML requirements on SEC-registered IAs. Tue, 01 Sep 2015 09:00:00 -0500 IRS Audits Expected For Offshore Funds IRS determined that both activities (US lending and stock distribution, underwriting ) were not protected from US federal income tax by the well-known safe harbor rules "trading in stocks or securities" on which most offshore funds and non-US persons mainly rely to avoid realizing effectively connected trade or business income (?ECI?). These conclusions require the non-US partners in such a fund to US Income taxes on their ECI and US Income tax return filing requirements. Tue, 21 Jul 2015 09:00:00 -0500 How to Start a Hedge Fund A major obstacle in launching a hedge fund is the selection of best service providers from Law Firm, Fund Administrator, Prime Broker, and CPA Firm involved in the fund formation and operating processes of managing a hedge fund. Mon, 22 Jun 2015 09:00:00 -0500 June 30 deadlines (BE-10 Survey & Form-114 FBAR) BE-10 Benchmark Survey and FinCEN Form-114 formerly F TD F90-22.1 are two June 30 deadlines for investors having offshore investments Thu, 11 Jun 2015 09:00:00 -0500 Limited Use of Social Media Advertising & SEC SEC Permits Limited Use of Social Media for Investment Advisor Advertising Thu, 14 May 2015 09:00:00 -0500 7 Facts About Capital Gains and Losses Please read 7 facts on capital gains and losses. Thu, 23 Apr 2015 09:00:00 -0500 Unreported Offshore Assets & IRS's New Program IRS's New Program(Streamlined Filing Procedures) For Taxpayers Having Unreported Offshore Assets Thu, 12 Mar 2015 09:00:00 -0500 Investment Managers Can Defer Compensation A recently released IRS Revenue Ruling 2014-18 provides alternative investment managers with greater flexibility to structure multi-year deferred compensation arrangements with their offshore funds in a more tax-efficient manner if properly structured, stock options and stock appreciation rights (SARs) are not considered nonqualified deferred compensation under IRC Section 457 A. Thu, 12 Feb 2015 09:00:00 -0600 Need Professional Help To Pay Your Tax Debt? If you get a tax bill from the IRS, don?t ignore it. The longer you wait the more interest and penalties you will have to pay. After tax season, the IRS typically sends out millions of notices. We can definitely assist you in negotiating with IRS regarding your tax debt and avoid extra charges including interest and penalties. Thu, 01 Jan 2015 09:00:00 -0600 Rule 105-SEC Penalizes HF & PE Firms Rule 105-SEC Penalizes Hedge Fund and Private Equity Firms Thu, 09 Oct 2014 09:00:00 -0500 Eased Marketing Restrictions For Capital Raising CFTC announced its plan to ease marketing restrictions on privately-offered funds via letter no. 14-116 dated Sep 9, 2014 . Wed, 08 Oct 2014 09:00:00 -0500 Amending PFIC Tax Reporting Rules Tax Alert-PFIC Reporting Rules Do Not Apply To Certain Marked-To-Market Stock Thu, 11 Sep 2014 09:00:00 -0500 Practitioners Should Remove Cir 230 Disclaimers On June 9, 2014, the IRS finalized circular 230 regulations, which replaced the covered opinion rules with one standard for written advice under Circular 230 section 10.37 Tue, 26 Aug 2014 09:00:00 -0500 7 Factors To Consider Before Launching a HF Seven Tips for Launching a Successful Hedge Fund Wed, 02 Jul 2014 09:00:00 -0500 Tax Tips about Reporting Foreign Income Don't overlook credits ad decuctions regarding foreign income Thu, 13 Feb 2014 09:00:00 -0600 Tax Tips on Making IRA Contributions If you made IRA contributions or you?re thinking of making them, you may have questions about IRAs and your taxes. Here are some important tips about saving for retirement using an IRA. Thu, 26 Dec 2013 09:00:00 -0600