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The Corporate Transparency Act: – Beneficial Ownership Information of “Reporting Companies”

What is the Corporate Transparency Act (CTA)   The CTA was enacted in 2021 to enhance the transparency in entity structures and ownership in an effort to combat money laundering, tax fraud, and other illegal activities. One of its key elements, beginning in 2024, will require all “reporting companies” to disclose certain beneficial ownership information …

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ARE STAKING REWARDS TAXABLE? MAYBE…

Earlier this summer (July 31, 2023), the Internal Revenue Service (IRS) released Rev. Rul. 2023-14. According to the ruling, cryptocurrency staking rewards are included in a taxpayer’s gross income at the time the taxpayer gains “dominion and control” over the tokens, not when the award is subsequently disposed.     The ruling presents an example …

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U.S. TAX COURT RULING: IRS LACKS AUTHORITY TO ASSESS PENALTIES UNDER SECTION 6038(b)

On April 3, 2023, the United States Tax Court (“Tax Court”) issued a decision in Farhy v. Commissioner, 160 T.C. No. 6 (April 3, 2023) in which it determined that the Internal Revenue Service (“IRS”) does not have the statutory authority to assess penalties imposed by Section 6038(b) of the Internal Revenue Code (the “Code”). …

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FGMK Tax Alert – Secure Act 2.0 Impact to Qualified Retirement and 529 Plans

As part of the $1.7 trillion spending bill Congress passed and President Biden signed into law at year-end, a series of new laws—known collectively as Secure Act 2.0—has provided favorable changes to both qualified retirement plans and Section 529 plans.  This FGMK Tax Alert provides a summary of these key changes.     Changes to …

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Does Your Foreign Corporation Need a U.S. Tax Return?

Foreign corporations need to evaluate their U.S. activity to ensure they stay in compliance with the Internal Revenue Service’s filing obligations. Several factors, including the existence of a trade or business and nature of and extent of economic activities can impact or otherwise create a filing requirement. This FGMK article highlights key considerations for foreign …

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Wire and ACH Fraud: 5 Steps to Reduce Your Chances of Becoming the Next Victim

Wire and ACH fraud is on the rise. It is possible you and your company have already experienced it, or you know someone that it happened to, or you have read stories about it. The question to be asked is: “Why wait for this to happen to you or your company (possibly again) to take …

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FGMK Tax Alert – The Inflation Reduction Act of 2022

On Sunday, August 7, 2022, the United States Senate passed the Inflation Reduction Act of 2022 (the “Act”) in a 51 – 50 vote with Vice President Harris providing the tie-breaking vote.  The House of Representatives subsequently passed the legislation on Friday, August 12, 2022 in a 220-207 vote, with no Republicans joining Democrats in …

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FGMK Tax Alert – Summary of Key Tax Provisions in President’s FY2023 Budget

On March 28, 2022, President Biden released his FY2023 budget (the “FY2023 Budget”), and the U.S. Treasury released the so-called “Green Book,” which provides details related to the revenue provisions in the FY2023 Budget. This FGMK Tax Alert provides a summary of the salient tax provisions offered under this proposal.   Increased Tax Rates, New …

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U.S. International Tax 2022 Health Check

While significant current developments in international tax are evolving (potential U.S. tax reform, adoption of OECD’s Pillar One and Two, recently issued foreign tax credit regulations, etc.) companies and individuals with multi-national operations or interests should assess how they are positioned globally from a tax efficiency standpoint for what might be coming in potential tax …

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Tax Treatment of Carried Interests: Comparing Carried Interests to Capital Interests, 83(b) Elections, and Issues with the New Three-year Rule

Part I: Capital Interests vs. Carried Interests   What is a carried interest?   A carried interest (also referred to as a profits interest) is a typical piece of the compensation package for managers of private equity funds.[1] Many private equity funds purchase businesses, operate them for a short period, and then sell them for …