11/20/2013 - Year End Planning Tip: 3.8% Surtax on Investment Income
As the end of 2013 draws near, taxpayers should consider the effect of the new 3.8% surtax on investment income.
09/16/2013 - Reminder to File Gift (and GST) Tax Returns by October 15, 2013
If you made gifts in calendar year 2012 that should be reported on a federal gift tax return (Form 709) and you extended the deadline to file your gift tax return, the deadline to submit a timely-filed return is October 15, 2013.
04/09/2013 - Transfers in 2012 and Future Years
This alert outlines the gift tax return requirement for 2012 transactions and the use of "defined value" gifts and sales.
01/09/2013 - The American Taxpayer Relief Act of 2012: Congress Finally Acts - Good News/Bad News for Estate Planning
After all of the sand had run out of the hourglass, Congress finally passed (and the President signed) a compromise tax bill to avoid very substantial income tax increases on taxpayers with income under $400,000 ($450,000 for joint filers).
02/16/2012 - Effective Ways to Use Gift Tax Exemption
Most of our clients are aware that Congress dramatically increased the individual gift tax exemption from $1,000,000 to $5,120,000 in 2012, and that the exemption is scheduled to revert to $1,000,000 on January 1, 2013 unless Congress takes some action. If this reduction in the gift tax exemption occurs, clients may lose an opportunity to remove a substantial amount of assets from their estates, and, with it, the opportunity to reduce estate taxes payable by their children.
12/19/2011 - ’Tis the Season for LP/LLC Year-End Planning
This alert includes a list of year-end administrative issues for Texas limited partnerships and limited liability companies (“LP/LLC”).
12/15/2011 - Tax Planning for a Happy Holiday Season
As the end of the year approaches, it is a good time to consider actions that may lower your tax bill this year and possibly next year.
11/15/2011 - Rumor Has It: Speculation on Changes to Federal Gift Tax Exemptions
The Congressional Super Committee (the Joint Select Committee on Deficit Reduction) continues to meet in Washington, D.C., with the goal of reducing the country’s deficit through program cuts and revenue increases. There have been several unsubstantiated rumors regarding proposed changes to the estate and gift tax laws.
06/08/2011 - Increased Gift Exemption - New Opportunities?
This alert outlines opportunities for maximizing the gift tax exemption in 2011 and 2012.
06/02/2011 - IRS Focusing on Unrelated Business Taxable Income
The IRS has apparently increased its focus on unrelated business taxable income (“UBTI”) of tax-exempt organizations. At a conference last month, IRS officials indicated they are looking closely at UBTI in all contexts with respect to exempt organizations, including conducting a long-term study on college and university treatment of UBTI.
03/07/2011 - IRS Initiatives on the Horizon for Tax-Exempt Organizations in 2011
The Exempt Organizations Office (“EO”) of the IRS recently released a list of 2011 initiatives, including international activities and compliance. This alert outlines some of these items.
02/08/2011 - Estate and Gift Taxes in 2011 - New Planning Opportunities
The last minute compromise which averted the expiration of the Bush tax cuts included a two-year modification of the estate, gift, and generation-skipping taxes.
01/24/2011 - Increased Filing Threshold for Form 990-N
In prior years, certain tax-exempt organizations whose gross receipts did not normally exceed $25,000 were exempt from filing the standard Form 990. Now, this threshold is $50,000, and for tax years beginning on or after January 1, 2010, such organizations must submit a Form 990-N “e-Postcard” annually (rather than the Form 990-EZ or Form 990 required of larger organizations).
01/19/2011 - Long-Term Residents - Taxed for Going Home
Marriage has become as globalized as business today. When one spouse is a non-citizen, moving the couple's residence outside the U.S. or losing permanent resident status can have significant income tax and gift tax consequences.
12/13/2010 - FLASH - December 9 Senate Estate Tax Proposal, Part II
If the generation-skipping transfer tax (“GST tax”) provisions of the proposed Tax Bill remain unchanged, the most significant year-end tax planning opportunity is the ability to make gifts to trusts for grandchildren and great-grandchildren without imposition of the GST tax and without utilizing any of your GST tax exemption.
12/10/2010 - FLASH - December 9 Senate Estate Tax Proposal
The Senate introduced an amendment to the House Tax Bill on December 9, 2010 that makes significant changes in estate, gift, and generation-skipping tax rules for this year (2010), and for the next two years. This alert outlines the most significant estate, gift, and generation-skipping tax features of the Tax Bill.
12/09/2010 - Year-End Limited Partnership/Limited Liability Company Administrative Considerations
This alert lists a number of administrative and compliance issues for Texas limited partnerships or limited liability companies (“LP/LLC”) that you might consider as December 31 approaches.
12/08/2010 - Do You Know Which 990 to File for 2010…And Will You Have the Necessary Information?
Those who have filed – or at least reviewed – the “new” Form 990 since it was revised in 2008 are well aware of its comprehensive nature.
11/29/2010 - 2010 Tax Planning - to Gift or not to Gift
As 2010 is nearing an end, there are several gift options to consider. Lower interest rates, depressed values and lower gift tax risk make gifts or sales to younger generations more attractive in 2010.
10/06/2010 - Traps for the Unwary - The Risks of Fundraising
Charitable fundraising activities in multiple states - and even in multiple cities, municipalities, and counties within Texas - can potentially create a compliance risk. Although not regulated by the IRS, many state and/or local authorities have adopted charitable solicitation registration and reporting requirements. In addition, the revised Form 990 requires a disclosure regarding compliance with state rules.
08/25/2010 - Traps for the Unwary - Tips to Ensure Enforceability of Charitable Pledges
When a donor attempts to cancel or withdraw from a charitable pledge, many organizations choose not to enforce the pledge in the spirit of donor and public relations. However, it is important to understand that charitable pledges can be legally enforceable obligations. This alert provides a summary of Texas law regarding enforceability of pledges.
07/29/2010 - One-Time Filing Relief for Failure to File Forms 990
Small organizations at risk of losing their tax-exempt status for failure to file annual returns for 2007-2009 (including the Form 990-N or “e-Postcard,” required for organizations whose annual gross receipts are normally $25,000 or less) can maintain their tax-exempt status by filing returns by October 15, 2010
05/03/2010 - Traps for the Unwary - Loans to Directors and Officers
With increased scrutiny and regulation by Congress and the Internal Revenue Service, it is becoming more important for non-profits to focus on compliance with both federal and state rules.
04/01/2010 - Elimination of Advance Ruling Process for Public Charities
Although the regulations eliminating the advance ruling process have been in place since the end of 2008, we continue to receive questions from public charity clients regarding the need to prove public support after an organization’s first five tax years.
03/18/2010 - Warning: Trusts in Texas May Be Subject To Texas Franchise Tax!
The Texas franchise tax (also known as the “margin tax”) is so expansive that it can apply to private trusts administered in Texas.
03/09/2010 - Texas Business Organizations Code Now Applicable to Non-Profit Corporations
The Texas Business Organizations Code (the “TBOC”) – enacted in 2003 and generally effective January 1, 2006 – combined the laws found in a number of Texas statutes (including the Texas Non-Profit Corporation Act and the Texas Unincorporated Non-Profit Association Act), standardized filing requirements and fees for Texas entities, made other substantive changes, and implemented new terminology.
02/17/2010 - Issues on the IRS Horizon for Tax-Exempt Organizations in 2010
As the tax-exempt environment continues to become increasingly complex and focused on compliance and governance, it becomes more important to be aware of issues significant to the IRS. We have highlighted below a few of the issues on the IRS’ radar for 2010.