This Index lists all of our publications. Click on a subject of interest to see the array of informative articles we have for each subject

Tax
Expansion of Section 179d for Energy Efficient Commercial Buildings

The energy efficient commercial buildings deduction under Section 179D has been in effect since January 1, 2006, and was made permanent as part of the Consolidated Appropriations Act of 2021. Section 179D was originally designed to incentivize owners of commercial

New Reporting Requirements Under the Corporate Transparency Act

The Corporate Transparency Act (“CTA”) has gone into effect as of January 1, 2024, requiring timely submission of specified information on new or existing companies and their beneficial owners, regardless of industry.  These new reporting obligations will impact millions of

2023 – 4th Quarter Estimated Tax Reminder

This is a reminder that your 4th quarter estimated taxes are due on or before January 15, 2024. Please note that this is a reminder being sent to all clients, so if it does not apply to you because you

IRS Expands Electronic Filing Requirements For Tax Returns

On February 23, 2023, the IRS significantly expanded electronic filing requirements for tax returns. Employers filing 10 or more returns of any type on or after January 1, 2024, must now submit returns electronically instead of via paper filings. The

2022 Filing and Payment Deadlines Extended to November 16

On October 16, 2023, the IRS and FTB announced that the tax year 2022 federal and California income tax filing and payment due date will be further postponed until November 16, 2023. This postponement is again for victims of the

IRS to Stop Processing Employee Retention Tax Credit Claims

The IRS issued a notice last Thursday ordering an immediate stop to processing all new claims for the Employee Retention Tax Credit (ERTC). This comes amid a surge of questionable claims and concerns about aggressive marketing to ineligible taxpayers. Here

2023 Inflation Adjustments for Estate and Gift Tax

The IRS recently announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions as detailed in Revenue Procedure 2022-38. Included in the list of tax changes are increases for estate and gift tax exemptions, providing additional

2023 Paychex Tax Bulletin

This tax bulletin provides you with tax information for 2023 and reminders about Forms W-4, W-5, and I-9. We have included a separate bulletin with information for your employees. Please post the employee bulletin in an area where your employees

California Passes Expansion of Passthrough Entity Tax And Other Economic Relief

On February 7, 2022, the California Legislature passed Senate Bill 113 (“SB 113”) proposing an expansion to the California Passthrough Entity Elective Tax (“CA PTET”) as previously enacted under Assembly Bill 150 (“AB 150”), as well as additional relief unrelated

Real Estate Market Changes for 2022

Changes Are Underway The pandemic ignited a home-buying frenzy as the decade-long housing shortage converged with historically-low mortgage rates, shifting workplace dynamics and new opportunities for young buyers to pursue their first homes. As enter the start of 2022, here’s

Advanced Wealth Transfer Planning

Keep Your Money In The Right Hands A well-crafted wealth transfer and estate plan can help you implement your vision for the future and create benefits for the people and causes that matter most to you. There are three places

New Requirements for R&D Credits

The IRS recently shared it receives thousands of R&D claims for credits in the hundreds of millions of dollars from corporations, businesses, and individual taxpayers. Claims for the research credit under Section 41 of the Tax Code are examined in

Important Updates To The California Pass-Through Entity Tax

The Franchise Tax Board (“FTB”) has recently provided additional information and clarification on several important issues which we have summarized below on top of our last guidance dated 12/07/2021: Underpayment or overpayment of CA PTET – The full 9.3% must

2021 4th Quarter Estimated Tax Reminder

This is a reminder that your 4th quarter estimated taxes are due on or before January 18, 2022. Please note that this is a general reminder, and if it does not apply to you because you are not required to

Limitations on The California Pass-Through Entity Tax

Limitations on The California Pass-Through Entity Tax The recently enacted Assembly Bill 150, which established the California Pass-Through Entity Tax Credit (“CA PTET”), currently includes some limitations on the use of the credit that greatly reduces the possible benefits of

2021-2022 Year-end Tax Planning Guide

Dear Clients and Friends, Although you can’t avoid taxes, you can take steps to minimize them. This requires proactive tax planning — estimating your tax liability, looking for ways to reduce it and taking timely action. To help you identify

Cost Segregation Study and Tax Deductions

A cost segregation study is one way to boost cash flow If your business is planning to buy, build, or substantially improve real property, a cost segregation study can help you accelerate depreciation deductions, reduce your taxes, and boost your

Household Workers and Taxes

Are you liable for “nanny taxes”? If you employ household workers — which may include nannies, babysitters, housekeepers, cooks, gardeners, health care workers, and other employees — it’s important to understand your tax obligations, commonly referred to as “nanny taxes.”

Out-of-State Remote Workers

Working remotely from “out of state” can be taxing The COVID-19 pandemic has required many people to work remotely, either from home or a temporary location. One potential consequence of remote work may surprise you: an increase in your state

Rental Real Estate Business or Investment

Rental real estate – Determining if a property is a business or an investment If you own rental real estate, its classification as a trade or business rather than an investment can have a big impact on your tax bill.

Section 529 College Savings Plan

Oops, you overfunded your 529 plan Some might consider it a good problem to have – – saving too much money for college. But if the money is held in a Section 529 college savings plan, there could be tax

Tax Deductions for Business Meals

When can you deduct business-related meals . . . and how much can you deduct? The Tax Cuts and Jobs Act (TCJA) permanently eliminated deductions for most business-related entertainment expenses paid or incurred after 2017. For example, you can no

Tax Planning Tips for Retirees

There’s a common misconception that, when you retire, your tax bills shrink, your tax returns become simpler and tax planning is a thing of the past. That may be true for some, but many people find that the combination of

Worker Classification and Tax Obligations

Worker classification is still important In 2020 and 2021, many companies have experienced “workforce fluctuations.” If your business has engaged independent contractors to address staffing needs, be careful that these workers are properly classified for federal tax purposes. Tax obligations

Recent Tax Proposals Impacting Individuals and Estates

Recent Tax Proposals Impacting Individuals and Estates On September 13, 2021, The House Ways and Means Committee released proposed legislation including, among other changes, major revisions to taxation of individuals and estates. The following is a summary of the most

California Pass-Through Entity Tax

Federal Deduction For State Income Taxes are Partially Restored On July 16, 2021, California Governor Gavin Newsom signed into state law Assembly Bill 150 (“AB 150”), establishing a new pass-through entity (“PTE”) elective tax. The legislation enables California taxpayers who

7.28.21 California Pass-Through Entity Tax

Federal Deduction For State Income Taxes are Partially Restored On July 16, 2021, California Governor Gavin Newsom signed into state law Assembly Bill 150 (“AB 150”), establishing a new pass-through entity (“PTE”) elective tax. The legislation enables California taxpayers who

Secure Act 2.0 and Proposed Changes

On May 4, 2021, the House Representatives reintroduced the “Securing a Strong Retirement Act of 2021,” commonly referred to as the SECURE Act 2.0. The original SECURE Act was signed into law by President Trump in late 2019 and was

Protective Refund Claim Update – Affordable Care Act (ACA)

On June 17, 2021, the U.S. Supreme Court upheld the Affordable Care Act in the case brought before the Court, California v. Texas, commonly known as the Affordable Care Act Repeal Lawsuit. In the lawsuit the constitutionality of provisions of

PPP Loan Application Deadline Extension

On March 30, 2021, President Biden signed the PPP Extension Act of 2021, H.R. 1799 into law, providing loan applicants two additional months to apply for a first or second draw PPP loan. The current deadline for PPP loan applications

New Rules for Electing Residential Rental Property Owner

On December 27, 2020, former President Trump signed the Consolidated Appropriations Act (CAA) This bill contains tax provisions affecting many industries, including the real estate industry, and also provides for a technical amendment under the 2017 Tax Cuts and Jobs

Franchise Tax Board (FTB) Overpayments Notices

Franchise Tax Board (FTB) Overpayments Notices If you have recently received FTB notices indicating either your 2019 California overpayments were not credited to 2020 or your 2020 estimated taxes were reduced, please note that these are likely erroneous notices generated

Changes To IRS Partnership Audit Rules

The Bipartisan Budget Act of 2015 (the Act) enacted late last year repeals the existing partnership audit rules known as the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and will allow the IRS to collect taxes associated with

Tax Time Scams Awareness

As the IRS announced the beginning of the 2018 tax filing season last week, it also warned that this is the time when identity thieves and fraudsters are actively seeking opportunities to steal from businesses and individuals. In addition to

Tax Records

The period between filing last year’s tax return and this year’s return is the perfect time to organize your tax records. Granted, it may not be something you relish doing, but tackling this now can save you a multitude of

Kiddie Tax: New Hazard, New Opportunities

Despite its name, the “kiddie tax” is far from child’s play. And a change made by the Tax Cuts and Jobs Act (TCJA) puts some adult teeth into the tax. Now, children with unearned income may find themselves in a

Calendar or Fiscal Tax Year?

Many business owners use a calendar year as their company’s tax year. It’s intuitive and aligns with most owners ’personal returns, making it about as simple as anything involving taxes can be. But for businesses whose primary operating season doesn’t

Sustaining Charitable Gifts

There are virtually countless charitable organizations to which you might donate. You may choose to give cash or to contribute noncash items such as stock, personal property, or real estate. Whatever you donate, once you do the good deed, you

Do You Need to File Gift Tax Returns?

For 2019, the lifetime gift and estate tax exemption has reached a whopping $11.40 million ($22.80 million for married couples). As a result, few people will be subject to federal gift taxes. If your wealth is well within the exemption

Nondeductible IRA Distributions

Do you make nondeductible contributions to a traditional IRA? If so, you need to understand the tax treatment of distributions to ensure you’re not taxed twice on the same income. Justify your strategy There are several reasons why you might

IRS New Partnership Audit Rules

As you prepare and gather the 2017 tax data, I strongly encourage you to take this opportunity to review and modify your partnership agreements to be in compliance with the IRS new partnership audit rules. The new rules enacted by

Charitable IRA Rollover Eases Tax Pain of RMDs

One downside of contributing to a traditional IRA is that, once you reach age 70½, you must begin taking required minimum distributions (RMDs) — and pay taxes on those distributions — whether you need the money or not. But if

IRS Dirty Dozen

Last Friday, the Internal Revenue Service announced the conclusion of its annual “Dirty Dozen” list of common tax scams. The annual list highlights various schemes that taxpayers may encounter throughout the year, many of which peak during tax-filing season. We

Did You Repair Your Business Property or Improve It?

Repairs to tangible property, such as buildings, machinery, equipment or vehicles, can providebusinesses a valuable current tax deduction — as long as the so-called repairs weren’tactually “improvements.” The costs of incidental repairs and maintenance can be immediately expensed and deductedon

Cost Segregation Study

Businesses that acquire, construct, or substantially improve a building — or did so in previous years — should consider a cost segregation study. These studies combine accounting and engineering techniques to identify building costs that are properly allocable to the

Client Memo – IRS Warns of Phone Scams

We would like to bring to your attention a recent warning issued by the IRS about a phone scam that targets people across the nation. Callers claiming to be from the IRS would tell intended victims that they owe taxes

Independent Contractors

Many employers mistakenly believe that the misclassification of employees as independent contractors doesn’t really matter, so long as the contractors satisfy all of their tax obligations. This couldn’t be further from the truth. Improper classification of workers comes at a

Taxable vs. Tax-Advantaged: Where to hold investments

When investing for retirement or other long-term goals, people usually prefer tax-advantaged accounts, such as IRAs, 401(k)s, or 403(b)s. Certain assets are well suited to these accounts, but it may make more sense to hold other investments in taxable accounts.

Client Memo- Partnership Audit Rules Go Live

As you prepare and gather the 2017 tax data, I strongly encourage you to take this opportunity to review and modify your partnership agreements to be in compliance with the IRS’s new partnership audit rules. The new rules enacted by

Client Memo – Tax Time Scam Awareness

As the IRS announced the beginning of the 2018 tax filing season last week, it warned that this is the time when identity thieves and fraudsters are actively seeking opportunities to steal from businesses and individuals. In addition to tax

Client Memo – Tax Cuts & Job Act

The new tax reform law, commonly called the “Tax Cuts and Jobs Act” (TCJA), is the biggest federal tax law overhaul in 31 years, and it has both good and bad news for taxpayers. Below are highlights of some of

Client Memo – Pass Through Income Under New Tax Bill

There has been a lot published about the pass-through deduction for income from pass-through entities (partnerships, LLCs, and S Corporations) which will lower the effective tax rate on business income, but very little has been talked about in the press

Client Memo – New Taxpayer Procedure

Early last year, the Franchise Tax Board (FTB) implemented a new procedure to notify taxpayers of the name of the tax preparer who has access to their tax information on the FTB’s website. In addition, the access right expires after

Client Memo – Fake Tax Bill Notices

Two weeks ago the IRS issued an alert to taxpayers and tax professionals to be on guard against fake emails containing an IRS tax bill related to the Affordable Care Act (ACA). The scam involves an email with an attachment

Client Memo – CA Competes Tax Credit

California Competes Tax Credit is an income tax credit for businesses that are expanding or relocating to California. It is a tax credit program that Gov. Jerry Brown approved in March of 2013. This tax credit is an application-based credit

Client Memo – Protecting Americans From Tax Hikes Act of 2015

On December 18, the Senate passed and the President signed into law the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) to extend or make permanent certain expiring tax relief provisions. Here’s a brief summary of those that

Client Memo – Tax Increase Prevention Act of 2014

On December 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014 (TIPA) to extend various tax provisions that had expired at the end of 2013 through 2014. Some key provisions that may be most likely

Client Memo – Mandatory FBAR E-File

The June 30 deadline for filing the annual report to the IRS of a foreign bank and financial account (“FBAR”) is fast approaching and there is no extension of time available for filing an FBAR. Note that FBAR filing is

Client Memo – IRS Transcripts

Late last month, the IRS launched a new Get Transcript Online portal which allows taxpayers to obtain records of past tax returns (the “Transcripts”). You can download and print your transcript immediately, or request the transcript be mailed to your

Client Memo – Tax Rate Changes

President Obama signed into law, effective January 1, 2013, the American Taxpayer Relief Act (the “Act”) to avert the fiscal cliff by permanently extending some of the Bush-era tax cuts for individuals and businesses and increasing the top tax rate

Client Memo – Electronic Delivery Consent Required

In 2012, the IRS issued regulations establishing guidelines for partnerships to electronically issue a schedule K-1 to partners, as well as detailing procedures for partnerships to obtain the required partner’s consent for such electronic delivery.  These regulations are now in

Client Memo – Reminder: 2011 Year End Tax Planning

If you have not taken advantage of the favorable and generous tax situations that are unique to this year, we strongly suggest you review the following items and discuss with us how they might benefit you – Life-changing events such

Client Memo – Section 179 Deduction & Bonus Depreciation

If you are considering making fixed asset purchases for your business, here are some substantial tax-saving opportunities that we would like to bring to your attention. Federal Section 179 deduction For the tax year 2011, the limit is $500,000 and

Client Memo – Tax Matter Updates

California sales tax rates to decrease on July 1, 2011 – Effective July 1, 2011, the combined statewide sales and use tax base tax rate will decrease from 8.25% to 7.25%.  In areas where there are voter-approved district taxes, the

Client Memo – Tax Change References

With numerous recently enacted tax law changes, we’ve compiled a list of helpful resources available on our website (www.fbco.com) for your reference as follows: 2010 Tax Law Changes – Extension of Bush-era tax cuts and unemployment benefits, retention of refundable

Client Memo – Mandatory E-Pay

On September 30, 2008, Governor Schwarzenegger signed into law a requirement for certain individuals to remit all California state income tax payments electronically once they: Make an estimated income tax or extension payment over $20,000 for the taxable year beginning

Client Memo – 2011 Payroll Tax Update

Effective January 1, 2011, new payroll rates go into effect, changing deductions on all payroll checks.  The social security & self-employment tax wage base will not change for 2011.   The employee share of the social security tax & the self-employment

Client Memo – Year End Tax Planning 2011

With the end of the year fast approaching, we would like to remind you that this is a good time to start your year-end tax planning.  Here are a few year-end tax planning considerations for your review: Estate planning –

Client Memo – Federal Tax Credit Coupons Discontinued

Beginning on January 1, 2011, Federal tax deposits made by paper coupons (form 8109) will no longer be processed.  All taxpayers that currently use form 8109 coupons for their federal tax deposits will have to deposit their federal taxes through

Client Memo – New 1099 Reporting Rules

The passage of the Healthcare Reform bill included some of the most drastic changes to 1099 information reporting in over a decade.  In 2012, the Healthcare Reform law will require businesses, governments and charities to issue 1099 forms to all

Client Memo – IRS Employment Tax Research Program

Beginning in early 2010 and continuing for the next three years, the IRS is conducting an Employment Tax National Research Program (NRP), which is the first employment tax compliance study in 25 years.  Under this program, the IRS will randomly

Client Memo – CA NOLs Suspended Again

Under the California state tax law, individual and corporate taxpayers can carry a net operating loss (NOL) from one year into future years to reduce taxable income.  The state had suspended the deduction of NOLs for tax years 2008 and

Client Memo – Small Business Jobs Bill

The Small Business Jobs Act, as approved by the Senate on September 16, cleared the House last Thursday morning and has been signed into law by the President yesterday.  This bill provides an estimated $12 billion in tax breaks for

Client Memo- Partnership Audit Rules Go Live

As you prepare and gather the 2017 tax data, I strongly encourage you to take this opportunity to review and modify your partnership agreements to be in compliance with the IRS’s new partnership audit rules. The new rules enacted by

Client Memo – Changes to IRS Partnership Audit Rules

The Bipartisan Budget Act of 2015 (the Act) enacted late last year repeals the existing partnership audit rules known as the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and will allow the IRS to collect taxes associated with

Client Memo – IRS to Change Partnership Audit Rules

Late last year, the Congress enacted Bipartisan Budget Act of 2015 (the Act) to repeal the existing partnership audit rules known as the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) to allow the IRS to collect taxes associated

2023 Inflation Adjustments for Estate and Gift Tax

The IRS recently announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions as detailed in Revenue Procedure 2022-38. Included in the list of tax changes are increases for estate and gift tax exemptions, providing additional

Advanced Wealth Transfer Planning

Keep Your Money In The Right Hands A well-crafted wealth transfer and estate plan can help you implement your vision for the future and create benefits for the people and causes that matter most to you. There are three places

Rental Real Estate Business or Investment

Rental real estate – Determining if a property is a business or an investment If you own rental real estate, its classification as a trade or business rather than an investment can have a big impact on your tax bill.

Recent Tax Proposals Impacting Individuals and Estates

Recent Tax Proposals Impacting Individuals and Estates On September 13, 2021, The House Ways and Means Committee released proposed legislation including, among other changes, major revisions to taxation of individuals and estates. The following is a summary of the most

New Rules for Electing Residential Rental Property Owner

On December 27, 2020, former President Trump signed the Consolidated Appropriations Act (CAA) This bill contains tax provisions affecting many industries, including the real estate industry, and also provides for a technical amendment under the 2017 Tax Cuts and Jobs

Buy-Sell Agreement

If you own an interest in a family-owned or other closely held business, a buy-sell agreement is a valuable document to have in place. These agreements specify whether — and under what circumstances — owners ’interests may be transferred. Buy-sell

Dynasty Trust

The Tax Cuts and Jobs Act (TCJA) signed into law this past December affects more than just income taxes. It’s brought great changes to estate planning and, in doing so, bolstered the potential value of dynasty trusts. Exemption changes For

Client Memo – Estate Planning Suggestion

With the end of the year fast approaching, we would like to remind you that this is a good time to evaluate your estate planning needs and strategies and consider updating your estate planning documents. Here are a few suggestions

Client Memo – Estate Planning

Two weeks ago the IRS issued proposed regulations that are aiming to eliminate the long-held practice of valuation discounts for lack of marketability and control for fractional ownership interests transferred by gift, sale, or at death to family members.  Valuation

Real Estate Market Changes for 2022

Changes Are Underway The pandemic ignited a home-buying frenzy as the decade-long housing shortage converged with historically-low mortgage rates, shifting workplace dynamics and new opportunities for young buyers to pursue their first homes. As enter the start of 2022, here’s

Rental Real Estate Business or Investment

Rental real estate – Determining if a property is a business or an investment If you own rental real estate, its classification as a trade or business rather than an investment can have a big impact on your tax bill.

Recent Tax Proposals Impacting Individuals and Estates

Recent Tax Proposals Impacting Individuals and Estates On September 13, 2021, The House Ways and Means Committee released proposed legislation including, among other changes, major revisions to taxation of individuals and estates. The following is a summary of the most

New Rules for Electing Residential Rental Property Owner

On December 27, 2020, former President Trump signed the Consolidated Appropriations Act (CAA) This bill contains tax provisions affecting many industries, including the real estate industry, and also provides for a technical amendment under the 2017 Tax Cuts and Jobs

Did You Repair Your Business Property or Improve It?

Repairs to tangible property, such as buildings, machinery, equipment or vehicles, can providebusinesses a valuable current tax deduction — as long as the so-called repairs weren’tactually “improvements.” The costs of incidental repairs and maintenance can be immediately expensed and deductedon

Taxable vs. Tax-Advantaged: Where to hold investments

When investing for retirement or other long-term goals, people usually prefer tax-advantaged accounts, such as IRAs, 401(k)s, or 403(b)s. Certain assets are well suited to these accounts, but it may make more sense to hold other investments in taxable accounts.

Dynasty Trust

The Tax Cuts and Jobs Act (TCJA) signed into law this past December affects more than just income taxes. It’s brought great changes to estate planning and, in doing so, bolstered the potential value of dynasty trusts. Exemption changes For

Client Memo – Year End Estate Planning

With the end of the year fast approaching and changes in the law scheduled to take place, we would like to remind you that this is a good time to evaluate your estate planning documents and strategies.  Here are a

Expansion of Section 179d for Energy Efficient Commercial Buildings

The energy efficient commercial buildings deduction under Section 179D has been in effect since January 1, 2006, and was made permanent as part of the Consolidated Appropriations Act of 2021. Section 179D was originally designed to incentivize owners of commercial

New Reporting Requirements Under the Corporate Transparency Act

The Corporate Transparency Act (“CTA”) has gone into effect as of January 1, 2024, requiring timely submission of specified information on new or existing companies and their beneficial owners, regardless of industry.  These new reporting obligations will impact millions of

2023 – 4th Quarter Estimated Tax Reminder

This is a reminder that your 4th quarter estimated taxes are due on or before January 15, 2024. Please note that this is a reminder being sent to all clients, so if it does not apply to you because you

IRS Expands Electronic Filing Requirements For Tax Returns

On February 23, 2023, the IRS significantly expanded electronic filing requirements for tax returns. Employers filing 10 or more returns of any type on or after January 1, 2024, must now submit returns electronically instead of via paper filings. The

Departure of Lex, Our Longstanding Administrative Assistant

Dear all, I hope this message finds you well. I am writing to inform you of a significant change within our firm that may have already come to your attention. After an incredible 40 years of dedicated service, our esteemed

2022 Filing and Payment Deadlines Extended to November 16

On October 16, 2023, the IRS and FTB announced that the tax year 2022 federal and California income tax filing and payment due date will be further postponed until November 16, 2023. This postponement is again for victims of the

IRS to Stop Processing Employee Retention Tax Credit Claims

The IRS issued a notice last Thursday ordering an immediate stop to processing all new claims for the Employee Retention Tax Credit (ERTC). This comes amid a surge of questionable claims and concerns about aggressive marketing to ineligible taxpayers. Here

2023 Inflation Adjustments for Estate and Gift Tax

The IRS recently announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions as detailed in Revenue Procedure 2022-38. Included in the list of tax changes are increases for estate and gift tax exemptions, providing additional

2023 Paychex Tax Bulletin

This tax bulletin provides you with tax information for 2023 and reminders about Forms W-4, W-5, and I-9. We have included a separate bulletin with information for your employees. Please post the employee bulletin in an area where your employees

Inherited IRA Required Minimum Distribution Relief

On October 12, 2022, the IRS released Notice 2022-53, which provides welcomed relief for taxpayers who have inherited an individual retirement account (an “IRA”) in recent years. Background Historically, beneficiaries of an inherited IRA were required to withdraw the funds

Tax Deferral Through Like-Kind Exchange

A Section 1031 exchange (also known as a like-kind exchange) allows commercial or investment real estate owners to avoid capital gains tax when selling the property by swapping qualifying properties. This article notes that recent legislation has cracked down on

10 Red Flags For IRS Audits

Even though the overall IRS audit rate is currently low historically, it’s expected to increase as a result of provisions in the Inflation Reduction Act signed into law in August. So it’s more important than ever for taxpayers to follow

Alternate Valuation In Estate Tax Planning

Those who have money invested in the stock market are well aware of potential volatility. Needless to say, this volatility can affect a person’s net worth. Something many investors might not think about is the potential effect on estate tax

Requirements For The Home Sale Gain Exclusion

If you’re thinking about selling your home, it’s important to determine whether you qualify for the home sale gain exclusion. The exclusion is one of the most generous tax breaks in the tax code, so be sure to review its

Strategic Use Of Bonus And Section 179 Depreciation

Many companies are eligible for tax write-offs for certain equipment purchases and building improvements. These write-offs can do wonders for a business’s cash flow, but whether to claim them isn’t always an easy decision. In some cases, there are advantages

Tax Savings With The Fuel Tax Credit

Companies that wish to reduce their tax bills or increase their refunds shouldn’t overlook the fuel tax credit. Many businesses qualify for it and it’s relatively easy to calculate. This article explores the potential savings and how to go about

The Five-Year Rule For Roth IRA Withdrawals

What makes Roth IRAs so appealing, primarily, is the ability to withdraw money from them tax-free. But to enjoy this benefit, there are a few rules taxpayers must follow, including the widely misunderstood “five-year rule.” This article explains the ins

Microsoft Secure Score Bulletin

Below is an important security bulletin from our external computer security provider DCG Technical Solutions, Inc. announcing a new security product from Microsoft that we recommend you utilize.  Our score is above 90 which we have been told is spectacular.

California Passes Expansion of Passthrough Entity Tax And Other Economic Relief

On February 7, 2022, the California Legislature passed Senate Bill 113 (“SB 113”) proposing an expansion to the California Passthrough Entity Elective Tax (“CA PTET”) as previously enacted under Assembly Bill 150 (“AB 150”), as well as additional relief unrelated

Required Minimum Distributions (“RMD”) From Retirement Plans In 2022

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and the Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE Act”) have made several important changes to required minimum distributions (“RMD’s”) which were effective in 2020, including the

Client Memo Fraudulent EFTPS E-Mail Scams

There is a new e-mail scam related to the Electronic Federal Tax Payment System (EFTPS) that we want you to be aware of. According to the IRS, the scheme targets individuals and businesses who utilize EFTPS to pay their federal

Client Memo – Red Flags

Fraudsters exhibit behavioral warning signs of their misdeeds. These red flags are not to be ignored as they might be the key to detecting or deterring fraud. Employee Red Flags – Employee lifestyle changes: expensive cars, jewelry, homes, clothes Significant

Client Memo – Fraud Prevention

A strong system of internal accounting controls is important in preventing fraud. The internal control system consists of the mechanisms that are in place to protect company assets. The assets most vulnerable to loss include: Cash Accounts Receivable Inventory and

Client Memo – Common Types of Fraud Schemes

There are two types of fraud, occupational fraud, and financial statement fraud. Of the two, occupational fraud is the most costly to small businesses. The common types of occupational fraud schemes include the following: 1. Asset misappropriation – Skimming. This

Client Memo – Big Concern for Small Business

According to various studies conducted by the Association of Certified Fraud Examiners (ACFE, www.cfenet.com), the per-employee losses from fraud in the smallest businesses are 100 times the amount of their largest counterparts. This is mainly due to the fact that

Client Memo – IRS Warns of Phone Scams

We would like to bring to your attention a recent warning issued by the IRS about a phone scam that targets people across the nation. Callers claiming to be from the IRS would tell intended victims that they owe taxes

Client Memo – Privacy Notice

Your privacy is important to us, and maintaining your trust and confidence is one of our highest priorities. We respect your right to keep your personal information confidential and understand your desire to avoid unwanted solicitations. We hope that by

Client Memo – Privacy Protection

Unfortunately, we live in a world where our privacy is consistently being threatened, both online and through the various business and governmental organizations that we deal with. In an effort to assist you in protecting privacy, we have enclosed two

Client Memo – Estate Planning Suggestion

With the end of the year fast approaching, we would like to remind you that this is a good time to evaluate your estate planning needs and strategies and consider updating your estate planning documents. Here are a few suggestions

Client Memo – Commitment to Security

Fishman, Block + Diamond, LLP (FBD) has made a strong and proactive commitment to information security in order to protect the sensitive information of our company, and that of our clients. This document serves to explain the specific actions that

Client Memo- Partnership Audit Rules Go Live

As you prepare and gather the 2017 tax data, I strongly encourage you to take this opportunity to review and modify your partnership agreements to be in compliance with the IRS’s new partnership audit rules. The new rules enacted by

Client Memo – Tax Time Scam Awareness

As the IRS announced the beginning of the 2018 tax filing season last week, it warned that this is the time when identity thieves and fraudsters are actively seeking opportunities to steal from businesses and individuals. In addition to tax

Client Memo – Tax Cuts & Job Act

The new tax reform law, commonly called the “Tax Cuts and Jobs Act” (TCJA), is the biggest federal tax law overhaul in 31 years, and it has both good and bad news for taxpayers. Below are highlights of some of

Client Memo – Pass Through Income Under New Tax Bill

There has been a lot published about the pass-through deduction for income from pass-through entities (partnerships, LLCs, and S Corporations) which will lower the effective tax rate on business income, but very little has been talked about in the press

Client Memo – New State Law for Employees

Beginning January 1, 2017, employers with 10 or more employees will be required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the Employment Development Department (EDD). All employers, including household employers, will be subject to

Client Memo – New Taxpayer Procedure

Early last year, the Franchise Tax Board (FTB) implemented a new procedure to notify taxpayers of the name of the tax preparer who has access to their tax information on the FTB’s website. In addition, the access right expires after

Client Memo – Changes to IRS Partnership Audit Rules

The Bipartisan Budget Act of 2015 (the Act) enacted late last year repeals the existing partnership audit rules known as the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and will allow the IRS to collect taxes associated with

Client Memo – Fake Tax Bill Notices

Two weeks ago the IRS issued an alert to taxpayers and tax professionals to be on guard against fake emails containing an IRS tax bill related to the Affordable Care Act (ACA). The scam involves an email with an attachment

Client Memo – Cyber Threats

In the last Presidential debate, the one topic that the candidates agreed on was that the cyber threats facing our nation are serious and potentially devastating. One little-known statistic is that according to IBM, 95% of security breaches are due

Client Memo – Estate Planning

Two weeks ago the IRS issued proposed regulations that are aiming to eliminate the long-held practice of valuation discounts for lack of marketability and control for fractional ownership interests transferred by gift, sale, or at death to family members.  Valuation

Client Memo – IRS Transcripts Available Online

The IRS recently relaunched its Get Transcript Online portal which allows taxpayers to download and print records of past tax returns or tax return summaries (the “Transcripts”) online.  Please note that this online service is exclusively available to the taxpayer

Client Memo – IRS to Change Partnership Audit Rules

Late last year, the Congress enacted Bipartisan Budget Act of 2015 (the Act) to repeal the existing partnership audit rules known as the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) to allow the IRS to collect taxes associated

Client Memo – CA Competes Tax Credit

California Competes Tax Credit is an income tax credit for businesses that are expanding or relocating to California. It is a tax credit program that Gov. Jerry Brown approved in March of 2013. This tax credit is an application-based credit

Client Memo – Protecting Americans From Tax Hikes Act of 2015

On December 18, the Senate passed and the President signed into law the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) to extend or make permanent certain expiring tax relief provisions. Here’s a brief summary of those that

Client Memo – Tax Increase Prevention Act of 2014

On December 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014 (TIPA) to extend various tax provisions that had expired at the end of 2013 through 2014. Some key provisions that may be most likely

Client Memo – CA FTB Web Pay Instructions

For instructions on how to make your payments to California Franchise Tax Board using the FTB Web Pay, please visit the site below and follow the instructions outlined as follows: Go to the website: https://www.ftb.ca.gov/online/webpay/index.asp At the bottom of the

Client Memo – Encrypted Email Enhancement

As you have no doubt read about in recent months the world of cyber security has repeatedly shown that electronic communications are subject to breaches and to hackers.  Because we are fiduciary’s and take the protection of our clients’ confidential

Client Memo – CA Manufacturing Exemption

Beginning on July 1, 2014, a new California law allows manufacturers and certain research and developers to obtain a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases. The partial exemption

Client Memo – Mandatory FBAR E-File

The June 30 deadline for filing the annual report to the IRS of a foreign bank and financial account (“FBAR”) is fast approaching and there is no extension of time available for filing an FBAR. Note that FBAR filing is

Client Memo – Personal Information Security

As we strive to safeguard your sensitive personal information, we would like to remind you that regular email is not a secure method for sending sensitive data, such as your social security number or bank account information, to us. In addition

Client Memo – IRS Transcripts

Late last month, the IRS launched a new Get Transcript Online portal which allows taxpayers to obtain records of past tax returns (the “Transcripts”). You can download and print your transcript immediately, or request the transcript be mailed to your

Client Memo – Final Regulations on Capitalization of Tangible Property

On September 13, 2013, nine years after the initial announcement in 2004, the IRS and Treasury Department released final regulations addressing the proper characterization and tax treatment of expenditures related to tangible property. A summary of major changes is as

Client Memo – Medicare Coverage Notice

The Medicare Modernization Act of 2003 requires employers who offer prescription drug coverage to Medicare-eligible employees to notify their policyholders if the prescription drug coverage provided is considered creditable coverage. A written notice must be sent to all Medicare-eligible employees

Client Memo – IRS Dirty Dozen

The Internal Revenue Service recently issued its annual “Dirty Dozen” list of common tax scams, reminding taxpayers to use caution during tax filing season to protect themselves against a wide range of schemes ranging from identity theft to return preparer

Client Memo – Tax Rate Changes

President Obama signed into law, effective January 1, 2013, the American Taxpayer Relief Act (the “Act”) to avert the fiscal cliff by permanently extending some of the Bush-era tax cuts for individuals and businesses and increasing the top tax rate

Client Memo – Year End Estate Planning

With the end of the year fast approaching and changes in the law scheduled to take place, we would like to remind you that this is a good time to evaluate your estate planning documents and strategies.  Here are a

Client Memo – Electronic Delivery Consent Required

In 2012, the IRS issued regulations establishing guidelines for partnerships to electronically issue a schedule K-1 to partners, as well as detailing procedures for partnerships to obtain the required partner’s consent for such electronic delivery.  These regulations are now in

Client Memo – Document & Internet Security

As computers and the internet become vital to every organization, it is important to adopt security policies to safeguard and manage these company resources. We have listed a few security policy recommendations as follows: Passwords to limit workstation and confidential

Client Memo – Reminder: 2011 Year End Tax Planning

If you have not taken advantage of the favorable and generous tax situations that are unique to this year, we strongly suggest you review the following items and discuss with us how they might benefit you – Life-changing events such

Client Memo – New CA Worker Classification Law

Earlier in October, California Governor Jerry Brown signed a new worker classification law imposing significant penalties on employers who misclassify employees. Effective date – January 1, 2012 Key provisions – It is unlawful to voluntarily and knowingly misclassify an individual

Client Memo – Work Sharing Program

This program was established by the California legislature as an alternative to layoffs by minimizing or eliminating the need for layoffs and the accompanying hardships for affected employees. What are the benefits? During a temporary slowdown of the business, if

Client Memo – Qualified Personal Residence Trust

What is a QPRT? It’s an irrevocable grantor trust that is formed to own your principal residence or vacation home (the “Residence”) and transfer its ownership to the ultimate beneficiaries when the trust term ends. This is commonly used as

Client Memo – Section 179 Deduction & Bonus Depreciation

If you are considering making fixed asset purchases for your business, here are some substantial tax-saving opportunities that we would like to bring to your attention. Federal Section 179 deduction For the tax year 2011, the limit is $500,000 and

Client Memo – Tax Matter Updates

California sales tax rates to decrease on July 1, 2011 – Effective July 1, 2011, the combined statewide sales and use tax base tax rate will decrease from 8.25% to 7.25%.  In areas where there are voter-approved district taxes, the

Client Memo – Tax Change References

With numerous recently enacted tax law changes, we’ve compiled a list of helpful resources available on our website (www.fbco.com) for your reference as follows: 2010 Tax Law Changes – Extension of Bush-era tax cuts and unemployment benefits, retention of refundable

Client Memo – Mandatory E-Pay

On September 30, 2008, Governor Schwarzenegger signed into law a requirement for certain individuals to remit all California state income tax payments electronically once they: Make an estimated income tax or extension payment over $20,000 for the taxable year beginning

Client Memo – Bush-era Tax Cuts Extended

On December 17, 2010, President Obama signed into law the bipartisan tax bill to extend various Bush-era tax cuts and create tax breaks for all.  Below is a summary of some of the important provisions: Temporary extension of current tax

Client Memo – 2011 Payroll Tax Update

Effective January 1, 2011, new payroll rates go into effect, changing deductions on all payroll checks.  The social security & self-employment tax wage base will not change for 2011.   The employee share of the social security tax & the self-employment

Client Memo – Year End Tax Planning 2011

With the end of the year fast approaching, we would like to remind you that this is a good time to start your year-end tax planning.  Here are a few year-end tax planning considerations for your review: Estate planning –

Client Memo – Federal Tax Credit Coupons Discontinued

Beginning on January 1, 2011, Federal tax deposits made by paper coupons (form 8109) will no longer be processed.  All taxpayers that currently use form 8109 coupons for their federal tax deposits will have to deposit their federal taxes through

Client Memo – New Website Announcement

We are pleased to announce the launch of our brand new website: www.fbco.com.  To make it an effective resource for our clients, our website has been redesigned with a fresh new look and has been updated with the most current

Client Memo – New 1099 Reporting Rules

The passage of the Healthcare Reform bill included some of the most drastic changes to 1099 information reporting in over a decade.  In 2012, the Healthcare Reform law will require businesses, governments and charities to issue 1099 forms to all

Client Memo – IRS Employment Tax Research Program

Beginning in early 2010 and continuing for the next three years, the IRS is conducting an Employment Tax National Research Program (NRP), which is the first employment tax compliance study in 25 years.  Under this program, the IRS will randomly

Client Memo – CA NOLs Suspended Again

Under the California state tax law, individual and corporate taxpayers can carry a net operating loss (NOL) from one year into future years to reduce taxable income.  The state had suspended the deduction of NOLs for tax years 2008 and

Client Memo – Small Business Jobs Bill

The Small Business Jobs Act, as approved by the Senate on September 16, cleared the House last Thursday morning and has been signed into law by the President yesterday.  This bill provides an estimated $12 billion in tax breaks for

Client Memo – Fraudulent EFTPS Scams

There is a new e-mail scam related to the Electronic Federal Tax Payment System (EFTPS) that we want you to be aware of. According to the IRS, the scheme targets individuals and businesses who utilize EFTPS to pay their federal

Client Memo – Summary of Major Provisions of Healthcare Bill

Listed below are a summary of the important provisions of the health care bill that may have an impact on you, and the effective dates: 2010 Provisions Effective Date Adoption credit increased (to $13,170 from $12,170 in 2010), extended through

Client Memo – Mortgage Rates

As you may have been reading in the papers due to the European debt crisis mortgage rates in the United States are at 50-year lows.  If you currently have a variable-rate mortgage or a fixed-rate mortgage above 5% interest, I

Household Workers and Taxes

Are you liable for “nanny taxes”? If you employ household workers — which may include nannies, babysitters, housekeepers, cooks, gardeners, health care workers, and other employees — it’s important to understand your tax obligations, commonly referred to as “nanny taxes.”

Worker Classification and Tax Obligations

Worker classification is still important In 2020 and 2021, many companies have experienced “workforce fluctuations.” If your business has engaged independent contractors to address staffing needs, be careful that these workers are properly classified for federal tax purposes. Tax obligations

Independent Contractors

Many employers mistakenly believe that the misclassification of employees as independent contractors doesn’t really matter, so long as the contractors satisfy all of their tax obligations. This couldn’t be further from the truth. Improper classification of workers comes at a

CalSavers Retirements Savers Program

his is a reminder that the final implementation deadline for the CalSavers Retirement Savings Program (“CalSavers”) is June 30, 2022. California employers meeting certain requirements must offer a qualified retirement plan to its employees by either sponsoring a qualified retirement

Required Minimum Distributions (“RMD”) From Retirement Plans In 2022

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and the Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE Act”) have made several important changes to required minimum distributions (“RMD’s”) which were effective in 2020, including the

CalSavers Retirement Savings Program Requirements

Tax Law Insights, Recently Published, Payroll and Payroll Taxes On September 29, 2016, former California Governor Jerry Brown signed into state law senate Bill 1234 to implement the California Secure Choice Retirement Savings Program. The program was officially renamed the CalSavers Retirement

Employee Stock Ownership Plan

Do you own a closely held company? Are you approaching retirement age? If so, you may be struggling to balance conflicting goals for your business. An employee stock ownership plan (ESOP) may help. Business owners often need to tap at

Charitable IRA Rollover Eases Tax Pain of RMDs

One downside of contributing to a traditional IRA is that, once you reach age 70½, you must begin taking required minimum distributions (RMDs) — and pay taxes on those distributions — whether you need the money or not. But if

Dynasty Trust

The Tax Cuts and Jobs Act (TCJA) signed into law this past December affects more than just income taxes. It’s brought great changes to estate planning and, in doing so, bolstered the potential value of dynasty trusts. Exemption changes For

Statement of Commitment to Security December 2022

Fishman, Block + Diamond, LLP (“FBD”) has made a strong and proactive commitment to information security in order to protect the sensitive information of our company, and that of our clients. This document explains the specific actions that we have

Microsoft Secure Score Bulletin

Below is an important security bulletin from our external computer security provider DCG Technical Solutions, Inc. announcing a new security product from Microsoft that we recommend you utilize.  Our score is above 90 which we have been told is spectacular.

Statement of Commitment to Security March 2021

Fishman, Block + Diamond, LLP (“FBD”) has made a strong and proactive commitment to information security in order to protect the sensitive information of our company, and that of our clients. This document explains the specific actions that we have

Client Memo Fraudulent EFTPS E-Mail Scams

There is a new e-mail scam related to the Electronic Federal Tax Payment System (EFTPS) that we want you to be aware of. According to the IRS, the scheme targets individuals and businesses who utilize EFTPS to pay their federal

Tax Time Scams Awareness

As the IRS announced the beginning of the 2018 tax filing season last week, it also warned that this is the time when identity thieves and fraudsters are actively seeking opportunities to steal from businesses and individuals. In addition to

Client Memo – Fraud Prevention

A strong system of internal accounting controls is important in preventing fraud. The internal control system consists of the mechanisms that are in place to protect company assets. The assets most vulnerable to loss include: Cash Accounts Receivable Inventory and

Client Memo – Common Types of Fraud Schemes

There are two types of fraud, occupational fraud, and financial statement fraud. Of the two, occupational fraud is the most costly to small businesses. The common types of occupational fraud schemes include the following: 1. Asset misappropriation – Skimming. This

Client Memo – Big Concern for Small Business

According to various studies conducted by the Association of Certified Fraud Examiners (ACFE, www.cfenet.com), the per-employee losses from fraud in the smallest businesses are 100 times the amount of their largest counterparts. This is mainly due to the fact that

Client Memo – IRS Warns of Phone Scams

We would like to bring to your attention a recent warning issued by the IRS about a phone scam that targets people across the nation. Callers claiming to be from the IRS would tell intended victims that they owe taxes

Identity Theft

Tax returns are a prime target for identity thieves. After all, the IRS processes billions of dollars in tax refunds every year, and criminals follow the money. A thief needs little more than your name and Social Security number (SSN)

Client Memo – Privacy Notice

Your privacy is important to us, and maintaining your trust and confidence is one of our highest priorities. We respect your right to keep your personal information confidential and understand your desire to avoid unwanted solicitations. We hope that by

Client Memo – Privacy Protection

Unfortunately, we live in a world where our privacy is consistently being threatened, both online and through the various business and governmental organizations that we deal with. In an effort to assist you in protecting privacy, we have enclosed two

Client Memo – Commitment to Security

Fishman, Block + Diamond, LLP (FBD) has made a strong and proactive commitment to information security in order to protect the sensitive information of our company, and that of our clients. This document serves to explain the specific actions that

Client Memo – Tax Time Scam Awareness

As the IRS announced the beginning of the 2018 tax filing season last week, it warned that this is the time when identity thieves and fraudsters are actively seeking opportunities to steal from businesses and individuals. In addition to tax

Client Memo – New Taxpayer Procedure

Early last year, the Franchise Tax Board (FTB) implemented a new procedure to notify taxpayers of the name of the tax preparer who has access to their tax information on the FTB’s website. In addition, the access right expires after

Client Memo – Cyber Threats

In the last Presidential debate, the one topic that the candidates agreed on was that the cyber threats facing our nation are serious and potentially devastating. One little-known statistic is that according to IBM, 95% of security breaches are due

Client Memo – Encrypted Email Enhancement

As you have no doubt read about in recent months the world of cyber security has repeatedly shown that electronic communications are subject to breaches and to hackers.  Because we are fiduciary’s and take the protection of our clients’ confidential

Client Memo – Personal Information Security

As we strive to safeguard your sensitive personal information, we would like to remind you that regular email is not a secure method for sending sensitive data, such as your social security number or bank account information, to us. In addition

Client Memo – IRS Dirty Dozen

The Internal Revenue Service recently issued its annual “Dirty Dozen” list of common tax scams, reminding taxpayers to use caution during tax filing season to protect themselves against a wide range of schemes ranging from identity theft to return preparer

Client Memo – Document & Internet Security

As computers and the internet become vital to every organization, it is important to adopt security policies to safeguard and manage these company resources. We have listed a few security policy recommendations as follows: Passwords to limit workstation and confidential

Client Memo – Fraudulent EFTPS Scams

There is a new e-mail scam related to the Electronic Federal Tax Payment System (EFTPS) that we want you to be aware of. According to the IRS, the scheme targets individuals and businesses who utilize EFTPS to pay their federal

Protective Refund Claim Update – Affordable Care Act (ACA)

On June 17, 2021, the U.S. Supreme Court upheld the Affordable Care Act in the case brought before the Court, California v. Texas, commonly known as the Affordable Care Act Repeal Lawsuit. In the lawsuit the constitutionality of provisions of

PPP Loan Application Deadline Extension

On March 30, 2021, President Biden signed the PPP Extension Act of 2021, H.R. 1799 into law, providing loan applicants two additional months to apply for a first or second draw PPP loan. The current deadline for PPP loan applications

Extension to PPP & EIDL Loan Programs

Extension to PPP & EIDL Loan Programs The Senate has approved and the house should vote tomorrow to approve additional funding under the PPP and EIDL loan programs. Our very strong advice if you haven’t submitted your application for the

Main Street Loan Program

Main Street Loan Program Benefits Under the Program Loan size is 1m to 25m There are two programs (you can only participate in one of them): The Main Street New Loan Facility (MSNLF) – This is for new loans originated

CARES Act Update

As the Treasury continues to release guidelines in response to the COVID-19 crisis, we will provide a summary of important provisions for your consideration. Extended 1031 exchange identification and exchange periods Exchangers whose 45-day identification period or 180-day exchange period

CARES Act- A Quick Update

As the Treasury continues to release guidelines in response to the COVID-19 crisis, we will provide a summary of important provisions for your consideration. Extended 1031 exchange identification and exchange periods Exchangers whose 45-day identification period or 180-day exchange period