Tax News

New Reporting Requirements for Executors

The IRS has issued a form with which, if applicable, requires Executors to report the value for estate tax purposes of any property distributed by an estate. Under a recent amendment of Internal Revenue Code §1014, estate beneficiaries must use a basis (property cost) consistent with that reported for estate tax purposes, and Executors are required to report those values to both the IRS and beneficiaries.

IRS Second Inspection of Audit Records Permitted

Generally, the Internal Revenue Code permits only one inspection of a taxpayer’s records for a tax year, unless the IRS can come up with a written justification for the re-inspection. However, the 7th Circuit Court of Appeals recently ruled in In U.S. v. Titan Int’l, Inc., that this limitation applies only to a single tax year, and inspection of records previously audited for a different tax year is permitted.

Taxpayers Are Entitled to the N.Y.S. Department of Tax Audit Software

It all started as a simple request for the records of a sales tax audit of a bar which provided adult entertainment, in the form of both stage and lap dances, for its customers.  The bar’s attorney, Barry Leibowicz, had made a request under the Freedom of Information Law (FOIL) for all of the books […]

Taxpayer Must have a Residential Interest to Maintain a Permanent Place of Abode for Statutory Residence – Gaied v. New York State overruled

The New York Court of Appeals recently issued a landmark decision in Gaied v. New York State, by holding that in order for an individual to satisfy the “maintains a permanent place of abode” test for purposes of New York State residency taxation, there must be some basis to conclude that the dwelling was utilized […]

New York Announces Agreement on State Budget: Imposes Numerous Changes to the Tax Laws

New York State recently announced that an agreement has been reached on the 2014-15 State Budget. The Budget contains numerous changes to New York’s tax laws including changes to estate, franchise, personal, sales and use, and real property taxes. The following is a highlight of the tax changes contained in the Budget   ESTATE TAX […]

FinCEN Augments FBAR Filing Methods

The Financial Crimes Enforcement Network (FinCEN) has published a new Form 114a, Record of Authorization to Electronically File FBARs, for filers who wish to electronically file Foreign Bank and Financial Accounts (FBARs) jointly with their spouses, or through third-party preparers. FinCEN’s current E-filing system permits only one digital signature per electronic FBAR filing, thus requiring […]

Nonresident Aliens Can Only Bring Refund Claims in Court of Federal Claims

In general, taxpayers may bring a civil action for a tax refund against the United States either in (a) a United States District Court, or (2) the United States Claims Court. If a taxpayer chooses to bring their refund claim in U.S. District Court, the taxpayer must bring the action in the judicial district where […]

START-UP NY Aims to Promote Economic Growth Through Tax Exemptions

The 64 SUNY campuses, of which 55 are upstate, will be tax-free communities under this program. The tax-free area can include vacant land and vacant space on the CUNY campus and any business incubator with a bona fide affiliation to the campus, university or college.