Author Archives: Warren M. Bergstein, CPA, AEP®

Net Investment Income Tax

The Net Investment Income Tax “NIIT” was added to the Internal Revenue Code on March 30, 2010. It is imposed at a rate of 3.8% of certain net investment income of individuals, estates and trusts that have income above specified … Continue reading

Posted in Bulletins

Tax Filing Deadline Changes: What You Need to Know.

New Due Dates for Tax Returns/Changes to Extension Deadlines Beginning with tax year 2016 returns due in 2017, a number of filing deadlines have changed.  The primary purpose of the changes is to facilitate a more logical flow of information … Continue reading

Posted in Alerts, Bulletins, News

Executive Summary: ACA and You: Tax Changes for 2013 and Beyond

As implementation for the Affordable Care Act (“ACA” or “Obamacare”) has finally begun, taxpayers at all levels will notice certain changes in taxes they pay, the way income is reported and health-related deductions. This Executive Summary covers some of the provisions with the broadest potential impact. Continue reading

Posted in Bulletins, News

Hitting You Where You Live: The Hidden Tax Perils of New York’s Residency Rules

U.S. citizens are taxed on all income, regardless of where that income is earned. New York State takes a similar approach to taxing its residents’ income. In addition, New York subjects nonresidents to taxation on certain categories of income sourced to New York. The state aggressively pursues taxpayers who have “resident” attributes while declaring a “nonresident” filing status. Consequently, certain nonresident taxpayers must take care not to run afoul of the complex rules New York uses to determine residency for tax purposes. Continue reading

Posted in News

When Is It Time to Lay an Estate to Rest?

Deciding when to close out an estate can be tricky, particularly when the business of an estate and its beneficiaries are tied closely together. Depending on your perspective, federal regulations make it either more or less tricky. Specific regulations govern when an estate ceases to exist for tax purposes. Attorneys and accountants need to be aware of the rules – and make sure that administrators abide by them; failing to do otherwise can have significant impact on how beneficiaries are taxed. Continue reading

Posted in Bulletins, News

Why Put Off Until Tomorrow: The Latest on Deferred Compensation

Deferred compensation works well as a means to reward key employees. It also can have certain benefits for business owners of various stripes. However, Section 409A of the Internal Revenue Code, enacted as part of the American Jobs Creation Act of 2004, has muddied the waters a bit over the past couple of years. It imposes a variety of requirements on many different types of arrangements, including some that are not immediately recognizable as deferred compensation schemes. On April 10, 2007, the IRS issued the final regulations for Section 409A. This Bulletin covers the highlights. Continue reading

Posted in Bulletins, News

Button, Button The Hidden Tax Breaks of 2006

As the 109th Congress was hurrying out the door, it took the time to pass just a few pieces of legislation. One of the most significant of these is the Tax Relief and Health Care Act of 2006. The Act extends several tax breaks that were expected to expire and modifies others. Here is a quick guide to the act and how it might impact your tax liability. Continue reading

Posted in Bulletins, News

Do You Know What Happens to the Estate Plans You Create?

You might have to struggle to get your clients to update their estates in the first place. Then there’s all the work that goes into creating air-tight documents of all sorts: wills, trusts, durable powers of attorney and health proxies come immediately to mind. But in spite of your best efforts, your client – and his or her designated beneficiaries – may still not be protected from exposure to even some of the most mundane risks. Why? Continue reading

Posted in Bulletins, News