S Election Terminated as a Result of Form Operating Agreement Language
May 6, 2019
by Ashley L. Gill
A limited liability company (an “LLC”) is a business structure created by state statute, but it is not a distinct business entity for tax purposes (like a partnership or a corporation). Instead, businesses structured as LLCs are taxed under the provisions of the Internal Revenue Code applicable to…
Which State Can Tax a Trust?
What are the limits on one state’s power to tax the undistributed income of a trust with no connection to that state, other than the mere fact that a discretionary income beneficiary lives in that state? Authority is divided over whether the residence of a beneficiary or settlor of an out-of-state…
Second Set of Qualified Opportunity Zone Proposed Regulations Provide Clarity to Potential Investors
As discussed here in November (Why 2019 Will be the Year of Opportunity (Zones)), the Tax Cuts and Jobs Act created a tax-advantaged incentive program for investing in designated “qualified opportunity zones” throughout the country, including many locations in Arkansas. The opportunity zone program…
Recent IRS Interim Guidance Provides That It Is Not Too Late For Your Willful Clients To Voluntarily Disclose Their Offshore Accounts, But Penalties Abound
February 11, 2019
by Anton L. Janik, Jr.
The Internal Revenue Service has had a long-standing practice of providing taxpayers with potential criminal exposure a means to come into compliance with the law and potentially avoid criminal prosecution through the making of a voluntary disclosure of their domestic or offshore noncompliance…
Increased Estate/Gift Tax Exemptions Under TCJA: No-Clawback, but Use it or Lose It
February 11, 2019
by Christopher T. Rogers
The Tax Cuts and Jobs Act (“TCJA”) passed in December, 2017, doubled the estate and gift tax basic exclusion amount from $5.0 million to $10.0, coupled with a cost of living adjustment. For 2019, the basic exclusion amount is $11.4 million. Unless extended, the increased basic exclusion amount…