Taxation of Rewards Programs A recent US Tax Court case illustrates how the taxation of hotel rewards programs, gift cards, or points programs could be a potential tax trap for the unwary. In Hyatt Hotels Corp v. Comm’r (TC Memo 2023-122), the Hyatt hotel chain ended up with a hefty assessment as a result of
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IRS Announces New Tax Rates for 2024
IRS Tax Rates for 2024 The IRS recently announced new tax rates for the 2024 calendar year. The tax tables can be found below. The standard deduction will be $29,200 for Married Filing Join Taxpayers, $21,900 for Taxpayers filing head of household, and $14,600 for single taxpayers and Married Filing Separate Taxpayers. Learn more about
California Employment Development Department (EDD) Liens and Levies: What Businesses Need to Know
What is an EDD Lien? The California Employment Development Department (EDD) is responsible for administering the state’s unemployment insurance, workers’ compensation, disability insurance, and personal income tax programs. When businesses and employers fail to pay their payroll taxes or file required reports, the EDD may take collection action, including liens and levies. So, what is
Tax and Vice – Do Cannabis Dispensaries Need to Install Turnstiles to Defend Themselves in a CDTFA Sales Tax Audit?
CDTFA Sales Tax Audit This installment of our Tax and Vice Blog will discuss the turnstile approach the CDTFA is using in many sales tax audits of cannabis dispensaries. A couple of recent California Office of Tax Appeals cases (Appeal of Divine Wellness Center and Appeal of Mutual Medicinal Collective) highlight the turnstile approach the
Navigating IRS New Guidance on Transfer of Publicly Traded Partnership Interests
Publicly Traded Partnership Interests The Internal Revenue Service recently issued new guidance to provide more clarity on the transfer of Publicly Traded Partnership (PTP) interests to foreign investors. While the guidance is a step forward, it brings with it its own sets of questions and considerations. Here is a breakdown of these updates and what
Navigating W-8 Forms: A Guide to Treaty Benefits
International Taxation In the intricate world of international taxation, one constant remains: the need for accurate reporting and compliance. This is especially true with regard to the W-8 forms, specifically W-8BEN and W-8BEN-E, which are the basis for taxpayers aiming to claim treaty benefits. The recent rise in IRS examination activity makes it crucial to
Wicked Stepmothers: Undue Influence and Trust Litigation
The traditional “Nuclear Family” has become less prevalent over the past several decades as blended families increasingly become a norm in modern Western society. However, it may present some complex family dynamics. Although each blended family is unique, there is often emotional volatility between the children of a deceased parent and the surviving stepparent. What
US Tax-Savings for your Intellectual Property
Intellectual Property Are you a business using intellectual property – such as software, trade secrets, trademarks or tradenames, copyrighted materials, patents, or other intellectual material? Strategies for US tax-savings for your intellectual property may add substantial value to your business! Strategy 1:Take advantage of special federal tax deductions and tax credits, as well as capital
California Court of Appeals Issues Decision on California Property Tax Assessment
California Property Tax Assessment The California Court of Appeals recently decided a case in which the California Property Tax Assessment on the assessed value of a hotel was in dispute. California property taxes are based on the assessed value of a property. The California appeals court partially sided with the hotel property owners in SRH
Self-Employment Taxes
What Are Self-Employment Taxes?Self-employment taxes include both Social Security tax and Medicare tax which are then paid to federal and state taxing agencies. Wage-earning employees also pay these taxes with one major difference. Typically, employers are required to match the amount of social security and Medicare tax withheld from employee paychecks, while self-employed persons are