Foreign Entity Filings- Forms 8865 and 8858

August 29, 2018
8865 and 8858

U.S. taxpayers who do business globally are well aware of the tax implications involved. Forms 8865 and 8858 are lesser known, but important for foreign corporations to understand.

By Bethany Bouw, CPA

Taxpayers who have foreign businesses are often surprised to hear there are filing requirements to disclose their business. If you are familiar with the basics of international business, you may know this is true of foreign corporations. The same is true of partnerships, sole proprietors, other foreign disregarded entities and more. In many cases, taxpayers assume that if they keep most aspects of their business abroad, that the IRS will have no interest in them. Unfortunately, they are incorrect.

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The GILTI Effect: Tax Reform And Global Intangible Low-Taxed Income

August 28, 2018

What is GILTI?
The Global Intangible Low-taxed Income (GILTI) is a new provision, enacted as a part of tax reform legislation. Mechanically, it functions as a global minimum tax and introduces a lot of issues for all U.S. shareholders of controlled foreign corporations (CFCs) – especially individuals and partnerships. Read more

IRS Issues Proposed Guidance on Complicated QBI Deduction Rules

August 28, 2018
QBI Deduction

Here are some key definitions and limitations that will be critical for many business owners to understand as they plan for the rest of the 2018 tax year.

The IRS has finally issued eagerly awaited regulations addressing the new deduction for up to 20% of qualified business income (QBI) from pass-through entities. The QBI deduction was a major piece of the Tax Cuts and Jobs Act, which was signed into law last December. Read more

Do You Need to Renew Your ITINs?

August 27, 2018

If you have an Individual Taxpayer Identification Number (ITIN), it may need to be renewed before the end of the year.

By Bethany Bouw

As we head into the tail-end of summer, it is good to take a moment to pause and consider if you need to renew your ITIN before the end of the year. The last thing anyone wants is to find out that their ITIN is expiring and there is no time left to renew. In accordance with the Protecting American’s from Tax Hikes Act of 2015 (the PATH Act), ITINs that have not been used on a federal return at least once in the last three years will expire on December 31, 2018. Additionally, ITINS bearing specific middle digits are also due to expire on the same date. The IRS is encouraging taxpayers to renew their ITINS as soon as possible to avoid delayed tax refunds and return processing. Read more

QBI Deduction Provides Tax Break to Pass-Through Entity Owners

August 24, 2018
QBI Deduction

A new tax deduction for qualified business income from pass-through entities might offer temporary relief for pass through entities that won’t benefit from the reduced federal income tax rate.

The IRS recently issued proposed reliance regulations to help clarify the new qualified business income (QBI) deduction that was introduced as part of the Tax Cuts and Jobs Act. This guidance is complex and hundreds of pages long. As part of the proposed regs, the IRS explained that, if certain requirements are met, individuals, estates and trusts (all referred to as “individuals” by the proposed regs) that own interests in more than one qualifying trade or business can (but aren’t required to) aggregate them, by treating them as a single trade or business. Read more

International Tax Technical Update- Section 965

August 23, 2018



On August 1, the Department of the Treasury and the Internal Revenue Service (collectively, Treasury) published proposed regulations (REG-104226-18, hereinafter, the Proposed Regulations) implementing Section 965 of the Internal Revenue Code as amended by the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. The Proposed Regulations affect U.S. persons with direct or indirect interests in certain foreign corporations. Read more

What’s Next for State Tax Nexus?

August 22, 2018

The Supreme Court recently published it’s decision on ‘Wayfair’, a landmark case centered around internet commerce and economic “nexus” for online state taxes.

The recent Wayfair decision has drastically altered the landscape for states that want to collect sales and use taxes. Prior to this landmark U.S. Supreme Court case, economic “nexus” for tax purposes was established only if the seller of goods or services exhibited a “physical presence” in the state. Under Wayfair, sales and use tax obligations may be imposed on remote sellers — even those operating solely online. (South Dakota v. Wayfair, S. Ct. No. 17-494, June 21, 2018) Read more

Selecting Malpractice Coverage and Evaluating Carriers

August 17, 2018
malpractice coverage

Selecting the terms of medical malpractice coverage is a complex, critical task, as is evaluating insurance carriers.

Medical malpractice insurance isn’t just a requirement — it’s also a major practice expense. Selecting the terms of coverage is a complex, critical task, as is evaluating insurance carriers. In fact, the future of the practice and the reputation of physicians may rest in the balance. Read more

A Buy-Sell Agreement Can Protect Your Practice and Minimize Disputes

August 15, 2018
Buy-Sell Agreements

When healthcare practices bring on new physicians, it’s important to make sure they sign buy-sell agreements to protect the practice from disputes.

In the wake of health care reform, you might find your practice inundated with new patients. With the extra workload, you might want to hire one or more physicians to help out.

If so, and if these physicians intend to take an ownership share of your practice, make sure each one signs a buy-sell agreement. Reason: It can safeguard your practice from disgruntled doctors and minimize disputes should they arise. Read more

Tax Law Expands Accounting Method Options for Small Businesses

August 14, 2018
Accounting Method

The Tax Cuts and Jobs Act allows more companies to qualify for the cash basis method and elect out of complex inventory and percentage-of-completion accounting rules.

Thanks to changes included in the Tax Cuts and Jobs Act (TCJA), many more businesses can now use the simpler and more-flexible cash method of accounting for federal income tax purposes. The new law also includes some other tax accounting changes that are good news for small businesses. Like many TCJA changes that apply to businesses, these provisions are permanent. Here’s what you need to know. Read more