In the past partnerships and limited liability companies that have elected to be taxed as partnerships have rarely faced an Internal Revenue Service (“IRS”) audit. In part, this is because of the administrative burden faced by the IRS in attempting to collect tax resulting from partnership audit adjustments. The current partnership audit scheme requires partnership audit adjustments to flow through to the partners and requires separate collection actions against each individual partner.more »
Maintaining up to date documentation for your retirement plan is extremely important and not something employers should take lightly.
During a plan audit the first thing the IRS auditor asks for is a signed copy of the Plan Document with all amendments. If these do not contain provisions timely reflecting the latest legislative and/or regulatory changes, the plan faces the possibility of disqualification which can be extremely costly.more »
As the size of a family increases, families traditionally seek to replace the home they are outgrowing with a larger one. As time goes by and parents become empty nesters it is not uncommon for thoughts to turn to downsizing or perhaps becoming snowbirds and moving to a warmer climate.
These, as well as other life changing events, such as relocation caused by the loss of a job or a promotion, divorce, the death of a spouse, the remarriage of a widow or widower, and the obligation of a family to settle the affairs of a parent who has been confined to a nursing home, all precipitate the need to sell the family home.
The sale of the family home often results in the realization of a substantial gain. For many it is the single largest economic gain of a lifetime and should raise questions about the tax consequences.more »