Writings by James F. McDonough

Various Agreements Among Business Owners Can Cover A Number of Important Issues Shareholder Agreements, Buy-Sell Agreements, Partnership and Operating Agreements (collectively, “Agreements”) are frequently-used terms to describe agreements among business owners.  Hopefully, the Agreement, whatever its title, covers issues such as contributions of property and services, management, voting, dispute resolution, and ownership transition.  One of […]

The Offshore Voluntary Disclosure Program (OVDP) closes September 28, 2018 and account holders that fail to disclose offshore accounts will be investigated by IRS and DOJ.

For taxpayers holding undisclosed foreign accounts and assets, making a voluntary disclosure has significant benefits. Most notably, it allows you to become compliant, avoid substantial civil penalties, and generally eliminate the risk of criminal prosecution for all issues relating to tax noncompliance and failing to file a Report of Foreign Bank and Financial Accounts (FBAR).

A Provision Was Added to the Tax Cuts and Jobs Act that Discourages Companies’ Use of Nondisclosure Agreements in Harassment & Sexual Assault Settlements The new tax reform bill contains a wide range of changes that New Jersey businesses must consider. Some are not exclusively financial. In response to the increased attention on sexual harassment […]

The IRS Recently Issued Final Regulations on Electing Out of Centralized Partnership Audit Rules (CPAR) Tax Reform has taken the spotlight but there is no doubt that accountants will have their hands full and business litigation resulting from tax issues will rise. On December 29, 2017, the Department of the Treasury-Internal Revenue Service issued final […]

No Provision in the New Tax Law has Received More Attention Than the New Section 199A, Which Defines the New Term “Qualified Business Income” No provision in the new tax law has received more attention than the new section 199A. Section 199A defines a new term called “Qualified Business Income” (“QBI”) and further provides non-corporate […]

The IRS Recently Announced a Policy Change Regarding Requests For Private Letter Rulings On Certain Corporate Transactions  The Internal Revenue Service (IRS) recently announced a policy change regarding requests for private letter rulings on certain corporate transactions. According to the IRS, it “is reconsidering its views regarding certain issues as to which it has provided […]

While New Jersey was spared from the recent catastrophic storms impacting the United States, many of our family members have not been so lucky. With the memories of Superstorm Sandy still fresh, we all remember how overwhelming the cleanup and rebuilding process can be. Thankfully, the Internal Revenue Service (IRS) is making it easier to […]

Tax planning has become synonymous with nefarious activity but the reality is that tax planning is essential to the viability of any business. Tax planning has become synonymous with nefarious activity but the reality is that tax planning is essential to the viability of any business. Consider Mylan, a worldwide pharmaceutical company whose publicly traded […]

A recent newsletter stated that a common business structure for independent broker-dealers suffered a setback in Tax Court when the IRS prevailed. The individual, a broker-dealer held several series licenses to annuities and other financial products. The individual, not his corporation, signed contracts with LPL and Mass Mutual. The corporation elected S status and in […]

While President-elect Donald Trump has his own tax plan, the House GOP formulated an approach of its own. While President-elect Donald Trump has his own tax plan, the House GOP formulated an approach of its own. The House GOP Tax Reform Blueprint positions itself as a growth-friendly plan, one that encourages business investment and simplifies […]

The government lost estate and gift tax cases that attracted headlines. The government lost estate and gift tax cases that attracted headlines. In response, the Department of Treasury (“Treasury”) proposed new regulations in early 2016 that would amend definitions in the 1992 regulations that were problematic in the court cases. In addition, Treasury it added […]