On Wednesday, May 8, 2013, the South Carolina Supreme Court (the “Court”) rejected a taxpayer’s constitutional challenge to the state’s sales and use tax caps and exemptions codified in South Carolina Code Sections 12-36-2110 and 12-36-2120.  However, the Court expressly … finish reading South Carolina Supreme Court Rejects Challenge to Sales and Use Tax Exemptions…For Now

A federal district court has ruled that the members of an accounting firm were each personally liable for the trust fund potion of the unpaid federal employment taxes of their client. Buddy Light Accounting & Tax Services provided accounting and … finish reading Accounting Firm Members Held Personally Liable For Client’s Unpaid Federal Employment Taxes

In what can only be considered a “game-changer” for South Carolina property owners, the South Carolina Court of Appeals in Taylor v. Aiken County Assessor, ___ S.E.2d ___, 2013 WL 1223185 (S.C. Ct. App., March 27, 2013) has recently ruled … finish reading South Carolina Property Owners Can Now Challenge Property Tax Valuations Where They Did Not Own Property In The Prior Year

The IRS announced an important settlement program, the Voluntary Classification Settlement Program or VCSP, on September 21, 2011.  Under VCSP, qualifying employers who misclassified workers as independent contractors were able to come forward and enter into a settlement with the … finish reading IRS Modifies and Temporarily Expands Worker Voluntary Classification Settlement Program

The IRS has long been aware of U.S. taxpayers living overseas who have not filed federal income tax returns or Reports of Foreign Bank and Financial Accounts (“FBARs”).  Earlier this year, the IRS announced the reopening of its successful Offshore … finish reading IRS Announces New Procedures for U.S. Citizens Residing Overseas Who Have Not Filed Tax Returns and Reported Income

The Court of Appeals for the First Circuit, in Kaufman v. Shulman, Docket No. 11-2017P-01A (1st Cir., July 19, 2012), reversed a Tax Court decision siding with the IRS which had disallowed a couple’s conservation easement deduction.  The Tax Court … finish reading First Circuit Ruling May Provide More Flexibility for Conservation Easement Donors in Dealing With Lenders

Landowners may be allowed a federal income tax deduction for the contribution of a conservation easement restricting donated property.  A qualified conservation contribution is a donation of a qualified real property interest to a qualified organization which is exclusively used … finish reading The Importance of a Qualified Appraisal for Conservation Easements

On May 31, 2012 the Fourth Circuit Court of Appeals issued its opinion in the case of Starnes v. Commissioner, upholding a decision of the United States Tax Court which determined that the former shareholders of a corporation were not … finish reading Fourth Circuit Court of Appeals Rejects IRS Transferee Liability Theory

On Monday, May 21, 2012, the Internal Revenue Service announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (“OIC”) program with the goal of assisting more financially distressed taxpayers in resolving … finish reading IRS Announces More Flexible Offer-in-Compromise Terms to Help More Struggling Taxpayers Make a Fresh Start

The Eighth Circuit Court of Appeals, in the recent case of Watson, P.C. v. US, 109 AFTR 2d 2012-1059, 668 F. 3d 1008 affirming the district court below, held that an S-corporation shareholder’s 2002 and 2003 reported salaries were unreasonably low, … finish reading Eighth Circuit Ruling Highlights Risks in S-Corporation Compensation Planning

There are five general methods of resolving an assessed federal tax liability: (1) full payment, (2) payment through installments under a written agreement, (3) placing an account into currently uncollectible status, (4) an offer in compromise, and (5) bankruptcy.  Installment … finish reading IRS Revises Streamlined Installment Agreement Program

Many individuals and business entities create charitable organizations to serve the needs of a specific group of persons or a specific community with a need for a type of service.  Most charitable organizations undertake the arduous task of applying for … finish reading Reinstatement for Tax-Exempt Organizations whose Exemption Status was Automatically Revoked by the IRS

A landowner who donates a conservation easement to a qualifying organization can benefit from state tax incentives, in addition to the available federal income tax deduction.  South Carolina provides an important transferable income tax credit for landowners who donate a … finish reading South Carolina Conservation Easement Tax Credit Transfers

The IRS recently announced the reopening of its successful Offshore Voluntary Disclosure Program (OVDP) effective January 9, 2012.  The IRS also announced that its two prior foreign bank account disclosure initiatives, in 2009 and 2011, have brought in more than … finish reading IRS Announces New 2012 IRS Foreign Bank Account Voluntary Disclosure Program

The IRS has the authority to attach a tax lien to property of the taxpayer once the IRS assesses a federal tax liability against the taxpayer and issues notice of an intention to levy.  If the taxpayer fails to resolve … finish reading Employer Must Comply with IRS Levy to Garnish Wages and May Not Challenge the Validity of the Levy

U.S. citizens that work or receive income from abroad are subject to U.S. income taxes on foreign income.  The tax is applicable regardless of where U.S. citizens reside.  U.S. taxpayers receiving foreign income must file an income tax return with … finish reading The Joy of Reporting Income Earned in Foreign Countries to the IRS

Generally, there are four methods of resolving an assessed federal tax liability: (1) full payment, (2) payment through installments under a written agreement, (3) an offer in compromise, and (4) bankruptcy.  The IRS also has the authority to temporarily suspend … finish reading The IRS Offer in Compromise: A Way to Resolve Outstanding Federal Tax Liabilities

To minimize the risk of engaging in an excess benefit transaction related to compensation paid in connection with an organization exempt from income tax under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (an “Exempt Organization”), the … finish reading Management and Executive Compensation in Nonprofit Organizations: Part 2

Many of us have both the privilege and the responsibility of serving as a board member or as a trustee of a charitable organization. Many of these charitable groups are organizations exempt from income tax as organizations described in Section … finish reading Management and Executive Compensation in Nonprofit Organizations: Part One

South Carolina imposes various taxes and reporting requirements on purchasers transacting business in the state.  A sales tax is imposed on the sale at retail of tangible personal property and certain services in the state. South Carolina imposes a sales … finish reading Transferring Sales Tax Liability to Purchasers in South Carolina

On September 14, 2011, the Internal Revenue Service (the “IRS”) issued Notice 2011-72, 2011-38 IRB 407 which provides guidelines on the treatment of cellular telephones or other similar telecommunications equipment (hereinafter collectively “cell phones”) that employers provide to their employees … finish reading IRS Announces Favorable Rules for Employer Provided Telephones

The IRS announced an important settlement program on September 21, 2011 where the IRS will now give many employers substantial tax relief for treating employees as “independent contractors”.  Details of the settlement program were provided in Announcement 2011-64, which will … finish reading IRS Announces Settlement Program for Employers Using Independent Contractors Who Should Be Classified as Employees

The passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, on December 17, 2010, introduced the new estate and gift tax savings concept of “portability,” which is effective for estates of decedents dying after December … finish reading Portability: A New Estate Planning Tool

On July 25, 2011, the Internal Revenue Service issued IRS Notice 2011-170, 2011-32 I.R.B. 135 and announced that it will help taxpayers who request innocent spouse relief by eliminating the two-year time limit that applies to equitable relief requests.  However, … finish reading IRS Reverses Position On Equitable Innocent Spouse Relief Claims

On August 15, 2011, the South Carolina Supreme Court ruled in Clarendon County v. TYKAT, Inc. (Op. 270252011, WL 3568536) that Section 12-37-950 of the Code of Laws of South Carolina, 1976, as amended (the “Code”), subjected a leasehold interest … finish reading South Carolina Supreme Court Determines That Property Leased By Public Tax-Exempt Entity to a Private Entity is Subject to Property Tax

In a case that will have far reaching implications for many estate and financial planners, the South Carolina Supreme Court reversed the South Carolina Administrative Law Court and concluded that real property owned by a single member limited liability company … finish reading Single Member LLC Qualified for Favorable Property Tax Treatment

The South Carolina Department of Revenue issued a notice, effective July 1, 2011, that the rate for sales of certain durable medical equipment and related supplies will be reduced from 5.5% to 3.5%. This rate reduction is pursuant to a … finish reading South Carolina Department of Revenue Announces Reduction in Sales Tax Rate for Durable Medical Equipment

Employers are generally required to withhold and pay employment taxes on wages paid to  employees.  Conversely, employers are generally not required to withhold and pay employment taxes on wages paid to independent contractors or nonemployees.  If an employer incorrectly treats … finish reading Preserving the Availability of Section 530 Relief When Workers are Misclassified

This post was co-authored by Adam Landy and Erik Doerring. On July 5, 2011, the United States Tax Court abated penalties assessed by the IRS against a business taxpayer for failure to pay its employment taxes. The Tax Court agreed … finish reading United States Tax Court Agrees with Taxpayer and Finds Reasonable Cause to Abate Employment Tax Penalties

IR-2011-69, June 23, 2011 — Starting July 1, the standard mileage rate for business miles driven is increased to 55.5 cents per mile.  

IR-2011-68, June 15, 2011 — The Electronic Tax Administration Advisory Committee released its 2011 Annual Report to Congress.

IR-2011-67, June 14, 2011 — The IRS released the spring 2011 issue of the Statistics of Income Bulletin.

IR-2011-63, June 8, 2011–– The IRS announced that  approximately 275,000 organizations have automatically lost their tax-exempt status because they did not file legally required annual reports for three consecutive years.

Under current South Carolina law, counties must revalue real property every five years.  The value of real property may not be increased more than 15% when revalued by the county, unless an assessable transfer of interest (“ATI”) occurs, which includes … finish reading South Carolina Legislature Passes Important Point of Sale Property Tax Reform

The “South Carolina Small Business Regulatory Flexibility Act of 2004″ requires the South Carolina Department of Revenue (DOR) to review its regulations every five years to ensure that regulations do not place any unnecessary burdens on small businesses.  Another provision … finish reading South Carolina Department of Revenue Invites Comments from Small Business Community

When the financial markets deteriorated in the second half of 2008, so did the market for Low Income Housing Tax Credits (LIHTC). Funds and individuals who typically acquired interests in LIHTC transactions had no profits or taxable income, and no … finish reading IRS Releases Guidance on Taxability of TCAP Funds

On February 8, 2011 IRS Commissioner Doug Shulman announced the details of a new voluntary disclosure program that’s designed to get people with foreign accounts back into the U.S. tax system. The IRS implemented a similar voluntary disclosure program in … finish reading IRS Announces New Foreign Account Voluntary Disclosure Program

During its 2009 session, the General Assembly created the TAX REALIGNMENT COMMISSION (“TRAC”) for the purpose of conducting a comprehensive study of South Carolina’s tax system.  TRAC consists of eleven members, ten of whom were appointed by legislative leaders with … finish reading What TRAC Should Mean To You