SCOTUS Comptroller v. Wynne Ruling Recognizes States Do Not Have a Boundless Power to Tax Residents
The U.S. Supreme Court decided in a 5 to 4 vote to uphold the ruling of Maryland's highest court in Comptroller v. Wynne. Former President David S. De Jong was lead counsel on an amicus brief by AAA-CPA. Additional counsel on this brief were Michael E. Breslin, Amanda Lewis, John W. Pramberg, C. Murray Saylor, James H. Sutton and Sydney S. Traum. Click here to read about this case.
Reserve Your Room Today for a Fantastic Summer Stay
Your room is waiting for you at the Hilton Branson Convention Center for the 2015 Annual Meeting & Education Conference in Branson, Missouri. Call now to reserve it! Located in the heart of historic downtown Branson, the sleek 12-story tower of the Hilton Branson Convention Center hotel offers an ideal base to discover Branson attractions or conduct business. The AAA Four Diamond hotel is attached to the Hilton-managed Branson Convention Center and across the street from the vibrant waterfront entertainment district, Branson Landing. This stylish tower hotel offers a stunning design, inspired by the beauty of the Ozark Mountain Region.
The AAA-CPA has reserved a block of hotel rooms at the Hilton. The AAA-CPA has negotiated a rate of $172.50 single, $182 double, $199.50 triple and $213 quad for king. The room includes breakfast voucher of $13.50 per each adult in the room. The Hilton will only guarantee these room rates until June 9. Reservations can be made by calling 1-800-HILTONS and asking for the AAA-CPA group rate.
Upcoming AAA-CPA Study Groups
Earn education credit without leaving your home or office! Registration is now open for members and nonmembers for the following study group programs:
June 2: A CPA's Higher Standards of Professional Fiduciary Duty
Presented by James J. Rigos, Attorney, CPA, CMA
Learn about the fiduciary duty 2015 application to a CPA. We cover four areas of practice: legal roles like trustee, "responsible person" fiduciary liability, investment sales and guidance and directorships of corporations, both public and charitable.
- June 11: Accounting for Income Taxes — Basics
Presented by: Clinton N. McGrath, Esq., CPA
Accounting Standards Codification 740 Income Taxes provides a conceptual and practical framework of accounting for income taxes. This study group session will serve to introduce and illustrate the basic rules and computations associated with applying ASC 740.
- July 21: Tax Traps When Transferring Life Insurance Policies
Presented by: Michael Geeraerts, JD, CPA, CGMA, CLU
Life insurance is generally afforded favorable income tax treatment under the Internal Revenue Code, such as a life insurance policy's death benefit generally being income tax-free to the policy's beneficiary. However, there are certain transfers of life insurance policies that could end up resulting in a death benefit being entirely or partially subject to income tax. Life insurance policyholders are often unaware of these tax rules, even though life insurance is often used for personal and business planning purposes. This study group will cover how certain transfers of life insurance policies can result in adverse tax consequences.
- July 28: Piercing the Veil of LLCs
Presented by: Domenick R. Lioce, Esq.
Courts are increasingly treating LLCs and corporations as equivalent entities, including applying the "piercing the corporate veil" theory to both business structures. When the LLC veil is pierced, litigants engaged in disputes with or owed debts by LLCs can look beyond the entity and pursue LLC members for potential liability and recovery. State laws in this area are still developing, and there are no bright line rules. However, counsel to LLCs and LLC members can minimize the likelihood of veil-piercing claims by strictly adhering to LLC formalities, separating LLC assets from personal assets, executing a tight LLC operating agreement and avoiding any personal guarantees of the LLC's debt. The circumstances under which the LLC veil may be pierced and how state courts are ruling in LLC veil-piercing cases will be explained. Considerations and best practices for LLC members to avoid and defend veil-piercing claims will be discussed.
Highlight your company's name, products and services to attorney-CPAs that are key decision-makers in their firm or practice by sponsoring an event or including an insert in our conference bag at our AAA-CPA Annual Meeting & Education Conference in Branson, Missouri. Click here for more information or call 888-ATTY-CPA.
Catching Up After Filing Season
By Annette Nellen, Esq., CPA, CGMA, via AICPA Tax Insider
Cases, rulings, reports and other actions from the federal government so far this year provide some interesting and helpful reminders for tax practitioners.
Texas Senate Votes to Trim Business Franchise Tax Rate
The Dallas Morning News
The Senate approved a 25 percent across-the-board reduction in the state's business franchise tax as part of a $3.8 billion tax cut package agreed to by legislative leaders. Passed on a 24-6 vote, the legislation must return to the House for concurrence in Senate amendments.
US House Backs Permanent R&D Tax Credit
The U.S. House of Representatives has passed legislation that would simplify and strengthen the research and development tax credit and permanently enshrine it in the U.S. tax code. The American Research and Competitiveness Act of 2015 was approved by the House by a vote of 274-145 May 20.
Tax-dodge Scrutiny in US Repels Bidders From Bermuda Takeovers
The Internal Revenue Service's scrutiny of tax avoidance in offshore locations has discouraged bidders from taking over reinsurers, potentially reducing the companies' value.
Montpelier Re Holdings Ltd. and Platinum Underwriters Holdings Ltd., both based in Bermuda, have each said in recent regulatory filings that potential suitors backed away last year because of risks tied to taxes.
Missed an issue of The AAA-CPA Weekly Update? Click here to visit The AAA-CPA Weekly Update archive page.
Supreme Court: 2 States Can't Tax the Same Income
The Supreme Court came down against double taxation in a case that could cost some states and cities millions of dollars.
The justices sided with taxpayers over governments in a case that tested Maryland's income tax system, which does not grant a full credit to residents who also pay income taxes in states where they work.
Americans Spend More on Taxes Than Food, Clothing and Shelter Combined
Every year, the Tax Foundation compares the total amount of taxes paid in America and the amount of spending on the necessities of food, clothing and shelter. In most recent years, the Tax Foundation has concluded that Americans spend more on taxes than on necessities — and 2015 is no different.
Paul Ryan Tells CPAs About Tax Reform Priorities
House Ways and Means Committee Chairman Paul Ryan, R-Wisconsin, explained his tax reform plans during a speech before the American Institute of CPAs at the AICPA's Spring Meeting of Council in Washington, D.C. "One of the concerns that we have, now that we have both the House and the Senate, is the uncertainty that's been plaguing our economy, and one of the primary sources of uncertainty in this economy today has been our tax code," said Ryan, who ran as the Republican vice presidential nominee in the 2012 election.
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