Tax Reform
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Proposed Regulations Clarify Bad Debt Deductions for Regulated Financial Companies
This blog was authored by my colleague Trevor Huisman, a tax principal within our financial services group. On December 27, 2023, the IRS and Treasury released proposed regulations (REG-121010-17) that would update the standard used to determine when a debt instrument held by a regulated financial company or group would be considered worthless. The proposed […]
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Proposed Legislation Could Impact Financial Services Company ERC Filings
Legislation released by the House Ways and Means Committee last week proposes a number of changes, notably a provision that would end ERC filing substantially earlier than the initial deadline. This would limit the ability for financial services companies who have not yet filed to claim the credit. Under this proposal, all claims (2020 and […]
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New Wisconsin State Tax Exemptions for Financial Institutions
This blog was authored by my colleague Chan-Yu Wang, a tax director in our financial services group. Wisconsin Exempts Certain Commercial and Agricultural Loan Income from State Taxation On July 5, 2023, Tony Evers signed the Wisconsin 2023-2025 budget (2023 Wisconsin Act 19) which included a significant favorable exemption from taxation on commercial and agricultural […]
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S Corporations Should Monitor and Track Shareholder Deaths
As shareholder groups continue to age, we are seeing more S Corporation banks encountering difficult to navigate issues involving shareholder deaths. S Corporations should remain vigilant to ensure that they don’t put their S Election at risk or cause headaches for the bank or its shareholders. Estates as Shareholders An estate is an eligible S […]
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IRS to Crack Down Further on Microcaptive Insurance Arrangements
Last month, the IRS announced plans to initiate thousands of additional examinations of businesses engaging in microcaptive insurance arrangements. This announcement came after three successful Tax Court cases against companies deemed to have engaged in abusive tax shelters. Businesses paying premiums to microcaptive insurance companies should carefully consider their risks in this quickly evolving area.
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Parking Tax Repealed
With the repeal of a provision of the 2017 Tax Cuts and Jobs Act state-chartered credit unions have an opportunity for a potential claim of income taxes paid on transportation fringe benefits.
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Common Threads from 2019 Tax Planning Meetings
Throughout October and November, our tax leaders have been meeting with bankers across the country to discuss tax planning for 2019 and beyond. There have been a number of common threads emerging from these discussions regardless of bank size or geography.
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Missouri’s Tax Reforms Impact Banks for 2020
As we have written about previously, Missouri passed significant tax legislation in 2018 that will impact both businesses and individuals in coming years. Community banks will want to carefully consider how these new provisions will impact their institutions. Rate Reductions For years beginning on or after January 1, 2020, the corporate income tax rate is […]
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IRS Will Begin Sending Notices to S Corp Shareholders Who Don’t Report Basis
S Corp shareholders are now required to attach basis schedules to their personal tax returns annually. We received word this week that the IRS will begin sending notices to shareholder who don’t comply with the new requirement.
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The State Taxing Authorities May Be Coming to Find You
In 2018, the U.S. Supreme Court issued its decision in South Dakota v. Wayfair. This was a lawsuit against an online retailer about the collection of sales tax on internet orders, but the implications of the case go far beyond sales tax and may quickly start impacting the income tax filings of community banks.