1402, 2019

Writing the Playbook: alliantNational’s Miller and Amin Contribute to ABA’s Captive Insurance Handbook

By |February 14th, 2019|publishedarticles|0 Comments

alliantNational’s own Steven T. Miller and Meeren Amin co-authored a chapter in the American Bar Association’s 2018 Captive Insurance Deskbook for the Business Lawyer. The book helps attorneys navigate the often-murky paths of captive insurance companies and offers suggestions on whether a captive is a suitable option for a business owner.

Miller and Amin co-authored a chapter on “Captive Insurance Tax Controversy,” where the two discussed how the Internal Revenue Service conducts audits of captives, the appeals process if the agency determines a captive has violated pertinent law, how to prepare for possible litigation and effective pre-audit strategies for managing a captive.

The book’s publication comes at a time when most Fortune 500 companies, as well as many small to mid-sized businesses and tax-exempt organizations are involved with captives. It features a wide-range of tax controversy professionals and serves as a comprehensive outline for any business that is looking into the […]

410, 2018

New Business Meals Guidance Creates Substantiation Concerns

By |October 4th, 2018|publishedarticles|0 Comments

October 4, 2018
By Stephanie Cumings
Published in Tax Notes

Taxpayers might not be prepared to separately document meals this year as required by new guidance on the business meals deduction, according to practitioners.

Whether client business meals would still be deductible was “the big issue” coming out of the 2017 tax law’s changes to meals and entertainment, Michael L. Hadley of Davis & Harman LLP told Tax Notes.

An October 3 IRS notice makes clear that those meals will continue to be 50 percent deductible, but it requires, among other things, that meals provided during an entertainment activity be separately billed.

Employers will need to look at how they’ve tracked their spending, and they may have to reconstruct some invoices this year to meet the new substantiation requirement, Hadley said. Ruth M. Wimer of Winston & Strawn LLP agreed that properly documenting meal expenses could be an issue.

Under the prior law, both meals and […]

310, 2018

You Can Still Deduct a Client’s Meal on a Night Out, IRS Says

By |October 3rd, 2018|publishedarticles|0 Comments

October 3, 2018
By Laura Davison and Lynnley Browning
Published in Bloomberg Government

The Internal Revenue Service is giving businesses a tax break they thought they had lost in the tax overhaul last year — write-offs for wining and dining clients.

The agency said Wednesday companies can still deduct 50 percent of meals while entertaining clients and customers, clearing up confusion about whether tax law changes last year had completely eliminated that benefit.

The bill that President Donald Trump signed eliminated the deduction for so-called entertainment expenses — golf outings, cruises and concert tickets. Tax professionals also thought that ban included food purchased while taking clients out. The IRS said the costs of business meals while entertaining clients are still deductible as long as they’re reflected on a separate receipt.

“Food and beverages that are provided during entertainment events will not be considered entertainment if purchased separately from the event,” the IRS said in a statement.

For […]

608, 2018

The Wayfair Ruling and What it Means for Small Business

By |August 6th, 2018|publishedarticles|0 Comments

I know it’s August and probably the last thing on your mind is the Supreme Court’s recent Wayfair decision on out-of-state sellers.

However, given the long-term implications of the case and its anticipated impact on your clients and e-commerce in general, I thought you’d be interested in this recent Accounting Today piece. In the article, I discuss the ruling’s potential effect on small and medium businesses:

  • Although there was nothing about protecting small business in the actual holding of the Wayfair decision, it did have a lot of vague ideas on the subject, observed Dean Zerbe, alliantgroup’s national managing director and former senior counsel with the Senate Finance Committee. “Good luck with that! I don’t think states will show a restraining hand,” he said.
  • “Right after they have sales tax nexus, they’ll try to extend it to business activity tax,” Zerbe predicted. “You’re here for sales tax — […]
208, 2018

U.S. Transition Tax Regs Provide Clarity, Limited Relief

By |August 2nd, 2018|publishedarticles|0 Comments

August 2, 2018
By Andre Velarde
Published in Tax Notes

Lengthy transition tax regs may offer practitioners some reassurance in fleshing out more details, but they don’t venture much outside the original scope of previous guidance.

“With the release of the regs, not absolute certainty as to the transition tax liability, but pretty close,” Jose Murillo of EY said.

The highly anticipated proposed regs (REG-104226-18), released August 1, are one of the first pieces of key guidance from the Tax Cuts and Jobs Act (P.L. 115-97) to be released.

Practitioners had been anxiously awaiting more guidance on the transition tax because three previous notices, while detailed, left many questions unanswered. The 249-page reg package is divided into nine sections, including rules on adjustments to earnings and profits and basis, determining section 965(c) deductions, disregarding some transactions, foreign tax credits, elections and payments, and affiliated groups.

“Despite their length, the proposed regulations do not break […]

2706, 2018

Unclear if the IRS Can Save the Client Business Meal

By |June 27th, 2018|publishedarticles|0 Comments

June 27, 2018
By Stephanie Cumings
Published in Tax Notes

Tax observers are torn on whether the IRS has the power to restore the deduction for client business meals that Congress seems to have unintentionally axed in the 2017 tax law.

While some practitioners contend that the IRS can salvage the deduction, one professor argues that Congress will have to amend the law if it really intended to keep client business meals deductible. The answer hinges on whether client business meals constitute “entertainment.” Under the prior law, entertainment expenses were 50 percent deductible if they met certain qualifications, but the Tax Cuts and Jobs Act (P.L. 115-97) eliminated the deduction altogether.

“Up until this change in the law, it didn’t really matter whether or not food and beverage was considered entertainment because it was 50 percent deductible either way,” Michael L. Hadley of Davis & Harman LLP told Tax Analysts.

The TCJA conference report […]

3105, 2018

Global Settlement Offer for Captive Transactions Could Be Tricky

By |May 31st, 2018|publishedarticles|0 Comments

May 31, 2018
By Emily L. Foster
Tax Notes

The IRS could resolve captive insurance transaction disputes with a global settlement, as it did for abusive transactions in the 2000s, but tax professionals say the trick is to root out the bad actors.

Microcaptive insurance cases are seeing high volume in three areas — examination, appeals, and litigation — and could be ripe for a global settlement initiative, according to several tax professionals. Their estimates range from hundreds of outstanding cases involving captive insurers — companies wholly owned and controlled by their insureds — to potentially thousands of them. The IRS had no immediate comment on how many cases it is dealing with.

But the tax professionals warned that the solution won’t be as simple as offering settlement programs to captive insurance abusers, because the agency’s first and largest hurdle is determining which operations are legitimate and which are misusing the tax code.

Global settlement […]

1403, 2018

CICA: Standing up to the IRS can be good for the industry

By |March 14th, 2018|captives, publishedarticles|0 Comments

March 14, 2018
By Ned Holmes
Published in captive insurance times

For a good captive, standing up to the Internal Revenue Service (IRS) may be the right answer and could positive for the industry as a whole, says John Dies, managing director of tax controversy at alliantgroup.

Speaking at Captive Insurance Companies Association’s (CICA) 2018 Conference, Dies suggested the impact of winning a case against the IRS could be felt across the captive industry.

He said: “It is great for the industry when a captive stands up to the IRS, wins and creates a precedent that the industry can use.”

“We have seen the impact in cases where outsiders thought there was not a chance a captive could win and they made changes in the industry–and I believe that is positive for the industry.”

According to Dies, in the right context fighting the case is the correct move for a captive.

He explained: “In many cases, great […]

903, 2018

How Will TCJA Affect Individuals Electing Corporate Taxation?

By |March 9th, 2018|publishedarticles|0 Comments

March 9, 2018
By Andre Velarde
Published in Tax Notes

The Tax Cuts and Jobs Act has brought newfound attention to an election by individuals to treat themselves as corporations, as well as important questions about uncertainties surrounding its interplay with newly enacted international provisions.

Section 962 was drafted in 1962 and until recently was largely unknown to many practitioners. Under that section, U.S. individual shareholders may annually elect to be taxed at the corporate tax rate for their section 951(a) subpart F inclusions. The taxpayer may also claim the deemed- paid foreign tax credit under section 960. The election has its limits, however, as under section 962(d), when an actual distribution is made, the earnings and profits from a controlled foreign corporation that exceed the tax applicable under the section 962 election are also treated as income.

The TCJA committee report, in a terse footnote about section 965, cites to the section 962 […]

2602, 2018

Republicans Just Bought the IRS

By |February 26th, 2018|publishedarticles|0 Comments

February 26, 2018
by Mark W. Everson, former IRS Commissioner and alliantgroup Vice Chairman
The Hill

After nine years of a contentious relationship with the Internal Revenue Service, Republicans find themselves in the uncomfortable position of needing the IRS to deliver on tax reform. The stakes are high. In 2016 there were 30 percent more individual income tax returns processed by the IRS than votes cast in the presidential election. And execution matters. Just think of the ObamaCare exchanges, when a botched rollout of the website – involving only a small fraction of the people who interact with the IRS – did lasting damage to a signature legislative achievement supported by a single political party. Here’s what should be done:

Give the IRS the money it needs to pull this off. The service will have to staff up and train personnel in its call centers to accommodate a spike in taxpayer and practitioner […]

Live chat