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Michael Sardar was selected to the 2017 Super Lawyers New York Metro Rising Stars List

Every year, Super Lawyers selects attorneys who exhibit excellence in the practice of law to either a Super Lawyers or Rising Starts list in each state using a patented selection process. Michael Sardar has been selected because of his outstanding excellence in his practice.

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Bryan C. Skarlatos spoke on the panel "Enforcement Actions" at the 2017 Blockchain Technology and Digital Currency National Institute

The 2017 Blockchain Technology and Digital Currency National Institute took place on April 10, 2017, in New York City. This special program was dedicated to in-depth analysis of the emerging legal issues and the latest legal events concerning digital currencies, like Bitcoin, and blockchain technology.

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IRS and Treasury Issue Proposed Regulations on Centralized Partnership Audits

By: Jerald David August

This post is the third of a Three Part Series of K&F Business and International Tax Developments Posts on the Proposed Regulations to the New Partnership Audit Regime which legislation is due to go into effect for all unincorporated entities treated as partnerships, in general, for taxable years beginning after December 31, 2017. Part One, which was posted on February 17, 2017, summarized the legislation which enacted the new partnership audit rules as part of The Bipartisan Budget Act of 2015, Pub. L. No. 114-74, Act §1101 (the “Budget Act”) which was signed into law on November 2, 2015, (as modified by Protecting Americans from Tax Hikes Act of 2015, Pub. L. No. 114-113 (the “PATH Act”)). The Proposed Regulations were issued on January 18, 2017 (REG-136118-15).

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The FBA Section on Taxation hosted Albert G. Lauber of the United States Tax Court at Kostelanetz & Fink, LLP

This event was an exceptional opportunity to socialize with the New York Tax community and meet judge Albert G. Lauber. The event was completely free to participants, courtesy of the FBA Section on Taxation and Kostelanetz & Fink, LLP.

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Reasonable Cause For International Information Return Penalties - What Is The Standard?

By Henry Stow Lovejoy
The CPA Journal
April 2017 Edition

The Internal Revenue Code (IRC) requires the filing of a number of different information returns with respect to foreign entities or transactions. These “international information returns” include Form 5471 (for US persons who own shares in certain foreign corporations), Form 5472 (for U.S. corporations that are 25% owned by foreign persons), Form 8865 (for U.S. persons who are partners in certain foreign partnerships), Form 3520 (for transactions with foreign trusts and for the receipt of certain foreign gifts) and Form 8938 (for foreign assets generally). For each, there is a significant penalty for failing to timely and correctly file the form. But the penalty does not apply if the failure was due to reasonable cause (sometimes with the additional condition that the failure was not due to willful disregard). But what is “reasonable cause?”

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IRS And Treasury Issues Needed Guidance on Centralized Partnership Audits: Proposed Regulations Issued

By: Jerald David August

This post is part of a Three Part Series of K&F Business and International Tax Developments Posts on the New Proposed Regulations to the New Partnership Audit Regime which is due to go into effect for all unincorporated entities treated as partnerships for taxable years beginning after December 31, 2017. Part One, which was posted on February 17, 2017, summarized the legislation which enacted the new partnership audit rules as part of The Bipartisan Budget Act of 2015, Pub. L. No. 114-74, Act §1101 (the “Budget Act”) which was signed into law on November 2, 2015, (as modified by Protecting Americans from Tax Hikes Act of 2015, Pub. L. No. 114-113 (the “PATH Act”)). The Proposed Regulations were issued on January 18, 2017 (REG-136118-15). 

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Service Issues Favorable Private Letter Ruling on the Diversification of Stock Portfolio Under Section 721(b) and Potential For Applying the Netting Rule For Both Contributions And Reverse Section 704(c) Allocations

By: Jerald David August

In a recent private letter ruling issued on November 18, 2016, PLR 201710007, the Service ruled that the transfer of a stock portfolio to a surviving partnership from four terminating partnerships will not, under the facts, result in a diversification of portfolios under §721(b) thereby avoiding gain recognition.  This provision may pose a trap for the wary for taxpayers who do not give careful consideration in transferring appreciated property to a partnership (or corporation). The Service further ruled on the application of technical rules under §704(c) permitting partial or full netting of built-in gains and losses.

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Sixth Circuit Court of Appeals Reverses Tax Court on Treatment of Commissions of a Domestic International Sales Corporation Paid to Roth IRA

By: Jerald David August

An Instance Where the Business Taxpayer Can Win Despite the Absence of Economic Substance !!!

In Summa Holdings Inc. v. Commissioner, No. 16-1712 (Feb. 16, 2017), the Sixth Circuit Court of Appeals reversed the Tax Court decision below which held that payments a corporation made to a DISC were not DISC commissions but instead were to be characterized as dividends to shareholders followed by excess contributions to their Roth IRAs. Such recharacterization would have eliminated the tax benefits associated with the IC-DISC for the taxpayers.

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Bryan C. Skarlatos presented "A Practical Approach to Tax Issues in Matrimonial Cases" at the Nassau County Bar Association

Mr. Skarlatos shared his extensive knowledge on matrimonial law with those in attendance.

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Could Trump's Budget Priorities Threaten Existing Contracts?

By Claude M. Millman
New York Nonprofit Media
March 2017 Edition

Nonprofits receiving contract awards from New York City or the state should carefully monitor President Donald Trump’s budget policies for potential retroactive effects on pre-existing contracts.

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