IRS gaining more enforcement tools

The IRS will soon be able to seize your passport if you have a significant tax delinquency. While this might not impact a large number of taxpayers, it is but one more reason to make sure that you take care to address your taxes.

Engaging is some proactive tax planning you can legally reduce your tax bill and do more than just avoid this new form of IRS punishment.

Call or email P. Christopher Wegner, Managing Attorney, Wegner Law PLLC, today at 239.449.9200 or cwegner@wegnerlawfirm.com

Congress skips tax treaties again

As Congress goes into recess it is obvious that lawmakers will skip the growing pile of tax treaties for review and approval yet again. This will likely push back review of the bi-lateral agreements beyond next session as changes to tax law and priorities have resulted in some small but significant changes. As a result, treaties with established partners will continue to struggle with lack of consistency and uncertainty surrounding key provisions. New taxing relationships will be forced to continue applying the standard or default rules delaying the benefits of a specialized US international tax convention.

International taxation is hard enough without these additional complications and, even more important, uncertainty. However, Wegner Law PLLC can help you establish the tax strategy for your inbound and outbound transactions regardless of what Congress does next. Call or visit Chris Wegner at Wegner Law PLLC in Naples today.

Possible capital gains tax cut on the horizon

The Trump administration is considering a change to the way taxpayers calculate capital gains that could result a major tax cut for investors. Specifically, the idea is to change the way that taxpayers calculate capital gains income by including the impact of inflation on the overall price. That is, tax payers will be able to exclude income from inflation from taxable gains on the sale of the capital asset; resulting in significant reduction in the overall tax liability for many investors.

Wegner announces affiliation with English law firm

Wegner Law PLLC has entered into an affiliation agreement with St. James Square Law Firm in New Castle, England, to provide even more services for demanding international business clients. St. James Square Law Firm specializes in dispute resolution, corporate reorganization, sports law and real estate law throughout Europe and opens up new opportunities for Wegner Law PLLC clients doing business throughout the European Union or the United Kingdom.

In addition to providing general business and tax law advice to St. James Square Law Firm clients seeking to do business in the United States, Wegner Law PLLC will provide sophisticated tax law advice to European golfers and soccer players and clubs moving to or doing business in the US. This new relationship not only opens the door to greater opportunities for Wegner clients but is yet another example of the firm’s stellar reputation in the areas of business and tax law.

If you would like to take advantage of our new affiliation or are interested in learning more about the law firm helping businesses grow, contact P. Christopher Wegner, at 239.449.9200, cwegner@wegnerlawfirm.com or visit wegnerlawfirm.com to learn more.

Section 199A Regulations Released

The IRS has released the long hoped for final regulations for the deduction under Section 199A. While most of the regulations were pretty much as expected, there are some surprises allowing taxpayers more freedom in how they calculate their maximum deduction under the Code.

However, not all of the news is good news and the broad anti abuse rules threaten to sweep up well meaning tax payers and deprive them of their full deduction for missing arbitrary deadlines. Even if you are not the type to engage in tax planning to lower your taxes, the new rules are poised to punish taxpayers who do not do minimal planning by sharply increasing their taxes.

As always, call or email P. Christopher Wegner at 239.499.9200 or cwegner@wegnerlawfirm.com today for a free consultation as to how Section 199A will impact you.

IRS to collect taxes and issue refunds during shut down.

As the government shutdown enters its third week, agencies are scrambling to determine what the shutdown means to them. For the Internal Revenue Service (“IRS”), there was never any question that they would continue to collect taxes regardless of what happened.

Initially the concern was whether the agency could process refunds during the Washington D.C. imposed hiatus.  However, the White House issued guidance on Monday that will permit the executive agency to process and mail tax refunds while the government is closed.

New Business Owner Beware!

If you just formed a new business in Florida, you will start receiving all types of unsolicited mail. Some of the mail will look official and display names such as “Florida Corporation Register Inc.” or “Florida Annual Reports LLC.” These letters almost always start with some form of warning or call to action in big bold or red letters instructing you to do any of a number of things supposedly required to keep your new company open.

The letters will then include some sort of form asking for information and telling you to send check or money to an address in Tallahassee. Everything from the envelope to the print is made to appear official.

The problem, they are not official. Countless companies inundate new business owners with letters attempting to take money from an unsuspecting small business owner. Each company trying to take between $50 to $250 from the confused entrepreneur.

While some of these letters are very convincing, you may disregard any letters that you receive via the mail regarding a newly formed business. The State of Florida only contacts business regarding their state registration or annual report via email. Therefore, you can save a significant amount of frustration, uncertainty and money by throwing out any imposter asking for money via the postal service.

In addition, as we approach the new year and the limited liability companies, partnerships and corporations have to file their annual reports with the State of Florida, there is another scam business owners should know about. Almost everyone has seen a letter claiming the need to file corporate records with the state. The State of Florida does not require businesses to create or file any corporate or company minutes or other similar records.

Starting a new business can be scary and it is hard enough without con artist and scammers working hard to take advantage of you. Hopefully, this post will help Florida business owners avoid becoming prey to these scams.

If you are confused or concerned, you can always come to Wegner Law PLLC for help. Call 239.449.2900 or email cwegner@wegnerlawfirm.com for answers to all your questions.

Wegner Law PLLC closes $1.2 million capital raise for client

Wegner Law PLLC helped another client raise funds this week when P. Christopher Wegner closed on a $1.2 million capital raise. Chris has been working with the client for eight months from formation through today and assisted by: (1) drafting the operating agreement; (2) drafting employment agreements; (3) filing paperwork to convert from a Delaware limited liability company to a Delaware corporation; (4) drafting bylaws; (5) drafting shareholders’ agreements; (6) drafting convertible debt instruments for the offering and much more.

The client is currently in discussions to form a joint venture with a publicly traded power house in the client’s industry. Wegner Law PLLC is excited for the client and looks forward to doing many more great things in the future.

 

Florida Tangible Tax Return Exemption

As a general rule, in the State of Florida taxpayers must file tangible personal property tax returns with the state each tax year.[1] It is incumbent on the taxpayer to “disclose and claim any … exemptions from taxation to which the taxpayer may be entitled …”[2] Failure to do so may result in the taxpayer waiving his or her right to any exceptions for the relevant tax year.[3]

However, the exemption provided under §196.183 of the Florida Statutes for the first $25,000 of assessed tangible personal property value,[4] waives the general rule as it relates to the property exempted under that section.[5] Therefore, a taxpayer does not need to file an annual tangible personal property tax return with respect to personal property not exceeding $25,000 so long as the taxpayer filed an initial return claiming the exemption.[6]

A taxpayer must file an annual tangible personal property tax return when the taxpayer possess property with an assessed value in excess of the exemption amount and failure to make the initial filing required under the relevant section precludes the taxpayer from claiming the benefit of this exception from filing provision.

 

 

[1] § 196.021, Fla. Stat. (2018).

[2] Id.

[3] Id.

[4] § 196.183(1), Fla. Stat.

[5] Id. at (3).

[6] Id. (expressly providing an exemption from the filing requirements under the section).