About BCo Tax Committee

The BCo Tax Committee contributing authors for this post are: Niki Doctor and Daniel Novak.

The Overlooked and Misunderstood


We are often asked for a list of tax ‘Do’s and Don’ts’ to help ensure that no tax planning opportunities nor implications are missed.  In response, we have comprised a summary of items that are commonly overlooked or misunderstood when considering the various aspects of managing family wealth from a tax perspective.  While the following is by no means a comprehensive nor complete list of compliance and planning opportunities, each topic listed here, should encourage further communication and planning within families and/or the family office.

Estate Planning & Trust Administration

Procrastination.  Contemplating death and discussing how to distribute assets is not really a conversation starter, so many individuals decide to do it “someday.”  For some individuals that someday never arrives, and the state in which they live decides how their […]

By |November 21st, 2023|Categories: Individual Tax|Comments Off on The Overlooked and Misunderstood

IRS Provides Broad Penalty Relief For Some 2019 and 2020 Returns


The IRS on August 23, 2022, announced it will grant automatic penalty relief for late-file penalties imposed with respect to certain returns required to be filed for the 2019 and 2020 tax years.

Notice 2022-36 provides systemic penalty relief to taxpayers for certain civil penalties related to 2019 and 2020 returns. Penalty relief is automatic so eligible taxpayers need not apply for it. If penalties have already been paid, the taxpayer will receive a credit or refund. However, the IRS has not yet announced if or when it will notify eligible taxpayers that it has waived their preexisting penalties pursuant to this announcement.

However, it is critical to note that some of these automatic penalty waivers are available only if a taxpayer files its delinquent returns on or before September 30, […]

By |August 29th, 2022|Categories: BCo Community News|Comments Off on IRS Provides Broad Penalty Relief For Some 2019 and 2020 Returns

Inflation Reduction Act Becomes Law


President Biden signed the Inflation Reduction Act into law at a White House ceremony on August 16, finalizing legislation intended to address inflation by paying down the national debt, lower consumer energy costs, provide incentives for the production of clean energy and reduce healthcare costs.

The bill moved through the legislative process in near-record time, having been first introduced by Sens. Chuck Schumer (D-NY) and Joe Manchin (D-WV) on July 27.  With the 50-50 Senate, summer recess, and approaching mid-term elections, the path to passage by both houses of Congress was not a certainty.

The act is expected to raise roughly $450 billion through new tax provisions, including a 15% minimum book tax on certain large corporations, a 1% excise tax on corporate stock buybacks, and a two-year extension of section 461(l) […]

By |August 22nd, 2022|Categories: BCo Community News|Comments Off on Inflation Reduction Act Becomes Law

Biden Administration’s Proposed 2023 Budget Plan Calls for Corporate & High-Net-Worth Individual Tax Hikes


The Biden administration’s fiscal year 2023 budget blueprint, released on March 28, consists of a mix of familiar proposals and brand-new initiatives that reflect the President’s policy objectives. The proposals are described in more detail in the General Explanations of the Administration’s Fiscal Year 2023 Revenue Proposals, commonly referred to as the “Green Book,” that was released with the budget, and include the President’s now familiar calls for increasing the top corporate tax rate to 28% and the top individual rate to 39.6%.

Among the new proposals, the minimum tax on high-net-worth individuals has garnered considerable press attention.

These proposals, as well as others that have not been closely scrutinized, are described in more detail below.

Corporate Tax Proposals

Raise Corporate Income Tax Rate to 28%

C corporations, unlike an S corporation, the […]

By |August 2nd, 2022|Categories: Announcements, Business Tax, Individual Tax, IRS, Trusts and Estates|Comments Off on Biden Administration’s Proposed 2023 Budget Plan Calls for Corporate & High-Net-Worth Individual Tax Hikes

California A.B. 150

On July 16, 2021, California enacted A.B. 150, which included the “Small Business Relief Act” providing a pass-through entity (PTE) tax election for the years 2021-2025.

What is A.B. 150?

Assembly Bill 150 is a new California law that allows partnerships, S-corporations, and LLC’s to make an election to pay state income tax at the company level and deduct the expense against federal taxable income while generating a California credit the owners can use on their individual tax return.

Why make the election?

Individual owners of PTE’s can potentially realize significant federal tax savings by getting around the $10,000 state and local tax (SALT) deduction limit enacted in 2018.

Who does it apply to?

Election eligibility is limited to a “qualified entity.” A qualified entity must satisfy two requirements: (1) it must be an entity […]

By |September 3rd, 2021|Categories: BCo Community News|Comments Off on California A.B. 150
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