Due to an error, taxpayers are receiving Identity Protection PIN letters with an incorrect year listed. Taxpayers and tax professionals should be advised the IP PIN listed on the CP 01A Notice dated January 4, 2016 is valid for use on all individual tax returns filed in 2016.

The IRS may be signing new regulations to limit discounts on the transfer of family company interests. 

It was generally recognized that “discounts” could be applied in valuing transfers of business interests among family members.

There were two recognized types of discounts:

The IRS has issued regulations that change accounting rules for 2014 for certain categories of expenses, including repairs, spare parts, and materials & supplies.  For instance, any item that generally costs less than $200 is a material and supplies item, whereas the previous rules set this limit at $100.  If you own a building, or have materials and supplies, your preparer may have to prepare an additional form called a Form 3115.  This form is separate from your tax return and requires its own signature.  The form is then mailed to

Business owners and their companies can apply a vast array of strategies.  Many of the elections made at the entity level will have a significant impact not only on the company’s tax burden, but also on the tax burden of individual shareholders and partners.  An example is using a strategy such as Section 179 which expenses the cost of some assets, as opposed to depreciating them over time.

For high net-worth individuals, tax planning requires a proactive approach to obtain the best results.  Economic and legislative changes are uncertain as it pertains to the tax code and any expiring benefits.  There is no certainty 2015 will see the same extenders 2014 did and there are many steps you can take now to protect you and your businesses assets.  In taking this approach, the decisions you make now should be instrumental in preserving your wealth – not just for your own future, but for that of the next generation as well.