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Update: Tax Filing Date Also Extended to July 15th

As an update to our earlier blog posted, U.S. Treasury Secretary Steven Mnuchin announced this morning that the U.S.is extending the April 15th tax-filing deadline to July 15th.  This extension is in addition to the earlier announced tax payment extension.

Tax payers now will have until July 15th to not only file their federal income tax forms but also make tax payments.  While it is still suggested to file and make payments as early as possible, individuals can defer up to $1 Million.  This encompasses self-employed individuals, and all entities (other than C corporations), such as trust or estates. C corporations get an extension up to $10 million.  While states are encouraged to follow suit, it is important to remember that this tax filing/payment period extension only applies to federal income tax returns.

Another important note is that this relief also applies to estimated tax payments for 2020 that are

Income Tax Payment Period Extended, Tax Filing Deadline Is Still April 15th

https://www.google.com/search?q=covid-19&rlz=1C1GGRV_enUS762US762&sxsrf=ALeKk02_wIZU5Hcu5kBjZ3TWH-MXOo4S-g:1584709840151&source=lnms&tbm=isch&sa=X&ved=2ahUKEwiWnOCYkKnoAhWWW80KHX1tDVgQ_AUoAnoECA8QBA&biw=1435&bih=650#imgrc=t2x444RPeS4z7M

As a strategy to help combat the economic effects of COVID-19, the U.S. Secretary of the Treasury Steven Mnuchin announced on Monday, March 16th, that taxpayers are getting a 90-day extension for paying their 2019 income taxes.  The goal is to free up $300 billion in liquidity and to lessen the cash-flow burdens facing the country as businesses are temporarily forced to close or slash their workforce.

What does this mean?

While the deadline to file your taxes is still April 15th, 2020, tax payments that are made by July 15th will have no interest or penalty.  As of today, individuals can defer up to $1 Million, while C corporations get an extension up to $10 million.  The $1 million deferral for individuals is to help those

IRS Issues Final Regulations Quashing Taxpayer Fears of Clawback on Gifts

https://www.google.com/url?sa=i&source=images&cd=&ved=2ahUKEwjXhI6W9oDnAhUIVs0KHUSsAyoQjRx6BAgBEAQ&url=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FUnited_States_Department_of_the_Treasury&psig=AOvVaw3-KJts_b0uQwIYTZ0cp-4l&ust=1579016816822422The Treasury Department issued final regulations on  November 26, 2019 (Treasury Decision 9884) confirming that taxpayers will not be subject to “clawback” of the value of their pre-2026 gifts of the temporarily increased gift and estate tax exemption.

Pursuant to the final regulations, taxpayers will be able to use (prior to 2026) the full increased gift and estate tax exclusion that became available beginning in 2018 under the citing the Tax Cuts and Jobs Act (TCJA) without concern that the IRS may attempt to include gifts that exceed the post-2025 exclusion amount in the taxpayer’s taxable estate at death.  This concern that lifetime gifts in excess of the exclusion amount at death might be included in the taxable estate of the decedent has come to be known as “clawback.”  The TCJA itself directed the IRS to publish regulations clarifying the clawback question and related

Ruben Sinha named in CityWealth’s 2019 Future Leaders Top 100

July 8, 2019

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Hong Kong Senior Associate, Ruben Sinha,  has been named in CityWealth’s 2019 Future Leaders Top 100. This publication is judged by industry leaders and recognises rising talent (under 40 years old) and leading next generation advisers working within the international private wealth industry across law, private banking, trust services and asset management. This is, in part, recognition of Ruben’s experience advising ultra-high net worth clients in complex international and often high profile cases from both London and Hong Kong. His work is increasingly focused on asset protection and trusts in the context of family litigation, in particular, advising offshore trustees within international divorce proceedings. Ruben’s inclusion follows his recognition in Legal Week’s Private Client Global Elite ‘Ones to Watch’ last summer.’

IRS Revises EIN Application Policy, Now Requires an Individual to be Listed as the “Responsible Party”

 

The IRS announced on March 27, 2019 that in an effort to enhance security and improve transparency, the “responsible party” on applications for an employer identification number (EIN) must now be a natural person.

An EIN is the tax identification number assigned to entities such as trusts, estates, retirement plans, LLCs, partnerships, and corporations.  An entity obtains such a number by completing the IRS Form SS-4 or an online application.  One question in the application process asks the applicant to identify the “responsible party,” which the IRS defines as “the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity.” In deciding who to list as the responsible party, the IRS encourages applicants to consider whether the party has “a level of control over, or

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