Industries
Overview
Rob Swenson has been with ORBA since 1996 and is a member of the firm’s Tax Leadership and Training Committees. Over the course of his career, Rob has gained extensive experience serving individuals, trusts, partnerships and privately-held corporations. His specialties include tax compliance, tax planning and consultations for owners and key executives. In addition, he represents taxpayers before the Internal Revenue Service and state taxing authorities.
Rob helps clients devise strategies for entity formation planning, mergers and acquisitions structuring and minimizing state income taxes. Rob works closely with many law firms, professional corporations, professional athletes, restaurants and also with a wide variety of other industries.
Industries
Overview
Rob Swenson has been with ORBA since 1996 and is a member of the firm’s Tax Leadership and Training Committees. Over the course of his career, Rob has gained extensive experience serving individuals, trusts, partnerships and privately-held corporations. His specialties include tax compliance, tax planning and consultations for owners and key executives. In addition, he represents taxpayers before the Internal Revenue Service and state taxing authorities.
Rob helps clients devise strategies for entity formation planning, mergers and acquisitions structuring and minimizing state income taxes. Rob works closely with many law firms, professional corporations, professional athletes, restaurants and also with a wide variety of other industries.
Proactive
Beyond continually developing his own skills so that he can best serve his clients, Rob passes along the knowledge he gains to others. As a member of ORBA’s Tax Training and State and Local Tax Committees, he combs through pending legislation to be aware of tax issues before they become law. As he learns of tax updates, he shares them with clients and ORBA staff by creating tax alerts, blogs, authoring the ORBA Tax Connections Newsletter and hosting tax training sessions each year for the entire firm. Rob goes the extra mile to make sure everyone he serves, firm or clients, receives relevant tax knowledge and support as soon as he becomes aware of new issues.
Outside of the Office
While Rob focuses on supporting the firm and clients while on the job, away from work, he spends time supporting his family. Whether it’s using his season tickets to Cubs games on a sunny summer day, coaching kids’ sports or cheering on his alma mater, Rob enjoys being there for his family and friends.
Presentations
- “What Not-For-Profits Need to Know About the Affordable Care Act,” ORBA Not-For-Profit Group Seminar, Chicago, December 5, 2013
- “What Restaurateurs Need to Know About Health Care Reform,” ORBA Restaurant Group Seminar, Chicago, January 8, 2013
Publications
- “Where’s the Tip Line? Pros and Cons of a No-Tip Policy,” Law360, December 2, 2015
Civic Activities
- Treasurer, Stop Foodborne Illness
- Treasurer, Welles Park Parents Association
Seminars & Events
- How Manufacturers Can Drive, Measure and Capture Value, ORBA, Chicago, IL, January 29, 2015
- Making the Affordable Care Act Affordable for Your Company, Northbrook, IL, September 26, 2013
- What Restaurateurs Need to Know About Health Care Reform, Chicago, IL, January 8, 2013
Certifications & Licenses
- Certified Public Accountant
Memberships & Affiliations
- American Institute of Certified Public Accountants
- Illinois CPA Society
- Illinois Restaurant Association
Education
- B.A., Economics, University of Michigan
- M.S., Taxation, DePaul University
Blogs
Unused Gift Cards: Windfall or Burden?
Gift cards can be an attractive option for restaurants and customers alike. For customers, they provide an easy, yet thoughtful, gift idea. And for restaurants, they help increase revenue, attract new customers and build customer loyalty. Another potential benefit is that many gift cards go unused or are only partially used — a phenomenon known […]
What Is Happening With the Employee Retention Credit?
On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act (IIJA) into law. One of the Act’s provisions terminated the Employee Retention Credit (ERC) retroactively to September 30, 2021, except for eligible “recovery startup businesses.” Previously, the ERC was scheduled to continue through the end of 2021, which would have allowed eligible […]
Stimulus Legislation Offers Relief for the Restaurant Industry
On December 27, 2020, the Consolidated Appropriations Act (the Relief Act) was signed into law, authorizing additional stimulus payments to individuals, extending enhanced unemployment relief and providing a variety of benefits for struggling businesses. The following is a brief overview of the provisions most relevant to restaurants. Deductibility of Expenses Paid with PPP Loans Last […]
Do Not Put Payroll Management on Autopilot
The COVID-19 pandemic has thrown the economy for a loop. Many law firms have had to trim expenses and furlough employees. Laying off or decreasing pay for support staff, associates and partners can add payroll tasks to your workload. If your firm is reducing people on the payroll or outsourcing work to independent contractors, there […]
Going Green Can Pay Off for Law Firms
Adopting green practices is no longer just about protecting the environment—both clients and job candidates increasingly are considering law firms’ sustainability efforts. This article looks at how, focusing on areas such as paper use, energy conservation, smart design and procurement, law firms make themselves more appealing to these potential stakeholders.
Don’t Panic: How to Prepare for an IRS Audit
No one likes to receive a notice from the IRS that they are being audited, including law firms. But if you receive a notice from the IRS, don’t panic. The best defense is to be prepared.
How to Handle Collections and Late Payments
For most law firms, it is a familiar pattern: while some clients remit promptly, others drag their feet, and regrettably, some may not pay at all. Because attorneys generally cannot withdraw representation based solely on a client’s failure to punctually pay an invoice, firms must have a system in place that improves collections. Doing so […]
New Sales Tax Regime Casts a Wide Net
The U.S. Supreme Court’s landmark June 2018 decision in South Dakota v. Wayfair opened the door for states to impose sales tax collection obligations on out-of-state sellers without a physical presence in the state.
Opting Out of the New Partnership Audit Regime
The Bipartisan Budget Act of 2015 changed how partnerships are audited. Proposed IRS rules for partnership audits under the law apply to taxable years beginning after December 31, 2017, but some partnerships can choose to opt out. If your law firm is organized as a partnership, here’s what you need to know.
What the New Tax Law Means for Law Firms
Just before the end of 2017, President Trump signed into law the Tax Cuts and Jobs Act (TCJA). Many types of businesses stand to benefit from the sweeping legislation, but the boon for law firms is limited. Here’s a quick review of the TCJA and some of its impact on law firms. The Pass-Through Deduction […]
Why Law Firms Should Look to the Cloud
Cloud computing is not exactly new. It has been on the radar of efficiency and cost-minded businesses of all sizes for some time, but law firms have been slower to jump on board, largely because of privacy and security concerns. However, several newer cloud computing options address these issues, and many firms are concluding that the benefits far outweigh the risks.
The Cook County Sweetened Beverage Tax is Bad for You – Just Like Sugar
Back in November of 2016, the Cook County Board of Commissioners passed the Cook County Sweetened Beverage Tax Ordinance. The tax is imposed at the rate of $0.01 per ounce on the retail sale of all sweetened beverages in Cook County. The tax was originally intended to go into effect July 1, 2017, but was […]
Four Tips for Strengthening Cybersecurity
Law firms of all sizes have sensitive information that make them vulnerable to data breaches. This article outlines four strategies for preventing — or, at worst, minimizing the damage of — a cyber attack. These are encryption, employee training, cyber liability insurance coverage and recovery planning.
A Prix Fixe Serving of Best Restaurant Management Practices
Restaurant Week just arrived to showcase more than 300 Chicago area restaurants. Prix fixe menus of $22, $33 and $44 are offered for breakfast lunch and dinner. In honor of the festivities, our latest Restaurant Group blog is here to serve up a prix fixe menu of best restaurant management practices. Rather than an appetizer, main course and dessert, we will discuss regulations, finances and taxes.
Delivering Lessons Learned in Cuba to the Restaurant Industry
In November, I traveled to Cuba for a week-long vacation with my wife and another couple. I departed the United States with an open mind and not really knowing what to expect. The trip was a mind blowing, amazing experience that is hard to put into words. This article shares three lessons that I learned about life in Cuba and relate them to the business of running a restaurant.
Charitable Contributions of Food Inventory
The rules regarding charitable donations of inventory, specifically food inventory, have fluctuated over the years. Recently a tax law was enacted that made the deduction for food inventory permanent and enhanced it. Previously non-C Corporations and taxpayers that were not required to track inventory did not receive an enhanced deduction. Now, all types of taxpayers can get a deduction of an amount somewhere between their cost basis and the fair market value of the food they are donating. This article will give you the details you need to know about charitable contributions of food inventory.
Law Firm Mergers: Once the Deal Closes, the Hard Work Begins
Many law firms that merge primarily focus on getting the deal done, which means they not be prepared to integrate the two organizations. This article explains how integration planning should start early and be a team effort involving both firms and professional advisors. A transition team should evaluate both practices; determine how staff in duplicative positions can be redeployed; and document internal policies and procedures.
Cash Flow Statements: Your Firm’s Early Warning System
Law firms need to provide their partners with cash flow statements so they will be able to identify and address cash shortfalls and other problems. This article describes the three main sections of a typical cash flow statement — operating, investing and financing activities — and urges partners to take action if statements indicate a possible liquidity issue.
Share the Holiday Beer, Spread the Holiday Cheer
As the season changes from fall to winter, snow begins to fall and brewers release their holiday beers. Sharing the latest seasonal brew at a holiday party this December helps spread the holiday joy. And, as you are celebrating the last month of the year, don’t forget to begin your year-end tax planning.
How to Make Part-Time Partnership a Viable Option
To keep productive partners and reduce high turnover costs, firms need to offer lawyers options that allow them to enjoy a better work/life balance. One such option is a part-time partnership track. Before implementing this option, however, it is essential that management fully embraces the concept and formalizes the terms and responsibilities. This article examines how to do that.
Cheers to Tax Breaks for Craft Brewers!
In honor of Chicago Craft Beer Week, here are some tax tips for the fledgling craft brewers out there. Between raising capital, navigating a maze of regulations and developing a great product, there is not much time left to think about taxes. However, it is very important to consider some tax implications of your operations sooner rather than on April 15.
Opening a New Restaurant? We’ve Got Some Info For You
So you have decided to go boldly where many others have gone before: You are opening a new bar or restaurant. Now that you have the concept and the staff structure in mind, what financial and legal expertise do you need to succeed?
Beware! The IRS is on the Look-Out for Auto-Gratuities
The IRS recently released a series of guidance on the tax treatment of tips with Rev. Rul. 2012-18 and it could have an impact on your bottom line and tip reporting systems. The key takeaway is how the IRS is distinguishing between tips and service charges.
With the year drawing to a close, now is an ideal time to review your tax situation and evaluate strategies that may help minimize your bill. Here are five tax planning tips to consider before year-end that could keep more money in your pocket.
REPORT FOR DUTY! Support your country AND earn tax credits.
When you hire a Veteran, you are not only being patriotic but you may also qualify for a tax credit. Veterans are generally described as a highly skilled workforce, tech savvy, leaders and motivated. Those are great traits for a new employee and it can also shave money off your tax bill at the same time.
She Blinded Me With Science!!!!
The research and development credit (R&D Credit) for a restaurant? It sounds scientific, only for people in white lab coats inventing the next widget, right? WRONG! Restaurants are constantly opening and evolving. An integral part of that evolutionary process is research.
Newsletters
Tax Connections Newsletter – Summer 2023
ORBA’s Tax Connections Summer 2023 Newsletter discusses the benefits of the newly authorized 529-to-Roth IRA transfer for those saving for college and urges those eligible to take advantage of the one-time opportunity to make a qualified charitable distribution of up to $50,000.
Tax Connections Newsletter – Spring 2023
ORBA’s Tax Connections Spring 2023 Newsletter cautions readers to regularly review their beneficiary designations and outlines the tax benefits in SECURE 2.0 that make it easier to save for retirement.
Tax Connections Newsletter – Winter 2023
ORBA’s Tax Connections Winter 2023 Newsletter details potential tax surprises — for employees and employers — that may occur as a result of working remotely and offers tax tips regarding charitable donations, inheritances and student loan forgiveness.
Tax Connections Newsletter – Fall 2022
ORBA’s Tax Connections Fall 2022 Newsletter explains effective tax strategies regardless of business needs and reducing taxes at the end of the year.
Tax Connections Newsletter – Summer 2022
ORBA’s Tax Connections Summer 2022 Newsletter explains the importance of familiarizing yourself with the tax treatment of scholarships, provides the specifics of when an estate’s executor can defer the payment of estate taxes, and details the ins and outs of using alternative IRA investments.
Law Firm Group Newsletter – Summer 2022
ORBA’s Law Firm Group’s Summer 2022 Newsletter summarizes the updated Attorneys Audit Technique Guide and looks at how law firms are valued compared to other businesses.
Tax Connections Newsletter – Spring 2022
ORBA’s Tax Connections Spring 2022 Newsletter covers the basics of the Section 45F credit and explains the potential tax liabilities when using cryptocurrency.
Law Firm Group Newsletter – Spring 2022
ORBA’s Law Firm Group’s Spring 2022 Newsletter discusses the findings of the 2022 Report on the State of the Legal Market and highlights ten ways law firms can assess collections processes.
Tax Connections Newsletter – Winter 2022
ORBA’s Tax Connections Winter 2022 Newsletter examines the tax advantages of classifying workers as independent contractors rather than employees and details the home sale exemption’s requirements.
Tax Connections Newsletter – Fall 2021
ORBA’s Tax Connections Fall 2021 Newsletter discusses the double taxation risk involved with foreign assets and examines year-end planning tips for mutual fund investors.
Law Firm Group Newsletter – Fall 2021
ORBA’s Law Firm Group’s Fall 2021 Newsletter highlights the pros and cons that law firms should weigh before making a so-called “hybrid” work environment part of their firm’s new normal and evaluates whether remote document review is here to stay.
Tax Connections Newsletter – Summer 2021
ORBA’s Tax Connections Summer 2021 Newsletter details an acquisition-based strategy where one corporation’s losses can be offset against the other company’s profits and examines the benefits of including a power of attorney in an estate plan.
Law Firm Group Newsletter – Summer 2021
ORBA’s Law Firm Group’s Summer 2021 Newsletter explains how part-time partnerships provide key contributors with the flexibility they need to remain with a firm and covers why firms are adopting subscription-based legal services.
Tax Connections Newsletter – Spring 2021
Our Tax Connections Spring 2021 Newsletter offers guidelines as to when it is safe to shred tax records and explores various tax considerations when selling a business. A sidebar examines potential state tax implications when selling a business.
Law Firm Group Newsletter – Spring 2021
ORBA’s Law Firm Group’s Spring 2021 Newsletter highlights a few areas of law practices, such as client intake, document drafting, marketing, and billing and collections, that are benefitting from automated solutions and suggests some steps law firms can take to have a successful KPI program.
Tax Connections Newsletter – Winter 2021
Our Tax Connections Winter 2021 Newsletter details the changes the SECURE Act made to the kiddie tax, explores the double taxation pitfall that can occur when working remotely across state lines, and explains how to report sick and family leave under the Families First Coronavirus Response Act.
Tax Connections Newsletter – Fall 2020
Our Tax Connections Fall 2020 Newsletter explains how the SECURE Act affects employers, explores the benefits of the temporary gift tax break and illustrates how to identify audit red flags.
Tax Connections Newsletter – Spring 2020
Our Tax Connections Spring 2020 Newsletter details the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s retirement-related provisions and specifies how the CARES Act offers tax incentives to support your favorite charity.
Tax Connections Newsletter – Winter 2020
Our Tax Connections Winter 2020 Newsletter offers insight on the Tax Cuts and Jobs Act’s (TCJA) limit on interest expense deductions and explains how the Act has changed the rules for deducting an individual taxpayer’s business losses.
Tax Connections Newsletter – Fall 2019
Our Tax Connections Fall 2019 Newsletter explains some factors to consider when deciding what to do with the savings accumulated in a 401(k) account as well as information on the tax implications of equity-based compensation.
Law Firm Group Newsletter – Summer 2019
Our Law Firm Group’s Summer 2019 Newsletter looks at the rising trend in subscription-based legal services, as well as some ways that law firms can increase their capabilities to avoid competing on price alone for new business.
Tax Connections Newsletter – Summer 2019
Our Tax Connections Summer 2019 Newsletter offers advice on implementing a “backdoor Roth IRA” strategy that allows anyone, regardless of income, to enjoy a Roth IRA’s benefits, as well as guidelines on when to deduct business meals.
Tax Connections Newsletter – Spring 2019
Our Tax Connections Spring 2019 Newsletter offers insight on qualified opportunity zones, as well as advice regarding estate planning for when you or a loved one becomes terminally ill.
Tax Connections Newsletter – Winter 2019
Our Tax Connections Winter 2019 Newsletter offers insight on business interest expense deductions, as well as advice regarding tax planning and vacation homes.
Tax Connections Newsletter – Fall 2018
Our Tax Connections Fall 2018 Newsletter offers clarity regarding LLC members and self-employment tax, as well as advice to take into account before hiring household help.
Law Firm Group Newsletter – Fall 2018
Our Law Firm Group’s Fall 2018 Newsletter offers tips for recognizing and ending billing fraud at your firm, as well as advice on cyber security to minimize potential risks.
Tax Connections Newsletter – Summer 2018
Our Tax Newsletter discusses the Tax Cuts and Jobs Act’s changes to the divorce process and alimony in 2019, as well as determining the right structure for your business.
Law Firm Group Newsletter – Spring 2018
Our Law Firm Group’s Spring 2018 Newsletter shares how data analytics can be advantageous for your law firm, as well as advice on reevaluating your firm’s partnership agreement.
Tax Connections Newsletter – Spring 2018
Our Spring 2018 Tax Connections Newsletter discusses the Tax Cuts and Jobs Act’s impact on charitable donations, as well as liability concerning company’s payroll taxes.
Tax Connections Newsletter – Winter 2018
At the end of 2017, the most sweeping tax reform legislation in decades was signed into law. Below are the highlights of the Tax Cuts and Jobs Act (TCJA) that affect individuals and businesses. Most of the changes go into effect this year.
Tax Connections Newsletter – Fall 2017
ORBA’s Tax Connections Group Fall Newsletter provides details on how your business can obtain research payroll credits and discusses the advantages and disadvantages of a Section 83(b) election on restricted stock for employees.
Tax Connections Newsletter – Summer 2017
The ORBA Tax Connections Newsletter is a quarterly publication focused on effective tax planning. The Summer 2017 issue includes the articles, “Cash vs. Accrual: Are You Using the right accounting method?” and “Two Homes in Different States May Result in Multistate Taxation.”
Tax Connections Newsletter – Spring 2017
The ORBA Tax Connections Newsletter is a quarterly publication focused on effective tax planning. The Spring 2017 issue includes the articles, “Are You a Member of the Sandwich Generation?” and “Timing Compensation in a Changing Tax Climate: All Eyes on Sec. 409A.”
Tax Connections Newsletter – Winter 2017
The ORBA Tax Connections Newsletter is a quarterly publication focused on effective tax planning. The Winter 2017 issue includes the article, “Is it Time to Revisit the Research Credit?”
Tax Connections Newsletter – Summer 2016
The ORBA Tax Connections Newsletter is a quarterly publication focused on effective tax planning. The Summer 2016 issue includes two articles: “Five Retirement Tax Traps to Avoid” and “When an Inheritance is Too Good to be True: How Income in Respect of a Decedent Works.”
Tax Connections Newsletter – Winter 2016
The ORBA Tax Connections Newsletter is a quarterly publication focused on effective tax planning. The Winter 2016 issue includes two articles: “Watch Out for Phone Calls ‘From the IRS'” and “Tax Tips.”
Tax Connections Newsletter – Fall 2015
The ORBA Tax Connections Newsletter is a quarterly publication focused on effective tax planning. The Fall 2015 issue includes two articles: “Nonqualified Options: How to Report Stock Sales” and “Should You Treat a Partner as an Employee?”
Law Firm Group Newsletter – Summer 2015
The Summer 2015 Law Firm Group Newsletter includes two articles: How to Use Leverage to Your Firm’s Advantage & Estimating Taxes for Law Firm Partners.
Tax Connections Newsletter – Spring 2015
The ORBA Tax Connections Newsletter is a quarterly publication focused on effective tax planning. The Spring 2015 issue includes two articles, The IRS on Employees vs. Independent Contractors and Tax Tips.
Tax Connections Newsletter – Winter 2015
The ORBA Tax Connections Newsletter is a quarterly publication focused on effective tax planning. The Winter 2015 issue includes two articles, Personal Goodwill Offers Opportunities for M&A Planning and 529 Plans: Fund College Costs the Tax-Advantaged Way.
Tax Connections Newsletter – Fall 2014
The ORBA Tax Connections Newsletter is a quarterly publication focused on effective tax planning. The Fall 2014 issue includes two articles, Buying or Selling a Business? What You Need to Know and Tax Tips.
Tax Connections Newsletter – Summer 2014
The Summer 2014 Tax Connections Newsletter includes two articles, Tips for Midyear Tax Planning and Tax Tips, which covers IRA rollovers, severance pay taxes and the tax treatment of virtual currency.
Law Firm Group Newsletter – Spring 2014
ORBA’s Law Firm Group Newsletter is a quarterly publication focused on effective businesses management for lawyers and law firms. The Spring 2014 issue includes two articles: Should You Change Your Business Entity? and Navigating the Retirement Maze: New Options Can Help Keep Partners Happy.
Tax Connections Newsletter – Spring 2014
The Tax Ins and Outs of Employee Fringe Benefits So-called “fringe” benefits can actually be a significant component of compensation and a tool for attracting, motivating and retaining talented employees. But the tax treatment of fringe benefits is complex and often misunderstood. To avoid unpleasant tax surprises, it is important for employers and employees alike […]
Tax Connections Newsletter – Winter 2013
From a tax perspective, pass-through structures — such as limited liability companies (LLCs), S corporations and partnerships — have been the preferred business entity choice in recent years. But increases in individual income tax rates have made the decision a closer call.
Tax Connections Newsletter – Fall 2013
Beginning on Jan. 1, 2015, the health care act requires “large” employers to either: 1) provide “minimum essential” health care coverage to full-time employees that is “affordable” and of at least “minimum value,” or 2) risk substantial penalties. This article offers an overview of the play-or-pay rules, noting who qualifies as a “large” employer and the financial penalties for those that choose not to provide such coverage. A sidebar explains how the act defines “affordable” and “minimum value.”
Tax Connections Newsletter – Summer 2013
Cook County Use Tax Suspended On July 24, 2013, the Cook County Circuit Court issued a preliminary injunction preventing the County from enforcing the Cook County Non-Titled Personal Property Use Tax. In Judge Lopez Cepero’s closing comments, he noted that the County faces a steep uphill battle in seeking to dissolve the injunction. While this […]
Tax Connections Newsletter – Spring 2013
It’s Time for Mid-Year Tax Planning ROB SWENSON Early this year, the American Taxpayer Relief Act (ATRA) triggered a flurry of activity as taxpayers scrambled to assess the new law’s impact on their 2012 tax bills. Now that the dust has settled, it’s a good time to embark on some mid-year tax planning. Businesses, in […]
Tax Connections Newsletter – Winter 2012
Restricted Stock and Restricted Stock Units: How are they Taxed? ROB SWENSON Over the last seven years, restricted stock and restricted stock units (RSUs) have grown in popularity as incentive compensation tools, while the use of stock options has declined. So it’s important — for employers and employees alike — to understand their tax implications. […]
Tax Connections Newsletter – Special End-of-Year Edition
It is never too early to start planning your New Year’s Eve celebration. More importantly, with various tax incentives scheduled to expire once the ball drops on 2012, it’s also never too early to consider year-end tax planning. Currently, there are many expired and expiring tax provisions. We will take a look at three of them as they relate to your year-end hiring and purchasing decisions.
Client Alerts
Chicago to Phase Out Subminimum Wage for Tipped Workers
Chicago has joined several states and Washington, D.C. in eliminating the lower minimum wage for tipped workers, sometimes referred to as the “subminimum” wage. The One Fair Wage ordinance, passed by the Chicago City Council on October 6, gradually increases the minimum wage for tipped workers, eventually requiring tipped workers receive the same minimum wage as non-tipped workers.
The IRS Warns Businesses about ERC Scams
The airwaves and Internet are inundated these days with advertisements claiming that businesses are missing out on the lucrative Employee Retention Tax Credit (ERC). While some employers do indeed remain eligible if they meet certain criteria, the IRS continues to caution businesses about third-party scams related to the credit. While there is nothing wrong with claiming the credits that you are entitled to, those that claim the ERC improperly could find themselves in hot water with the IRS and face cash-flow problems as a result.
To help you make sure that you do not miss any important 2023 deadlines, we have provided this summary of when various tax-related forms, payments and other actions are due. Please review the calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them.
Year-End Spending Package Tackles Retirement Planning, Conservation Easements
Recently, the year-end spending “omnibus” package was signed into law by President Biden. It includes two important new laws that could affect your financial planning: The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act and the Conservation Easement Program Integrity Act.
What Do the 2023 Cost-of-Living Adjustment Numbers Mean for You?
The IRS recently issued its 2023 cost-of-living adjustments for more than 60 tax provisions. With inflation up significantly this year, many amounts increased considerably over 2022 amounts. As you implement 2022 year-end tax planning strategies, be sure to take these 2023 adjustments into account.
Clean Vehicle Credit Comes With Caveats
The Inflation Reduction Act (IRA) includes a wide range of tax incentives aimed at combating the effects of climate change. One of the provisions receiving considerable attention from consumers is the expansion of the Qualified Plug-in Electric Drive Motor Vehicle Credit, now known as the Clean Vehicle Credit.
The Inflation Reduction Act Includes Wide-Ranging Tax Provisions
The U.S. Senate and House of Representatives have passed the Inflation Reduction Act (IRA), and President Biden has signed the bill into law. The IRA includes significant provisions related to climate change, health care and, of course, taxes. The IRA also addresses the federal budget deficit. According to the Congressional Budget Office (CBO), the IRA is projected to reduce the deficit by around $90 billion over the next 10 years.
Businesses: Act Now To Make the Most Out of Bonus Depreciation
The Tax Cuts and Jobs Act (TCJA) significantly boosted the potential value of bonus depreciation for taxpayers — but only for a limited duration. The amount of first-year depreciation available as a so-called bonus will begin to drop from 100% after 2022 and businesses should plan accordingly.
Four Tips for Working With a Resource-Constrained Internal Revenue Service
Federal tax professionals working to resolve issues with the IRS can attest to the multifaceted impacts of the agency’s resource constraints on taxpayer service. The signs are evident, for instance, in the long wait times for calls to be answered, tax return processing delays and increased instances of penalties being assessed against compliant taxpayers.
Standard Business Mileage Rate to Increase on July 1 for Second Half of 2022
The IRS recently announced that it will increase the standard mileage rate for qualified business driving for the second half of 2022. The mid-year adjustment reflects the soaring cost of gasoline this year. In fact, as of June 13, the nationwide average price of regular unleaded gas was $5.01 a gallon, according to the AAA Gas Prices website. This is compared with $3.08 a gallon a year ago.
New Tax Reporting Requirements for Payment Apps Could Affect You
If you run a business and accept payments through third-party networks such as Zelle, Venmo, Square or PayPal, you could be affected by new tax reporting requirements that take effect for 2022. They do not alter your tax liability, but they could add to your recordkeeping burden, as well as the number of tax-related documents that you receive every January in anticipation of tax-filing season.
After Tax Day: Take These Action Steps
The April tax filing deadline has passed, but that does not mean you should push your taxes out of your mind. If you filed an extension, you should gather your remaining tax information sooner rather than later. Here are three other tax-related actions that you should consider taking in the near term.
The IRS Again Eases Schedules K-2 and K-3 Filing Requirements for 2021
The IRS has announced additional relief for pass-through entities required to file two new tax forms — Schedules K-2 and K-3 — for the 2021 tax year. Certain domestic partnerships and S corporations will not be required to file the schedules, which are intended to make it easier for partners and shareholders to find information related to “items of international tax relevance” that they need to file their own returns.
2021 To End Without Senate Action on the Build Back Better Act
As the 2021 legislative calendar comes to a close, so does the prospect of Senate passage of the Build Back Better Act. With a 50-50 Senate, the loss of just one Democratic member is fatal and Senator Joe Manchin (D-W.V.)’s remarks on December 19, 2021, appeared to be the fatal blow.
U.S. House Passes the Build Back Better Act
The U.S. House of Representatives passed a crucial part of President Biden’s agenda by a vote of 220-213 on November 19. The Build Back Better Act (BBBA) includes numerous provisions related to areas ranging from health care, climate change and immigration to education, social programs, and of course, taxes.
Almost three months after it passed the U.S. Senate, the U.S. House of Representatives has passed the Infrastructure Investment and Jobs Act (IIJA), better known as the bipartisan infrastructure bill. President Biden signed the bill into law on November 15. While the bulk of the law is directed toward massive investments in infrastructure projects across the country, a handful of noteworthy tax provisions are tucked inside it. Here is what you need to know.
Businesses Must Navigate Year-End Tax Planning With New Tax Laws Potentially on the Horizon
The end of the tax year is fast approaching for many businesses, but their ability to engage in traditional year-end planning may be hampered by the specter of looming tax legislation. The budget reconciliation bill, dubbed the Build Back Better Act (BBBA), is likely to include provisions affecting the taxation of businesses — although its passage is uncertain at this time.
Potential Tax Law Changes Hang Over Year-End Tax Planning for Individuals
As if another year of the COVID-19 pandemic was not enough to produce an unusual landscape for year-end tax planning, Congress continues to negotiate the budget reconciliation bill. The proposed Build Back Better Act (BBBA) is certain to include some significant tax provisions, but much uncertainty remains about their impact. While we wait to see which tax provisions are ultimately included in the BBBA, here are some year-end tax planning strategies to consider to reduce your 2021 tax liability.
Debate Continues in Congress Over Proposed Tax Changes
Negotiations continue in Washington, D.C., over the future of President Biden’s agenda. Tax law changes may be ahead under two proposed laws, the Build Back Better Act (BBBA) and the Bipartisan Infrastructure Bill (BIB), also known as the Infrastructure Investment and Jobs Act. The final provisions remain to be seen, but the BBBA and, to a lesser extent, the BIB, contain a wide range of tax proposals that could affect individuals and businesses. It is also unclear when the tax changes would become effective if one or both of the laws are enacted.
Disasters and Your Taxes: What You Need To Know
Homeowners and businesses across the country have experienced weather-related disasters in recent months. From hurricanes, tornadoes and other severe storms to the wildfires again raging in the West, natural disasters have led to significant losses for a wide swath of taxpayers. If you are among them, you may qualify for a federal income tax deduction, as well as other relief from the IRS.
IRS Issues ERC Guidance as Congress Mulls Early Termination
The IRS published new guidance last week on the Employee Retention Credit (ERC). The Credit was created in March 2020 to encourage employers to keep their workforces intact during the COVID-19 pandemic. Notice 2021-49 addresses various issues, particularly those related to the extension of the Credit through 2021 by the American Rescue Plan Act (ARPA).
Here Come the Child Tax Credit Payments: What You Need to Know
The first advance payments under the temporarily expanded child tax credit (CTC) will begin to arrive for nearly 39 million households in mid-July 2021 — unless, that is, they opt-out.
Illinois 2022 Budget To Raise New Tax Revenue
The Illinois General Assembly passed the Fiscal Year 2022 budget implementation bill, S.B. 2017, that intends to raise $650 million of new tax revenue based on changes to the computation of taxable income. Governor J.B. Pritzker is expected to sign the bill into law.
President Biden Details His Tax Proposals for Individuals
President Biden’s proposals for individual taxpayers were outlined in the April 28 address to Congress and in an 18-page fact sheet released by the White House. The American Families Plan contains tax breaks for low- and middle-income taxpayers and tax increases on those “making over $400,000 per year.”
Make the Most of the Employee Retention Credit
The Employee Retention Credit (ERC), which was created to encourage employers to keep their workforces intact during the COVID-19 pandemic, has been with us for a year. But questions about it remain for many employers. With the new American Rescue Plan Act (ARPA) extending the credit and expanding eligibility — and the credit worth as much as $28,000 per employee for 2021 — employers should brush up on the details.
To help you make sure that you do not miss any important 2021 deadlines, we have provided this summary of when various tax-related forms, payments and other actions are due.
New Stimulus Package Extends and Expands the Employee Retention Credit
The Employee Retention Credit (ERC) was created by the CARES Act on March 27, 2020 to encourage businesses to keep employees on their payroll and continue providing health care benefits during the coronavirus pandemic. The ERC is a refundable payroll tax credit for wages and health care costs paid by an employer whose operations were fully or partially suspended due to a COVID-19 related governmental order or experienced a significant reduction in gross receipts.
President Signs a New Stimulus Package
On December 21, 2020, Congress passed the Consolidated Appropriations Act 2021 (the “Act”), a massive tax, funding and spending bill that contains a nearly $900 billion coronavirus aid package. The emergency coronavirus relief package aims to bolster the economy, provide relief to small businesses and the unemployed, deliver checks to individuals, and provide funding for COVID-19 testing and the administration of vaccines.
Consider Reevaluating Your Tax Plans Based on the Outcome of the Presidential Election
Now that Joe Biden has been projected as the winner of the presidential election by major news outlets, you may wonder if your federal taxes will be affected. President-elect Biden campaigned on a broad agenda, including a pledge to roll back many of President Trump’s tax policies.
Mayor Lightfoot Announces Grants and Other Emergency Relief for Chicago Restaurants and Bars
On November 5, Mayor Lightfoot announced several initiatives designed to help Chicago restaurants and bars — and their workers — that have been hit hard by closures, reduced capacity limits and other measures taken to mitigate the impact of the COVID-19 pandemic.
What do the 2021 Cost-Of-Living Adjustment Numbers Mean for You?
The IRS has announced its 2021 cost-of-living adjustments to tax amounts that might affect you. Many increased to account for inflation, but some remained at 2020 levels. As you implement 2020 year-end tax planning strategies, be sure to take these 2021 adjustments into account in your planning.
Unusual Year Steers Year-End Tax Strategies
Like so many things this year, the recommended practices for your annual year-end tax planning reflect the COVID-19 pandemic and its far-flung effects. The economic impact, as well as federal relief packages like the CARES Act, may render some tried-and-true strategies for reducing your income tax liability less advisable for 2020.
Compare and Contrast: How do the Republican and Democratic Tax Plans Differ?
With the presidential election only weeks away, many people are beginning to pay closer attention to each candidate’s positions on such issues as the COVID-19 pandemic, health care, the environment and taxes. Among their many differences, President Donald Trump and former Vice President Joe Biden have widely divergent tax proposals.
What Does the Executive Action Deferring Payroll Taxes Mean for Employers and Employees?
On August 8, 2020, President Trump signed an executive memorandum that defers an employee’s portion of Social Security and Medicare taxes from September 1 through December 31, 2020. At this point, the taxes are just deferred, meaning they will still have to be paid at a later date.
The IRS Provides Guidance on Meal and Entertainment Deductions
The Tax Cuts and Jobs Act eliminated some of the deductions for business-related meal and entertainment expenses. New guidance from the IRS, in the form of proposed regulations, address meal and entertainment expenses.
To help make sure that you do not miss any important 2020 deadlines, we have provided this summary of when various tax-related forms, payments and other actions are due.
Client Alert: IRS Updates Rules for Using Per Diem Rates
The IRS recently issued guidance on how businesses, self-employed individuals and qualified employees can use the per diem rules to substantiate their business travel expenses for tax purposes. The guidance in Revenue Procedure 2019-48 modifies 2011 guidance to reflect changes made by the Tax Cuts and Jobs Act (TCJA).
In a nutshell, the per diem rules themselves have not changed significantly. Primarily, RP 2019-48 deletes guidance for taxpayers who, before the TCJA, were allowed to deduct certain unreimbursed business travel expenses. Here is a refresher on what has changed under the TCJA and the rules for using per diem rates.
IRS Updates Rules for Mileage-Related Deductions
The IRS has issued new guidance updating the rules for using optional standard mileage rates when calculating “above-the-line” deductions for the costs of operating an automobile for certain purposes. IRS Revenue Procedure 2019-46 also lays out rules for establishing the amount of an employee’s transportation expenses that are reimbursed using the optional standard mileage rates.
It’s Not Too Late to Trim Your 2019 Tax Bill
Fall is in the air and that means it is time to turn your attention to year-end tax planning. While several strategies emerged during the first tax filing season under the Tax Cuts and Jobs Act (TCJA), 2019 and subsequent years bring potential twists that must be considered, too. Let’s take a closer look at year-end tax planning strategies that can reduce your 2019 income tax liability.
The U.S. Department of Labor Finalizes the New Overtime Rule
The U.S. Department of Labor (DOL) has released the finalized rule on overtime exemptions for white-collar workers under the Fair Labor Standards Act. The rule updates the standard salary levels for the first time since 2004. While it is expected to expand the pool of non-exempt workers by more than one million, it is also more favorable to employers than a rule proposed by the Obama administration in 2016. That rule would have expanded the pool by more than four million but was blocked by a federal district court judge.
Congress Acts to Reform the IRS, Enhance Taxpayer Protections
Congress has passed and President Trump is expected to sign into law a broad package of reforms aimed at the IRS. The Taxpayer First Act contains several new protections for taxpayers along with provisions intended to improve the IRS’s customer service.
To help make sure that you do not miss any important 2019 deadlines, we have provided this summary of when various tax-related forms, payments and other actions are due.
Federal Government Shutdown Creates Tax Filing Uncertainty
The IRS has announced that it will begin accepting paper and electronic tax returns for the 2018 tax year on January 28, but much remains to be seen about how the ongoing shutdown of the federal government will affect this year’s filings. Although the Trump administration has stated that the IRS will pay refunds during the closure — a shift from IRS practice in previous government shutdowns — it is not clear how quickly such refunds can be processed.
Year-End Tax Planning for Businesses in the New Tax Environment
The passage of the Tax Cuts and Jobs Act (TCJA) in late 2017 brought significant changes to the tax landscape. As the first tax season under the law looms on the horizon, new year-end tax planning strategies are emerging. Meanwhile, some of the old tried-and-true strategies have changed and others remain viable.
IRS Proposes Regulations for Opportunity Zone Tax Incentives
The Tax Cuts and Jobs Act (TCJA) includes a provision that Secretary of the Treasury Steven Mnuchin said should lead to $100 billion in capital investments in distressed areas. The provision allows taxpayers to defer tax on capital gains by investing in such Opportunity Zones. The IRS unveiled proposed regulations on October 19, 2018 that should help investors capture this tax incentive.
The Business Meal Expense Deduction Lives on Post-TCJA
The Tax Cuts and Jobs Act (TCJA) was packed with goodies for businesses, but it also seemed to eliminate the popular meal expense deduction in some situations. Now, the IRS has issued transitional guidance — while it works on proposed regulations — that confirms the deduction remains allowable in certain circumstances and clarifies when businesses can claim it.
Three Bills Form Tax Reform 2.0
On September 13, the House Ways and Means Committee passed three separate bills that will be the cornerstone of what is being referred to as Tax Reform 2.0.
IRS Issues Guidance on New Bonus Depreciation Rules
The Tax Cuts and Jobs Act (TCJA) significantly expands bonus depreciation under Section 168(k) of the Internal Revenue Code for both regular tax and alternative minimum tax (AMT) purposes. Now, the IRS has released proposed regulations that clarify the requirements that businesses must satisfy in order to claim bonus depreciation deductions. Although the regulations are only proposed at this point, the IRS will allow taxpayers to rely on them for property placed in service after September 27, 2017 for tax years ending on or after September 28, 2017.
Is More Tax Reform on the Horizon?
President Trump and Republican lawmakers currently are considering a second round of tax reform legislation as a follow-up to last year’s Tax Cuts and Jobs Act. As of this writing, no actual bill has been drafted, but a framework of what the tax package may contain has been released, which is referred to as Tax Reform 2.0.
Watch Out for Tax-Related Identity Theft Scams Throughout the Year
With the filing date for 2017 in the rearview mirror for most businesses and individuals, the last thing you want to think about is income taxes. Unfortunately, criminals who commit tax-related identity theft do not work seasonally — they are constantly devising identity theft schemes.
To help you make sure you don’t miss any important 2018 deadlines, we’ve provided this summary of when various tax-related forms, payments and other actions are due. Be aware that some deadlines have been moved up or pushed back compared to previous years. Please review the 2018 tax calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them.
IRS Issues Updated 2018 Withholding Tables
In the wake of passage of the Tax Cuts and Jobs Act (TCJA) late last year, the IRS has taken one of the first critical steps to institute the law’s overhaul of the federal income tax regime. The IRS has released updated withholding tables that indicate how much employers should hold back from their employees’ […]
Congress Passes Biggest Tax Bill Since 1986
On December 20, the House passed the reconciled tax reform bill, commonly called the “Tax Cuts and Jobs Act of 2017” (TCJA), which the Senate had passed the previous day. It is the most sweeping tax legislation since the Tax Reform Act of 1986.
How the New Illinois Budget Will Impact Taxpayers
On July 6, 2017, the Illinois House followed the Senate and voted to override Gov. Bruce Rauner’s veto of the budget and tax increase bills. Senate Bill 9 raises $5 billion of revenue through a permanent income tax increase. The main two revenue raisers are the increases to the individual and corporate income tax rates.
New Illinois Employee Sick Leave Laws
The Chicago Paid Sick Leave Ordinance and the Cook County Earned Paid Sick Leave Ordinance both take effect on July 1, 2017. All employers in and around the Chicago-area, regardless of number of employees, are required to provide up to 40 hours of paid sick leave for every 12-month period of employment for covered employees. […]
Protecting Americans From Tax Hikes Act of 2015
Just before recessing for the holidays, Congress passed and President Obama signed the Protecting Americans from Tax Hikes (PATH) Act of 2015. The PATH Act does considerably more than the typical tax extenders legislation seen in prior years. It makes more than 20 key tax provisions permanent that affect individuals and businesses. Many of the tax extenders have also been enhanced.
Standard Mileage Rates Will Change Slightly in 2015
Optional standard mileage rates for use of a vehicle will change a little for 2015, the IRS announced last month, with the business use rate going up and the medical and moving rate going down (Notice 2014-79). Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile. For […]
Affordable Care Act Delayed Until 2016 for Mid-Size Businesses
CHICAGO — On February 10, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued final regulations implementing the employer responsibility provisions under the Affordable Care Act (ACA) that take effect in 2015.
IRS Guidance On Same-Sex Marriage Creates Tax Planning Opportunities
The IRS recently issued much-anticipated guidance on same-sex marriages and federal taxes following the Supreme Court’s June 26, 2013 decision in E.S. Windsor to strike down Section 3 of the Defense of Marriage Act (DOMA). All legally married same-sex couples will be treated as married for federal tax purposes regardless of whether the couple lives […]
Postponement of Key Affordable Care Act Provision
Large employers that fail to provide minimum health coverage for employees will not be subject to the shared-responsibility penalty until 2015 according to the Department of Treasury, which announced Tuesday it would delay certain provisions of 2010’s Affordable Care Act (ACA). In a Treasury blog post titled, “Continuing to Implement the ACA in a Careful, […]
News
ORBA’s Robert Swenson Appointed As Board Treasurer of STOP Foodborne Illness
ORBA is proud to announce that Robert Swenson, CPA, MST, has been appointed to the Stop Foodborne Illness’ Board of Directors. STOP Foodborne Illnesses is a national not-for-profit, public health organization dedicated to the prevention of illness and death from foodborne pathogens.
Affordable Care Act Delayed Until 2016 for Mid-Size Businesses
CHICAGO — On February 10, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued final regulations implementing the employer responsibility provisions under the Affordable Care Act (ACA) that take effect in 2015.
CHICAGO — Ostrow Reisin Berk & Abrams, Ltd. (ORBA), one of Chicago’s largest accounting firms, is proud to announce that Robert G. Swenson, CPA, has been named a Director of the firm as of July 1.