Need to purchase BOLI? Here’s how to avoid being taxed

Life insurance proceeds are generally exempt from income tax, but special rules apply to business-owned life insurance (BOLI). This article describes the benefits of BOLI, along with Internal Revenue Code Section 101(j) restrictions designed to combat perceived abuses. It also describes what companies using BOLI need to do to be sure that new and existing life insurance policies are in compliance. A sidebar discusses employee notification procedures that must be carried out before a BOLI policy is issued.
Full Article

Filing for bankruptcy may keep the tax collector at bay

There’s a common misconception that bankruptcy can never be used to wipe out tax debts. In fact, tax liabilities that meet certain requirements can be discharged in bankruptcy. This article offers a brief introduction to bankruptcy’s impact on taxes. It looks at the different kinds of bankruptcy, what taxes are dischargeable, and alternatives to bankruptcy.
Full Article

Don’t let your good deeds go unrewarded

U.S. tax law is generous in providing tax deductions for charitable gifts — but the donor must be able to substantiate each dollar or asset given in order to receive a deduction. This article discusses the documentation requirements for different amounts of cash and noncash contributions and when it’s necessary to obtain an appraisal.
Full Article

Tax Tips

In this issue’s “Tax Tips,” we discuss revised IRS rules that require some companies to report uncertain tax positions (UTPs) on their tax returns using Schedule UTP; why it’s necessary to distinguish between maintenance and capital improvement expenses to save taxes; and the importance of tracking reinvested dividends to avoid paying tax on them twice.
Full Article

KDV Wealth Management to Expand Client Base

Effective April 1, 2011, Sartell-based Nies Financial Group, will join KDV Wealth Management, a regional financial services and CPA firm.  The merger broadens KDV's portfolio of expertise, services and clients as it continues its expansion.  Nies Financial Group Specializes in full-service financial solutions, focusing on financial planning, retirement planning, estate planning and portfolio allocation.  Full Article