20 THE QUEENS COURIER • FEBRUARY 2, 2017 FOR BREAKING NEWS VISIT WWW.QNS.COM ARE YOU DOWNSIZING, MOVING OR JUST NEED SOME EXTRA CASH? We specialize in purchasing entire estates or individual pieces of furniture, lighting or art. If you have Mid-Century modern, Art Deco or items from , the 30’s to the 70’s, call all us for a free appraisal and us a iate paym immediate payment. ment. the ca immed Family owned business. We are insured and bonded. “Over Two Decades Of Personalized Service” Call Now & End Your Tax Nightmare! �������������������������������������� �������������������������������������� �������������������������������� �������������������������������������������������� ������������������������������������������ Co-Author of the best selling book “Breaking the Tax Code” �������������������������������� �������������������������������� Salvatore P. Candela, EA, ATA, ABA Enrolled Agent - Tax Advisor ���������������������������������������������������������������� ������������������������������������������������������ TAX TIPS Increased IRS scrutiny on worker classifi cation BY JOHN SAVIGNANO Th e employee-versus independent contractor issue has traditionally been a hot item at the federal and state audit level. If the business income tax is lowered to 15%, workers who fi nd themselves in the grey area on classifi cation may consider whether they might be better off as self-employed. Expect the IRS to bolster the border between these classifi cations to prevent abuse and ensure the proper collection of tax revenues. Multinational compliance The new administration is expected to take a carrot-and-stick approach to its goal of repatriating revenue that U.S. businesses have earned and kept abroad. To offset the lower U.S. business tax rate, there may be a tax (rumored at 10%) on assets retained by U.S. businesses offshore. This combination would replace the current “tax holiday” approach which has let businesses to accumulate earnings offshore, and could prove more effective than the occasional tax holidays offered in the past as incentives to repatriate funds. CPAs should be mindful of developments in this area, as any significant changes will likely redirect the focus of IRS audits and require multinational companies to revisit their financial and tax planning. Criminal enforcement It is widely believed that a “law and order” platform can fund itself, the more it is applied to tax enforcement. There has already been a strong trend toward parallel investigations (i.e., dual civil and criminal investigations on the same issues.) In addition, with the ever-increasing use of civil and criminal forfeitures, tax restitution rules, and criminal fines, the IRS Criminal Investigation Division and the Department of Justice have gradually seen their roles broadened to include acting as profit centers for government resources. As a practical matter, increasing the agency’s use of these tools does not require legislation and thus represents a quicker, more efficient path toward generating government revenue. Corporate tax shelters Given the anticipated lower corporate tax rate and the likelihood of increased tax enforcement, CPAs should expect a trend away from corporate tax shelters, as the rewards may no longer justify the risks. With that said, no federal tax over-haul comes without its share of countervailing interpretations and tax strategies. Therefore, tax advisors should certainly look to take full advantage of whatever opportunities might be provided in the new legislation, with the age old qualification that if it looks too good to be true, it likely is. John Savignano is a partner with Savignano Accountants & Advisors located at 47-46 Vernon Blvd., Second Floor, in Long Island City. For questions, dial 718-707-0955. LJC@loucarino.com
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