Tax Law Defined® Blog

Showing 9 posts in State & Local Tax.

Court Rules in Favor of More Transparency for Kentucky Taxpayers

The Kentucky Supreme Court, in Department of Revenue v. Mark F. Sommer, upheld all lower court decisions requiring the Department of Revenue (DOR) to make its redacted final rulings publicly available. The Court ruled that the state DOR took an “unreasonable and overly broad view” of public records statutes and later denied the department’s request for appeal. Read More ›

Special Timing Rule

Special timing tax rule

Are You Withholding Too Much on Nonqualified Deferred Compensation?

If you have a nonqualified deferred compensation plan for select employees, you are probably aware that benefit payments under a properly structured plan are generally not taxable for income tax purposes until the payments are received by the employee. Read More ›

Unitary is Alive and Kicking in The Commonwealth

As a part of the generational legislation on Kentucky tax passed last April via 2018 HB 486, the General Assembly for the first time in history enacted formal, mandatory unitary combined reporting (MUCR) as a required method of compliance for purposes of the Kentucky corporation income tax. Read More ›

Section 1202 Qualification Checklist and Planning Pointers

We recently published four articles discussing the potential benefits of holding and selling Qualified Small Business Stock (QSBS) under IRC § 1202 and diving into the complicated qualification rules. Based on the volume of responses to those articles, we felt that a basic checklist of qualification requirements would help business owners and tax professionals considering structuring or restructuring a business to take advantage of IRC § 1202, or trying to confirm whether their stock is QSBS. Read More ›

Planning Beyond the Buy-Sell – Ownership Structure Considerations for Closely Held Business Owners

Planning Beyond the Buy-Sell – Ownership Structure Considerations for Closely Held Business Owners

Most closely held business owners recognize that a properly drafted and current buy-sell agreement is an important document that addresses what happens to an owner’s interest in the company in the event of divorce, disability, or death.  What is not commonly known is that how owners hold their respective interests in the company also requires close consideration.  Read More ›

The Importance of Regulations in Tax Law, Especially After Kentucky's Recent Tax Reform

The Importance of Regulations in Tax Law, Especially After Kentucky's Recent Tax Reform

The importance of regulations in the world of tax is often overlooked, but in many cases, regulations cut both ways – being a taxpayer’s best friend for guidance purposes or the government’s first line of defense when enforcing tax laws. Read More ›

Is Kentucky’s Tax Reform Dead On Arrival?

Is Kentucky’s Tax Reform Dead On Arrival?

This article, authored by Frost Brown Todd's Mark Sommer, was originally published in Law360, and discusses Kentucky's recent tax reform. Read More ›

Kentucky Tax Reform – Big Changes for the Business Community

Kentucky Tax Reform – Big Changes for the Business Community

Kentucky legislative sessions are always full of twists, turns, and surprises. Read More ›

Rollover Equity Transactions: Business & Tax Planning Fundamentals

Rollover Equity Transactions: Business & Tax Planning Fundamentals

During the past decade, financial buyers such as private equity firms (PE firms) have dramatically increased their participation in the M&A marketplace. PE firms and other financial buyers generally acquire companies with the intention of holding them for a three to seven-year period and then (hopefully) selling their "portfolio company" for a profit. Most PE firms look for target companies with strong management teams. PE firms also often encourage a target company's equity owners (referred to in this article as "founders") to "roll over" a portion of their equity, so that the founders own a minority equity position in the target company or its holding company after the transaction closes. Read More ›

Ask the Blogger

Do you have a topic that you would like discussed in a future blog article? Please let us know. If you have a confidential question regarding a blog article, please feel free to contact the article's author directly, or let us know if you would like for someone to contact you directly.

Attorney Spotlight

Mark F. Sommer is FBT’s Tax, Benefits and Estates Practice Group leader, focusing on state, local and federal tax, incentives, tax controversy and litigation. He has successfully handled thousands of audits, protests, appeals, and transactional matters.

Top