skip to Main Content
  • July 29, 2014

Charitable Contributions to Foreign Organizations and/or Designated to Foreign Organizations

In general, the United States does not permit individuals to claim an income tax deduction for direct contributions to foreign charities.  IRC Section 170(c)(2)(a) specifically limits the tax deduction to corporations, funds or foundations created or organized in the United States or under the laws of the United States.  To that end, the IRS will disallow a tax deduction for contributions to domestic charities if the domestic charity is a mere conduit of funds to a foreign organization.  To determine whether the domestic charity is a “mere conduit” of funds, the IRS will look to the whether the domestic organization…

Read More
  • April 4, 2014

Changes to Maryland’s Estate Tax

On March 21, 2014, for the first time in twelve years, Maryland has adjusted its estate tax.  Maryland General Assembly passed House Bill 739 / Senate Bill 602 which changes the “unified credit” amount, i.e. the threshold of assets above which the estate tax applies, from the current $1 million to the federal credit amount.  The Senate passed the measure by a vote of 36 to 10.  The House vote was 119 to 14. This bill alleviates the problems in Maryland’s estate tax caused by its “de-coupling” from the Federal estate tax exemption.  The bill gradually raises Maryland’s $1 million…

Read More
  • February 18, 2014

IRS Changes Health FSA “Use or Lose” Rule

On October 31, 2013, the Internal Revenue Service (IRS) released Notice 2013-71 (Notice), which modifies the “use or lose” rule for health flexible spending accounts (Health FSAs).

Flexible spending accounts (FSAs) are popular benefits offered by many employers as part of their employee’s health-care package.  Health FSAs are accounts that allow employers to reimburse employees for qualifying out-of-pocket medical expenses, such as deductibles and co-pays, on a tax-free basis.  The account must be set up according to a written plan that meets both statutory and IRS requirements.

Read More
Back To Top