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Hackensack Business Law Blog

What to do when the IRS audits your business

When reading the letter from the IRS alerting you of a business audit, it’s normal to get nervous. Even if you and your advisers had the best intentions when paying taxes, an audit can surprise you. You may start to wonder if an undetected miscalculation could harm your company’s financial health.

An audit does not always mean that your business is in legal or fiscal turmoil. In many cases, the IRS finds no major fault with taxes and resolutions can have minimal impact on the business.

The contract: what new franchisees should consider

When you become a franchisee, you sign a legally-binding contact with the company. Once you sign the contact, you are bound by its requirements, and are stripped of your autonomy. This does not mean that you should not sign a franchise contract, it just means that you need to carefully consider the offered contract before signing.

In general, franchise contracts are lengthy, complex documents that can be difficult to wade through and comprehend. What should you consider before you sign?

What's there to know about insurance dedicated funds?

Tax law and estate planning are unquestionably complex, yet they often go hand-in-hand. When writing or litigating an estate plan, reducing tax liability is usually the key to maximizing payout as either a grantor or a beneficiary. Different investment options have a varying tax liability, so each grantor should understand how they can be applied to a family's financial situation.

New life insurance policies may have the attention of the IRS

An investment option that appears to be working well for grantors and beneficiaries is raising some eyebrows in the Internal Revenue Service, according to Bloomberg. "Insurance dedicated funds (IDF)" are part of private life insurance policies. Investors contribute money as insurance dedicated funds, but because the funds are managed by the insurance company and not the investor, they are not taxed as capital gains funds. 

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