Recent Tax Law Changes Make Income Tax Planning More Important Than Ever

January 23, 2018

One universal and challenging objective in wealth preservation planning is reducing taxes.  Recent tax law changes have in many cases shifted the focus of such planning from estate and gift tax reduction to income tax reduction. As part of the American Taxpayer Relief Act of 2012, Congress amended the Federal tax law, effective January 1, […]

“Framework” For Proposed Federal Tax Law Changes Is Released

October 11, 2017

On September 27th, the Trump Administration and select members of Congress have released a “unified framework” for tax reform. This document provides more detail than a number of other tax reform documents that have come from the Administration over the past few months, but it still leaves many specifics to be worked out by the […]

Tax Implications in Settling a Construction Defect Claim

August 1, 2017

Have you thought about the tax implications in settling your construction defect claims? My clients often ask me whether the settlement or judgment money from their construction defect claim is taxable as income. The U.S. Tax Code defines income very broadly under 26 U.S. Sec. 61 and provides that “gross income means all income from […]

Payment Clauses in Subcontracts

June 30, 2017

If you are in the business of hiring subcontractors—or if you are a subcontractor yourself—you know how messy things can get when a project owner fails to pay a bill. Revenues drop, tensions flare, and each party is left wondering if and when they will ever be compensated for their work.  This sort of situation […]

What is an Earn Out in a Business Sale?

June 2, 2017

Reaching a mutually acceptable purchase price can be difficult.  The seller and the potential buyer may disagree on the value of the business.  An Earn Out can resolve such a disagreement.  It enables the parties to hold different opinions on the business value, but agree on the terms of the transaction. An acquisition with an […]

Management of Limited Liability Companies: Member-Managed vs. Manager-Managed

May 30, 2017

Under the new Pennsylvania Uniform Limited Liability Company Act of 2016 (the “Act”), which recently went into effect as of April 1, 2017, a limited liability company (“LLC”) no longer has to declare if it is member-managed or manager-managed in its Certificate of Organization filed with the Pennsylvania Department of State.  However, the question of […]

Oral Modifications to Written Contracts

March 30, 2017

Ordinarily, contract provisions are what they say they are. The term is the term, a confidentiality clause requires confidentiality, and an assignment clause precludes assignment to another party.  The same cannot be said, however, for provisions prohibiting subsequent oral modifications of the original written agreement. This is because Pennsylvania law permits the oral modification of […]

Perils of the Business Privilege Tax

March 10, 2017

With Tax Season in full bloom and filing deadlines just around the corner, people often forget that more than just income taxes must be paid. One such tax, known as a Business Privilege Tax (BPT), is levied by local taxing authorities against all types of businesses, with few exceptions.  Often imposed by municipalities throughout the […]

Increased Security Measures with the IRS

February 21, 2017

Due to the increasing IRS and identity theft scams, the IRS has issued guidance (IR 2017-32) for taxpayers who call the IRS. The IRS suggests that any taxpayer who calls an IRS call center should have the following information available: Social Security Numbers and birth dates for those listed on the tax return For those […]

The Apostille: Operating in a Global Economy

January 24, 2017

As technology, media and advances in travel have made our world smaller, opportunities for business and nonprofit organizations have expanded.  With a shrinking world comes more integration than ever before.  What if Jane Smith wants to participate in a business transaction with her Pennsylvania limited liability company in Great Britain?  What if John Smith wants […]

Featured Posts


Practice Area Topics