August 18, 2016
As the end of summer approaches, little, if any, legislative action on the tax front is anticipated, as Congress is effectively on hold pending the outcome of the Presidential and Congressional elections. Not only will January 2017 usher in a new administration, but there could be a change in control in one or both Houses of Congress. That said, this article will discuss legislative and regulatory developments, certain inflation-adjusted tax items for 2016, and tax planning strategies which should be considered and implemented prior to year-end.
Some Notable Changes
ENACTMENT OF THE TAX EXTENDERS BILL
On December 31, 2014, over 50 largely taxpayer-friendly tax provisions expired. On December 18, 2015, the extending legislation was enacted into law, when President Obama signed The Protecting Americans From Tax Hikes Act of 2015. The law makes some of the previously expired provisions permanent, extends some of the provisions for five years, and extends other provisions for two years through 2016. The more relevant provisions of the law are discussed below. Unless otherwise indicated, all of the provisions discussed have been retroactively reinstated to January 1, 2015.
Permanent Provisions: Some of the provisions that have been permanently extended are:
- The research and experimentation credit. This is a significant event, since the credit had, in the past, been extended regularly for two years at a time but never made permanent. With the credit assuming permanent status, taxpayers now can plan and project their effective tax rate with greater reliability;
- Enhanced use of the research credit for certain small businesses—Beginning in 2016, eligible small businesses ($50 million or less in gross receipts for the three-taxable-year period preceding the current taxable year) may claim the credit against the alternative minimum tax liability. An eligible small business includes a corporation that is not publicly traded, a partnership, or a sole proprietorship that meets the gross receipts test. At the partner or S-corporation shareholder level, the partner or shareholder must additionally meet the gross receipts test. Qualified small businesses (those with gross receipts of less than $5 million for the current year and no gross receipts for any tax year before the five tax years ending with the current tax year) can claim the credit against their payroll tax liability of up to $250,000 per year for up to five tax years. A qualified small business includes a corporation (including an S-corporation) or partnership that meets the gross receipts test. An individual carrying on one or more trades or businesses also may be considered a qualified small business if the individual meets the gross receipts test;
- Enhanced Section 179 expensing—The Section 179 deduction is now $500,000, with the phase-out beginning at total fixed asset additions in excess of $2,000,000;
- 15-year straight-line depreciation for qualified leasehold improvements, qualified restaurant improvements, and qualified retail improvements;
- Exclusion of 100 percent of gain on certain small business stock, and the elimination of the gain as an AMT preference item;
- The shortened five-year recognition period for the S-corporation built-in gains tax;
- Tax-free treatment of distributions (up to $100,000) from individual retirement plans by individuals who are at least 70 ½ years old, if the proceeds are contributed to qualified charities;
- The basis adjustment to stock of S-corporations making charitable contributions of property is reduced by the shareholder’s pro rata share of the adjusted basis of property contributed by the S-corporation;
- Enhanced American Opportunity tax credit—The increased credit is $2,500 for four years of post-secondary education, and the increased beginning phase-out thresholds are $80,000 (single) and $160,000 (married filing jointly);
- Parity for the exclusion from income for employer-provided mass transit and parking benefits;
- Enhanced child tax credit; and
- The option for individuals to deduct state and local sales taxes in lieu of state and local income taxes as an itemized deduction.
Five-Year Extension: The provisions the legislation extended for five years are:
- Bonus depreciation. Although bonus depreciation has been extended, it is being phased out over five years and will be gone at the end of 2019. The new law provides for 50 percent bonus depreciation in 2015, 2016, and 2017; 40 percent in 2018; and 30 percent in 2019;
- The work opportunity tax credit is extended and modified to also apply, beginning in 2016, to employers who hire qualified long-term unemployed individuals, and the credit with respect to such long-term unemployed individuals is increased to 40 percent of the first $6,000 in wages;
- The new markets tax credit; and
- Look-through treatment of payments between related controlled foreign corporations under Subpart F (foreign personal holding company income rules). (The law extends the look-through treatment for payments of dividends, interest, rents, and royalties between related controlled foreign corporations, exempting these in most cases from Subpart F treatment).
Two-Year Extension: Some of the provisions the legislation extended for two years include the following:
- The above-the-line deduction for qualified tuition and related expenses – The deduction is capped at $4,000 for an individual whose AGI does not exceed $65,000 ($130,000 for joint filers) or $2,000 for an individual whose AGI does not exceed $80,000 ($160,000 for joint filers);
- Deductibility of mortgage insurance premiums as qualified residence interest;
- The gross income exclusion for discharge of indebtedness on a principal residence;
- The credit for construction of new energy-efficient homes – An eligible contractor may claim a tax credit of $1,000 or $2,000 for the construction or manufacture of a new energy efficient home that meets qualifying criteria;
- The deduction for energy-efficient commercial buildings; and
- A moratorium on the 2.3 percent medical device excise tax. The tax will not apply to sales during calendar years 2016 and 2017.
NEW DUE DATES FOR FEDERAL RETURNS
Starting with 2016 returns, several due dates have changed:
Partnerships and S Corporations: For partnership returns, the due date has changed from April 15th to March 15th (for calendar-year partnerships), and the 15th day of the third month following the close of the tax year (for fiscal year partnerships). For S corporations, the deadline remains March 15th.
C Corporations: For C corporation returns, the due date has changed from March 15th to April 15th (for calendar year C corporations), and the 15th day of the fourth month following the close of the tax year (for fiscal year C corporations). With one exception, this provision becomes effective for taxable years beginning after December 31, 2015. However, for C corporations with fiscal years ending on June 30th, the new due date becomes effective 10 years later, for taxable years beginning after December 31, 2025.
Report of Foreign Bank and Financial Accounts (FBAR) FINCEN114: The deadline for FBAR filings has changed from June 30th to April 15th. This will conform to the individual income tax return filing deadline of April 15th, and is an attempt by Congress to make the FBAR a more normal filing. Significantly, it is now possible to extend the due date of the FBAR filing with an extension for the individual income tax return. The law affords an extension of up to six months to be available to all taxpayers, which coincides with the October 15 extension due date for individual income tax returns. The bill further allows for penalty abatement for any taxpayer required to file an FBAR for the first time, who may have failed to file or timely request an extension on their first-ever FBAR.
Modification of Extension Provisions: Several extension durations have been adjusted:
- Partnerships— The partnership extension has been increased from 5 months to 6 months. This means that calendar year partnerships will have an extended due date of September 15th (as was previously the case).
- Form 1041 Filings for Trusts and Estates— The Form 1041 extension has been increased from 5 months to 5 ½ months. This will provide an extended due date of September 30th.
- C Corporations— C corporations with a calendar year-end are granted a 5 month extension for tax years beginning before January 1, 2026; after January 1, 2026, the extension is increased to 6 months. Fiscal year C corporations, other than those with a June 30th year-end, are granted a 6 month extension. C corporations with a June 30th year-end are given a 7 month extension for tax years beginning before January 1, 2026, and thereafter are given a 6 month extension.
CONSISTENT BASIS REPORTING BETWEEN ESTATE AND PERSON ACQUIRING PROPERTY FROM DECEDENT: The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 included a provision requiring that inherited property cannot have a higher tax basis than the basis reported by the estate for estate tax purposes. The law adds Section 6035, which requires the executor of an estate to provide information returns to the IRS and the beneficiaries stating the value of the inherited property.
PROPOSED PARTNERSHIP REGULATIONS ADDRESSING FEE WAIVERS: The IRS has issued proposed regulations under Section 707(a)(2)(A) dealing with fee waivers. The proposed regulations address an arrangement in which a service provider is compensated through a partnership allocation (usually of qualified dividend income and long-term capital gains, both of which are taxed at a favorable 20 percent federal tax rate) and a distribution. Under certain circumstances, this allocation may be re-characterized as a disguised payment for services and treated as ordinary compensation income taxed at an ordinary federal rate of up to 39.6 percent. The proposed regulations would establish a test under which payments pursuant to an arrangement that lacks “significant entrepreneurial risk” are treated as disguised payments for services. The proposed regulations would restrict the ability to use management fee waivers to convert ordinary income into favorably taxed qualified dividend income and long-term capital gains.
PROPOSED REGULATIONS WOULD ELIMINATE VALUATION DISCOUNTS ON INTRA-FAMILY TRANSFERS: The IRS has issued proposed regulations designed to prevent taxpayers from lowering the estate and gift tax value of transferred assets. The regulations will close a tax loophole that certain taxpayers have long used to understate the fair market value of their assets for estate and gift tax purposes. The proposed regulations focus on the long-standing tax planning technique of discounting the value of partial ownership in a closely-held business. Currently, this discount is allowed for estate and gift purposes because a partial interest in an entity is considered to be worth less than the entire interest, due to economic factors including lack of marketability and/or lack of control.
The proposed regulations would appear to eliminate almost all minority (lack of control) discounts for closely-held entity interests, whether the entity is a family limited partnership holding only marketable securities, or an active business owned by a family. To accomplish that goal restrictions under the governing documents or even those under state law would be disregarded under the proposed regulations for valuation purposes.
Inflation Adjusted Amounts and Other Matters for 2016
For those provisions that provide for adjustments for inflation, there are new amounts for 2016:
The impact of the net investment income tax (NIIT): The NIIT became effective in 2013, and is a 3.8% tax on the net investment income of high-income individuals (i.e., married and single taxpayers with modified adjustment gross income (MAGI) in excess of $250,000 and $200,000, respectively) and certain estates and trusts (with undistributed income in excess of $12,400 for 2016). Net investment income is generally comprised of gross income from interest, dividends, annuities, royalties, and rents, not derived in the ordinary course of a trade or business (Category 1 income); gross income from passive activities and from trading in securities or commodities (Category 2 income); and net gains attributable to the disposition of property other than property from a non-passive trade or business (Category 3 income). Deductions allowed for federal tax purposes are allocated to the above categories to arrive at net investment income (NII).
Higher tax rates still apply to high-income individuals: The top ordinary income tax rate of 39.6% still applies to individuals. The 39.6% bracket begins at taxable income of $466,950 for married taxpayers and $415,050 for individual taxpayers.
Long-term capital gains and qualifying dividends: The long-term capital gains rates and qualifying dividend rates remain at 20% for taxpayers in the 39.6% ordinary income tax bracket, 15% for most individuals, and 0% for individuals in the 10% or 15% income tax brackets.
The Affordable Care Act (ACA) individual shared responsibility payment increases: The “penalty” (technically called the “shared responsibility payment”) for “applicable individuals” who do not have health insurance significantly increases in 2016. The penalty is the greater of the flat-dollar-amount penalty or the percentage-of-income penalty. For 2016, the flat-dollar-amount penalty for an individual over age 18 increases from $325 to $695 (and from $162.50 to $347.50 for individuals ages 18 and under). The percentage-of-income penalty increases from 2% in 2015 to 2.5% in 2016.
Estate and gift tax: The estate and gift tax exemption is $5,450,000 for 2016, along with the 40% top estate tax rate. The portability of unused exemption amounts between spouses continues to be allowed in 2016.
Limitations on itemized deductions and personal exemption phase-outs: The phase-outs continue for 2016. For married couples filing jointly, the phase-out begins at adjusted gross income (“AGI”) amounts over $311,300. For single individuals, the phase-out begins at AGI of $259,400. Personal exemptions phase out completely at AGI of $433,800 for married couples filing jointly, and at AGI of $381,900 for single taxpayers.
Tax Planning Ideas
- If realizing capital gains, the amount of gain and all other expected income should be reviewed in advance. Depending on the anticipated total taxable income in the year of sale, by delaying the capital gain or by delaying other income, the resulting capital gain may be taxed at 15% rather than 20%.
- If taxable income is in the 0 – 15% bracket, capital gains at this income level are taxed at 0%; this occurs for married taxpayers filing joint returns on taxable income up to $75,300, and $37,650 for single taxpayers.
- If there is no immediate desire to sell assets, still consider taking advantage if taxable income is in the 0 – 15% tax bracket. With marketable securities that have unrealized gains, it can be beneficial to sell them when in the 0 – 15% tax bracket and incur no capital gain tax, and then repurchase the assets. This will create a new, higher basis in the assets that can be used in the future to reduce gain on sale. This is beneficial if taxpayers expect to be in a higher tax bracket in the future when they may want to sell the asset. This potentially not only reduces capital gains taxes, but reduces the effect of the NIIT.
- If realizing capital gains, the timing and magnitude of the gain may result in, or avoid, additional tax. If the gain is from an investment activity or from a passive activity, the NIIT would apply, depending on the amount of the taxpayer’s total taxable income.
- Consider entering into an installment sale. By electing the installment method for tax purposes, taxable gain recognition can be deferred beyond the current year. An installment sale can spread income over a period of years, may reduce the capital gains tax from 20% to 15% (or lower), and may reduce or eliminate the NIIT. Conversely, and depending on the particular tax situation and income levels, electing out of an installment sale may be desirable if income is expected to increase in the future.
- If selling real or personal property and acquiring other “like kind” property, consider taking advantage of a like-kind exchange under Section 1031. If you are able to take advantage of Section 1031, gain is deferred until the ultimate taxable sale of the replacement property that is received in the exchange. For senior taxpayers, a series of ongoing exchanges has resulted in the term “swap ‘til you drop.” Under this strategy, a taxpayer engages in consecutive exchanges to defer taxes on sales. Upon the death of the taxpayer, the potential income tax on the cumulative gain is eliminated through the estate step-up in basis (unless the estate basis step-up is repealed). State income tax rules need to be considered as well for conformity or lack of conformity with the federal rules on Section 1031.
- If selling real or personal property, by taking steps to structure as a Section 1031 tax-free exchange, even if the exchange fails and replacement property is not acquired, it may be possible to defer the gain and tax into the next tax year. This may be possible if the property to be disposed of under the first step of a like-kind exchange is sold during the last half of the taxpayer’s tax year (so that fewer than 180 days remain in the tax year).
- Harvest losses. If capital gains have already been incurred, consider taking losses presently unrealized on assets held, such as in a stock or bond portfolio. Take available losses now to offset gains, rather than waiting until closer to year-end when the losses may not be available. After taking a loss, the same security can be reacquired after waiting 30 days to avoid the wash sale rules.
- Harvest gains. Normally, accelerating income by pulling income into the current year from future years is not good tax planning. If, however, income is lower this year than expected next year, consider selling assets this year to avail yourself of the tiered capital gain tax rates and avoid the NIIT.
- Plan for eventual sale of personal residence. Consider the exemptions available for gains on personal residence sales: $500,000 for married taxpayers filing a joint return, and $250,000 for single filers. Gains in excess of the exemptions are taxable as capital gains, and subject to the NIIT as well. The installment sales method can be utilized with a residence sale to defer gain, if the seller takes back a note and defers receipt of payments to future years.
- Review activities to determine or reassess if active or passive. The nature of the activity impacts the ability to take losses from flow-through entities, as well as the application of the NIIT.
- Consider making a grouping election under Section 469 in 2016 to combine activities in order to meet the material participation tests. This can change passive business income into active business income that is not subject to the NIIT.
- The grouping election can also create the opportunity to transform what would otherwise be passive losses into active losses that can offset other income.
- Review income and potential income from trusts and estates, and the level of activity of executors and trustees in underlying activities, to determine how and whether the NIIT will apply. Note that there is recent taxpayer-friendly case law on this topic.
- Trusts are subject to the NIIT at a much lower income threshold than individuals ($12,400). Consideration should be given, when allowable under the trust document, to distributing income to the beneficiaries if it better manages the overall NIIT cost. Care should be taken that the goals of the overall estate plan are not compromised by making distributions.
- Assess levels of shareholders’ salaries from S corporations. For shareholders who materially participate in an S corporation, the receipt of reasonable salaries is important to help support their level of activity in the company. Material participation is required to avoid NIIT on the income from the S corporation. The absence of a salary could make it easier for the IRS to assert that the income is passive and subject to the NIIT. Note: Active status is determined based on hours worked and ownership, but not drawing reasonable salaries could indicate to the IRS that adequate hours are not worked.
- Review basis in pass-through entities. Insufficient basis can restrict the ability to deduct flow-through losses and can result in gain if distributions are made in excess of basis. Income and distribution projections should be calculated in order to estimate basis. If basis is estimated to be deficient, steps can be taken to restore basis or manage distributions.
- Consider making retirement plan contributions to reduce AGI.
- Consider converting regular IRAs to Roth IRAs. Regular IRA distributions are taxable and includable in AGI, but distributions from Roth IRAs are tax-free. Once a taxpayer begins taking distributions from IRAs, regular IRA distributions will increase AGI and increase taxable income, make it more likely for the NIIT to apply, and impact the itemized deduction phase-outs. Roth IRA distributions, in contrast, will have no such impact, as the distributions are not taxable. Therefore, consideration should be given to converting regular IRAs into Roth IRAs. Although the conversion is a taxable event, all future growth will be tax-free.
- Taxes should be considered when making and managing investments; however, investment decisions should not be made solely from a tax perspective. In light of the NIIT, consideration should be given to:
- Tax-free municipal bonds—Municipal interest is not included in federal taxable income, reducing AGI and the NIIT.
- Common and preferred stock paying qualified dividends—Qualified dividends are taxed at maximum rates of 15% or 20%, depending on the taxpayer’s income level, and could possibly be tax-free if the taxpayer is in the 0 – 15% bracket.
- Preferred stock paying floating rate qualified dividends—these dividends are taxed at the maximum rates of 15% or 20%, and these securities have the advantage of providing increased dividends if interest rates rise. Qualified dividends, while taxed at lower tax rates, are still included in AGI and are potentially subject to the NIIT.
Investment outlook, risk tolerance, time horizon, and portfolio allocations must be considered before making any investments.
- Consider other tax-sheltered investments such as rental real estate providing depreciation deductions. Depreciation deductions reduce operating income and thus reduce regular tax and the NIIT. However, the passive activity loss limitations need to be considered.
Managing Deductions and Credits for Businesses
- IC-DISC—For US flow-through companies exporting products that are manufactured, produced, grown or extracted in the US with at least 50% US content, it may be worthwhile to establish an interest charge-domestic international sales corporation, or IC-DISC. The operating flow-through company pays a deductible export commission to the IC-DISC that generates a deduction in the hands of the flow-through entity’s owners at (up to) 39.6%. Subsequently, the IC-DISC distributes its net income in the form of a “qualified” dividend to the flow-through owner, and that dividend is taxed to the owners of the flow-through entity at no more than 23.8% (federal tax, including the NIIT.) This generates a permanent “tax arbitrage” opportunity equal to 15.8% of the DISC commission.
- De minimis safe harbor rule under the new repair regulations– This is an annual elective safe harbor and is made by attaching a statement to a timely filed return (including extensions) each year. The safe harbor provides that a taxpayer with applicable financial statements (i.e., audited financial statements) may deduct up to $5,000 per item of tangible personal property purchased. A taxpayer without applicable financial statements may deduct up to $2,500 per item of tangible personal property purchased. The taxpayer must have a written policy for book purposes adopting the expensing policy. As an example, a taxpayer with applicable financial statements that purchases 10 laptops at a cost of $2,000 each and that expenses the laptops, and takes the $20,000 deduction under its book policy, can similarly expense them for tax purposes, rather than having to capitalize and depreciate them over a number of years.
Managing Deductions for Individuals
- Use non-cash assets for charitable deductions. Rather than writing a check to make a charitable deduction, give appreciated assets, such as stocks and bonds. This technique avoids capital gains tax, and reduces income and the NIIT on investment income.
- Charitable contribution of an IRA distribution—As previously discussed, taxpayers 70 ½ and older who are required to take minimum distributions from their IRAs and are charitably inclined can donate up to $100,000 of their IRA distribution directly to a charity. The IRA distribution is excluded from the owner’s gross income. The charitable contribution is not deductible by the taxpayer, but the exclusion from the taxpayer’s gross income has the same impact.
International Tax Legislative Outlook
The media regularly report on different variations of proposed international tax reform legislation. There are two things we can say with relative certainty: first, whatever you read about today isn’t likely to be the version of tax reform that is enacted; and second, it’s highly unlikely that anything material will be enacted before the next Congress is seated in 2017. So rather than speculate about future tax reform, this section is a reminder for our clients who conduct business internationally. In particular:
- Keep in mind your ability to elect the “entity classification” of foreign business entities in order to obtain, or avoid, flow-through tax results. (This “check-the-box” election is available for many limited liability types of entities, other than those that are considered “per se” public corporate entities.) Obtaining flow-through status in a foreign entity can have beneficial features, including:
- Flowing through foreign start-up losses into the income of the US parent entity and offsetting the losses against US income;
- Permitting the use of foreign taxes paid in the foreign country as taxes that may be creditable against US taxes imposed on foreign source income;
- Avoiding the application of disadvantageous anti-deferral tax rules (such as Subpart F and Section 956) that apply to “Controlled Foreign Corporations;”
- Simplifying the US tax reporting requirements with respect to the ownership of foreign entities.
However, there is a trade-off between accessing foreign tax credits on the one hand, and the maximum US tax rate on foreign “qualifying dividends” on the other. Dividends from a foreign corporate legal entity that can make “qualifying dividend” payments to a US individual shareholder, directly or through a US pass-through entity, are subject to a maximum federal tax rate of 23.8% (including NIIT). If the effective foreign tax rate, including withholding taxes, on the foreign corporation’s income is relatively low, it is often less expensive to the US shareholder to access the 23.8% rate than to obtain a foreign tax credit on flow-through foreign source income that would be taxed in the US at up to 39.6% (not including state taxes). Consult your FGMK tax advisor regarding this trade-off before making a foreign check-the-box election.
- Remember that doing business outside the US entails a variety of tax and treasury reporting requirements. In addition to reporting the ownership of foreign entities on Forms 5471 (corporations), 8865 (partnerships) or 8858 (“disregarded entities”), US taxpayers must report contributions to foreign corporations (Form 926), ownership of foreign financial assets (Form 8938), ownership of an interest in a Passive Foreign Investment Company (Form 8621), transactions with foreign trusts, or foreign gifts (Form 3520), and foreign trusts with a US owner (Form 3520-A). Moreover, the US Department of the Treasury requires the reporting of foreign financial accounts on Form FinCEN 114, an on-line form that is due on April 15th (beginning with 2016 tax filings in 2017). Failure to follow these and other international reporting requirements frequently entails penalties, and prevents the tax audit statute of limitations from running.
- Finally, note that almost all cross-border transactions come with tax pitfalls, tax opportunities and US and /or foreign tax reporting requirements. To the extent that your business or investment profile has expanded to encompass cross-border transactions or cross-border investments, the “old tax rules” may no longer apply. The international tax portion of the Internal Revenue Code acts as an “overlay” on top of the domestic portions, and frequently overrides simpler domestic provisions to cause transactions to be taxable, subject to reporting, or both, when the domestic rules would not. Be sure to consult your FGMK tax advisor and advise her or him of any international expansion of your business or your investments.
- In 2016, the following amounts can be gifted free of gift tax, thereby avoiding gift tax as well as any future estate tax on the gift and on all of the potential growth in value of the gift.
- Annual exclusion of gifts per recipient of $14,000
- Lifetime combined gift and estate tax exemption of $5,450,000 (minus prior lifetime gifts made in excess of the annual exclusion)
- There are many ways of making gifts to take advantage of available exemptions. Married couples not prepared to completely part with assets should consider a spousal trust for the other, or two trusts (one for each). Assets in the trust grow free of estate tax, and the beneficiary-spouse can access the trust during the beneficiary-spouse’s lifetime. All types of assets can be contributed to the trust, including personal residences. A personal residence can be a good gift to a spousal trust because the couple won’t need to worry about losing needed income, as the residence is not an income-producing asset. Caution must be taken, however, because on the death of the beneficiary spouse, the remainder-spouse will not be able to access the trust assets. Rather, the successor beneficiaries will have access to the trust assets, and rent will likely be required. Legal counsel should be consulted regarding the asset protection benefits.
- If purchasing life insurance for family protection in case of the loss of the breadwinner or to fund estate taxes, consideration should be given to the use of an irrevocable insurance trust to acquire life insurance. Structured properly, this technique allows the insurance proceeds to avoid inclusion in the insured’s estate, and the insurance proceeds are protected from the insured’s and the trust’s beneficiaries creditors’ claims.
- Problem caused by the disparity in federal and certain States’ estate tax exemptions. Although the federal combined gift and estate tax exemption is $5,450,000 in 2016, many states, including Illinois, grant exemptions of lower amounts. Under certain otherwise sound estate plans for federal estate tax purposes, while federal estate taxes may not be due, state estate taxes may apply. Estate plans should be reviewed for this issue.
Effective and timely implementation of tax planning strategies is key. FGMK can assist you in reviewing and implementing all of the ideas presented herein, as well as other tax planning strategies, to create a sound and customized tax plan for you, your family, and your business activities.
FGMK is a leading professional services firm providing assurance, tax and advisory services to privately held businesses, global public companies, entrepreneurs, high-net-worth individuals and not-for-profit organizations. FGMK is among the largest accounting firms in Chicago and one of the top ranked accounting firms in the United States. For more than 40 years, FGMK has recommended strategies that give our clients a competitive edge. Our value proposition is to offer clients a hands-on operating model, with our most senior professionals actively involved in client service delivery.
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