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Entertainment Taxation and Contracts

Boston Entertainment Lawyers Representing Clients in All Segments of the Entertainment Industry

Businesses and individuals in the entertainment industry have always faced a number of challenging tax issues at the local, state and federal levels. However, with the passage of the Tax Cuts and Jobs Act in 2017, the landscape has become even more complex in many respects. At Thorn Law Group, our Boston entertainment tax attorneys bring decades of combined experience to representing the following individuals and entities:

  • Actors
  • Agents
  • Bands
  • Comedians
  • Dancers
  • Models
  • Photographers
  • Writers
  • Managers
  • Musicians
  • Directors
  • Movie Theaters
  • Movie Studios
  • Theaters

We can help you navigate the entertainment taxation and contract laws as they apply to the industry, mitigate your tax liability, and avoid costly IRS penalties. We assist with general business tax strategy, offshore bank account disclosures, and other related issues as well, and we can make sure that you are not exposing yourself or your company to the risk of civil or criminal prosecution.

The Massachusetts Department of Revenue has developed a guide to withholding taxes for entertainers and others in the industry:

Individuals who earn income connected with Massachusetts for performances, whether those performances are of an athletic, entertainment, or educational nature, are subject to Massachusetts personal income tax on that income. The performer withholding program was developed to assist these individuals to meet their Massachusetts personal income tax obligation. The goal of performer withholding is the same as the goal of wage withholding: to withhold an amount that is substantially equivalent to the tax amount reasonably estimated to be due. The program, authorized under chapter 262, § 21 of the Acts of 2004, is in effect for performances on or after January 1, 2006.

Strategic IRS Income Tax Planning Around The Globe

For entertainers who receive licensing fees and royalties, we provide comprehensive assistance with income reporting and tax planning. We also assist artists and other clients with sales tax, European value-added tax (VAT) and other tax compliance issues as well.

IRS Offshore Asset And Account Reporting For Entertainers

While holding assets offshore is one potential way to reduce tax liability, it comes with various reporting and compliance obligations. If this is a strategy you want to pursue, we can explain what you need to know and assist you with international tax and IRS voluntary disclosure requirements.

IRS Criminal Tax Fraud Investigations And Interviews

If you are under investigation by IRS Criminal Investigation (CI) for alleged tax fraud, tax evasion or any other federal tax crime, our Boston entertainment tax lawyers can represent you and help you avoid severe penalties. We have successfully defended numerous clients in criminal tax matters in Massachusetts and other states.

Strategic Income Tax Planning For Those In Entertainment

We provide strategic income tax planning to our individual clients, utilizing various tools and strategies to minimize their overall local, state and federal tax liability. When appropriate, we assist our clients with forming business entities, drafting contracts, moving assets offshore and using other means to reduce the amount they owe.

State And IRS Federal Income Tax Audits And Raids

If you are being audited by the Massachusetts DOR, the IRS or any other taxing authority, our tax lawyers can deal with the auditors on your behalf and ensure that you are not unduly subjected to additional tax liability, interest and penalties. Our Boston entertainment tax attorneys have extensive experience handling tax audits at the state and federal levels, and we can use our experience to protect you.

International Tax Issues Affecting Entertainers

If you are a United States citizen, green card holder, resident alien, and are also an entertainer, entertainment management, a production or movie company or have set up a company or LLC outside of the United States, there are business and IRS tax reporting forms that must be attended to on a yearly basis.

Boston Entertainment Lawyers Providing Tax and Contract Assistance and More for Companies Throughout the Industry

We provide a broad range of tax and contract services to companies in the entertainment industry. Serving clients throughout Massachusetts, our entertainment lawyers offer production companies, agencies, film studios, music studios, broadcasting and television companies, Internet entertainment companies, and other entities services including:

Choice of Business Entity and Company Structuring

When forming a new business or subsidiary, the type of entity you choose can have significant tax implications. The same is true of how you structure the ownership and distribution rights of active owners and equity investors. A Boston entertainment lawyer can put you on the path to success.

Capitalization and Deduction of Production Costs

The Internal Revenue Code (IRC) contains special provisions regarding the capitalization and depreciation of certain costs incurred in connection with film and television production. We assist our clients in complying with these provisions and qualifying for applicable capitalization exemptions.

Other Business Income and Loss Deductions

The qualified business income, active pass-through loss and net operating loss rules that apply to businesses generally can have particularly significant implications for businesses in the entertainment industry. We routinely assist clients throughout Massachusetts with these matters as well.

Tax Credits and Incentives Explained by Boston Entertainment Taxation Lawyers

Our entertainment taxation lawyers assist industry clients with securing tax credits and incentives offered by local and state authorities in Massachusetts and other states. We provide full-service representation, from the initial application process through tax reporting and filing compliance.

Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI)

For clients that license their entertainment properties overseas, we offer advice and counseling regarding foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI) compliance. We offer assistance with avoiding liability for the base erosion anti-abuse tax (BEAT) as well.

Payroll Tax Compliance Made Simple with Our Boston Entertainment Attorneys

Beyond local, state and federal income tax matters, we also assist our clients with payroll tax compliance. Non-compliance in this area can be expensive, and it can potentially trigger investigations into other aspects of entertainment companies’ finances as well.

Sales Tax Compliance

For companies that are subject to sales tax in Massachusetts and other states, we offer comprehensive representation which includes assistance with sales tax planning, reporting and remittance. Sales tax compliance, particularly in the online space, is a moving target, and entertainment companies need to be sure that they are not improperly failing to collect and remit sales tax in any U.S. (or international) jurisdictions.

State and Federal Tax Audits, Investigations and Appeals

In addition to planning and compliance, we also represent entertainment industry businesses in state and federal tax controversies. Our Boston entertainment tax lawyers have extensive experience in administrative, civil and criminal tax matters involving the Massachusetts Department of Revenue (DOR), the Internal Revenue Service (IRS) and other agencies.

Speak with Boston Entertainment Taxation and Contract Lawyer Kevin E. Thorn at Thorn Law Group

If you would like more information about our firm’s entertainment tax practice in Boston, we invite you to get in touch. A Boston entertainment attorney will be happy to meet with you in person to discuss your needs. To request a confidential consultation with entertainment taxation lawyer Kevin E. Thorn, Managing Partner at Thorn Law Group, please email us at ket@thornlawgroup, call 617-692-2989 or inquire online today. Visit our Boston office at 10 Post Office Square, 8th Floor, Boston, MA 02109.

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