Tax Alerts

Tax Cuts and Jobs Act – Meals and Entertainment and Employee Fringe Benefits Update

By | March 28, 2018|

The changes to the meals and entertainment (“M&E”) and employee fringe benefits has been one of the most confusing and misunderstood areas under the new Tax Cuts and Jobs Act (“TCJA”).  As more information becomes available about the TCJA, there appears to be some consensus as to what [...]

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Changes to Bonus Depreciation under the Tax Cut and Jobs Act

By | March 28, 2018|

Bonus Depreciation Bonus depreciation is a method of accelerated depreciation, which allows a business to make an additional first-year deduction of the cost of qualifying property in the year it is placed in service. Qualified property must either: Have a regular depreciation life of 20 [...]

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IRS Ends Offshore Voluntary Disclosure Program

By | March 28, 2018|

On March 13, 2018, the IRS announced that the 2014 Offshore Voluntary Disclosure Program (OVDP) is set to close on Sept. 28, 2018. It gives the U.S. taxpayers who did not disclose their foreign financial assets only six months to come forward. Background U.S. taxpayers who have ownership [...]

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Treatment of Qualified Improvement Property under the Tax Cuts and Jobs Act

By | March 28, 2018|

On Dec. 22, 2017, the President signed the Tax Cuts and Jobs Act (“TCJA”). This act changed many provisions of the Internal Revenue Code (“IRC” or “the Code”). Some notable modifications include changes to the treatment of Qualified Improvement Property (“QIP”). Qualified Improvement [...]

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Bipartisan Budget Act Analysis

By | March 28, 2018|

New Act Includes Disaster Tax Relief for Victims of California Wildfires On Friday, February 9, 2018, Congress passed and the President signed into law the Bipartisan Budget Act of 2018 (the Act), putting an end to the short-lived government shutdown. In addition to keeping the government [...]

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Final GOP Tax Analysis

By | March 28, 2018|

On Friday (December 15, 2017), the Joint Conference Committee bridged the differences between the House and Senate bills and unveiled the final version of the tax reform bill. Both the House and Senate plan to vote on the bill early this week and get it ready for [...]

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GOP Tax Plan Analysis

By | March 28, 2018|

In the early hours of Saturday (December 2, 2017) morning, the U.S. Senate passed the Tax Reform bill.  While the overall framework of the Senate bill is similar to the House bill passed on November 16, 2017, there are certain differences.  It is anticipated that the [...]

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President Trump’s Tax Plan Revealed

By | March 28, 2018|

On Wednesday, April 26, the White House issued President Donald Trump’s main goals and priorities for tax reform, including significant cuts of the corporate tax rates, moving to a territorial tax system and eliminating business tax breaks for special interests. The White [...]

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New Due Dates for Submitting Forms W-2 and 1099-MISC is Jan. 31

By | March 28, 2018|

Some of the many tax items that companies send out in the early part of each year are payroll forms: W-2, 1099-MISC and a few others. Under prior rules, employers and business had until Feb. 28 to submit the previous year W-2 to the Social Security Administration and [...]

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Requirement to Disclose Foreign Beneficial Owners of U.S. LLCs

By | March 28, 2018|

Perhaps in response to the increased discussions that U.S. is becoming a potential tax haven and the continued pursuit of transparency by the government, the Treasury announced on March 30 that it will be issuing proposed regulations to expand on Section 6038A. Certain [...]

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U.K. Tax Budget Released

By | March 28, 2018|

On March 16, 2016, U.K. Chancellor George Osborne presented the first Spring Budget of the U.K. Parliament with some significant changes that may affect U.S.-based companies with operations in the U.K. (as well as U.K.-based companies with operations in the U.S.) and [...]

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Protecting Americans from Tax Hikes (“PATH”) Act of 2015 – International Tax Provisions

By | March 28, 2018|

On Dec.18, 2015, Congress passed and the President signed into law the PATH Act of 2015, which provides certain provisions with either permanent or temporary extensions. The domestic provisions of the PATH Act of 2015 were described in our last Tax Alert released on Dec. [...]

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Protecting Americans from Tax Hikes Act of 2015 (“PATH”)

By | March 28, 2018|

Congress is set to pass a bill containing extensions of many significant tax provisions, and the President is widely expected to sign PATH into law. Over the last several years, Congress had waited until year end or the beginning of the following year to extend many major [...]

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IRS Increases the De Minimis Safe Harbor Limit to $2,500

By | March 28, 2018|

Effective Jan. 1, 2016, a taxpayer that does not have an Applicable Financial Statement (“AFS”) can deduct the cost to acquire or produce a unit of property, up to $2,500 per invoice (or per item as substantiated by the invoice), rather than capitalizing the cost. The [...]

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Safe-Harbor Method for Restaurant and Retail Refresh/Remodeling Costs

By | March 28, 2018|

The Internal Revenue Service recently released a Revenue Procedure that could have significant benefits to businesses that operate retail establishments or restaurants. It can also benefit taxpayers who lease property to certain businesses. This benefit is in the form of a [...]

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Surface Transportation and Veterans Health Care Choice Improvement Act of 2015

By | March 28, 2018|

On Friday, July 31, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (ACT) was signed into law. The Act, which was mainly intended as a temporary extension of the Highway Trust Fund, includes many important tax provisions. This Tax Alert [...]

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BE-10 Surveys Must Be Filed by June 30 for First-Time Filers

By | March 28, 2018|

In the interest of keeping you informed of developments in the international tax area, please note that the US Department of Commerce Bureau of Economic Analysis (“BEA”) is conducting a survey which is requiring every US Person (that has previously not filed) to file Form [...]

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IRS Provides Relief to Small Businesses from Filing Form 3115 Related to Tangible Property

By | March 28, 2018|

In our prior communication dated November 18, 2014, we informed you about the tangible property regulations issued by the IRS. The regulations explain when amounts paid to acquire, produce, or improve tangible property can be deducted and when they must be capitalized. [...]

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Congress Passes Tax Extender Package & ABLE Legislation for the Disabled

By | March 28, 2018|

  Late Tuesday, December 16, the Senate passed the tax package, H.R. 5771. This legislation includes the “Tax Increase Prevention Act of 2014 (TIPA),” which extends over 50 currently expired “extender” provisions through 2014. This tax package also includes H.R. 647, the [...]

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Quarterly California Tax Legislative Update: July 2014 – September 2014

By | March 28, 2018|

The purpose of this Quarterly California Tax Legislative Update is to provide our clients and prospective clients with timely and meaningful updates that affect both their personal income and business taxes. The 3rd quarter of 2014 saw an expansion of the California film [...]

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California Enacts Film and Television Tax Credit Expansion

By | March 28, 2018|

The California Film and Television Job Retention and Promotion Act was signed into law by Governor Jerry Brown on September 18, 2014. The new law significantly increases the amount of film and television tax credits and eligibility to participate in the film and television [...]

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California Announces 2nd Round of Applications for the California Competes Credit

By | March 28, 2018|

  The State of California recently announced three application periods for the California Competes Credit program for fiscal year 2014/2015. The State has allocated over $150 million to the program for fiscal year 2014/2015. This tax alert contains information on the [...]

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Quarterly California Tax Legislation Update: April 2014 – June 2014

By | March 28, 2018|

The purpose of this Quarterly California Tax Legislative Update is to provide our clients and prospective clients with timely and meaningful updates that affect both their personal income and business taxes. The 2nd Quarter of 2014 saw California provide an update on [...]

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California Supreme Court Victory for Retailers on Excess Sales Tax Reimbursement

By | March 28, 2018|

On May 1, 2014, the California Supreme Court ruled 4-3 that state consumer protection laws do not provide recourse to customers on excess sales tax reimbursements. See Loeffler v. Target Corp., Cal. Sup. Ct. No S173972 (5/1/14). The issue at hand was whether customers [...]

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Quarterly California Tax Legislation Update: January 2014 – March 2014

By | March 28, 2018|

  The purpose of this Quarterly California Tax Legislative Update is to provide our clients and prospective clients with timely and meaningful updates that affect both their personal income and business taxes. The first quarter of 2014 was a relatively quiet time in [...]

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New York State Enacts Major Corporate Income/Franchise Tax Changes

By | March 28, 2018|

On March 31, 2014, New York State governor Andrew Cuomo signed into law major corporate tax changes that will affect taxpayers that have operations in New York as well as taxpayers that are doing business in the State. The changes are generally effective for tax years [...]

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California Ruling – Sourcing of Management Fees for California Nonresidents

By | March 28, 2018|

California recently issued Franchise Tax Board Chief Counsel Ruling 2013-04, which deals with the sourcing of management fees for nonresidents of California for services provided to a private equity fund (“PEF”) and to the fund’s portfolio investments where the services [...]

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F.I.C.A Refunds From Severance Payments

By | March 28, 2018|

Our Tax Alert of January 8, 2014 discussed potential refund claims to recover F.I.C.A taxes paid on severance payments made to former employees. The United States Supreme court issued a unanimous opinion on March 24, 2014 in which it determined that payments to laid off [...]

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House Ways and Means Committee Releases Tax Reform Proposal

By | March 28, 2018|

On Tuesday, February 26, 2014, House Ways and Means Committee chairman Dave Camp released his long-awaited draft legislation on tax reform. The draft is a 979 page report titled “Tax Reform Act of 2014.” If enacted, the draft legislation would usher the single biggest [...]

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Quarterly California Tax Legislation Update: October 2013 – December 2013

By | March 28, 2018|

  The 4th Quarter of 2013 was a relatively quiet time in California from a tax legislative perspective. The Franchise Tax Board (“FTB”) held interested party meetings for potential amendments to its sales factor market sourcing rules and to clarify the treatment of a [...]

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Auld Lang Syne: Form 990 Changes for Tax Years Beginning in 2013

By | March 28, 2018|

The beginning of the new calendar year provides us with an opportunity to both wish all of you a happy and healthy new year and to update you on changes to the Core Form of Form 990, as well as changes to Schedule A Public Support Test and Schedule B List of Contributors [...]

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California’s New Partial Sales Tax Exemption for Manufacturers and Certain Biotechnology Companies

By | March 28, 2018|

The State of California has enacted a new law effective July 1, 2014, allowing manufacturers and certain Research and Development (“R&D”) companies a partial sales/use tax exemption on certain manufacturing and R&D equipment purchases. This tax alert contains [...]

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Severance Wages May be Considered for F.I.C.A. Tax Refunds: The Quality Stores Court Case

By | March 28, 2018|

If your organization or entity made severance payments to former employees in 2010, it may be wise to file a claim for refund of F.I.C.A. taxes with the Internal Revenue Service by April 15, 2014. The United States Supreme Court is hearing arguments this month on the [...]

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Quarterly California Tax Legislation Update: July 2013 – September 2013

By | March 28, 2018|

The 3rd Quarter of 2013 was time for California to clarify existing law in a number of different areas including the California Enterprise Zone credit, like-kind-exchange transactions and the treatment of gain or loss on the sale of qualified small business stock. From a [...]

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State & Local Tax Alert: Los Angeles Tax Amnesty Program Enacted – September 2013

By | March 28, 2018|

The city of Los Angeles recently announced a tax amnesty program that will apply to various city taxes including: Business Tax Telephone, Electric & Gas Users Tax Commercial Tenant’s Occupancy Tax Transient Occupancy Tax Parking Occupancy Tax For more details about [...]

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State & Local Tax Alert – August 2013

By | March 28, 2018|

Is your business or organization making payments/distributions in excess of $1,500 to nonresident independent contractors, shareholders or partners? If yes, then understanding the reporting requirements under California’s nonwage income tax withholding rules should be an [...]

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Quarterly California Tax Legislative Update: April 2013 – June 2013

By | March 28, 2018|

The purpose of this quarterly California Tax Legislative update is to provide our clients and prospective clients with timely and meaningful updates that affect both their personal income and business taxes. The 2nd Quarter of 2013 saw a proposed law change that could [...]

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Quarterly California Tax Legislation Update: January 2013 – March 2013

By | March 28, 2018|

The purpose of this quarterly California Tax Legislative update is to provide our clients and prospective clients with timely and meaningful tax legislative updates that will affect both their personal and businesses taxes. While the First Quarter of 2013 was considerably [...]

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Proposed Tax Changes from the “Green Book”

By | March 28, 2018|

The United States Treasury recently released the so-called “Green Book,” which is the Administration’s Fiscal Year 2014 Revenue Proposals. The Green Book is the President’s wish-list of tax changes, and as usual, this year’s wish-list is a cornucopia of tax proposals – [...]

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Quarterly California Tax Legislation Update

By | March 28, 2018|

The Fourth Quarter of 2012 was a busy time in California from a tax legislative standpoint. California residents potentially saw a significant increase in their personal income taxes as a result of the passage of proposition 30. In addition, sales tax rates have increased [...]

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American Taxpayer Relief Act

By | March 28, 2018|

On January 1, 2013, the House of Representatives passed H.R.8, the American Taxpayer Relief Act (the Act). The President is expected to sign the legislation. The Act averts many of the tax hikes that were scheduled to go into effect on January 1st. It also retains certain [...]

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Post-election Tax Implications

By | March 28, 2018|

With the 2012 election behind us, we wanted to provide you with a brief overview of the likely changes immediately ahead of us and its implications for taxpayers from both a federal and California perspective. The election, which ultimately turned out to be a status-quo [...]

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2012 California Tax Ballot Measures

By | March 28, 2018|

California taxpayers should be aware of two major ballot propositions on California’s November 6th, 2012 ballot that are designed to raise taxes on both businesses and individuals. These ballot propositions are California Proposition 30 sponsored by Governor Jerry Brown [...]

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Proposed Tax Changes in the Green Book

By | March 28, 2018|

On February 13th the United States Treasury released its Green Book which is the Treasury’s explanations of the Administration’s Fiscal Year 2013 revenue proposals. There are many proposed tax changes, which are significant. These are the Administration’s proposals and [...]

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Tax Alert: Payroll Tax Cut Extended through February 2012

By | March 28, 2018|

On December 23, Congress passed H.R. 3765, the “Temporary Payroll Tax Cut Continuation Act of 2011” (“Bill”). The Bill was signed into law shortly thereafter. The Bill provides for a two month extension of the payroll tax cut which was already in place for 2011 and a [...]

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SB 459 Imposes Penalties for “Willful” Misclassification of Employees as Independent Contractors

By | March 28, 2018|

On October 9, 2011, California Governor Jerry Brown signed Senate Bill 459 (“Bill”) into law. The Bill imposes significant penalties against employers if they are found to have been involved in “willful” misclassification of employees as independent contractors. The Bill [...]

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Tax Alert: New IRS Voluntary Classification Settlement Program for Workers

By | March 28, 2018|

New IRS Voluntary Classification Settlement Program for Workers Misclassified as Independent Contractors For years, the issue of classifying workers as independent contractors or employees has been an area of significant scrutiny by the IRS. At its core, the determination [...]

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Tax Treatment of Success-based Fees Incurred In an Acquisition or Reorganization

By | March 28, 2018|

Transactions often involve payment of fees by the acquiror or by the selling target. Traditionally the IRS has viewed such fees, referred to as “success-based fee”, as costs that produce significant long-term benefits, and therefore required to be capitalized. Taxpayers [...]

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California Sales Tax Implications for Prewritten Software

By | March 28, 2018|

On April 27, 2011, the California Supreme Court declined to review the Court of Appeal’s decision in Nortel Networks, Inc. v. State Board of Equalization. This precedential decision may have far reaching implications on the taxation of pre-written software, or “canned [...]

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2010 IRS Audit Statistics

By | March 28, 2018|

We are frequently asked a simple question, “what are my chances of being audited?” While there is never a precise answer to this question, the IRS annually releases information about the audits that have been conducted in the previous year which provides a measuring stick. [...]

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Congress Passes Bill to Repeal the Expanded Form 1099

By | March 28, 2018|

On April 5, 2011, the U.S. Senate voted to repeal the controversial information reporting requirements that were enacted as part of the package of last year’s Health Care Reform and Small Business Tax Incentives. The bill was previously approved by the House on March 3, [...]

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Voluntary Disclosure Program for Foreign Accounts/Assets

By | March 28, 2018|

A new voluntary disclosure program, the 2011 Offshore Voluntary Disclosure Initiative was announced February 8th by the Internal Revenue Service (“IRS”) to encourage taxpayers with undisclosed offshore accounts/assets to disclose and report such information to the IRS. The [...]

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Tax Relief Act of 2010

By | March 28, 2018|

After much Congressional deliberation, The Tax Relief Act of 2010 (the “Act”) been passed by the House just before midnight on December 16, 2010 and is expected to be signed into law by the President imminently. This significant piece of tax legislation temporarily extends [...]

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California Budget Act of 2010

By | March 28, 2018|

On October 8, 2010, the California budget impasse finally ended when Governor Arnold Schwarzenegger signed the California budget into law. In conjunction with the passage of the budget, a trailer bill, Senate Bill 858, was subsequently enacted into law on October 19, [...]

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House Passes H.R. 5297, the Small Business Jobs Act of 2010

By | March 28, 2018|

The House passed H.R. 5297, the Small Business Jobs Act of 2010 (the “Act”) on September 23. The measure had been previously passed by the Senate and is expected to be signed into law on September 27, 2010 by the President. The Act includes a number of important tax [...]

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Amendment to California State Assembly Bill 2640

By | March 28, 2018|

This alert is an update on the development of California State Assembly Bill 2640 (“AB 2640”) relating to Section 1031 Exchanges. Section 1031 Exchanges allow taxpayers to defer recognition of gain or loss from exchanges of like-kind property. Additionally, AB 2640 also [...]

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President Signs Hiring Incentives to Restore Employment (HIRE) Act

By | March 28, 2018|

On March 18 2010, the President signed legislation (H.R. 2847) into law that creates temporary tax incentives for hiring unemployed workers, retaining workers, extends the increased small business expensing limits under Section 179, and increases Foreign Account [...]

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Patient Protection & Affordable Care Act

By | March 28, 2018|

On March 23 2010, the President signed The Patient Protection and Affordable Care Act (Act). The new law is slated to raise taxes on individuals, businesses, high cost group health plans, along with new fees on selected health care industries by nearly $400 billion over [...]

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California Treatment of Section 1031 Exchanges

By | March 28, 2018|

During the February 19 2010 meeting, California State Assembly made a proposal in Assembly Bill 2640 (“AB 2640”). This tax alert highlights the proposed provisions.   Click here to learn more

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FY 2011 Budget and Tax Proposals

By | March 28, 2018|

As a result of changes made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the Estate tax and the Generation Skipping Transfer (GST) tax was repealed for estates of decedents who pass away in 2010. EGTRRA also provided for a modified carryover [...]

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Updates on Estate Tax and Generation Shipping Transfer (GTS) Tax

By | March 28, 2018|

As a result of changes made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the Estate tax and the Generation Skipping Transfer (GST) tax was repealed for estates of decedents who pass away in 2010. EGTRRA also provided for a modified carryover [...]

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