Tax Tip – Identifying Gross Income

Tax Tip – Identifying Gross Income

Internal Revenue Code section 61 defines gross income as “all income from whatever source derived.” This definition reaches your worldwide income, so it is important to understand exactly what “income” means. There are a couple of approaches to the definition of income. OneĀ approach is the Haig-Simons approach which indicates that income is the sum of … Continue reading Tax Tip – Identifying Gross Income

Beware Phony IRS Phone Calls

Beware Phony IRS Phone Calls

We continue to receive calls from our clients reporting calls from these scammers. The IRS issued the following bulletin to help you protect your personal information and to report the abuse.

New Streamlined Offshore Account Disclosure Procedure for Domestic Taxpayers

New Streamlined Offshore Account Disclosure Procedure for Domestic Taxpayers

The IRS released a new procedure available for domestic taxpayers looking to disclose their foreign accounts and to come into compliance with the FBAR requirements. Before today, the Streamlined program was only available to non-resident taxpayers. This is generally good news and it brings the possibility of facing a 5% penalty rather than a 27.5% … Continue reading New Streamlined Offshore Account Disclosure Procedure for Domestic Taxpayers

Extended Time to Make Estate Tax Portability Election

Extended Time to Make Estate Tax Portability Election

We have encountered a few situations where clients believe to have missed their opportunity to take advantage of the surviving spouse’s “portability” election to transfer a deceased spouse’s unused estate tax exclusion to the surviving spouse. The IRS is simplifying the process to remedy the situation. Note that this development can be especially advantageous to … Continue reading Extended Time to Make Estate Tax Portability Election