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
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
This articles reflects an interesting case of the interaction of federal vs. states rights. The IRS has a vested interest in promoting good behavior and service by tax-return preparers; the more accurate the return, the higher the probability that the Service will collect the tax due. However, the Service’s powers are limited by our federal … Continue reading U.S. Appeals Court Quashes IRS Tax-Return Preparer Crackdown
California Probate: What’s the Purpose? Probate. You’ve heard the word, but what is it? Here is a brief overview to let you know what triggers the probate process and what is involved to complete the journey. In general, probate is the court supervised collection of assets, payment of debts and expenses with the net amount being … Continue reading California Probate: What's the Purpose?
I thought this press release was interesting. It is worth noting that the Service does not mention that the refund would be subject to three years of penalties and interest. Still, if the cost to prepare the return is low, any refund is better than no refund. IRS Has $917 Million for People Who Have … Continue reading IRS Has $917 Million for People Who Have Not Filed a 2009 Income Tax Return
Today’s press release from the IRS regarding the VCSP: IRS Expands Voluntary Worker Classification Settlement Program; Relief From Past Payroll Taxes Available to More Employers Who Reclassify Their Workers As Employees WASHINGTON — The Internal Revenue Service has expanded its Voluntary Classification Settlement Program (VCSP) paving the way for more taxpayers to take advantage of … Continue reading IRS Expands Voluntary Worker Classification Settlement Program
Tax Changes for 2013 Each year starts with some changes to our tax regime. The changes for 2013 have been much higher profile given the drama in Congress and the “fiscal cliff.” Here is a brief summary of the changes that will impact individuals this year. Individuals For 2013, standard deductions and the personal exemption, … Continue reading 2013 Tax Changes for Individuals
Happy new year! With the new year comes tax season. IRS Plans Jan. 30 Tax Season Opening For 1040 Filers WASHINGTON — Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and … Continue reading Tax Season Opening For 1040 Filers: Jan. 30, 2013
On January 1, 2013 a new tax law takes effect. Section 1411 of the Internal Revenue Code imposes a tax on the net investment income of certain individuals, trusts and estates. There is a great deal of misinformation circulating about this tax. A frequent assertion is that it is a sales tax. One widely circulated … Continue reading How Does the New 3.8% Investment Income Tax Work?
The IRS finally got around to releasing the guidelines for the 2012 Offshore Disclosure Program. IRS Says Offshore Effort Tops $5 Billion, Announces New Details on the Voluntary Disclosure Program and Closing of Offshore Loophole WASHINGTON — The Internal Revenue Service today announced that its offshore voluntary disclosure programs have exceeded the $5 billion mark … Continue reading 2012 OVDP Guidelines