In a typical non-criminal IRS tax audit case, the IRS may assess accuracy related penalties or civil fraud penalties for tax adjustments not in your favor. The penalties can be significant causing you more pain with the whole audit process. What are these two penalties? Continue reading…
First-Time Abatement Relief, IRS Failure
According to a report by the Treasury Inspector General for Tax Administration (TIGTA), 1.45 million taxpayers were not informed that they qualified for penalty relief under the First-Time Abatement Relief program. TIGTA estimated that the amount of penalties left unabated totaled more than $181 million. Continue reading…
2nd Annual Brighton Area Success and Achievement Workshop Series
Chris Kostoff has been tremendous help to me! Due to his help, my business has done exceptionally well. I highly recommend anybody interested on improving themselves for the main purpose of growing a business to consider this workshop series. You will not be disappointed. Continue reading…
Questions on the New "fiscal cliff" Regulations
Questions: Please clarify the “new” “fiscal cliff” income tax regulations regarding:
Taxes on capital gains and dividends will also rise to 20 percent. Is the rise progressive. i.e. only applies to unearned income over $500,000 ?
Taxes will also rise by five percentage points for large estates, over what amount ?
Married couples who earn $300,000 or more will face caps on itemized deductions and exemptions. Please clarify Continue reading…
Tax Help Question – Dependant Exemption for Stillborn Child
Question: We lost our baby at birth. Can we claim any child deductions for the year? Continue reading…
Tax Help Question – Unfunded Trust Tax Return
Question: My client has an unfunded trust established in 1999. A bank account was originally opened up for the trust but the bank account was opened up under her late husbands social security number. The bank has changed the identification number to the tax id of the trust. The IRS has now sent the client a letter requesting all back trust returns. Does a trust tax return need to be filed?
Tax Question – Medical Expense Deduction
Question: If I were to pay a medical bill today via credit card but not actually pay the credit bill until next year… Would that be deductible this year or next? Continue reading…
Tax Question – Theft Loss due to Ponzi Scheme
Question: I’ve got a tax question from one of my clients. They have a loss from a ponzi scheme, but it was in an IRA. I was unable to find something on IRS website specific to this situation, but a regular investment would be treated as a theft loss. I’m thinking the IRA would also be handled the same way since it was a theft too. Have you run across anything like this? Continue reading…
CBPP Report: Ten Myths and Realities on Estate Taxation
The Center on Budget and Policy Priorities issue a report on ten myths and realities on estate taxation. There is interesting data such as only the richest 2 in 1,000 estates actually pay estate taxes or the estates that do pay estate tax typically pay less than 1/6 of the value of the estate tax.
The Center on Budget and Policy Priorities conducts research and analysis at the federal and state levels on public programs and fiscal policy.
Tax Question – Qualifying Child for Health Savings Account
Question: My wife and I have a question about our HSA. We have my kids on her insurance. They are her step kids, and HSA, and BCBS said it was okay. But come to find our we can not use our HSA account for the kids unless she claims them as dependents. Someone that my wife talked too said that there is a law that says we can. Can you help clarify this for us? Continue reading…