Subscribe to "It's Taxing"
“Taxing” is a word synonymous with “onerous” and “wearing.” Bond Beebe, Accountants & Advisors, have created a user friendly blog called “It’s Taxing” to inform and educate our clients and business associates on timely topics related to tax, estates, accounting and finance. We hope our blog answers your questions and alleviates the heavy burden and anxiety related to understanding complicated tax laws and related matters.
With the June 30 deadline approaching for filing FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), we’ve posted over at JDKatz’s "The Joy of Tax Law" blog, providing a number of details on the requirements for reporting foreign assets. Specifically, we answer the following questions:
Looking for more tax updates? Follow us on Twitter, connect to Bond Beebe on LinkedIn, be our Facebook friend, connect with us on Google+, visit our Scoop.It Magazine, or watch a video on our YouTube Channel.
If you placed bets on this past weekend’s Kentucky Derby, you are either celebrating your good fortune or kicking yourself for making the wrong bet. Either way, as with most things in life, there are tax implications. Yes, that’s right, your gambling winnings are considered taxable income. But, if you lost, take heart – you may be able to deduct your losses.
Late last week, the Maryland Senate passed a measure that will gradually raise Maryland’s $1 million estate tax exemption to match the much-higher federal exemption. The measure has already passed the House. If signed into law by Governor O’Malley, in 2015 the exemption will be $1.5 million and in 2016, it will be raised to $2 million. The increase will continue to rise to $3 million in 2017 and $4 million in 2018 before matching the federal exemption in 2019. The federal exemption is currently at $5.34 million for 2014, and indexed to inflation each year.
A few months ago, the IRS released changes to the flexible spending accounts (FSAs) under cafeteria plans targeting the “Use-it-or-Lose-it” provision. We highlighted these changes and shortly thereafter, the IRS issued further guidance on FSAs for same-sex married couples, in light of the Windsor decision.
In brief, same-sex married couples are now eligible for certain employee benefits under §125 of the Internal Revenue Code, particularly for cafeteria plans. This eligibility begins with the plan year that includes the effective date of the Windsor case (June 26, 2013).
There are three key points raised and answered by IRS Notice 2014-1 (PDF):
We’ve invited Davis Burroughs of JD Katz, a Bethesda-based law firm, to share some tax law insights with our readers. This post reviews the latest developments in offshore reporting requirements in advance of FATCA’s implementation later this year. For more information on JD Katz, visit www.jdkatz.com. If you are interested in guest-posting for It's Taxing,
A new report (PDF) from the Senate Permanent Subcommittee on Investigations (SPSI) ripped into several ongoing endeavors by the Securities and Exchange Commission (SEC), Department of Justice (DOJ), and Internal Revenue Service (IRS) to punish and collect from foreign tax dodgers. The report was released in advance of the Senate’s March 6 hearing, which focused on holding Swiss banks and their U.S. clients accountable for failing to pay taxes on billions of dollars in hidden assets.
The SPSI report focuses heavily on the government’s handling of Credit Suisse Group AG, a Swiss holding company which has helped around 20,000 U.S. based clients evade taxes between 2008 and now. Over 95% of the company’s American accounts were hidden from U.S. authorities through a series of exit projects conducted to shield its clients from prosecution. To date, the DOJ has received less than 1% of the identities of Credit Suisse account holders.
For many people, there is nothing as dreadful as dealing with income taxes each year. When you first sit down with all the forms and receipts, you may feel overwhelmed; our goal is to simplify the process while keeping you in compliance with the tax codes so you can preserve, grow & protect your assets.
A lot has changed for 2013 – there are a number of new taxes and tax increases. If you are just sitting down to review your forms and filing your taxes has you scratching your head this year, here are 6 important strategies that will help you make the most of your tax situation:
Last week the IRS released its annual “Dirty Dozen” Tax Scams for 2014 as a reminder to be on the lookout for fraud and take steps to protect sensitive information as you file your taxes. Not surprisingly, identity theft tops this list.
Tax-related identity theft continues to grow – last year 1.6 million Americans were victims within the first half of the year. It is essential to be on the lookout for scams and take the necessary precautions with your social security number and other personal information.
The estate tax landscape has a ‘permanent’ playing field now; the current Federal legislation exists in such a way that the rules will remain consistent for the foreseeable future. Back in 2010, estate tax was in a period of uncertainty due to the expiration of the Bush-era tax rules. Then the American Taxpayer Relief Act of 2012 created permanent estate and gift transfer tax laws, thereby providing a standard, predictable set of rules for estate planning.
The American Taxpayer Relief Act made the federal estate tax exemption permanent at $5 million, indexed for inflation, which now stands at $5,340,000 for individuals who pass in 2014. A federally-taxable estate is one above the current exemption where the decedent’s gross assets exceed allowable deductions, including those assets transferring to the surviving spouse. In other words, a decedent’s estate would not pay estate tax (40%) until the estate’s net assets exceeded $5,340,000.