IS YOUR TRUST SUBJECT TO STATE INCOME TAXES?

Billy Thomas, CPA

There are four (4) main questions to determine whether the Trust is subject to state income taxes as a resident trust.

Was the grantor domiciled within the state at the time of creation?
Where does the trust document or agreement indicate the trust is to be governed?
What state does the trustee(s) reside?
What state does the beneficiary(s) reside?

A Trust may be considered a non-resident trust. Generally, if a Trust is not considered a resident trust, then […]

NO MORE ESTATE CLOSING LETTERS UNLESS REQUESTED

Billy Thomas, CPA

As an executor/personal representative, you are responsible for carrying out the terms of the decedent’s will or Trust, which includes ensuring all debts are paid and each beneficiary receives his or her designated property from the estate. The estate administration process may include estate tax filings with the IRS and state jurisdictions, probate court filings, in addition to the funeral proceedings and wrapping up any outstanding personal matters of the decedent. Often times this is not a […]

NEW HIGHWAY ACT CHANGES FILING DEADLINES FOR CERTAIN BUSINESS TAX RETURNS

Kelly Lopez, CPA

President Obama signed into law the “Surface Transportation and Veterans Health Care Choice Improvement Act at the end of July. The Act implements due date changes for business tax returns beginning with 2016 tax returns.

Currently, partnership tax returns are due April 15 (or 3 ½ months after year-end). Under the new rules partnerships will be required to file by March 15 (or 2 ½ months after the close of its tax year). This is the same due […]

NEW APPLICABLE FEDERAL RATES RELEASED FOR AUGUST BY IRS

Jobe Dupre’, CPA

Each month, the IRS provides various prescribed rates for federal income tax purposes. These rates, known as Applicable Federal Rates (AFRs), are regularly published as revenue rulings.

The AFRs for August 2015 are as follows:

Annual
Semi-Annual
Quarterly
Monthly

Short-Term: 1-3 years
0.48%
0.48%
0.48%
0.48%

Mid-Term: >3 & up to 9 years
1.77%
1.76%
1.76%
1.75%

Long-Term: >9 years
2.74%
2.72%
2.71%
2.70%

DON’T FORGET ABOUT PCORI FEES DUE JULY 31, 2015

Brian Wynne, CPA

As part of the Affordable Care Act, the IRS was charged with collecting a fee from health insurers and plan sponsors of self-insured plans each year, for seven years, to help fund the Patient-Centered Outcomes Research Institute (PCORI). These so-called “PCORI Fees” are a set fee based on the average number of lives covered by the plan during the year. The fee started at $1 but increases with inflation, and is currently at $2.08 per average number […]

MARYLAND TAX AMNESTY PROGRAM UPDATE

Brian Wynne, CPA

The Maryland General Assembly has released more details about the Maryland Tax Amnesty Program. This program waives all civil penalties and one half of the interest for delinquent taxpayers who apply and are approved. We shared some information about the Tax Amnesty Program in April. To read more about the program and how it may affect you, visit taxes.maryland.com.

IRS ANNOUNCES “GET TRANSCRIPT” APPLICATION BREACH

Brian Wynne, CPA

The IRS announced on Tuesday that identity thieves were able to access tax transcript information of more than 100,000 tax accounts through their “Get Transcript” application. Prior knowledge of personal information allowed the criminals to pass a multi-step authentication process to access the tax transcripts. The IRS believes approximately 200,000 attempts to access transcript information were made in total from “questionable e-mail domains” starting in February and ending in mid-May, with more than 100,000 gaining access.
The IRS […]

SUPREME COURT RULES ON WYNNE VS. COMPTROLLER

Brian Wynne, CPA

On Monday, May 18th, the Supreme Court ruled that Maryland’s income tax law for income earned outside of the state is unconstitutional. The court voted 5-4 to affirm a 2013 Maryland Court of Appeals decision. The case specifically addressed Maryland’s denial of credits against the MD county income tax, otherwise known as the ‘piggy-back’ local tax. Going forward, residents who earn out-of-state income from certain businesses/sources will be able to claim a credit against the county taxes […]