HOW TO CHOOSE A TAX PREPARER

Glenn Bailey, CPA

If you need help with your tax returns, the best time to choose a preparer is before the end of the year. That way you have time to find someone with the appropriate skill level for your situation and time to get on their schedule. Having a preparer with advance knowledge and understanding of your life can make your tax return preparation more efficient for the preparer and less stressful for you. Waiting until March can leave […]

INHERITED IRA’S NOT PROTECTED FROM BANKRUPTCY

Jobe Dupre’, CPA

It is now official that inherited IRAs are not considered “retirement funds” within the meaning of federal bankruptcy law and therefore are not exempt from a bankruptcy estate. This ruling was handed down by the Supreme Court in the case of Clark, et ux v. Rameker on June 12, 2014.

Typically, retirement funds (IRAs and Roth IRAs) are exempt from a bankruptcy estate and therefore shielded from creditors in bankruptcy. This was done to help debtors to provide […]

OPM DATA BREACH VICTIMS VS. TAX-RELATED IDENTITY THEFT: WHAT TO DO?

Posting by Billy Thomas

Unfortunately, it is not uncommon to read a headline on a routine basis highlighting a private data hack (see OPM, Target, Home Depot, IRS, etc.) impacting thousands, if not millions of individuals, with each instance. More and more personal and financial data is stored electronically and this identity theft epidemic is only growing. Perhaps this is an unintended consequence to the speed and accessibility of your digital record-keeping. Although words can barely express the sense of […]

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%

IRS Proposes Regulations That Would Allow Individuals With §83(B) Elections To E-File Tax Returns

Posting by Jobe Dupre

BACKGROUND: Section 83 of the Internal Revenue Code states that you do not have to recognize income from owning equity in a company until that stock vests.

Section 83(b) refers to a special election you can make with the IRS to let them know that, despite the fact you have not yet vested your stock, you still want to recognize the income associated with ownership immediately.

If you file the 83(b) election before your stock has appreciated from […]

Avoid the Christmas Rush: Mid-Year Tax Planning

Summertime is commonly a time to relax and take a break from the pressure of everyday life. However, a little planning now while things are otherwise slow can go a long way towards simplifying your life at the end of the year when tax and financial planning are frequently undertaken.

Mid-year tax planning can give you more time to map out and execute a smart plan that can save you time and money later. It can also be a good […]

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 […]