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Bach and Jacobs PA

IRS Appeals. Ready to File?

By Tax Law

IRS Appeals.  Are you ready to File? Appeals is for you if you received an IRS correspondence explaining you have the right to an Appeal and you do not agree and will not sign the agreement form that was sent to you.

Appeals are not for you if the correspondence was a bill with no mention of the right to appeal or your only concern is that you cannot afford to pay the amount owed.

If you think you are ready to file an appeal, consider the following:

  • If you need help in deciding whether the IRS made an incorrect decision due to misinterpreting the law, check the publications discussing your issue(s) for additional information, or refer to Tax Topics located  on the IRS website: http://www.irs.gov/taxtopics/index.html
  • If you believe the IRS did not properly apply the law due to a misunderstanding of the facts, be prepared to clarify and support your position refer to the Examination page located  on the IRS website: http://www.irs.gov/individuals/article/0,,id=160728,00.html
  • If you believe the IRS is taking an inappropriate collection action against you, or you do not agree with Collection’s denial of your offer in compromise, refer to the Collections page located on the IRS website: http://www.irs.gov/individuals/article/0,,id=160743,00.html

If you believe the facts used by the IRS are incorrect, then you should have records or other support available to back up your position.  You are ready to request an Appeals conference or hearing if you can explain why you disagree with the IRS decision.

For legal advice, please contact our office for an initial consultation.

 

Fredric C. Jacobs, Esquire, Board Certified Tax Law

Bach & Jacobs, P.A.

240 S. Pineapple Avenue, Suite 700

Sarasota, FL 34236

941-906-1231

941-954-1185 facsimile

www.bachjacobs.com

May 2, 2012
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IRS Consumer Identity Theft Warnings

By Tax Law

The IRS has issued several consumer warnings about the fraudulent use of the IRS name or logo by scamsters trying to gain access to consumers’ financial information in order to steal their identity and assets. Scamsters will use the regular mail, telephone, fax or email to set up their victims. When identity theft takes place over the Internet (email), it is called phishing.

Phishing (as in “fishing for information” and “hooking” victims) is a scam where Internet fraudsters send e-mail messages to trick unsuspecting victims into revealing personal and financial information that can be used to steal the victims’ identity. Current scams include phony e-mails which claim to come from the IRS and which lure the victims into the scam by telling them that they are due a tax refund.

The IRS does not initiate taxpayer communications through email. Unsolicited email claiming to be from the IRS, or from an IRS-related component such as EFTPS, should be reported to the IRS at [email protected].

Additionally, clicking on attachments to or links within an unsolicited email claiming to come from the IRS may download a malicous computer virus onto your computer.

Go to www.irs.gov to learn more about identity theft and how to protect your personal information.

You may also report instances of IRS-related phishing attempts and fraud to the Treasury Inspector General for Tax Administration at 1-800-366-4484.

For your tax advice needs, please contact our office for an initial consultation.

Fredric C. Jacobs, Esquire, Board Certified Tax Law
Bach & Jacobs, P.A.

240 S. Pineapple Avenue, Suite 700

Sarasota, FL 34236

941-906-1231

941-954-1185 facsimile

www.bachjacobs.com

 

April 26, 2012
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Simple Will vs. a Revocable Living Trust by Babette B. Bach, Esquire

By Elder Law, Estate Planning, Probate

Simple Will vs. a Revocable Living Trust :
Simple Will:  A very effective tool to designate who gets what after death.  Probate is required but this is not usually a difficult process.  The average cost of probate is 3% of the probate assets and the average length of time to complete is six months.  Many assets are not part of the probate estate such as jointly titled real estate, IRAs, annuities, life insurance policies and jointly held assets.

 

Revocable Living Trusts;   These are more complex documents which provide for the trustee to manage assets while the settler is alive but incapacitated or deceased.  It can hold assets in trust for a variety of reasons after the settlor’s death.  Typical reasons may include, a spendthrift child, a disabled descendent, an income trust for the life of a surviving spouse, then residue to children upon death of surviving spouse, Charitable foundations, Pet trusts, generation trusts and tax planning etc.  There is still administrative work to do to administer a trust. Typical costs run about 2% of the trust estate.  It takes about the same amount of time to administer a trust as to probate a Will.

If you need legal advice for estate planning, Medicaid planning, or VA planning, please contact our office for an initial consultation.

 

Babette B. Bach, Esquire, Board Certified Elder Law

Fredric C. Jacobs, Esquire, Board Certified Tax Law
Bach & Jacobs, P.A.

240 S. Pineapple Avenue, Suite 700

Sarasota, FL 34236

941-906-1231

941-954-1185 facsimile

www.bachjacobs.com

April 24, 2012
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Probating a Lost Will in Florida by Babette B. Bach, Esquire

By Probate

Often family members are given copies of wills for safekeeping, but trouble arises when someone dies and the original will is lost.  In Florida, when an original will is known to have existed but can not be located, there is a presumption that the person destroyed the will with the intent to revoke it.  Therefore, a party probating a lost will must present evidence at a hearing to overcome this presumption.  Don’t panic, as it is possible in most cases to overcome this presumption.

 

Florida courts will allow testimony at a hearing from a disinterested witness to prove the execution and contents of a lost will.  If there is an exact copy of the lost original will, the testimony of only one witness to the will execution is required.  However, an unsigned draft of a will does not constitute an exact copy.  If there is no exact copy of a signed will, then the testimony of two disinterested witnesses are required to prove the execution and content of the document.  In every case, a hearing is required in order to satisfy the requirements of Florida Statute 733.207 and relevant Florida case law.

Contact the law firm of Bach & Jacobs, P.A. for an initial consultation.
Babette B. Bach, Esquire, Board Certified Elder Law
Fredric C. Jacobs, Esquire, Board Certified Tax Law
240 S. Pineapple Avenue, Suite 700
Sarasota, FL 34236
(941) 906-1231
www.bachjacobs.com

February 8, 2012
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Are IRA’s exempt from IRS levies for unpaid taxes of the owner of the IRA?

By Tax Law

Are IRA’s exempt from IRS levies for unpaid taxes of the owner of the IRA?

IRA’s are not exempt from IRS levies for the unpaid taxes of the owner of the IRA.  While it is the policy of the IRS to avoid levying against a taxpayer’s IRA or qualified pension plan benefits, it can do so as a last resort (Internal Revenue Manual 5.11.16).  It is also well settled that the IRS lien and levy powers contained in the Internal Revenue Code take precedence over any asset protection provisions in state law, such as FL Stat. 222.21.  The good news is that there is a Tax Court case which holds that in the case of death benefits payable under a qualified pension plan, the IRS levy does not attach to the death benefit, even if the IRS levies against the delinquent taxpayer’s pension account before the death (Asbestos Workers Local 2004-1 USTC 50129).  There does not appear to be any similar case involving IRA death benefits but the analysis should be the same.  It is somewhat similar to IRS levies against life insurance policies owned by a delinquent taxpayer who dies.  While the IRS can reach the cash surrender value, it can’t reach the pure insurance portion of the death benefit payable to a third party beneficiary.

February 22, 2011
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Medicaid Qualification and Application and Medicaid Planning Strategies

By Medicaid Planning
Quick facts about Medicaid
  • Medicaid is a federal and state program that pays for long term care for those individuals that qualify.
  • There is a wrong assumption that Medicare covers long term care. Medicare does not cover costs of basic daily life expenses such as bathing, eating dressing, walking… Medicaid does.
  • The average cost for the Nursing Home in Sarasota County is $7,000.00 per month. These costs are rising annually.
  • If eligible, Medicaid pays the difference between the Applicant’s gross income and his or her care costs.
  • Law provides many Medicaid asset protection planning tools to help you dispose of your assets so that you can still use them for the rest of your life and still qualify for Medicaid.
  • Medicaid planning is technical and often complex. No two cases are alike.
What do we do?
  • Analyze your current assets, estate planning documents and medical expenses
  • Give you detailed explanation of available options for your (or your beloved one’s) Medicaid qualification
  • Provide you guidance for implementation of selected Medicaid asset protection plan. We do not sell any commercial products. We are independent legal advisors looking after your best interest.
  • Complete Medicaid application on your behalf.

 

December 28, 2010
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Services Testimony with Babette and Fred (VIDEO)

By Elder Law, Firm News, Tax Law

 

Babette: At Bach Elder Law, we are committed to viewing our clients and their multi-generational families in a very holistic way. We try to be very active listeners. We want to preserve the integrity of the family and give them the level of service that they need, particularly when they’re in crisis, because when you’re in crisis you need to be taken care of, you need to have your phone call returned, you need to know your case is a priority, so that you can feel the relief that someone is servicing you and solving the problems for you.

Fred: One of things that I enjoy so much in working with Babette, having done this for a lot of years, is the standard of excellence that we have in the office. Nothing goes out of that office unless it’s perfect, unless it’s been reviewed, unless it’s well thought out, unless it’s in the best interests of the client and achieves the best possible result for the client. Nothing else is acceptable.

Babette: In order to obtain the type of services and the level of knowledge that we would like to present to our clients, we are very involved in the Florida Bar. I am often putting on CLEs on behalf of the bar as chair of the elder law section. I have frequently written articles or lectured in the field of elder law. I am frequently attending different continuing legal education programs, and also tracking programs that are provided by the National Academy of Elder Law Attorneys so that I am appraised of all of the newest events that occur in my field.

Fred: In the field of taxation, you must absolutely be current and up to date. In addition to practicing with Babette, I am also a tax law professor at Stetson Law School, which is in St. Petersburg, Fla., approximately 30 miles north of here. In order to stand in front of 25 law students two and three times a week, you must be absolutely current in the tax law. You have to know what you’re talking about and as a result of that experience, the give and take with students, you are obligated to know and understand the law including the most recent changes and additions to the tax law.

November 23, 2010
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Veterans with Babette (VIDEO)

By Veterans Affairs

 

Babette: In addition to being certified by the state of Florida as a board-certified elder law attorney, I’m certified by the Department of Veterans Affairs as a certified V.A. attorney. What that means is that I am able to represent veterans applying for benefits. There are V.A. benefits that are very beneficial to married veterans who were dishonorably discharged and served during wartime that are non-service connected. And that’s very important because if you develop Parkinson’s or Alzheimer’s and you need care at home, you may be able to get substantial governmental benefits to cover your at-home care costs or your assisted-living care costs even though your disability has absolutely nothing to do with service-connected disability. Sometimes I get to tell the widows/widowers of deceased veterans that even though their husband or wife may have passed away 20 years ago they, as a surviving spouse of a war-time veteran, can also access these programs. The benefits are not quite as rich as they are for the veterans but they are very substantial, and it is one of the areas where I frequently council clients.

November 9, 2010
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Tax Matters with Fred (VIDEO)

By Tax Law

 

Fred: I bring to Bach Elder Law my expertise in tax matters. Frequently our clients come into the office with tax problems. Some of them haven’t filed returns for a number of years, some of them are engaged in disputes with the Internal Revenue Service, some of our wealthier clients need tax planning on estate issues which can become very complicated, particularly now at this time where there is great uncertainty in the estate tax law. Congress failed to renew our estate tax law and it went out of business on December 31, 2009. Most tax practitioners, myself included, believe that when the Congress gets to it, it will reinstate the federal tax law in substantially the same form that existed as of December 31, 2009. This means that persons with estates of less than 3.5 million dollars, or 7 million dollars between a husband and wife, need not be concerned with federal estate taxes.

October 27, 2010
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