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Alert To New IRS Phone Scam

By Firm News, Tax Law

If you have recently received a computerized call or a call from a real person stating that you are being investigated for tax fraud and asking you to call a specific telephone number, chances are this was a scam call to try to trick you into providing a criminal with your personal information and ultimately trick you out of your money. This has been happening to numerous people across the country so please be on alert and do not give up your personal information over the telephone no matter how convincing the caller sounds.
There are some points you can consider to help you to identify whether an IRS caller is a fake. Remember that the IRS will NOT:

1. Call to demand immediate payment, nor call about taxes owed without first having mailed you a bill.
2. Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
3. Require you to use a specific payment method for your taxes, such as a prepaid debit card.
4. Ask for credit or debit card numbers over the phone.
5. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.

Things you can do if you suspect you have been a victim of an IRS telephone scam:
Contact the IRS office at 1.800.829.1040.
Contact the Treasury Inspector General for Tax Administration (TIGTA) to report the call. Use their “IRS Impersonation Scam Reporting” web page or call 800-366-4484.
Report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov.

Please share this information with friends and family to ensure that they are also on alert especially if they are elderly and particularly vulnerable to scams of this sort.

Attorney Fred Jacobs is Florida Board Certified in Tax Law. Call Bach & Jacobs at (941) 906-1231 to schedule an appointment with Fred if you have any questions.

September 1, 2016
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What is the tuition gift tax exclusion limited to?

By Government Benefits, Tax Law

This exclusion is limited to tuition. For example, the exclusion does not apply to expenses for books, room and board, or meal plans. The tuition expense exclusion applies only to enrollment to the institution.

Attorney Fred Jacobs is Florida Board Certified in Tax Law.  Call Bach & Jacobs at (941) 906-1231 to schedule an appointment with Fred if you have questions about how the gift and estate tax laws affect you and your family.

August 30, 2016
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What is the Tuition Gift Tax Exclusion?

By Government Benefits, Tax Law

Oftentimes, grandparents will give grandchildren and other relatives financial gifts which can be subject to taxation by the IRS. One can gift up to $14,000 to a single person without the transaction being taxed by the IRS. And for married couples, the IRS does not tax any gifts of $28,000 or less.

However, payments for tuition are not treated as taxable gifts, if given directly to the institution or medical provider.

In the next week, check the blog to see what the tuition gift tax exclusion is limited to and what educational institutions qualify for the exclusion.

Attorney Fred Jacobs is Florida Board Certified in Tax Law.  Call Bach & Jacobs at (941) 906-1231 to schedule an appointment with Fred if you have questions about how the gift and estate tax laws affect you and your family.

August 26, 2016
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How can I pay someone’s medical expenses and still qualify for the medical expense gift tax exclusion?

By Asset Protection Planning, Government Benefits, Tax Law

To qualify for the medical expense gift tax exclusion, one has to give the payment directly to the medical provider. For example, one can make the payment out directly to the provider or they can give the check to a relative, as long as it is only payable to the provider. You should not “reimburse” the patient for an expense the patient already paid for or it will not be covered.

Attorney Fred Jacobs is Florida Board Certified in Tax Law.  Call Bach & Jacobs at (941) 906-1231 to schedule an appointment with Fred if you have questions about how the gift and estate tax laws affect you and your family.

August 23, 2016
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What expenses does the medical gift tax exclusion cover?

By Asset Protection Planning, Government Benefits, Tax Law

The Internal Revenue Code states that the medical expense gift tax exclusion applies to the transfer payments for “the diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure or function of the body,” or “transportation primary for and essential to medical care.” For example, hospital bills, doctor’s visits, medication, and nursing home care are all expenses that qualify for the exclusion. Some long-term care services, health insurance payments, and travel to receive the care also qualify for the exemption.

Attorney Fred Jacobs is Florida Board Certified in Tax Law.  Call Bach & Jacobs at (941) 906-1231 to schedule an appointment with Fred if you have questions about how the gift and estate tax laws affect you and your family.

August 19, 2016
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What is the Medical Expense Gift Tax Exclusion?

By Government Benefits, Tax Law

A taxpayer can gift up to $14,000 to an individual each year without having to file a gift tax return. This is referred to as the “annual gift tax exclusion.”

If one wants to make additional gifts but has reached their limit on their annual gift tax, there are still other ways to gift money. One can give tax-free gifts directly to medical providers to cover medical expenses for someone else.

This week we’ll be posting about what expenses are covered and how to qualify for the exclusion for medical expenses.

Attorney Fred Jacobs is Florida Board Certified in Tax Law.  Call Bach & Jacobs at (941) 906-1231 to schedule an appointment with Fred if you have questions about how the gift and estate tax laws affect you and your family.

August 16, 2016
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Florida Senate adopts several elder care bills

By Elder Law, Estate Planning, Government Benefits, Guardianship

Bill 0080 — Relating to Family Trust Companies

  • This bill revises the Family Trust Company Act to require that all family trust companies apply as a licensed family trust company, register as a foreign licensed family trust company, or stop doing business by December 30, 2016 in the state of Florida.
  • It also requires the family trust company to have at least three directors/managers, with at least one of those directors/managers being a resident of Florida.

Bill 0232 — Relating to Guardianship

  • The passing of this bill renames and expands the Statewide Public Guardianship Office to the Office of Public and Professional Guardians, giving it the responsibility of the administrative duty of writing the rules for the regulation of professional guardians.
  • The bill establishes stricter regulations of professional guardians, who previously have not been closely supervised by the state

Bill 0494 — Relating to Digital Assets

  • Dubbed the “Florida Fiduciary Access to Digital Assets Act,” this bill allows fiduciaries to manage and control digital assets the same way they manage tangible assets.
  • This bill also grants custodians of digital assets the right to interact with the fiduciaries in order to honor the fiduciaries’ requests
  • Lastly, Bill 0494 allows for courts to authorize a guardian the right to access the digital assets of a ward, if the circumstances permit

Bill 1335 — Relating to Long-term Care Managed Care Prioritization

  • This bill not only requires the Department of Elderly Affairs to keep a wait list for the enrollment for community-based services, but also requires the DEA to prioritize individuals through a frailty-based screening tool.

These bills took effect July 1, 2016.

August 12, 2016
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Florida launches ABLE United Program

By Asset Protection Planning, Elder Law, Government Benefits, Medicaid Planning

Being one of the first ABLE (Achieving a Better Life Experience) savings plans in the country, Florida’s ABLE program now allows individuals with disabilities to maintain their eligibility for government benefits while owning more than $2,000 in assets.

As of July 13, 2016, Intuition ABLE Solutions has partnered with the Florida Prepaid College Board to launch the program. Qualifying individuals are required to hold their assets in ABLE accounts, which are modeled after college savings plans. The disabled individual acts as the owner and beneficiary of the account, and the growth of the account is tax-free. Up to $100,000 of the account is considered a non-countable resource. Funds may be withdrawn tax-free for qualifying expenses such as transportation, medical expenses, and housing.

However, there are several restrictions to the program. The individual applying for the program must have developed the disability by his/her 26th birthday. When the individual passes away, the state government must be paid back from any funds that remain in the account. Also, no more than $14,000 per year may be contributed to the account by the individual. The maximum limit of the account is $418,000.

If you have further questions on this topic or want to find out whether you or a loved one could benefit from an ABLE account, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

August 9, 2016
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Dept. of Elder Affairs designates Tallahassee as first Dementia Caring Community in Fla.

By Elder Law, Health

Leon County and the City of Tallahassee are the first Dementia Caring Community in Florida, under a new designation in April 2016 by Sam Verghese, Secretary of the Florida Department of Elder Affairs.

According to Verghese, the initiative stems from the fact that Florida has the second highest incidence of Alzheimer’s disease in the United States. The community is part of the Department’s Dementia Care and Cure Initiative and will support individuals and families affected by the disease.

The department and city are currently in the process of creating a community work plan to take action at a local level. The city will work to achieve several goals for the Alzheimer’s and Dementia community through “awareness, assistance, and advocacy,” according to Verghese.

This announcement also comes with the news that the governor appointed four people to the Alzheimer’s Disease Advisory Committee.  Three of the appointees will serve three-year terms and one will serve a two-year term.

August 6, 2016
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What are some of the federal regulations for home care workers that work through a Medicaid-funded, self-directed program?

By Elder Law, Long-Term Care, Medicaid Planning

If you hired a worker through a self-directed program and act as the employer, federal regulations require that you:

  • You are responsible for making sure the home care workers receives minimum wage and any overtime pay
  • Make sure the fiscal intermediary pays the worker properly, if necessary
  • Make sure the fiscal intermediary or agency keeps employment records
August 5, 2016
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