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Tax Law

Small Business Tax Workshops

By Tax Law

The Virtual Small Business Workshop is available on CD and online to help new small business owners understand and meet their federal tax obligations.

Small business workshops, designed to help the small business owners understand and fulfill their federal tax responsibilities, are held at various locations throughout the country. Workshops are sponsored and presented by IRS partners specializing in federal tax.

Workshop topics vary from a general overview of taxes to more specific topics such as recordkeeping and retirement plans. Although most are free, some workshops have fees paid directly to the sponsoring organization, not the IRS.

For your tax advice needs, please contact our office for an initial consultation at (941) 906-1231.

August 8, 2012
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Estate Tax

By Estate Planning, Tax Law

The Estate Tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death (Refer to Form 706 ). The fair market value of these items is used, not necessarily what you paid for them or what their values were when you acquired them. The total of all of these items is your “Gross Estate.” The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.

Once you have accounted for the Gross Estate, certain deductions are allowed in arriving at your “Taxable Estate.” These deductions may include mortgages and other debts, estate administration expenses, property that passes to surviving spouses and qualified charities. The value of some operating business interests or farms may be reduced for estates that qualify.

After the net amount is computed, the value of lifetime taxable gifts (beginning with gifts made in 1977) is added to this number and the tax is computed. The tax is then reduced by the available unified credit.

Most estates do not require the filing of a federal estate tax return. Under current law, a filing is required for estates with combined gross assets and prior taxable gifts exceeding $5,000,000 or more for decedent’s dying in 2011.

August 2, 2012
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Choosing a Tax Professional Wisely

By Tax Law

If you pay someone to prepare your tax return, the IRS urges you to choose that preparer wisely. Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. So, it is important to choose carefully when hiring an individual or firm to prepare your return.

Check the preparers’ qualifications and history.  Inquire about their fees and if they offer electronic filing.  Make sure the tax preparer is accessible and that you provide him or her with all receipts and records to prepare your return.  Never sign a blank return and review the entire return before you sign it.  Make sure the return includes the tax preparers tax identification number (PTIN) before signing.

You can report abusive tax preparers to the IRS on Form 14157, Complaint: Tax Return Preparer. Fill it out or order by mail at 800-TAX FORM (800-829-3676). The form includes the address where it should be mailed.

For more information, visit www.irs.gov.

 

Please contact our office for an initial consultation if you need legal advice at (941) 906-1231.

July 5, 2012
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IRS Identity Theft Protection Steps

By Tax Law

Identity theft occurs when someone uses another’s personal information without their permission to commit fraud or other crimes using the victim’s name, Social Security number or other identifying information. When it comes to federal taxes, taxpayers may not be aware they have become victims of identity theft until they receive a letter from the IRS stating more than one tax return was filed with their information or that IRS records show wages from an employer the taxpayer has not worked for in the past.

If a taxpayer receives a notice from the IRS indicating identity theft, they should follow the instructions in that notice. A taxpayer who believes they are at risk of identity theft due to lost or stolen personal information should contact the IRS immediately so the agency can take action to secure their tax account. The taxpayer should contact the IRS Identity Protection Specialized Unit at 800-908-4490. The taxpayer will be asked to complete the IRS Identity Theft Affidavit, Form 14039, and follow the instructions on the back of the form based on their situation.

Taxpayers looking for additional information can consult the Taxpayer Guide to Identity Theft or the IRS Identity Theft Protection page on the IRS website.

Please contact our office for an initial consultation if you need legal advice at (941) 906-1231.

June 21, 2012
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IRS Open Government Initiative

By Tax Law

The IRS offers many ways for taxpayers, practitioners and stakeholders to engage in Open Government to help build transparency, participation and collaboration in government operations.

The IRS is making it easy for you to take part in Open Government by:

  • Providing more meaningful and easy-to-find information about how the IRS works,
  • Soliciting your ideas to help develop effective policy and
  • Partnering with other government agencies and private institutions.

If you want to get involved, there are many ways for you to help. Check out the forums, webinars, sessions and information sources to see how you can participate in Open Government today.

In establishing a system of transparency, IRS offers several ways that taxpayers, practitioners and stakeholders can participate and collaborate with the government including in person, on the phone and on the Web.

For more information, please visit www.irs.gov, open government initiative.

Please contact our office for an initial consultation if you need legal advice.

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

June 13, 2012
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IRS Taxpayer Assistance Centers

By Tax Law

IRS Taxpayer Assistance Centers (TAC) are your source for personal tax help when you believe your tax issue cannot be handled online or by phone, and you want face-to-face tax assistance. Taxpayer Assistance Centers are closed for all Federal Holidays. Please be advised that you may be asked to provide valid photo identification and a Taxpayer Identification Number, such as a Social Security Number, to receive services.

To view a list of all Taxpayer Assistance Centers in your state, go to www.irs.gov, contact your local IRS office and click on the map or state links.  To search for the Taxpayer Assistance Center closest to you, enter your 5-digit ZIP Code into the Office Locator.

Please contact our office for an initial consultation if you need legal advice.

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

June 6, 2012
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Preparing a Request for Appeal with the IRS

By Tax Law

An Appeal is independent of any other IRS office.  This provides a venue for disagreements concerning tax law to be heard on a fair and impartial basis for both the taxpayer and the government.

 

Review the letter and publication that was sent to you by the IRS department making the decision.  This will instruct you on how to prepare for an appeal, where to mail the request, when it must be received and any information you need to include for your appeal request.  Filing for an appeal will not stop interest and penalties from accruing.

 

An Appeals or Settlement Advisor is appointed to evaluate your case.  Appeals can be conducted in person, by telephone or by correspondence.  The goal is to have a third party Officer work with you and the IRS department to resolve the tax dispute.

 

For more information on IRS Appeals, visit www.irs.gov or contact our office to schedule 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 10, 2012
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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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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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