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Tax Deadlines Postponed to July 15, 2020, due to Coronavirus

By Elder Law, Tax Law

In March 2020, in response to COVID-19, the IRS announced that taxpayers generally would have until July 15, 2020, to file and pay federal income taxes originally due on April 15, 2020. No late-filing penalty, late-payment penalty, or interest will be due.

On April 9, 2020, the Department of Treasury and the IRS expanded this relief to additional returns, tax payments, and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporation and other non-corporate tax filers qualify for the extension. This means that anyone, including Americans who live and work abroad, can wait until July 15 to file their 2019 federal income tax return and pay any tax due.

The extensions are automatic and apply to all taxpayers. Taxpayers do not need to file other forms or contact the IRS to qualify.

Fred Jacobs is a Florida Board Certified Tax Lawyer.  Contact Fred at Bach, Jacobs & Byrne, P.A. to discuss tax planning for you and your family. Call (941) 906-1231 to schedule an appointment.

June 10, 2020
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Beware of Coronavirus Related Scams in Florida

By Elder Law, Long-Term Care

The IRS is warning taxpayers to be on the lookout for scams related the Coronavirus, or COVID-19, which can lead to tax-related fraud and identity theft. The IRS and its Criminal Investigation Division have seen a new wave of phishing schemes against taxpayers.  Senior citizens are among the most vulnerable to these scams and should be especially careful during this time.

In its press release, the IRS reminded taxpayers that the IRS is never going to call you asking to verify or provide your financial information so you can get an economic impact payment or refund faster.  Taxpayers should watch out for emails, text messages, websites, and social media attempts that appear to be from the IRS and request money or personal information. If you receive an email that appears to be coming from the IRS, do not open it or click on attachments or links. You should go to the IRS official website, www.IRS.gov for the most up-to-date information.

The IRS also provides the following items to keep in mind, in order to protect yourself and your loved ones:

  • Scammers may emphasize the words “stimulus check” or “stimulus payment.” The official term is economic impact payment.
  • Scammers may ask the taxpayer to sign over the economic impact payment check to them.
  • Scammers may ask by phone, email, text, or social media for verification of personal and/or banking information, saying that the information is needed to receive or speed up their economic impact payment.
  • Scammers may suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
  • Scammers may mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.

 

Taxpayers who receive unsolicited emails, text messages, or social media attempts to gather information that appear to be from the IRS should forward it to [email protected].

Fred Jacobs is a Florida Board Certified Tax Lawyer and Sean Byrne is an elder law litigator.  Contact Fred or Sean at Bach, Jacobs & Byrne, P.A. if you or a senior you know has been the target of elder exploitation or needs assistance with tax matters. Call (941) 906-1231 to schedule an appointment.

June 9, 2020
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How is the Internal Revenue Service (IRS) involved in probate?

By Probate, Tax Law

It is the duty of the personal representative of an estate to oversee the repayment of debts owed by the decedent as well as to submit the final tax returns for the decedent. It is necessary for the personal representative to complete a final federal individual income tax return (Form 1040), being sure to make note of all income up to date of death as well as any credits or deductions to which the decedent is entitled. Then, the personal representative may need to file Form 1041, the U.S. Income Tax Return for the Estate. For federal gift taxes, Form 709 may be filed; Form 706 is the return filed for the federal estate tax, if it is required.

If the decedent has not kept up to date with his/her tax returns, it is up to the personal representative to pay off the tax returns from previous years from assets of the estate. A personal representative may verify the tax return history of a decedent by submitting Form 4506-T, Request for Transcript of Tax Return.

If you are a personal representative in need of probate assistance or wish to evaluate whether a probate proceeding is necessary to administer an estate, please call the attorneys at Bach, Jacobs & Byrne, P.A. at (941) 906-1231 to schedule a consultation. Attorney Fred Jacobs is a Florida Board Certified Tax Lawyer who can also assist you with the preparation and filing of an estates tax return.

March 15, 2019
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Tax Cuts and Jobs Act of 2017: Capital Gains Taxation

By Tax Law

The recent Tax Cuts and Jobs Act brought with it many changes to federal tax law. In this series of blog posts, we explore what’s new in taxes.

Capital gains taxes have remained basically the same. Short-term capital gains (assets held less than one year) are still taxed as ordinary income. However, long-term capital gains tax rates are now based on the following taxable income levels, instead of on the old marginal tax brackets:

Long-Term Capital Gains Rate Single Return Taxable Income Joint Return Taxable Income
0% for taxable income up to $38,600 $77,200
15% for taxable income up to $425,800 $479,000
20% for taxable income up to $425,800 $479,000

 

It is important to note that alternative minimum tax rates still apply to long-term capital gains. In 2018, an alternative minimum tax of 28% will apply to any alternative taxable income (including long-term capital gains) in excess of $95,750 for single returns and $191,500 for joint returns.

Attorney Fred Jacobs of Bach, Jacobs & Byrne, P.A. is a Florida Board Certified Tax Law attorney who can advise you throughout the tax planning process. Call (941) 906-1231 to set up a consultation to review your situation.

October 22, 2018
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Tax Cuts and Jobs Act of 2017: Deductions

By Tax Law

The recent Tax Cuts and Jobs Act brought with it many changes to federal tax law. In this series of blog posts, we explore what’s new in taxes.

There have been significant changes to deductible expenses under the new tax law:

  • Mortgage interest deductions for new mortgages are now available only for up to $750,000 for residential mortgages. Previously, the deduction was available for up to $1,000,000.
  • Home equity interest is no longer deductible.
  • The charitable contribution itemized deduction remains, and one can now deduct as much as 60% of adjusted gross income (up from 50%) for contributions to qualified public charities.
  • Medical expenses in excess of 7.5% of adjusted gross income are still deductible. Previously, this deduction was up to 10%.
  • Casualty losses are no longer deductible, except within federal-declared disaster areas.
  • Itemized deductions for state and local taxes now cannot exceed $10,000 on a single or joint return.
  • There are no longer deductions available for investment advisor fees, tax preparation fees, unreimbursed employee expenses, or safe deposit box fees.

            Attorney Fred Jacobs of Bach, Jacobs & Byrne, P.A. is a Florida Board Certified Tax Law attorney who can advise you throughout the tax planning process. Call (941) 906-1231 to set up a consultation to review your situation.

October 12, 2018
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Tax Cuts and Jobs Act of 2017: LLC, Partnerships, S Corps, and Sole Proprietors

By Tax Law

The recent Tax Cuts and Jobs Act brought with it many changes to federal tax law. In this series of blog posts, we explore what’s new in taxes.

            There is now a 20% deduction for this “pass-through” income. However, for professional services providers like lawyers, doctors, and accounts, only the first $157,000 is deductible for single filers (and only the first $315,000 for joint filers). It is important to note that the 20% deduction does not apply to passive investments in LLCs, Partnerships, and S Corps.

            Attorney Fred Jacobs of Bach, Jacobs & Byrne, P.A. is a Florida Board Certified Tax Law attorney who can advise you throughout the tax planning process. Call (941) 906-1231 to set up a consultation to review your situation.

October 2, 2018
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What is the gift tax?

By Tax Law

As defined by the Internal Revenue Service, the gift tax is one, “…on the transfer of property by one individual to another while receiving nothing, or less than full value, in return.” In general, it is said that all gifts are taxable – however, there are some exceptions to this rule. The following gifts are considered non-taxable:

-Any that are not more than the annual exclusion for the calendar year ($15,000 per gift, at the time of this writing)

-Tuition or medical expenses paid on behalf of someone else

-Gifts to one’s spouse

-Gifts to a political organization

-Gifts to charitable organizations

The recent Tax Cuts and Jobs Act of 2017 raised the annual exclusion from $14,000 to $15,000 per gift, which benefits high-net-worth individuals who wish to make gifts to their heirs.

Beware of this, however: on December 31, 2025, the exemptions will revert to lower values, absent any tax law updates in the meantime. Plan and give accordingly!

August 7, 2018
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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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