Estate Tax Planning Opportunities

Being able to make transfers of up to $5 million ($10 million per couple) without having to pay gift taxes allows for planning opportunities that, combined with leveraging strategies, can transfer huge amounts of wealth. These include: Simple Gifts -

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American Opportunity and Lifetime Learning Tax Credits

Two federal tax credits available to help you offset the costs of higher education for yourself or your dependents.  To qualify for either credit, you must pay postsecondary tuition and fees for yourself, your spouse or your dependent.  The credit

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Estate, Gift and Generation Skipping Transfer Tax

For 2011 and 2012, the gift, estate and GST tax exemptions are unified again, with the exemption set at $5 million and the tax rate at 35%. The $5 million exclusion is indexed for inflation beginning in 2012.  Remember these changes are

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Capital Equipment Expense example – Bonus Depreciation

If in December 2010 you purchased and placed in service a new piece of capital equipment to use in your business - say for example a farmer buys a new tractor and placed it in service in his farming business.

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Tax Filing Status

The first step to filing your federal income tax return is to determine which filing status to use. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax.

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LOOKOUT SMALL BUSINESS OWNERS FILING IRS Form 1120-S or 1065 – Net Operating Loss (NOL) Carry backs trigger Alternative Minimum Tax (AMT)

Please be advised that Net Operating Losses carried back to previous tax years can trigger an Alternative Minimum tax liability in the previous tax year that the loss was carried to, even if you originally did not have a tax

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Posted in Alternative Minimum Tax (AMT), Net Operating Loss, NOL

Who should and who must file an income tax return – refundable tax credits

To determine if you are obligated by law to file a US tax return and pay US income taxes you should consult the instruction book that accompanies the IRS form 1040.  You must file a federal income tax return if

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Posted in Refundable Tax Credit, Tax Guidance & Preparation, Tax Problems & Requests, Tax Refund, Taxable Income

Situations that would not qualify for IRS Fast Track Mediation

Issues for which there is no legal precedent Issues where the courts have rendered opposing or differing decisions in different jurisdictions Industry Specialization Program issues An issue for which you filed a request for competent authority assistance Service Center penalty appeals cases Service Center Offer in Compromise cases Collection

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Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Examination, IRS Mediation, Uncategorized

Choosing a Tax Preparer

If you pay someone to prepare your tax return, know that you are legally responsible for what’s on your tax return even if it is prepared by someone else. So, it is important to choose carefully when hiring an individual

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IRS USE OF HARD-CORE ENFORCEMENT TOOLS, ESPECIALLY TAX LIENS

The Taxpayer Advocate's 2010 annual report to congress describes continuing concern that IRS collection practices inflict unnecessary harm on financially struggling taxpayers and fail to achieve the IRS’s overriding objective of increasing long-term voluntary compliance with the tax laws.  “Tax

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Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Penalties, IRS Penalty and Interest Abatement
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