Page 3 – Tax, Estate Planning & Probate Law Center

65 Day Election on March 6, 2023

21 Jan 23

Trustees and executors have the ability to make certain elections on, or before, March 6, 2023 that could affect 2022 tax returns of the trusts and estates for which they are fiduciaries, as well as the returns of the beneficiaries

High Penalties for failure to file an FBAR: Not Really Enforced (yet)?

19 Jan 23

U.S. persons, including U.S. citizens, residents, corporations and estates, must report certain foreign financial accounts, including bank accounts, brokerage accounts and saving accounts to the U.S. Treasury department each year. If the aggregate value of the foreign financial accounts exceeded

IRS Audits of Millionaires Remain Very Low

15 Jan 23

The Internal Revenue Service still rarely audits millionaires, according to a new report published by Syracuse University’s Transactional Records Access Clearinghouse. Despite calls to ramp up scrutiny of high-net-worth individuals’ tax returns and wealthy tax evaders and a legislative push

IRS Listens, and Postpones Increased Form 1099 Reporting for PayPal and Venmo

30 Dec 22

As a result of taxpayer confusion, lack of guidance, concerns about the existing backlog, and impact on the upcoming filing season, tax professionals urged the IRS to postpone the implementation of the new reporting requirements of Forms 1099-K. Good news:

Accountant-Client vs Attorney-Client Confidentiality

28 Dec 22

Both Accountant-Client vs Attorney-Client Confidentiality are designed to protect the privacy of the client and to ensure that the client can trust their lawyer or accountant to handle sensitive information with care. However, there are some major differences between the

Estate Planning: List of To-Do Items

23 Dec 22

The idea of a visit to an attorney for your estate planning can be unsettling and daunting for many people. As a result, people often procrastinate. To help facilitate the process below is a list of to-do items or at

How Long is the Tax Fraud Statute of Limitations?

19 Dec 22

The question of how much time the government has to pursue tax fraud (also known as the statute of limitations) is often misunderstood. It is important to note that the indefinite or unlimited fraud statute refers to civil tax fraud,

The Taxpaper Roadmap (seriously?)

18 Dec 22

The Taxpaper Roadmap was recently created by The Taxpayer Advocate Service, an independent organization within the IRS. This map illustrates, at a very high level, the stages of a taxpayer’s journey, from getting answers to tax law questions, all the

New Portability Election Extension Prevents Lost Estate Tax Exemption

17 Dec 22

Thanks to the Internal Revenue Service’s release of Rev. Proc. 2022-32, married couples who are not otherwise required to file an estate tax return at the death of the first spouse now have substantially more time to make a portability

What I learned at the 2022 National Institute on Criminal Tax Fraud and Tax Controversy in Las Vegas

14 Dec 22

I just returned from the American Bar Association Section of Taxation’s annual National Institute on Criminal Tax Fraud and Tax Controversy in Las Vegas, which is the largest gathering of criminal tax fraud and tax controversy attorneys in the nation.

Parag Patel Esq. was a featured speaker at the National Association of Enrolled Agents (NAEA) International Tax Certificate Program

12 Dec 22

Parag Patel Esq. was a featured speaker at the National Association of Enrolled Agents (NAEA) International Tax Certificate Program event from December 12-16, 2022. The five-day educational event focused on international taxation for tax professionals. Mr. Patel discussed the tax

New IRS FBAR Practice Unit

01 Dec 22

The IRS LB&I recently issued its Practice Unit on FBARs. Practice Units are “job aids” and training materials intended to describe for IRS agents helpful practices about tax concepts in general and specific types of tax reporting forms. The FBAR

Do Inherited Foreign Assets Receive a Step-up in Cost Basis for U.S. Tax Purposes?

15 Nov 22

A common question asked by clients when receiving an inheritance from outside the United States is about the U.S. cost basis and receiving a step-up in basis on foreign assets owned by a non-U.S. person. Understanding the U.S. cost basis

Forms 5471, 5472, 3520 Partial Penalty Relief Still Available for 2019 and 2020 Returns

13 Nov 22

IRS Notice 2022-36 provided relief for certain taxpayers from certain failure to file penalties and certain international information return penalties with respect to tax returns for tax years 2019 and 2020 that are filed on or before September 30, 2022.

Parag Patel Esq. speaks at New Jersey Society of Certified Public Accountants (NJCPA) Annual Tax Seminar: “A New Foreign Frontier: Foreign Income & Asset Reporting Update”.

13 Nov 22

Parag Patel Esq. will be a featured speaker at a New Jersey Society of Certified Public Accountants (NJCPA) Seminar entitled “ A New Foreign Frontier: Foreign Income & Asset Reporting Update ” on November 18, 2022. Seminar Summary: The IRS

IRS Announces Increased 2023 Gift Tax Annual Exclusion, Gift, and Estate Tax Exemptions

12 Nov 22

The Internal Revenue Service recently released the annual inflation adjustments for tax year 2023, which include welcome increases for wealth transfer tax planning. The gift tax annual exclusion will increase for the second year in a row, rising to $17,000

Parag Patel Esq. speaks at New Jersey Society of Certified Public Accountants (NJCPA) Annual Tax Seminar: “2022 Federal Tax Update and Latest Tax Controversy Hot Topics”.

12 Nov 22

Parag Patel Esq. will be a featured speaker at a New Jersey Society of Certified Public Accountants (NJCPA) Seminar entitled “2022 Federal Tax Update and Latest Tax Controversy Hot Topics” on November 18, 2022. Seminar Summary: With the pandemic fading

Wash Sale Benefits for Cryto Investors

02 Nov 22

Crypto investors have a reputation for hanging on to their coins through the ups and downs of the market’s dramatic gyrations. The wash sale may help crypto investors with tax loss benefits. WHAT IS A WASH SALE? The wash sale

What is the U.S. tax on Inheritances from a Non-U.S. Person to U.S. Person?

01 Nov 22

We get this question a lot… It is important to stress that there are no U.S. taxes owed by a U.S. citizen or green card holder directly on receiving any inheritance (whether received from a U.S. or non-U.S. person). However,

What Do Tax Lawyers Do?

25 Oct 22

Tax attorneys are knowledgeable about tax laws, regulations, and policies at several levels—federal, state, and municipal. In addition to preparing some tax returns, tax attorneys can: Represent clients in disputes with tax authorities. Advise clients about the tax implications of

From Hong Kong With Love…

04 Oct 22

We had many US clients this year with family in Hong Kong requesting legal assistance with recent transfers received from Hong Kong due to the local political instability. Typically, the transfers received from Hong Kong due to the local political

Form 3520 Penalty Relief

29 Sep 22

We have recently posted about the IRS’s broad relief for late filing penalties for 2019 and 2020 tax returns. During the height of the pandemic, taxpayers experienced many obstacles to the timely filing of their 2019 and 2020 tax returns.

Two-day educational event focused on Trusts and Estate taxation

28 Sep 22

Parag Patel Esq. was a featured speaker at the National Association of Enrolled Agents (NAEA) LEARN event in Pittsburgh, PA from September 25–27, 2022. The two-day educational event focused on Trusts and Estate taxation. Mr. Patel discussed the tax laws

Recent Court Decision Shows Risks of IRS Streamlined Filing Compliance Procedures

12 Sep 22

A recent court decision from the United States Court of Federal Claims shows the impact of a poorly advised Streamlined Filing Compliance Procedures (Streamlined Program or SFCP) submission. See Flint v. U.S., No. 21-1202T (Fed. Cl. Aug. 23, 2022). In

Forms 3520, 5471 and 5472 Penalty Relief

29 Aug 22

In IRS Notice 2022-36, the IRS granted relief from certain failure-to-file penalties and certain international information return penalties for most individual and business taxpayers who did not file tax returns for tax years 2019 and 2020, provided the returns are filed

IRS gives widespread penalty relief: ACTION REQUIRED

28 Aug 22

Last week, in IRS Notice 2022-36, the IRS granted relief from certain failure-to-file penalties and certain international information return penalties for most individual and business taxpayers who did not file tax returns for tax years 2019 and 2020, provided the returns

Foreign pension accounts reporting on the FBAR

11 Aug 22

Several clients have asked us in recent weeks whether foreign pension accounts are reported on the FinCen114 (FBAR). Most employer foreign pension plans fall under one of two types: defined benefit plan or defined contribution plan. A defined benefit plan

US Reporting of Foreign Retirement Accounts

08 Aug 22

Many clients contact our office regarding the failure to report their foreign retirement account. Such accounts need to be fully reported on an FinCen 114 (FBAR) and IRS Form 8938. Besides the need to disclose a foreign retirement plan on

Is the IRS Finally Receiving Increased Funding?

06 Aug 22

After months of back and forth, it appears that additional funding is on its way to the Internal Revenue Service (IRS) with the Inflation Reduction Act of 2022 (Act). The Act would spend nearly $80 billion on the IRS and

IRS Extends Late Portability Election Automatic Relief from 2 to 5 Years

13 Jul 22

On July, 8, 2022, the Internal Revenue Service released Revenue Procedure 2022-32, which provides a simplified method for certain estates to make a late portability election to allow the surviving spouse of the decedent to use the decedent’s unused unified

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