Page 7 – Tax, Estate Planning & Probate Law Center

Tax Changes Due to the Election

28 Aug 20

Many Tax Changes Expected At the time of this writing, the political conventions are over, and Joe Biden has a double-digit lead in some polls. A number of Senate seats may turn blue as well, and this could give the

FBARs from Wuhan

28 Aug 20

The US Department of Justice recently announced the indictment for tax-related crimes of Dr. Charles Lieber, the former Chair of Harvard University’s Chemistry Department, for monies received from a university in Wuhan, China. Key excerpts from the announcement are: Dr. Charles

Foreign Retirement Plans: New IRS Exemption from Required Information Reporting on Forms 3520 and 3520-A

18 Aug 20

In recent IRS Revenue Procedure 2020-17, the IRS has created a procedure where certain U.S. persons having an interest in tax-favored foreign trusts established and operated exclusively or almost exclusively to provide pension or retirement, medical, disability, or educational benefits

New Court Ruling: FBAR penalties applied per form and not per account

07 Aug 20

The FBAR rules require the filing of a FinCEN Report 114, Report of Foreign Bank and Financial Accounts (FBAR) to report for accounts of U.S. persons aggregating $10,000 or more. For a non-willful failure to disclose, the maximum penalty imposed

How to Avoid Jail and Clean Up Tax Problems

06 Aug 20

If you have willfully failed to report income or claimed excessive deductions or failed to file your tax returns and pay the tax owed, you may be liable for civil penalties and possible jail time for criminal tax evasion. Few

The IRS has woken up.

24 Jul 20

Due to the coronavirus, the IRS paused all collection and enforcement activities until July 15, 2020. But recently we have started to receive some tax enforcement actions against some of our clients. The IRS has woken up and is getting

How to Fix an Erroneous Filed Tax Return without Penalties

23 Jul 20

But what if you discover an error or omission on a return already filed with the IRS that needs to be corrected and it is still before the extended due date? The advantage of fixing the return now, before the

IRS’ New “Dirty Dozen” list of tax scams

19 Jul 20

The Internal Revenue Service announced on July 16, 2020, its annual “Dirty Dozen” list of tax scams. This year, the Dirty Dozen focused on scams that target taxpayers, and emphasized aggressive and evolving schemes related to coronavirus tax relief, including

What Happens to Your Digital Accounts In Case of Death

26 Jun 20

We have completed over 1,000 estate plans for clients over the years. Recently, however, we have unfortunately probated a disproportionate number of clients’ wills after death. Through estate planning, many of our clients have planned well for their families in

Expect Coronavirus Bankruptcies

03 May 20

With the downturn in the economy and massive job losses, bankruptcy filings will skyrocket this year. Unpaid tax liabilities will likely be a large part of clients’ debts. There is a common misconception that income taxes are never dischargeable in

No Springing in Spring

02 May 20

You may have heard of a “springing” powers of attorney (POA), which is a POA that “springs” into effect when you become incapacitated. This type of POA literally “springs” to life when it’s needed. Many people like the idea of

After You Wash Your Hands Take Back Control

01 May 20

In recent weeks, our office has received calls from people we have not heard from in 15 years. People are worried. One recent call was from a relatively healthy 83-year-old longtime client, who said he wanted to make sure his

Allow Us To Prepare Your Estate Planning Documents Remotely

15 Apr 20

In these uncertain times, you should have, at a very minimum, the four following documents in place: Power of Attorney: This document allows you to appoint an agent to handle your assets and to make financial decisions on your behalf.

Tax-free Disaster Relief Payment Program

10 Apr 20

In response to the ongoing pandemic, on March 13, 2020, President Trump declared the coronavirus or COVID-19 as a national disaster. This declaration activates a little-known existing provision of the tax law: Section 139 of the Internal Revenue Code. Section 139 allows

Required Minimum Distributions Suspended For Retirement Plans and IRAs For 2020

01 Apr 20

The bipartisan COVID-19 stimulus bill just signed by President Trump includes welcome tax relief for retirees: The required minimum distribution rules for Individual Retirement Accounts and 401(k)s are waived for 2020. That means that instead of taking money out this year, retirees

Quarantine Tips for Tax Savings

31 Mar 20

There have been many important favorable legal and tax changes over the past 2 weeks. The new laws are the most expensive (the government) tax laws ever passed by the government. In these trying times, we have compiled our top

Changes to Legal Documents in light of the Coronavirus pandemic

29 Mar 20

In light of the Coronavirus pandemic, all clients should immediately review their healthcare-related documents including living will, healthcare proxy, and HIPAA release. Most client advisors are familiar with the need to have a current document that reflects the client’s

US FATCA Enforcement Softens due to Coronavirus

25 Mar 20

The Internal Revenue Service is giving foreign banks and financial institutions more time to file their forms about U.S. taxpayers with overseas bank accounts and other holdings in compliance with the Foreign Account Tax Compliance Act, or FATCA, because of

Planning in the Time of Coronavirus

17 Mar 20

The coronavirus is an illness that we cannot ignore. Older adults are especially vulnerable and those who have an underlying issue such as diabetes, heart disease, and respiratory conditions. Many such individuals are in a position of responsibility and wealth.

IRS Reduces Administrative Burden (for the first time) of Filing Some Forms 3520 and/or Forms 3520-A

04 Mar 20

A Revenue Procedure just released by the U.S. Internal Revenue Service (IRS) provides U.S. persons an exemption from the information reporting requirements for certain tax-favored foreign retirement and non-retirement savings trusts. Taxpayers who would otherwise be required to file Form

Planning for Dependent (or not Independent) Family Members

02 Mar 20

One in four Americans has some form of disability. In our law firm’s client base, it is very common to have a family member that is not entirely able to live independently. Even worse, adults with disabilities are living far

The IRS is Assessing Form 3520 Foreign Information Reporting Penalties

21 Feb 20

The IRS is aggressively sending out IRS Notice CP15 “Notice of Penalty Charge” for the late filing of Form 3520 to report the receipt of a foreign gift or foreign inheritance. The Notice states that a civil penalty has been

2020 New Year’s Tax Planning Resolutions: Resolve To Plan Better

27 Jan 20

While we all resolve to go to the gym every day and lose weight, we have compiled a list of 2020 New Year’s tax planning resolutions. Beware of 2020 election-year tax uncertainties. It is important to review tax plans and

The InSECURITY of the SECURE Act

24 Jan 20

At the end of 2019, Congress passed the “Setting Every Community Up for Retirement Enhancement” (SECURE) Act of 2019. The new law, which represents a major overhaul of the rules for retirement plans and IRAs, is effective on January 1,

Are You Ready For New FATCA Enforcement in 2020?

02 Jan 20

Banks and certain other financial institutions located outside the United States that have U.S. account holders are scrambling to meet a looming IRS deadline. These institutions, known as foreign financial institutions, or FFIs, must achieve full compliance with the U.S.

No Clawbacks for Gifts if Estate Tax Exemption Changes

27 Dec 19

Lifetime gift giving can be an effective estate planning strategy for high net-worth clients. Although the estate tax is imposed on the aggregate of the taxable estate and lifetime taxable gifts, gifting removes the appreciation and cash flow of the

Reasonable Cause Defense Denied: FBAR Penalties Assessed by Court

19 Dec 19

In the recent 2019 case U.S. v. Ram Agrawal, a US District Court rejected a taxpayer’s reasonable cause defense against foreign bank account reports (FBARs) penalties. It ruled in favor of the government to collect FBAR penalties for the

Foreign Proprietorship: Form 8858 Filing Requirement

06 Nov 19

US taxpayers with an ownership interest in unincorporated foreign businesses (such as foreign sole proprietorships, partnerships, and single-member entities that are not separately taxed as corporations) must file a Form 8858 with their regular 1040 income tax return. IRS Form

IRS announces two new intriguing targeted enforcement campaigns

12 Sep 19

Every so often the Internal Revenue Service announces a new “campaign” to increase tax compliance. A campaign usually means additional IRS focus and resources are allocated to the areas where the IRS is trying to improve compliance. The IRS recently

President Trump Revamps the IRS through his 2019 Taxpayer First Act