Client Organizers
The attached client organier is designed to help you gather tax information needed to prepare your 2010 personal income tax return. Click on the link below to access the client organizer.
Services
FBAR Amnesty (Again)
The IRS has recently announced a second period of amnesty for undisclosed foreign bank and financial accounts (FBAR). In order to disincentivize “holding out” the IRS has upped the potential penalties to 25% from 20% on the highest aggregate account balance between 2003 and 2010. Taxpayers must also file amended returns declaring all foreign income and pay the related taxes, penalties, and interest. The deadline for entering the amnesty program is August 31, 2011.
In exchange the IRS is promising not to pursue criminal charges. In addition to criminal charges, the penalties can be as high as 50% of the highest aggregate account balance as well as declaring all foreign income and paying the related taxes, etc.
The IRS has made it clear they are actively pursuing these perceived tax “loopholes” in an aggressive fashion. If you have undisclosed foreign bank accounts you need to know your rights and options. Please call our office immediately to speak with your trusted LMGW advisor.
1031 Exchanges – Follow the rules!
In a recent summary opinion by the US Tax Court (Ralph Crandall TC Summary Opinion 2011-14) the taxpayers were found to not qualify for nonrecognition treatment under Section 1031. The parties established two escrow accounts for the exchange but neither account limited the taxpayer’s right to receive, pledge, borrow, or otherwise obtain the benefit fo the funds.
As with many prospective tax transactions, it is of paramount importance that the rules and form of transactions be followed to the letter.
Up to a 95% tax break for employer provided child care
For those of you with small businesses out there, opportunity exists for an up to 95% tax savings for providing child care for your employees. The tax savings involves the following items: federal employer child care credit, California employer child care credit, federal income tax deduction, California income tax deduction, FICA savings.
The maximum credit can be obtained by paying up to $100 per month, per child in qualifying child care payments. Payments must be made directly by the employer to the qualifying child care provider. Care must be provided under the authority of a license when required by California law. Read more
IRS Launches First Smartphone Apps
The IRS announced it has released its first smartphone application, IRS2GO. The app allows people to check their refund status, get daily tax tips, and follow the IRS news feed on Twitter all through their Apple or Android platform smartphones.
To check a refund status, users will need their social security number, filing status, and expected refund amount from their 2010 tax return. Per the IRS website, sensitive information such as social security numbers will be masked and encrypted for security. If you e-file your return you can use the app to check the status of your refund within 72 hours of the IRS’s acceptance of the return. Paper filers will have to wait 3-4 weeks.
The app will also let users subscribe to Tax Tips. The IRS issues tax tips daily during the filing season and periodically during the rest of the year. The tips are designed to be easy to understand and provide users with information on tax planning and preparation.
Finally, if you are so inclined, you can follow the IRS Twitter news feed, @IRSnews. The Twitter feed provides the latest news, tax law changes, and information on IRS programs in short, timely messages.
The app is free and can be downloaded from the Apple App Store or the Android Marketplace.