The 2017 federal tax law, which President Trump signed after a party-line vote in Congress, limited to $10,000 the state and local tax payments that families can write off on their federal income taxes if they itemize deductions. The provision, known as the SALT cap, disproportionately affected residents of wealthy, high-tax states, where residents are more … Read more
On September 16, 2019, the United States Internal Revenue Service (IRS) announced the mailing of a time-limited settlement offer for certain taxpayers under audit who participated in abusive micro-captive insurance transactions. The settlement requires substantial concession of the income tax benefits claimed by the taxpayer together with appropriate penalties (unless the taxpayer can demonstrate good … Read more
In a little piece of good news – especially for those who value propert asset protection and estate planning – The Supreme Court, in a unanimous decision, held that the presence of beneficiaries of a trust in a state does not alone give a state the power to tax the trust’s income. The court found … Read more
Don’t think that just because the currency is virtual, that the tax man doesn’t know you have it. Bitcoin and other virtual currencies are squarely in the crosshairs of the IRS and other agencies. The combination for potential for tax evasion, money laundering and illegal payments is just too enticing for the government to ignore. For … Read more
Internal Revenue Code (IRC) section 7430 permits courts to award “reasonable litigation costs” and “reasonable administrative costs” to the “prevailing party” in any “administrative or court proceeding … brought by or against the United States in connection with the determination, collection, or refund of any tax, interest, or penalty” under the IRC. These costs can … Read more
Even for honest taxpayers, the IRS can be extremely frightening. Unlike most other government agencies, the IRS has the power to attach your wages, freeze your bank account and even confiscate your property, and that is enough to send a chill up the spine of any taxpayer. If you receive a letter from the IRS … Read more
Lower cost of living. Adventure. Wonderful weather. Beautiful beaches. Many Americans are looking to other countries to spend their retirement years. This can be a rewarding and cost effective retirement strategy. However, before you move to Costa Rica, you need to make sure you have your financial affairs in order – including taxes. Moving overseas … Read more
