Your Guide to State, Local, Federal, Estate + International Taxation

Trustees managing taxes? Use the 65 day rule

Trustees trying to manage the tax burden of a complex trust should be familiar with the 663(b) election, also known as the 65 day rule. Making this election can often help to lower the overall tax burden of the trust and its individual beneficiaries. Trusts pay tax at the highest tax rate of 39.6% when …

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Updated New York partnership, LLC, LLP filing fees

It is hard to believe that another tax filing season is upon us. To make matters worse, various Federal filing dates have changed depending on type of entity. States have been adjusting as well. One that is easy to miss is the New York Form IT-204-LL, which is the Partnership, Limited Liability Company (LLC) and …

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Executive orders cause confusion, headache at IRS

Across the United States and around much of the world, people are trying to determine the impact of recent executive orders issued by President Donald Trump. The IRS is no exception; in fact, the Service is concerned enough to have suspended issuance of all new revenue rulings and procedures until they have a better grasp …

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Itemized deductions – taxes

Yesterday I discussed charitable contributions as itemized deductions and today I am discussing taxes as they relate to itemized deductions. So here we go… State, local, foreign income and sales taxes You have the option of deducting general sales tax or state and local income taxes, but not both. Also you may think providing sales …

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Itemized deductions: charitable contributions

Itemized deductions… you probably think you don’t need to read this because it is something that has been around and hardly ever changes. You probably think you know what is and is not deductible at this point, correct? It is all too often that some little things like itemized deductions get pushed aside, because everyone …

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On sale now – your tax refund

It’s going to be hard not to notice in the coming weeks. On radio, TV and media of all kind. Even standing on the street corner spinning a sign. No, it’s not where to go to get a yummy breakfast or a bargain haircut. It’s to tell you where to go to get money NOW …

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E-filing your tax return? Prove your identity first

As part of its continued effort to thwart tax refund fraud, the Internal Revenue Service strengthened its e-filing validation process for the 2017 tax filing season. When e-filing a tax return, all taxpayers must validate their identity by submitting their date of birth and “shared secret information” which is: Your 2015 adjusted gross income, or …

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AZ business partnership tax filings get a bit easier

Currently, Arizona partnership tax filings with the Arizona Department of Revenue (AZ DOR) must include certain federal forms and schedules to be filed along with the state of Arizona return. An examination of this requirement by the AZ DOR has shown that this can result in an additional 10 to 500 pages per return being …

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1099-G error: 580,000 is a big number

How closely do you look at the matching documents that you receive in January and February and compare them to the actual information? For example, do you go through an analysis of your mortgage interest – Form 1098 – and compare it to the amount that you paid each month? Or do you just take …

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IRS looking for U.S. virtual currency users

The Financial Crimes Enforcement Network (FinCEN), a bureau of the United States Treasury, defines virtual currency as “a medium of exchange that operates like a currency in some environments, but does not have all the attributes of real currency.” In other words, virtual currency does not have legal tender status in any jurisdiction. While this …

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