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

Have you checked your tax withholding lately?

You don’t need me to remind you that a lot has changed in the world in the last few years. We have had major tax law changes. People have changed jobs or seen many changes to the jobs they have kept. People have had new kids or had kids grow up and leave the house. …

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Recently moved? Update your address with the IRS.

As COVID-19 swept across the county, and even the world in 2020, it brought with it many changes that we would all need to adapt to. One of the most significant effects of the pandemic has been the spike in demand for housing across the country. In fact, one poll found that 56% of Americans …

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The Taxpayer Advocate confirms it was a tough year at the IRS

This is not news to many of us. Especially if you are a tax practitioner or a taxpayer that tried to contact IRS in the past year or so. And it’s been widely publicized. It was a tough year at IRS. But a new report from the National Taxpayer Advocate (NTA) gives us some insight …

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IRS’s ‘Dirty Dozen’ tax scams for 2021

The IRS has recently released their “Dirty Dozen” list of the 12 most common tax scams to be on the lookout for. They are categorized as pandemic-related scams, personal information cons, ruses focusing on unsuspecting victims and schemes that persuade taxpayers into unscrupulous actions. Don’t miss: Closing a California business Phishing – Taxpayers should be …

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Closing a California business

During these challenging times, some business owners have had, or may face the difficult situation, to decide whether to close their business or continue operation. Closing a California business means a domestic corporation may legally dissolve, foreign corporations may legally surrender, and limited liability companies (LLC) and Partnerships (domestic and foreign) may legally cancel. Don’t …

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Military retirement pay exempt from Arizona income tax

This is great news that I will say loud and proud. Arizona now exempts military retirement pay in full from state income tax. Long ago (I won’t say how long ????) I was born overseas in a hospital on a U.S. military base. The son of a military man who moved his wife (my mom …

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What happens to your tax return before its accepted?

Have you ever wondered what happens to your return once it has been sent to the IRS? Once the return has been filed, it goes through a series of review before it will be posted to the IRS system and a refund issued if applicable. This review process is a combination of automated systems and …

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Can executors be held personally liable?

Executors are sometimes pressured by beneficiaries to “wrap up” the estate quickly and make distributions of estate assets. Often this is because beneficiaries want their money and don’t understand the liability executors can face for distributing the funds before it is advisable. I’ve written before about how this can have significant, adverse consequences when the …

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Can a trust or trustee plead the fifth?

The Fifth Amendment of the Constitution allows a person to refuse to answer questions or give testimony that would go against his or her interest in a criminal proceeding. It also allows someone to refuse to produce incriminating documents. However, this protection does not extend to document requests directed at a person acting in a …

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Is a cattle ranch with no cattle a hobby or a business?

Generally, a taxpayer can deduct all ordinary and necessary expenses paid or incurred to carry on a valid trade or business, even if this would create an overall loss on the income tax return. However, if the taxpayer’s activity is considered a hobby, rather than a business, deductions are limited to the gross income earned …

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