Updates to GILTI High-Tax Exception regulations

The IRS issued final regulations to the High-Tax Exception (HTE) for Global Intangible Low-Taxed Income (GILTI) on July 20, 2020.  Although these final regulations are similar to the proposed regulations issued in June of 2019, they contain some modifications such as allowing an annual election rather than a five-year binding election and allowing for retroactive …

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IRS expands Identity Protection PIN Opt-In program to all taxpayers

Here is some good news for any taxpayer concerned about having their identity stolen. Beginning in January, the IRS Identity Protection PIN Opt-In program will be expanding to all taxpayers who can properly verify their identity. The PIN is a six-digit number assigned to eligible taxpayers created to help prevent their Social Security number from …

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Are you ready to file your 2020 taxes?

There’s no doubt about it that the year of 2020 has been one for the books. More reason to make sure that you are ready to file your 2020 tax return, right? Here are a few things to look at to prepare. Double check your withholding and make changes as soon as possible Don’t miss: …

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Abandoned property up for public bid

Ever wondered what happens to the contents of abandoned safety deposit boxes? Turns out after a number of years held by the state and listed on sites such as https://azdor.gov/unclaimed-property it ends up being auctioned off and starting today you can bid on what was inside! The Arizona Department of Revenue (ADOR) will hold a …

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Arizona Qualified Facility Tax Credit

If you are a manufacturing company in Arizona that sells the majority of your products outside of the state and are anticipating making additional capital investment in the state to create new jobs, you may be eligible to receive an allocation of the Arizona Qualified Facility Tax Credit. Before we go into how the application …

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What happens if I die without a will?

In Season 6, Episode 5 of Parks and Recreation, Ben Wyatt tells Ron Swanson “If you die and you don’t have a real will, most of what you own will go to the government”. While in certain cases there is a sliver of truth to that statement, in Ron’s situation it would not apply. Now …

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Court ruling holds decedent’s estate liable for FBAR penalties

Dean Danielson was a U.S. citizen who formed a corporation called Sugar Creek in the 90’s. The company was in the business of selling Swiss annuities, and he opened two foreign bank accounts (one in Canada and one in Lichtenstein) in the company’s name. In the years 2006 through 2009, the amounts in those bank …

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Could Prop 105 save Prop 208 from being repealed?

As you have probably heard, Arizona Proposition 208 has been called and passed. There has been a lot of commentary surrounding the passing of Proposition 208, from people who approve and disapprove of the proposition. Individuals who disapprove have been looking into repealing the proposition due to the surcharge of 3.5% additional tax on the …

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Loans from an IRA – Can you take them?

We see a lot of questions regarding loans from an IRA account. The short answer is you are not allowed to take a loan from an IRA or IRA-based plans such as SEPs, SARSEPs and SIMPLE IRA plans. You also are not permitted to roll over an outstanding loan balance from a retirement plan into …

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Substantiating Noncash Charitable Contributions

Giving to charity can be very rewarding. It not only helps the community but can also provide a benefit on your tax return. Charitable contributions are reported on Schedule A as itemized deductions on your individual tax return. The following might help clarify any information needed in order to claim noncash contributions. When asked to …

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