What is Step-Up Basis and How is it Beneficial for Trusts and Estates? Step-up basis allows for the tax basis to be stepped up to fair market value upon the transfer of an asset at death. What is basis? The IRS defines basis as “the amount of your capital investment in property for tax purposes.”
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Understanding IRS Notices: Notice of Intent to Seize or Levy Your Property, CP504 Notice and CP504B Notice
The IRS CP504 Notice and CP504B Notice We continue our series on IRS notices by discussing the Notice of Intent to Seize (Levy) Your Property or IRS CP504 or CP504B Notice. While the verbiage of this notice can be somewhat confusing and cause some undue alarm, this blog post will discuss what the notice means
What happens if I did not file an FBAR? Can I do a Streamlined Procedure?
Introduction: Streamlined Procedure As an attorney specializing in international tax law, it is crucial to understand the consequences and available options for individuals who have failed to file their Foreign Bank and Financial Accounts (FBAR) reports. Failure to comply with FBAR reporting requirements may result in severe penalties. Fortunately, the Internal Revenue Service (IRS) offers
Understanding IRS Notices: IRS CP14 Notice or IRS Amount Due Notice
IRS CP14 Notice This next series of blogs will provide an understanding of some of the various notices the IRS issues to Taxpayers. First on the list is the IRS Amount Due or IRS CP14 Notice. The notice may also be referred to as a “Notice and Demand.” Many IRS tax cases start with an
You are the Boss and We Help Bosses – An Employer’s Guide to Payroll Taxes and California EDD Audits
Payroll Taxes and California EDD Audits – Part 3 – Forms to Fill This next installment of our Payroll Tax Blog will discuss the forms an employer must file in California to comply with federal (IRS) and state (EDD) payroll tax obligations. While California EDD Audits are a common challenge faced by businesses, a lack
Frivolous Tax Returns Can Be a Serious Matter
Frivolous Tax Returns The IRS can charge penalties of $5,000 for Frivolous Tax Returns and other Frivolous submissions made to the IRS. The US Tax Court may impose penalties of up to $25,000 when a Taxpayer makes frivolous arguments in Tax Court. A list of some of the frivolous arguments that can lead to penalties
Supreme Court Resolves FBAR Penalty Dispute: Per-Report Basis Confirmed
Introduction to the FBAR Penalty Dispute: In a significant decision, the U.S. Supreme Court recently ruled the penalty for violating the “Report of Foreign Bank and Financial Accounts” (FBAR) rules applies on a per-report basis, rather than a per-account basis. This decision brings clarity to a previously divided area of law, as the Fifth Circuit
California Residency Tax Issues – Mr. Buehler Did Not Get a Day Off
California Residency Tax Issues The recent California Office of Tax Appeals (OTA) decision in the Buehler case highlights some of the California residency tax issues a California resident (or nonresident) may face when they have business interests or property inside and outside of California. Buehler involved a taxpayer who resided in California but held an
Insights from an RJS LAW EDD Audit Attorney
You are the Boss and We Help Bosses – A California Employer’s Guide to Payroll Taxes Insights from an EDD Audit Attorney Part 2 – Trust Fund Recovery Penalties This next installment of or Payroll Tax Blog will discuss Trust Fund Recovery Penalties. Trust Fund Recovery Penalties are penalties assessed against individuals for businesses’ failures
IRS Releases New Collection Financial Standards for 2023
IRS Collection Financial Standards The IRS recently released the new Collection Standards for 2023. The IRS Collection Financial Standards are significant because they often determine what a Taxpayer can “reasonably afford” when a Taxpayer makes a payment arrangement such as an Offer in Compromise, Currently Non-Collectable Status, or an Installment Agreement with the IRS for