One of the latest trends in the world of taxes is inversion. Tax inversion occurs when a company moves to a different country in order to avoid their home country’s high tax rate. Many companies are leaving the United States in search of better tax benefits and to avoid the U.S.’s corporate tax rate, which may currently peak at 39.1%.
When a spouse inherits an IRA from their deceased husband or wife, there are several planning strategies that the surviving spouse can follow to suit specific needs. Spouses who are designated the sole beneficiary of the IRA have special options that are not permitted for other beneficiaries.
The State of Connecticut is facing some difficult economic times in the near future. The state maintains its budgets on a biennial basis and the 2013-2014 and 2014-2015 were approved during 2013. Due to a reduction in the projected budgeted surplus, together with a projected deficit of approximately $2.8 billion for the 2016 and 2017 fiscal years, the Income Tax Rebate program proposed by the Governor was withdrawn from consideration.
The IRS has recently provided guidance on how an employee should treat amounts erroneously included in W-2 income for the premiums paid by the employer for a same-sex spouse's health insurance. The IRS advises the employee to request a corrected W-2 from the employer or, if unable to obtain a corrected W-2, to take specific steps to report the correct amount of taxable income.
Navigating the world of investments can be daunting to say the least, but when your child’s future is at stake, it can be downright unnerving. Saving money for college is one of the most important investments you will make in your lifetime.
In recent months, the Marcum Tax Professionals have warned our readers related to many of these IRS phone scams. Federal law enforcement (FBI, Homeland Security, IRS Criminal Investigation, and Treasury Inspector General or TIGTA) are jointly investigating the “boiler rooms” that originate these calls. The TIGTA believe these operations are located in India and they are pursuing aggressively.
On June 19, Rhode Island Governor Lincoln Chafee signed the state’s fiscal year 2015 budget bill. The bill enacts sweeping changes to the RI tax landscape across a number of taxes. The most significant changes will be to the corporate income tax but changes were also made that affect personal income, sales and use taxes and estate tax.
Not since Congress demanded a 'kinder gentler IRS' in 1998, has the individual owner of bank accounts and other financial assets maintained outside the US, seen that side of the Internal Revenue Service.
Every year, Tax Exempt Organizations go through the frustrating task of filing their annual Organization Exempt from Income Tax Return (Form 990). Below is some useful information for organization executives and board members to consider carefully before filing their next Form 990 so the organization can benefit from this public record of disclosure.
On May 8, 2014, the Internal Revenue Service issued final regulations regarding the treatment of administrative costs for non-grantor trusts and estates. These final regulations are similar to the 2011 proposed regulations but provide some clarifications, and are effective for tax years beginning on or after May 9, 2014.
If you have a financial interest in or signature authority over a non-U.S. financial account, you're probably familiar with Form TD F 90-22.1. Starting with the 2013 tax year, U.S. tax filers must instead file new FinCEN Form 114. Normally referred to as the FBAR (or Foreign Bank Account Report), it is due June 30th of each year, for the previous calendar year. This form does not have an extension of time to file and there could be substantial penalties for the failure to timely file.