by Robert Fowinkle
Taxation of property transfers at death can be traced back to ancient Egypt as early as 700 B.C. Nearly 2,000 years ago, Roman Emperor Caesar Augustus taxed estates of the wealthy at death.
Federal estate tax was implemented by the U.S. Congress in 1916. There was an exemption of $50,000 for residents at that time. Estate tax exemptions have risen over the years from $600,000 in 1987 to $2 million in 2008.
The exemption beginning in 2009 is $3,500,000 and a 45% tax on estate dollars above the exemption. Bush's tax cuts set into motion a gradual phase-out of the estate tax.
"Death should not be a taxable event, and government should not be profiting from death," Republican, Senator Grassley of Iowa, said.
Critics of the current system say it effectively taxes income twice, first when it is earned and again when the earner dies and leaves it to an heir.
Officially as it stands, in 2010 there will be no estate tax, but tax experts generally don't believe that will happen under the new administration. If no congressional action takes place it will revert back to 2001 levels in 2011.
Jonathan Weisman of the Wall Street Journal writes: Democrats in Congress will move quickly to block the estate tax free year of 2010. The Democratic stance on the estate tax contrasts with Mr. Obama's reluctance to press forward with his campaign pledge to raise income-tax rates on top earners. Under the Obama plan detailed during the campaign, the estate tax would be locked in permanently at the rate and exemption levels that took effect this year. That would exempt estates of $3.5 million -- $7 million for couples -- from any taxation. The value of estates above that would be taxed at 45%.
I personally have to agree with Senator Grassley's statement above. "Death should not be a taxable event". However if we must have a tax on estates the exemption of $3.5 million per individual and $7 million for couples -- from any taxation and 45% on amounts above would be acceptable at this time.
The element of automatic increases or indexing of the exemptions on individuals and couples is very important and should be implemented into the law. This would certainly help stabilize the estate planning process. Our current system has created a nightmare of changes in the planning process.
I would be remiss if I did not cover one very important issue of the heirs paying the estate taxes. There are four methods of paying federal estate taxes (1) current cash (2) borrowing money or arranging payments to the IRS (3) selling off assets (4) life insurance. The first three methods are the most expensive ways to pay federal estate taxes. Life insurance is by far the least expensive.
If you are in need of an estate planning review I recommend you use a team of three or four professionals. The team should consist of your CPA or accountant, estate planning attorney, estate planning life agent and financial adviser, if you use one.
About the Author
Robert "Bob" Fowinkle, CIC, CLU is the president of Moore, Fowinkle, & Shroer Agency in Bradenton.
Monday, January 11, 2010
Saturday, December 5, 2009
Why You Must Hire an IRS Tax Attorney
by Enamul
You Must Hire an IRS Tax Attorney
Paying tax is a federal regulation that is punishable for those who fail to abide by it. There are situations when we would normally find ourselves in the situation and we have to face some serious penalties. This is when you would realize that you would need an expert to help you solve the tax problems that you would be facing so that you escape some of the penalties. You would also need the assistance of the experts when you are facing tax fraud cases.
However, you may come across several professionals claiming to have the power to help you handle the issues and charges you are facing. Still, you need to understand that only IRS tax attorneys have the power and the mandate to handle such cases. Yes, you may argue that a professional lawyer may also help or even an accountant would also help but you will agree that they both cannot get to what an IRS tax attorney can do for you.
Why specifically IRS tax attorney
If you need to know why you must hire an IRS tax attorney, then you have the following reasons to consider. They have several advantages that they would help you achieve unlike the other attorneys or accountants. They would help you get the compromise that you have been looking for. They have the power to help you get tax alien subordination unlike the other professionals mentioned.
Because their major focus is on the tax issues, you can be sure that they will help you get the release or the withdrawal that you have been looking for. They have the capability to help you with the wage levy and bank account garnishment issues that you may have. The other reason why you must hire an IRS tax attorney is that they are capable of rendering the civil and criminal additional examination.
For your entire tax fraud defense needs, you would have to ensure that you are getting someone whom you are sure would be able to grant the kind of help that you need. There are situations where you would have skipped paying your taxes; you would have to take on the help of these experts to help negotiate for the right installments agreement that you would be comfortable with paying.
Innocent spouse relief help is the other reason why you would need to hire IRS tax attorneys. They can also help with your back tax needs, penalty abatement as well as trust fund penalty defense. You must never let anyone cheat you that you can do with just other attorneys.
Any assistance required on your payroll tax, as well as employee and subcontractor classification issues must only be settled by an IRS attorney.
There are so many reasons why you must hire an IRS tax attorney which you would need to make use of. Tax consulting, attorney opinion letters and technical memoranda are just among the many advantages as well as reasons why you would find this kind of attorney very useful to work with. Transcript analysis, trade and business expenses, hobby losses are just the help you would be able to get.
About the Author
Learn How To Select The Right Tax Relief Attorney For You. If You Are Looking For Quality Information Related To Tax Lawyers visit www.TaxLawyersAttorney.com
You Must Hire an IRS Tax Attorney
Paying tax is a federal regulation that is punishable for those who fail to abide by it. There are situations when we would normally find ourselves in the situation and we have to face some serious penalties. This is when you would realize that you would need an expert to help you solve the tax problems that you would be facing so that you escape some of the penalties. You would also need the assistance of the experts when you are facing tax fraud cases.
However, you may come across several professionals claiming to have the power to help you handle the issues and charges you are facing. Still, you need to understand that only IRS tax attorneys have the power and the mandate to handle such cases. Yes, you may argue that a professional lawyer may also help or even an accountant would also help but you will agree that they both cannot get to what an IRS tax attorney can do for you.
Why specifically IRS tax attorney
If you need to know why you must hire an IRS tax attorney, then you have the following reasons to consider. They have several advantages that they would help you achieve unlike the other attorneys or accountants. They would help you get the compromise that you have been looking for. They have the power to help you get tax alien subordination unlike the other professionals mentioned.
Because their major focus is on the tax issues, you can be sure that they will help you get the release or the withdrawal that you have been looking for. They have the capability to help you with the wage levy and bank account garnishment issues that you may have. The other reason why you must hire an IRS tax attorney is that they are capable of rendering the civil and criminal additional examination.
For your entire tax fraud defense needs, you would have to ensure that you are getting someone whom you are sure would be able to grant the kind of help that you need. There are situations where you would have skipped paying your taxes; you would have to take on the help of these experts to help negotiate for the right installments agreement that you would be comfortable with paying.
Innocent spouse relief help is the other reason why you would need to hire IRS tax attorneys. They can also help with your back tax needs, penalty abatement as well as trust fund penalty defense. You must never let anyone cheat you that you can do with just other attorneys.
Any assistance required on your payroll tax, as well as employee and subcontractor classification issues must only be settled by an IRS attorney.
There are so many reasons why you must hire an IRS tax attorney which you would need to make use of. Tax consulting, attorney opinion letters and technical memoranda are just among the many advantages as well as reasons why you would find this kind of attorney very useful to work with. Transcript analysis, trade and business expenses, hobby losses are just the help you would be able to get.
About the Author
Learn How To Select The Right Tax Relief Attorney For You. If You Are Looking For Quality Information Related To Tax Lawyers visit www.TaxLawyersAttorney.com
Sunday, November 8, 2009
Tax Lawyers Answer Tax Questions About the IRS, Audits, Liens, Levies, and Garnished Wages
by Jones & Ryan Tax Attorneys
Dealing with the IRS and related tax problems can be anyone's worst nightmare. Once the IRS has begun to go after you, it can seem that they won't stop even after you think they have gotten what they want. The tax lawyers of Jones & Ryan have been working since 1995 to solve such nightmares. Grey W. Jones, Esq. and Cheryl L. Ryan, Esq. are tax attorneys with extensive knowledge in tax law and today want to answer some of your common tax questions for free. Below you will find four answers to common tax and IRS related questions. If you wish to find more in-depth answers and get more tax help our website offers an extensive frequently asked tax questions section that we are constantly updating, as well as, a simple tax help questionnaire to start a free initial consultation with our tax lawyers.
Why did the IRS file a tax lien against me?
A tax lien, usually filed with your county recorder, serves as notice to those who may loan you money (home or car loan, bank loan, credit card advances, etc.) that once the lien is filed, the IRS' claim against you for taxes will come before those of anyone loaning you money after the filing. With certain exceptions it attaches to all property, real and personal, tangible and intangible, in which you have an interest, wherever the property may be located. A lien does not result in the actual seizure of any property, real estate or other forms. Further, before the IRS can file a lien against your property, it should give you 30-day notification that it intends to do so. This may give you time to make a payment or other arrangements.
Can the IRS levy on my house? On my wages? On my bank accounts? What about retirement funds?
A levy usually means the property is actually seized by the IRS. In the case of real estate, it means the IRS can force a sale of the property and keep the proceeds up to the amount of taxes, penalties and interest owed. A certain portion of wages and commissions are exempt from levy; the amount depends on a number of factors, including the number of dependents. All forms of bank accounts-savings, checking and CDs-are subject to a levy in full. In order to catch subsequent deposits, the IRS must serve a new levy on the bank. Once wages are levied upon, the same levy reaches all subsequent wages, commissions, bonuses, etc. No forms of retirement funds are exempt from levy, including social security payments and other forms of government pensions. However, unemployment and workers' compensation benefits are exempt from levy, as are SSI and some forms of public assistance. A small amount of household and personal effects, and tolls and equipment used in the taxpayer's trade or business, are exempt from levy.
The IRS is garnishing my wages. How can I stop them?
The IRS will garnish your wages after proper notice. All the IRS wants is payment or a good reason why you can't pay. This is when you can negotiate a payment plan or an Offer in Compromise or convince the agency you are worthy of uncollectible status. It is imperative after you receive a notice of "Intent to Levy" that you deal with it immediately. Intents to Levy are time-sensitive and if you miss your deadline to reply, i.e. make payment arrangements, your employer will be made aware of the situation and your wages may be garnished. If you're not sure how to go about this, consult a qualified tax attorney to assist you.
When is the right time to consult an attorney?
There are various reasons you would need to consult an attorney such as: fraud investigation, a long audit or one that involves legal issues, inadequate books/records, not filing returns for a number of years, if you don't actually owe taxes, if the statute of limitations has run out or if you would feel more comfortable dealing with the IRS through an attorney. Whatever the reason, don't hesitate to contact an experienced tax attorney to help you through your foray into the wide world of IRS red tape. Many law firms including Jones & Ryan offer free initial consultations to better understand your situation and decide how they can help.
The Jones and Ryan Tax Attorney website offers an extensive frequently asked tax questions and answers page. You will also find free tax articles as well as information about our lawyers, firm, initial free consultation, and how to get in contact with us.
About the Author
Grey W. Jones, Esq. has handled over 220 tax files focused almost exclusively on "problem tax cases" such as liens, levies, audits, or enforcement action by the government and IRS.
Dealing with the IRS and related tax problems can be anyone's worst nightmare. Once the IRS has begun to go after you, it can seem that they won't stop even after you think they have gotten what they want. The tax lawyers of Jones & Ryan have been working since 1995 to solve such nightmares. Grey W. Jones, Esq. and Cheryl L. Ryan, Esq. are tax attorneys with extensive knowledge in tax law and today want to answer some of your common tax questions for free. Below you will find four answers to common tax and IRS related questions. If you wish to find more in-depth answers and get more tax help our website offers an extensive frequently asked tax questions section that we are constantly updating, as well as, a simple tax help questionnaire to start a free initial consultation with our tax lawyers.
Why did the IRS file a tax lien against me?
A tax lien, usually filed with your county recorder, serves as notice to those who may loan you money (home or car loan, bank loan, credit card advances, etc.) that once the lien is filed, the IRS' claim against you for taxes will come before those of anyone loaning you money after the filing. With certain exceptions it attaches to all property, real and personal, tangible and intangible, in which you have an interest, wherever the property may be located. A lien does not result in the actual seizure of any property, real estate or other forms. Further, before the IRS can file a lien against your property, it should give you 30-day notification that it intends to do so. This may give you time to make a payment or other arrangements.
Can the IRS levy on my house? On my wages? On my bank accounts? What about retirement funds?
A levy usually means the property is actually seized by the IRS. In the case of real estate, it means the IRS can force a sale of the property and keep the proceeds up to the amount of taxes, penalties and interest owed. A certain portion of wages and commissions are exempt from levy; the amount depends on a number of factors, including the number of dependents. All forms of bank accounts-savings, checking and CDs-are subject to a levy in full. In order to catch subsequent deposits, the IRS must serve a new levy on the bank. Once wages are levied upon, the same levy reaches all subsequent wages, commissions, bonuses, etc. No forms of retirement funds are exempt from levy, including social security payments and other forms of government pensions. However, unemployment and workers' compensation benefits are exempt from levy, as are SSI and some forms of public assistance. A small amount of household and personal effects, and tolls and equipment used in the taxpayer's trade or business, are exempt from levy.
The IRS is garnishing my wages. How can I stop them?
The IRS will garnish your wages after proper notice. All the IRS wants is payment or a good reason why you can't pay. This is when you can negotiate a payment plan or an Offer in Compromise or convince the agency you are worthy of uncollectible status. It is imperative after you receive a notice of "Intent to Levy" that you deal with it immediately. Intents to Levy are time-sensitive and if you miss your deadline to reply, i.e. make payment arrangements, your employer will be made aware of the situation and your wages may be garnished. If you're not sure how to go about this, consult a qualified tax attorney to assist you.
When is the right time to consult an attorney?
There are various reasons you would need to consult an attorney such as: fraud investigation, a long audit or one that involves legal issues, inadequate books/records, not filing returns for a number of years, if you don't actually owe taxes, if the statute of limitations has run out or if you would feel more comfortable dealing with the IRS through an attorney. Whatever the reason, don't hesitate to contact an experienced tax attorney to help you through your foray into the wide world of IRS red tape. Many law firms including Jones & Ryan offer free initial consultations to better understand your situation and decide how they can help.
The Jones and Ryan Tax Attorney website offers an extensive frequently asked tax questions and answers page. You will also find free tax articles as well as information about our lawyers, firm, initial free consultation, and how to get in contact with us.
About the Author
Grey W. Jones, Esq. has handled over 220 tax files focused almost exclusively on "problem tax cases" such as liens, levies, audits, or enforcement action by the government and IRS.
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