December, 2020 | TaxConnections

23 Dec 2020

How To Select A Financial Advisor: The Least You Should Know (Part 22 In eBook Series)

Chapter 22: CONCLUSION

Receive Complimentary Copy Of eBook (Includes All Graphic Charts)

Thank you for taking the time to read this book. It is designed to help you develop a relationship with an investment advisor that puts you on an equal footing.

If you don’t know what to expect from your advisor, then you will be unable to direct him to fulfill your needs. You must come prepared with an understanding of what your advisor can do for you, as well as what he is legally obligated to do for you. Don’t be afraid to ask questions—or to ask them again if you don’t understand the answer.

RECOMMENDED READING

Written by Ed Mahaffy | Posted in Arkansas • How To Find A Financail Advisor • Little Rock

22 Dec 2020

Tax Treaties: United States And Japan

Quick Summary. An island country comprised of an archipelago of nearly 7,000 islands comprising the Pacific Ring of Fire, Japan is located in the northwest Pacific Ocean off of East Asia.

Japan is a constitutional monarchy. Its 1947 Constitution provides for a Prime Minister and a bicameral legislative organ (the National Diet) consisting of a House of Representatives and House of Councillors. The Japanese legal system is historically influenced by Chinese law, although since the late 19th century, its judicial system has been largely based upon civil law precepts. The primary body of statutory law is known as the Six Codes.

Japan is comprised of 47 prefectures and eight regions. Each prefecture is overseen by a governor.

Japan is a member of the United Nations (UN), OECD, and G7.

Treaty.

Written by Jason Freeman | Posted in Tax Treaties: United States And Japan

17 Dec 2020

Santa’s Hotline Number For Tax Professionals And Families

With all that has happened this year affecting so many, we want to take this opportunity to share with you the Santa Hotline. It was sent to me recently so I dialed up Santa’s Hotline Number for myself today to discover if Santa was really there. Santa answered!

I then tested the hotline on an adorable two year old visiting my home today. It was beautiful experiencing the excitement of a young child knowing Santa was on the phone talking to him. Bringing joy to those you know is a wonderful act of kindness.

Take a moment and call the Santa Hotline at 605.313.4000 today and leave him a list of what you want for Christmas this year. You will be pleasantly surprised he responds to your wish list with a return call.

This post is to remind you to have fun with your family, friends and clients this season.

Santa’s Hotline Phone Number: 605.313.4000

If this phoneline brings you joy, it will be mission accomplished.:)

Written by TaxConnections Admin | Posted in Santa's Hotline

17 Dec 2020

Settling Conservation Easement Penalties: The IRS And Some New Insights

The Internal Revenue Service has yet again publicly reiterated its commitment to challenge syndicated conservation easement transactions—transactions that it has, in recent years, labeled as “listed” transactions, tax-speak for “buyer beware.” In a recent press release, the IRS warned yet again that it believes that these easement deductions are “abusive transactions” and hinted that taxpayers can expect to face “new arguments” from its arsenal of legal theories. To add insult to injury, the IRS further cautioned that its newly-established “Office of Fraud Enforcement and the National Fraud Counsel are coordinating . . . to canvas cases for additional fraud considerations,” including civil fraud penalties and referrals to criminal investigation. The stakes, in other words, remain high for participants in syndicated conservation easement transactions.

What are Conservation Easement Transactions?

Written by Jason Freeman | Posted in Conservation Easement • Conservation Easement Penalties

17 Dec 2020

Learn How This Tax Advisor Helps Other Tax Advisors “Reduce Client’s Taxes By 50%, Almost 100% Of The Time

We are very proud of the Tax Advisors we meet through the www.taxconnections.com platform. What we have discovered is we have attracted a large community of tax advisors helping and supporting each other. The ability for tax advisors to find support from tax colleagues through TaxConnections has has been a great asset for tax professionals and taxpayers. In the weeks ahead, I want to bring to your attention to tax advisors who are supporting other tax advisors. It is important that you learn what our members are doing to help other members increase revenue.

One of our members, Keith Youngren helps tax advisors by supporting them in providing tax planning services to clients. Keith serves you by offering “Foundational Planning” to your clients, including providing trust and legal documents through legal counsel.

Keith Youngren has created a niche market providing “Holistic Tax Planning” to tax services firms. Keith works closely with CPAs, EAs and tax advisors to provide high level tax planning for business owners who pay more than $150,000 in tax each year, or individuals facing capital gains in excess of $100,000 or who have accumulated pre-tax retirement accounts greater than $1 million.

Written by TaxConnections Admin | Posted in TaxConnections

17 Dec 2020

Will Massachusetts Speed Up Sales Tax Remittance?

The pandemic has spurred on a number of sales tax changes over the last 10 months, many of them in regards to economic nexus or other Wayfair-related legislation. However, in Massachusetts, lawmakers are looking at sales tax remittance instead. More specifically, speeding up the remittance process.

This doesn’t come as a huge surprise as Massachusetts Governor Charlie Baker has introduced a number of similar plans since taking office in 2015, but this is the first one that may be approved.

What Is The Current Sales Tax Remittance Process?

Written by Monika Miles | Posted in Massachusetts • Massachusetts Sales Tax

17 Dec 2020

IRS Impersonation Telephone Scams

A sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be IRS employees, using fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling.

Victims are told they owe money to the IRS and it must be paid promptly through a gift card or wire transfer. Victims may be threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Victims may be told they have a refund due to try to trick them into sharing private information. If the phone isn’t answered, the scammers often leave an “urgent” callback request.

Written by IRS | Posted in IRS Impersonation Phone Scams

16 Dec 2020

A Primer On The Tax Implications of Settlements And Judgments

Your client just settled—or better yet, won a judgment. What are the tax consequences? Admittedly, the tax impact of resolving a dispute is often little more than an afterthought. But a client’s net after-tax recovery can vary drastically depending on the applicable tax rules. An attorney armed with an understanding of the relevant tax issues has an advantage over opposing counsel who lacks such insight.

Basic Tax Principles

Judgments and settlements are, in theory, taxed in the same manner. It is, therefore, generally irrelevant—from a tax perspective, at least—whether a dispute is resolved by a judgment or settlement.

Written by Jason Freeman | Posted in Freeman Law • Settlements And Judgements Taxability • Texas

16 Dec 2020

Are Lawsuit Or Settlement Damages Taxable?

Taxpayers who suffer from physical injuries or physical sickness can generally take advantage of a special provision in the Code that makes such damages non-taxable. See I.R.C. § 104(a)(2). Generally, this can be an easy determination. However, what happens if the taxpayer is engaged in a lawsuit and receives damages through a judgment or settlement? How does the IRS know if those damages are subject to non-taxation under I.R.C. § 104(a)(2)?

Generally, federal courts and the IRS characterize judgment and settlement payments according to the “origin of the claim” test. Under this test, any amounts received from a judgment or settlement will be characterized for federal income tax purpose as a substitute payment for the claims or damages the taxpayer asserted or incurred. Significantly, the origin of the claim test is used to determine whether an amount is taxable or non-taxable and also, if taxable, whether such amount constitutes ordinary income or capital gain. The origin of the claim test depends on the particular facts.

Written by Matthew Roberts | Posted in Freeman Law • Settlement Damages Taxability

16 Dec 2020

How To Select A Financial Advisor: The Least You Should Know (Part 21 In eBook Series)

Chapter 21:Questions To Ask Your Financial Advisor

The following is content from NAPFA’s “Pursuit of a Financial Advisor Field Guide.” Used with permission from NAPFA.

THE PURSUIT BEGINS
Finding qualified, independent financial advice should not be difficult, but it is for many hard-working Americans. With so many people claiming to be financial planners, financial advisors, financial counselors or wealth managers, how do you know when you’ve found someone who can really help you?

The National Association of Personal Financial Advisors (NAPFA), the country’s leading professional association of Fee-Only financial planners, is pleased to provide you with this field guide to assist you in your pursuit for a qualified, independent financial advisor.

The Pursuit of a Financial Advisor Field Guide is set up to help you with every aspect of your quest, including:

Written by Ed Mahaffy | Posted in Arkansas • ED Mahaffy • How To Select A Financial Advisor • Little Rock

16 Dec 2020

Working Remotely Could Affect Your Taxes

When COVID-19 struck last March, employers quickly switched to a work-from-home model for their employees, many of whom began working in a state other than the one in which their office was located. While some workers have returned to their offices, many have not. If you’re working remotely from a location in a different state (or country) from that of your office, then you may be wondering if you will have to pay income tax in multiple jurisdictions or whether you will need to file income tax returns in both states.

Generally, states can tax income whether you live there or work there. Whether a taxpayer must include taxable income while living or working in a particular jurisdiction depends on several factors, including nexus, domicile, and residency.

Written by TaxConnections Admin | Posted in Working Remotely Taxability

16 Dec 2020

Affordable Care Act Likely To Withstand Latest Challenge

The U.S. Supreme Court recently heard oral arguments that will be instrumental in determining the fate of the Affordable Care Act. Since the 2017 tax reform legislation reduced the individual mandate to $0, many challenged whether the ACA was constitutional–in other words, whether it could be considered a valid exercise of Congress’ power to tax. Confirmation of new Supreme Court justice Amy Barrett created the real possibility that the ACA could be overturned. However, after hearing oral arguments, two conservative justices–Roberts and Kavanaugh–indicated their support for severance. If that happens, the individual mandate portion of the ACA would be severed from the remainder of the law.

Written by William Byrnes | Posted in Affordable Care Act