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Introduction Alongside wills and trusts, beneficiary designations are becoming increasingly popular as part of a complete estate plan. By simply filling out a beneficiary designation form, individuals can bypass probate and designate who will receive a specific asset upon their death. Today, a variety of assets can be transferred through a simple designation form, including bank accounts, stocks, ...
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Each year the IRS warns taxpayers about the "Dirty Dozen" tax scams. Prior articles in this newsletter have covered various scams, but on February 17, the IRS published the full list for 2017. IRS Commissioner John Koskinen stated, "We continue to work hard to protect taxpayers from identity theft and other scams. Taxpayers can and should stay alert to new schemes which seem to ...
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Case: Abigail was a wonderful and spirited 80-year-old woman. Even as an octogenarian, she still worked in her garden, handled all of her finances and played golf each weekend. In addition to her busy schedule, she also made time to help at a local homeless shelter. She believed that whenever you can lend assistance to your fellow neighbor it is your responsibility to do so. Because of this ...
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GiftLaw Note: Decedent 1 died on Date 1, survived by Decedent 2. Decedent 2 died on Date 2. A personal representative was appointed to handle Decedent 2's estate. In order for Decedent 2 to benefit from portability of Decedent 1's deceased spouse unused exclusion (DSUE) amount, Decedent 1's estate needed to file a Form 706 within nine months of her death. Decedent 1's estate failed ...
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Case: Rhea Jones, 75, lives in a beautiful coastal town in northern California. Rhea's home occupies three magnificent acres of bluff property that overlooks the crashing waves of the Pacific. Since her home sits just steps away from the dramatic cliffs, Rhea frequently jokes to her friends about her "living on the edge" lifestyle. John, Rhea's husband of 50 years, built the ...
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GiftLaw Note: Organization applied for tax-exempt status under Sec. 501(c)(3). Organization stated that it is organized and operates for the purpose of fostering national or international sports competitions. Organization's bylaws include among its purposes "[t]o promote the professional sport of rodeo through the organization of rodeo participants for their mutual benefit" and ...
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Case: Rhea Jones, 75, lives in a beautiful coastal town in northern California. Rhea's home occupies three magnificent acres of bluff property that overlooks the crashing waves of the Pacific. Since her home sits just steps away from the dramatic cliffs, Rhea frequently jokes to her friends about her "living on the edge" lifestyle. John, Rhea's husband of 50 years, built the ...
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In two letters this week ( IR-2017-23 and IR-2017-26 ) the IRS warned taxpayers about inflated refunds and tax preparer fraud. Some tax preparers promise excessive refunds. This issue is part of the "Dirty Dozen" tax schemes highlighted each year by the IRS. IRS Commissioner John Koskinen urged taxpayers to be aware of these excessive claims. He stated, "Exercise caution when a ...
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GiftLaw Note: Charity is a tax-exempt charitable organization under Sec. 501(c)(3). Charity maintains an endowment through an investment partnership with other tax-exempt organizations. The partnership invests in a diversified portfolio of assets and the income earned by the endowment consists of passive and debt-financed income. Charity is to act as trustee and remainder beneficiary of a ...
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In IR-2017-16, the IRS explained the top five "myths" about IRS refunds. Most early filers will receive a timely refund, but some taxpayers do not understand the process. In this letter, the Service clarified some potential areas that hopefully will reduce taxpayer misunderstandings. Myth 1: All Refunds Delayed – An estimated 90% of refunds will be processed by the IRS within 21 ...
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Case: Rhea Jones, 75, lives in a beautiful coastal town in northern California. Rhea's home occupies three magnificent acres of bluff property that overlooks the crashing waves of the Pacific. Since her home sits just steps away from the dramatic cliffs, Rhea frequently jokes to her friends about her "living on the edge" lifestyle. John, Rhea's husband of 50 years, built the ...
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GiftLaw Note: Association is recognized as tax-exempt under Sec. 501(c)(3) and Sec. 170(b)(1)(A)(iii). Association operates Community Hospital and owns the premises, which is collateral for tax-exempt bonds. Community Hospital, following a recommendation from State, entered into an Integration and Affiliation Agreement with State University, which operates University Hospital. Association also ...
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Introduction Alongside wills and trusts, beneficiary designations are becoming increasingly popular as part of a complete estate plan. By simply filling out a beneficiary designation form, individuals can bypass probate and designate who will receive a specific asset upon their death. Today, a variety of assets can be transferred through a simple designation form, including bank accounts, stocks, ...
Continue Reading
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On January 23, 2017, the IRS announced it is opening the 2017 tax filing season. IRS Commissioner John Koskinen stated, "Getting to this point is a year-round effort for the IRS and the nation's tax community. The dedicated employees of the IRS look forward to serving taxpayers this filing season, and I want to thank all the tax and payroll community for their hard work that makes tax ...
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Case: Rhea Jones, 75, lives in a beautiful coastal town in northern California. Rhea's home occupies three magnificent acres of bluff property that overlooks the crashing waves of the Pacific. Since her home sits just steps away from the dramatic cliffs, Rhea frequently jokes to her friends about her "living on the edge" lifestyle. John, Rhea's husband of 50 years, built the ...
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GiftLaw Note: Org is classified as a private foundation under Sec. 509(a). X hosted Show for many years and obtained its intellectual property rights. During his lifetime, X granted exclusive licensing rights to Y's company (Company). Upon X's death, the intellectual property rights were given to Org, including the license agreements between Company and X. Org has now asked Y to serve as ...
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Twelve national tax software firms have joined the IRS Free File Program. On www.irs.gov the "Free File Now Open" link takes taxpayers to the Free File page. People with 2016 adjusted gross income (AGI) of $64,000 or less may use Free File. If you have income greater than $64,000, you may still use the Free File Fillable Forms. These are the IRS electronic version of the paper tax forms. ...
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Case: Rhea Jones, 75, lives in a beautiful coastal town in northern California. Rhea's home occupies three magnificent acres of bluff property that overlooks the crashing waves of the Pacific. Since her home sits just steps away from the dramatic cliffs, Rhea frequently jokes to her friends about her "living on the edge" lifestyle. John, Rhea's husband of 50 years, built the ...
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GiftLaw Note: Organization applied for tax-exempt status under Sec. 501(c)(3). Organization's purposes include helping an area where the unemployment rate is higher than national averages; providing locally-grown, healthy food to the community; and helping end domestic violence. Among Organization's many programs will be N, which will consist of the operation of two restaurants, P and Q. ...
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Case: Rhea Jones, 75, lives in a beautiful coastal town in northern California. Rhea's home occupies three magnificent acres of bluff property that overlooks the crashing waves of the Pacific. Since her home sits just steps away from the dramatic cliffs, Rhea frequently jokes to her friends about her "living on the edge" lifestyle. John, Rhea's husband of 50 years, built the ...
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In FS-2017-1 the IRS published a summary of seven tax changes. Many of these changes will impact some of the 153 million Americans who file tax returns during 2017. The significant tax changes include the following: 1. Three Extra Days – The tax filing deadline is delayed due to April 15 falling on a weekend and Emancipation day in Washington, DC. Returns may be filed until April 18, 2017. ...
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GiftLaw Note: Charity is a public charity under Sec. 509(a)(1) and 170(b)(1)(A)(i). Charity’s mission is to support the work of law enforcement officers across the country through educational, direct assistance and community outreach programs. Charity was recently formed and has just begun to attract support from public sources and publicize its programs. B shares Charity’s mission and ...
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IRS Commissioner John Koskinen held a public media conference on January 5, 2017 and officially launched the tax-filing season. Koskinen emphasized, "This tax season, it is more important than ever to plan ahead." He highlighted a number of changes that will affect the anticipated 153 million taxpayers who file tax returns. The IRS expects 80% of those returns to be filed electronically. ...
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Case: George Green was a man of humble beginnings. He was born in Bulgaria and lived with his parents on their farm. But George was a diligent student and was determined to become a successful business owner. After high school he obtained permission to come to America to go to college. George applied to several colleges and was accepted as a work-study student at a state college. He lived in the ...
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GiftLaw Note: A husband and wife, D and E, established a private foundation operating a scholarship program. To be eligible for the scholarship, an applicant must graduate from B high school, be selected as a National Merit Finalist and be admitted to C College. C College is located 3,000 miles from B high school and accepts roughly 10% of applicants for admission. The foundation's governing ...
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