Beware the Potential Tax Pitfalls of Investing in Offshore Mutual Funds or Owning Foreign Insurance Policies

September 1, 2016/0 Comments/in Featured, Offshore Voluntary Disclosure Program (OVDP)/by Tax Attorney

Beware the Potential Tax Pitfalls of Investing in Offshore Mutual Funds or Owning Foreign Insurance Policies

If you have never reported your foreign investments on your U.S. Tax Returns, the IRS has established the Offshore Voluntary Disclosure Program (OVDP) which allows taxpayers to come forward to avoid criminal prosecution and not have to bear the full amount of penalties normally imposed by IRS. When entering into OVDP, a taxpayer must file amended income tax returns reporting worldwide income and file all required informational tax forms. Many taxpayers who attempt to do this on their own and who have Foreign Mutual Funds or Foreign Insurance Policies are finding that their OVDP submissions are being rejected or examined because of some arcane tax laws and tax procedures associated with these investments that most laypeople are not aware.

Do You Have Foreign Mutual Funds?

U.S. taxpayers ought to be aware of the potential tax heartaches associated with investing in mutual funds held by foreign banks or foreign brokerage firms. When making such investments through U.S. firms, any appreciation or depreciation of value of the funds is not recognized as gain or loss until the fund is sold or liquidated. This is not the case with the same type of investments in foreign firms. Each year the U.S. investor must pick up as income or record a loss in the appreciation or depreciation of value of the funds even though there was no sale or liquidation of the funds. Essentially, such an investor loses the advantage of deferring gains which is enjoyed by those investors dealing with U.S. firms.

To understand how this operates – under the Internal Revenue Code, there is a concept called Passive Foreign Investment Company or “PFIC”. A foreign corporation is classified as a PFIC if it meets one of the following tests:

Income Test– 75% or more of the corporation’s gross income is passive income (interest, dividends, capital gains, etc.)
Asset Test– 50% or more of the corporation’s total assets are passive assets; passive assets are investments that produce interest, dividends or capital gains.

The IRS has extended the characterization of a PFIC to include most foreign-based mutual funds, hedge funds and other pooled investment vehicles.

A. U.S. taxpayer with these investments is required to fill out Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualifying Electing Fund, and include it with his Form 1040 along with the appropriate PFIC income and tax computations. The IRS offers various complicated methods of reporting PFIC income. Under one such method, “Mark-to-Market”, the IRS requires the reporting of the value of a mutual fund from year to year and taxes any appreciation in the mutual fund values from year to year. The tax rate that applies is 20%. This is in addition to the normal taxation of dividends and capital gains that domestic mutual funds are taxed on.

Reporting the appreciation of a mutual fund from year to year may end up being no small task as oftentimes a typical stock portfolio will contain twenty to thirty funds which may involve lots of trade activity over the course of many years. The taxpayer needs to keep accurate and comprehensive records of all information on the mutual fund(s) including share basis, yearly balances, and any sales or purchases from year to year. With such level of activity to record each year, no wonder how laypeople and even tax preparers cannot get these computations right leading to higher penalties and perhaps jeopardizing a taxpayer’s Voluntary Disclosure Submission.

Do You Have A Foreign Insurance Policy?

There is an excise tax under Internal Revenue Code Sec. 4371 imposed on insurance policies issued by foreign insurers. Any person who makes, signs, issues, or sells any of the documents and instruments subject to the tax, or for whose use or benefit they are made, signed, issued, or sold, is liable for the tax.

The following tax rates apply to each dollar (or fraction thereof) of the premium paid.

Casualty insurance and indemnity, fidelity, and surety bonds: 4 cents. For example, on a premium payment of $10.10, the tax is 44 cents.
Life, sickness, and accident insurance, and annuity contracts: 1 cent. For example, on a premium payment of $10.10, the tax is 11 cents.
Reinsurance policies covering any of the taxable contracts described in items (1) and (2): 1 cent.

However, the tax doesn’t apply to casualty insurance premiums paid to foreign insurers for coverage of export goods in transit to foreign destinations. Premium means the agreed price or consideration for assuming and carrying the risk or obligation. It includes any additional charge or assessment payable under the contract, whether in one sum or installments. If premiums are refunded, claim the tax paid on those premiums as an overpayment against tax due on other premiums paid or file a claim for refund.

The liability for this tax attaches when the premium payment is transferred to the foreign insurer or reinsurer (including transfers to any bank, trust fund, or similar recipient designated by the foreign insurer or reinsurer) or to any nonresident agent, solicitor, or broker. A person can pay the tax before the liability attaches if the person keeps records consistent with that practice.

The person who pays the premium to the foreign insurer (or to any nonresident person such as a foreign broker) must pay the tax and file the return (Form 720, Quarterly Federal Excise Tax Return). The Form 720 covers the last calendar quarter and is due no later than the last day of the month succeeding the reporting quarter. For example, a Form 720 covering the quarter ended September 30, 2016 is due October 31, 2016. If you are required to file this Form, you will also need to secure a Taxpayer Identification Number (not your social security number) as these excise taxes are tracked separately by IRS just like employment taxes.

The fact that a tax treaty with the foreign county exempts the taxation of these insurance policies does not waive the requirement for you to file the Form 720. Attach any disclosure statement to the first quarter Form 720 you would need to file. You may be able to use Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), as a disclosure statement.

Conclusion.

If you are a U.S, taxpayer with foreign mutual funds or foreign insurance policies, make sure your tax filings are compliant and complete by enlisting the assistance of counsel experienced in the reporting of these investments.

IRS SEEKS TO ELIMINATE GIFT AND ESTATE TAX DISCOUNTS ON FAMILY-OWNED BUSINESSES AND ENTITIES

August 21, 2016/0 Comments/in Featured/by Tax Attorney

IRS SEEKS TO ELIMINATE GIFT AND ESTATE TAX DISCOUNTS ON FAMILY-OWNED BUSINESSES AND ENTITIES

On August 2, 2016, the Treasury Department issued proposed regulations under the authorization contained in Section 2704(b) of the Code, with a hearing scheduled on December 1, 2016. The proposed regulations will essentially take away all valuation discounts for interfamily transfers of entities controlled by the transferor and his or her family.

I remember back during the Clinton (Bill) administration when the government was seeking to eliminate the ability for taxpayers to claim discounts on transfers of interests in family owned businesses and entities. The government was not able to pass this legislation but was successful in establishing a new Chapter in the Internal Revenue Estate Tax Code (Chapter 14, Sections 2701 to 2704) which restricted the ability of certain “estate freeze techniques” when transferring interests in family-owned businesses.

Now two decades later, it looks like the government is finally getting what it always wanted to eliminate or restrict the use of valuation discounts when it comes to transfers of assets to save on estate and gift taxes. The logic behind valuation discounts (minority interest and marketability discounts) is that if you give a 20% interest in your $100 million business to your child, you’re not giving away $20 million but in fact something worth less because the child cannot turn around and sell the interest for $20 million. Now it is likely that the proposed regulations will not take effect until sometime next year but that being the case it is imperative to complete any discount-related planning throughout the next several months.Some of the major changes that will be adopted in the proposed regulations are discussed below.

The proposed regulations give a broad definition of control. Specifically, control is holding 50% of equity in an entity (corporation, partnership or LLC). For a limited partnership, control is equivalent to having an interest in the general partner.

Under Section 2704(a) the lapse of a voting right or liquidation right in a family owned entity is treated as a transfer by the individual holding the right immediately before it lapses. The current regulations exempt such a transfer if the rights with respect to the transferred interest are not restricted or eliminated. The proposed regulations would deny such exemption for transfers occurring within three years of death if the entity is controlled by the transferor and members or his or her family immediately before and after the lapse.

The proposed regulations will significantly change valuations for transfer tax purposes of interests in family owned entities that are subject to restrictions on redemptions or liquidations. Specifically, such restrictions will be disregarded in valuing such an interest for gift/estate tax purposes when the interest in transferred by a family member. The reasoning for this is the fact that after the transfer the restriction will lapse or can be removed by the transferor or a member of his or her family.

The proposed regulations remove nearly all discounts by disregarding the interests held by non-family members as well. Interests held by non-family members that may otherwise give such non-family member the power to prevent the removal of a restriction will be disregarded unless those interests have been held for at least three years; make up at least 10% of the entity; the total combined non-family interests is more than 20% of all interests; or they hold a put interest in the entity to receive a minimum value.

The proposed regulations issued under Section 2704 would, if adopted in final form, have a significant impact on the wealth transfer tax valuation of interests in family controlled entities. Essentially, almost no minority discounts would be allowed. So if you are in a situation of having a large estate (over $5million of net value) with interests in entities, whether operating businesses or investment entities, you should contact counsel to see what planning can still be implemented before these benefitsdisappear.

Jeffrey B. Kahn, Esq. and Gary Sussman Discusses the Lifetime Estate Gift Annuity, the Building Blocks to Financial Security and the “Victory Tax” On ESPN Radio – Podcast

August 19, 2016/0 Comments/in Podcast/by Tax Attorney

Jeffrey B. Kahn, Esq. and Gary Sussman Discusses the Lifetime Estate Gift Annuity, the Building Blocks to Financial Security and the “Victory Tax” On ESPN Radio

Topics Covered:

1. Special Guest: Jim Sagona with Pacific Sotheby’s talking about the Sharp Health Care Lifetime Estate Gift Annuity

2. The Building Blocks to Financial Security

3. Victory Tax: Just how much are Olympians expected to pay for their medals?

4. Questions:

a. I have IRAs, a 401(k) through work and a savings account, where everything is in a budgeted model. How close am I to achieving financial security?
b. What is the foundation to achieving financial security? What should I be focusing on that I may have left out of my financial plan of investment accounts and savings?

Gary states: Good afternoon! Yes sometimes we just have to take the money and run! Welcome to Inside Advantage – Your Financial And Tax Radio Show.

This is Licensed Financial Planner, Gary Sussman, Senior Vice President Of Investments at Trilogy Financial Services.
Gary states:
Now Board Certified Tax Attorney, Jeffrey B. Kahn, the principal attorney of the Law Offices Of Jeffrey B. Kahn, P.C. and head of the KahnTaxLaw team was not able to be on today’s show but we will have his associate attorney, Amy Spivey, join us later.
Gary states:

You are listening to our weekly radio show where we talk everything about finances and taxes from the ESPN 1700 AM Studio in San Diego, California.

Gary states:

When it comes to knowing tax laws and paying taxes, let’s face it — everyone in the U.S. is either in tax trouble, on their way to tax trouble, or trying to avoid tax trouble!

Gary states:

And whether you are on the rebound or flying high, we have the information you need to make sound financial decisions and map out your strategy for success.
Gary states:
Our show is broadcasted each Friday at 2:00PM Pacific Time and replays are available on demand by logging into the KahnTaxLaw website at www.kahntaxlaw.com.
Gary states:

For today’s show we have coming up:

Segment 2 material: The Building Blocks to Financial Security

Gary states:

Also coming up is:

Segment 3 material: Victory Tax: Just how much are Olympians expected to pay for their medals?

And of course towards the end of our show, we will be answering some of your questions.

Gary states: At this time, I’d like to introduce you to Jim Sagona. Jim is a realtor with Pacific SOTHEBY’S International Realty.

1) What is a Lifetime Estate Gift Annuity?
2) How long has Sharp been offering this program?
3) Why are donors passionate about having Sharp has the beneficiary to this gift?
4) Why would someone consider a LEGA?
5) How does this differ to a Reverse Mortgage?
6) Do you coordinate at all with peoples Estate attorneys?
7) How can people learn more about the program?

Gary states: Well it’s time for a break but stay tuned because we are going to let you know what The Building Blocks to Financial Security are.

You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.

BREAK

Gary states: Welcome back. This is Inside Advantage – Your Financial And Tax Radio Show on ESPN and you are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman.

And be aware of the special offer that I have for you: Gary states PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Gary Sussman. The number to call is 949.536.2030. That is 949.536.2030. Or visit www.yourfinancialstory.com. NPC DOES NOT PROVIDE TAX NOR LEGAL ADVICE.

So, What Are The Building Blocks To Financial Security?

1) Have to start with laying the foundation…Cash accounts to meet our short term needs. For most people not the best place to be saving for long term goals. Fixed Accounts to provide stability and always perform on some level when our stocks/bonds may be underperforming.

2) Allocate dollars to primary int/long term goals. Home downpayments, Education, Retirement. Based on time frames.. seek higher ROR through mutual funds etc. Also diversify your account registrations. Don’t stick everything into Retirement even if this is your priority. Tax adv plans.

3) Only speculate when you can afford to live without it.

4) Don’t forget about asset protection. Boring and expensive stuff for most people. Health…Disability…Life…LTC…Tax…Estate

5) Cash flow. Where your money goes tell a lot about your priorities. Understanding Cash flow is often times the most important of all. Maximizing your abilities can often times hinge on cash flow.

Gary states PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Gary Sussman. The number to call is 949.536.2030. That is 949.536.2030. Or visit www.yourfinancialstory.com. NPC DOES NOT PROVIDE TAX NOR LEGAL ADVICE.

Gary states: Stay tuned because after the break we are going to explain the Victory Tax Uncle Sam is charging out Olympic Victors.

You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.

BREAK

Gary states: And Calling into the studio from Jeff’s Walnut Creek Office is his associate attorney, Amy Spivey.

Chit chat with Amy

Gary asks: Amy would you tell the listeners of your offer?

Amy replies: PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call our office to make an appointment to meet with Jeffrey Kahn, right here in San Diego or at one of our other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.

Go For The Gold And Pay Your Tax – Olympic Medals Taxable

Gary states: While millions of Americans were glued to their televisions to watch American athletes compete in this year’s Summer Olympics, the Internal Revenue Service was quietly getting ready to make sure that all our Olympic winners pay taxes on their victories.

Amy replies: It’s true. The Internal Revenue Code mandates that if you win a prize in a lucky number drawing, television or radio quiz program, beauty contest, or other event, you must include it in your income. For example, if you win a $100 prize in a marathon, you must report this income on your Form 1040. If you refuse to accept a prize, do not include its value in your income. Prizes and awards in goods or services must be included in your income at their fair market value.

Gary asks: So what is the impact to a U.S. athlete who wins in the Olympics?

Amy replies: America’s Olympic medalists must pay state and federal taxes on the prize money they get for winning. The U.S. Olympic Committee awards $25,000 for gold medals, $15,000 for silver and $10,000 for bronze.

Gary states: So I get it that any prize money one receives, he or she must pick up that amount as income.

Amy replies: But that’s not all. Olympians also have to pay tax on the value of the medals themselves.

Gary states: You mean the prize money is not enough for the government to tax but also the metal?

Amy replies: That’s right. Gold and silver medals are made mostly of silver, while bronze medals are composed of mostly copper. Rio’s medals are among the largest and heaviest ever and contain about 500 grams of either silver or copper.

Gary asks: So what are the deemed values of these metals?

Amy replies: The value of a gold medal is about $564; silver is worth about $305. Bronze is worth a negligible amount so it’s not taxed.

Gary asks: But what if an athlete does not accept his metal and prize or is later disqualified and has to return the metal and prize?

Amy replies: Any athlete who accepts his or her Olympic medal and does not have to forfeit it will have to report its value as income and pay taxes on it. That’s true even though the competition took place in Brazil and not the United States.

Gary asks: How do other countries tax this?

Amy replies: Winning Olympic athletes from most other countries don’t have to worry about their medals being taxed. This unfairness has resulted in considerable debate during each session of Congress when a Summer or Winter Olympics is held but any legislation to change the tax law has never made it out of Congress. In fact there is proposed federal legislation as we speak that would make “the value of any medal or prize money” awarded during the Olympics or Paralympics exempt from income taxes. The bill was passed by the Senate in July 2016 and is being considered by the House. It would apply to earnings from January 1, 2016 to January 1, 2021. California is reviewing a similar proposal.

Gary states: You would think most Americans would be in favor of the legislation but there appears to be some backlash.

Amy replies: That’s true. For example, should an Olympian who comes home with 4 medals conceivably make $100,000 tax free while millions of hard working Americans struggle to support their families on far less income yet have to pay taxes?

Gary states: Then of course one should recognize that the U.S. is the only major country that doesn’t provide government funding to its Olympians. Now a handful of lucky athletes land lucrative endorsement deals. But most of them rely on small stipends from the USOC, support from local businesses or supplemental income from a day job.

Amy states: It’s clearly a decisive issue with arguments on both sides. But what you need to remember that even income earned outside the U.S. may be taxable. Every year, thousands of taxpayers learn that lesson the hard way. If you live, compete or work outside the United States, you must still file tax returns here. In addition, if you win a prize or award, you must claim the value of that prize or award on your tax return as income.

Gary states: You know I am not convinced that an income exclusion for Olympians and Paralympians would change anything.

Amy states: I agree. Cutting taxes isn’t going to fix the fact that these athletes don’t get paid enough. And then how do you distinguish this from other individuals who win prestigious awards. Such is the case with Nobel prize winners who receive more prize money — around $1 million. Shouldn’t an award for such an accomplishment also be tax free?

Gary states: Amy you mentioned who U.S. taxpayers have to report income from all worldwide sources. What about someone who earns interest in a foreign bank account?

Amy replies: The tax law requires U.S. citizens and resident aliens to report worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to complete and attach Schedule B to their tax return. Part III of Schedule B asks about the existence of foreign accounts, such as bank and securities accounts, and usually requires U.S. citizens to report the country in which each account is located.

Gary asks: In speaking of foreign bank accounts, what are the Filing Requirements If You Have Undisclosed Bank Accounts?

Amy replies: By law, many U.S. taxpayers with foreign accounts exceeding certain thresholds must file Form 114, Report of Foreign Bank and Financial Accounts, known as the “FBAR.” It is filed electronically with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Taxpayers with an interest in, or signature or other authority over, foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2015 must file FBARs. It is due by June 30 and must be filed electronically through the BSA E-Filing System website.

Amy continues: Additionally, U.S. citizens, resident aliens and certain non-resident aliens must report specified foreign financial assets on Form 8938 if the aggregate value of those assets exceeds certain thresholds. Reporting thresholds vary based on whether a taxpayer files a joint income tax return or lives abroad. The lowest reporting threshold for Form 8938 is $50,000 but varies by taxpayer.

Gary asks: So How Does This Breakthrough Impact U.S. Taxpayers?

Amy replies: Consider this – about 60,000 U.S. taxpayers have come forward to disclose their previously undisclosed offshore accounts but just last year alone, 300,000 U.S. taxpayers filed Form 8938 disclosing foreign accounts. That would mean that about 240,000 did not previously report their foreign accounts and that under this recent filing of Form 8938 to IRS, they have put the IRS on direct notice of their non-compliance.

Amy continues: Our office saw an increase in interest and activity by U.S. taxpayers hiring our firm after the 2004 UBS scandal and subsequent implementation by IRS of its first dedicated Offshore Voluntary Disclosure Program.

Amy states: So we encourage taxpayers who are concerned about their undisclosed offshore accounts to come in voluntarily before learning that the U.S. is investigating the bank or banks where they hold accounts. By then, it will be too late to avoid the new higher penalties under the OVDP of 50% percent – nearly double the regular maximum rate of 27.5% and 10 times more than the 5% rate offered in the expanded streamlined procedures.

Amy states: And keep in mind that once the IRS contacts you, you cannot get into this program. You will now be subject to the maximum penalties (civil and criminal) under the tax law. Which is why …

Amy states: PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call our office to make an appointment to meet with Jeffrey Kahn, right here in San Diego or at one of our other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.

Gary states: Thanks Amy for calling into the show. Amy says Thanks for having me.

Gary states: Stay tuned as we will be taking some of your questions. You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.

BREAK

Gary states: And Jeff and I always pleased to make our offers to our listeners where… PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call Jeff’s office to make an appointment to meet with him in San Diego or at one of his other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.

You should also know that the securities and advisory services are offered through National Planning Corporation (NPC) Member FINRA, SIPC, and a Registered Investment Advisor. Trilogy Financial Services and NPC are separate and unrelated Entities.

Gary states: And in the studio with me is Jim Sagona with Pacific Sotheby’s. Jim as our guest today you get the honors of pulling today’s questions. OK Jim, what questions have you pulled for us to answer?

Steven from Newport Beach asks: I have IRAs, a 401(k) through work and a savings account, where everything is in a budgeted model. How close am I to achieving financial security?

Gary Answers.

Jackie from San Diego asks: What is the foundation to achieving financial security? What should I be focusing on that I may have left out of my financial plan of investment accounts and savings?

Gary Answers.

Gary states: Well we are reaching the end of our show. Have a great weekend!

Business Consulting, 401(k) Plans and IRS Audits -What Need To Know, On ESPN Radio

August 15, 2016/0 Comments/in Audits, Podcast, Tax Audits & Appeals/by Tax Attorney

Jeffrey B. Kahn, Esq. and Windus A. Fernandez Brinkkord Discusses Business Consulting, 401(k) Plans and IRS Audits -What Need To Know, On ESPN Radio – August 12, 2016 Show

Jeffrey B. Kahn, Esq. and Windus A. Fernandez Brinkkord Discusses Business Consulting, 401(k) Plans and IRS Audits -What Need To Know, On ESPN Radio – August 12, 2016 Show

Topics Covered:

Special Guest Chuck Hunter, CEO at Multivariable Solutions

401(k) Plans

IRS Tax Audits – What You Need To Know

Questions:

What exactly are the pros and cons of leaving my 401(k) with my previous employer?
How accurate are the do-it-yourself type software that allow you to calculate and file your taxes after answering a few questions? Why is it more beneficial to have a tax professional prepare your taxes as oppose to said software?

Jeff states: Good afternoon! Yes sometimes we just have to take the money and run!

Welcome to Inside Advantage – Your Financial And Tax Radio Show.

This is Board Certified Tax Attorney, Jeffrey B. Kahn, the principal attorney of the Law Offices Of Jeffrey B. Kahn, P.C. and head of the KahnTaxLaw team.

Windus states:

And this is Licensed Financial Planner, Windus A. Fernandez Brinkkord, Senior Vice President Of Investments at Trilogy Financial Services.

You are listening to our weekly radio show where we talk everything about finances and taxes from the ESPN 1700 AM Studio in San Diego, California.

Jeff states:

When it comes to knowing tax laws and paying taxes, let’s face it — everyone in the U.S. is either in tax trouble, on their way to tax trouble, or trying to avoid tax trouble!

Windus states:

And whether you are on the rebound or flying high, we have the information you need to make sound financial decisions and map out your strategy for success.

Jeff states:

Our show is broadcasted each Friday at 2:00PM Pacific Time and replays are available on demand by logging into the KahnTaxLaw website at www.kahntaxlaw.com.

Jeff states:

For today’s show we have coming up:

Segment 2 material: 401(k) Plans

Windus states:

Also coming up is:

Segment 3 material: IRS Tax Audits and What You Should Be Aware Of

And of course towards the end of our show, we will be answering some of your questions.

Jeff starts chit chat with Windus.

Jeff states: So for today’s special guest:

We would like to introduce Chuck Hunter! Chuck is the Founder and CEO of Multivariable Solutions, a domestic and international Business Consulting Firm located here in the Greater San Diego area.

So Chuck, tell us a little bit about what you do?
What is your goal or mission at Multivariable Solutions?
What prompted you to found your own company?
What would you say your niche market is? What types of companies tend to come to you the most, whether it’s based on size, growth goals, or various sectors…
How long have you been with Multivariable Solutions? What had you done in your career before that prepared you to take on the role of CEO?
Most companies and consultants focus on one or two variables whereas Multivariable Solutions looks across a wide spectrum. What exactly do you look for?

Jeff states: Well it’s time for a break but stay tuned because we are going to tell you all about 401(k) Plans.

You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Windus A. Fernandez Brinkkord on Inside Advantage on ESPN.

BREAK

Welcome back. This is Inside Advantage – Your Financial And Tax Radio Show on ESPN and you are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Windus A. Fernandez Brinkkord.

And be aware of the special offer that Windus has for you: Windus PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Windus A. Fernandez Brinkkord. The number to call is 858.314.5169. That is 858.314.5169. Or visit www.guideyourstory.com. NPC DOES NOT PROVIDE TAX NOR LEGAL ADVICE.

401(k) Plans

Some states, including California, are implementing regulation requiring companies of 5 or more people to offer retirement plans. In California, this is called the Retirement Savings Trust Act. The reason this is being required is:

The California State Treasurer states that based on their research fewer than 45% of California’s private workforce has access to a work sponsored retirement plan in the age group of 25-64. This is worse than the nationwide average of 53%. This is specifically only in the public sector.

To go a step further, in the public and private sectors, nearly ½ of all Californian’s are currently on track to retire with income below 200% of the federal poverty level of $22,000 per year for one person. *This information is coming from Trinet, an HR retirement planning company’s site. Trinet is one of many companies that help work on this here in San Diego.

The Secure Choice Retirement Savings is where companies that do not set up a plan of their own, will have to direct employees. The scary part of this is that for the first three years contributions could be kept in Treasury bills, regardless of your age, until more extensive models can be built! Better to have a large company like Fidelity or T. Rowe Price manage this then to have the treasurer put together a board that is going to take 3 years to put proper investment models in place.

*Chuck, with the work that you do, do you recommend companies start plans for their employees? When you do, what type of plans do you typically recommend?

There is also a new emerging “robo” 401k platform employers can implement. I have to say, when reading about this, a 401k plan is not the place for “robo” implementation. I can tell you that the IRS could have a field day auditing plans that are incorrectly established and 401k plans need to be very specific to the company.

Here are some main points for plans to remember:
*Employees with plan balances of under $5,000 can be forced out of the plan
*The fund line up should be reviewed on a schedule and there should be defined parameters for which funds are brought into the plan and removed from the plan.
*401k plans are required to have a diverse line up for employees to select from.
*Target date funds are becoming more popular and are often now the QDIA
*QDIA is the Qualified Default Investment for when an employee is auto enrolled in the plan but does not go in after to elect an allocation.
*Why might an employer elect to do auto enrollment?…because they want to contribute themselves without actually matching! J

Why a 401k plan over a SIMPLE plan.
*401k plans allow for employers to be selective about who is in the plan and match in a more creative fashion. Sometimes in a benefit to the employee and sometimes not. SIMPLE plans are “simpler” to maintain annually BUT they aren’t always on the best platforms for the employee and some have fees that just aren’t that transparent or favorable. The 401k plan can be a very powerful tool and if put in place correctly, can be very inexpensive to the employee for long term retirement savings. And in case anyone out there receives a 403 b 2 notice, THIS IS a key notice regarding the fees you pay in the 401k plan.

Top Company 401k plan issues:

Not removing or encouraging x-employees to rollover their funds
2. Too much company stock or TOO much risk options without enough conservative options for employees.
3. Not remitting money in a timely fashion
4. Being “top heavy” having to force money out of the plan for your top employees. Being Top heavy means earning more than $120,000 in income or being more than a 5% owner in the company.

Windus PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Windus A. Fernandez Brinkkord. The number to call is 858.314.5169. That is 858.314.5169. Or visit www.guideyourstory.com. NPC DOES NOT PROVIDE TAX NOR LEGAL ADVICE.

Stay tuned because after the break we are going to tell you IRS Tax Auditing and What You Should Be Aware Of.

You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Windus A. Fernandez Brinkkord on Inside Advantage on ESPN.

BREAK

Jeff states: Welcome back. This is Inside Advantage – Your Financial And Tax Radio Show on ESPN and you are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Windus A. Fernandez Brinkkord.

Calling into the studio from my Walnut Creek Office is my associate attorney, Amy Spivey.

Chit chat with Amy

And be aware of the special Offer that I have for you: PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.

Jeff states: So I don’t know of anyone who enjoys being audited by the IRS. The IRS randomly selects tax returns for audit each year.

Jeff asks: Amy can you go over the deadlines that the IRS has if looking to audit a tax return?

Amy replies: Now the IRS does have a deadline by which they must complete an audit of your tax return. Normally that deadline is three years after the due date of the tax return. So a 2013 income tax return that was filed by the April 15, 2014 filing deadline, the IRS would have until April 15, 2017 to audit that tax return.

Jeff states: Well here we are August 12, 2016 but do not relax so quickly. If you filed an extension for your 2013 tax income return, then you just extended the IRS’ time to audit to October 15, 2017.

Windus asks: Could the government have an even longer time to audit a tax return?

Amy replies: The government has an even longer time of six years where you omitted more than 20% of your income on your tax return and if you never filed a tax return or you filed a fraudulent tax return, there is no deadline for the government and you can be audited any time!

Windus asks: Amy, what are the different types of audits that the IRS conducts?

[Amy responds allowing Jeff to comment before proceeding to the next.]

Correspondence Audit: This is the least severe type of audit. It involves the IRS sending a letter in the mail requesting more information about part of a tax return. For instance, the agency may have questions regarding charitable deductions and request you send in receipts to substantiate your deduction. “It’s the lowest level of the audits.” “If you have the receipts or information it’s generally not an issue.” If your tax return is legitimate and you have the data to back up any claims on your return, you may want to handle the situation on your own. BUT If you don’t have the receipts or information, then you should have a tax representation professional deal with the IRS because you could face fines, penalties and interest if you end up owing money.

Office Audit: If the IRS has more questions about your return, then you’ll get a letter in the mail inviting you into an IRS office for the audit. The office audit is more serious, so you should always have a tax representation professional to come with you or turn over the audit representation to him. A tax representation professional can gather information in advance of the meeting and make sure it is complete so that the office audit can be wrapped up with the IRS as quickly as possible. “If the IRS still needs additional records, you’ll have time to supply the missing information.”

Field Audit: This is the most serious type of audit and involves the IRS visiting you at your home or office. “The reason the field audit is more serious is the IRS auditor will ask to see other things.” “They don’t want to limit it to particular items.” While there are much fewer field audits than office or correspondence audits, I wouldn’t let any client go into a field audit without representation. “It’s the most serious level of audit. If they are coming out to you, they are looking for something.”

Jeff states: So everyone wants to know, what sets off alarms at the IRS? Well for one thing it pays to keep in mind these 10 “red flags” that could increase the chance you’ll be targeted for an audit.

[Windus to read off each flag followed by Amy explanation and Jeff comment.]

High income. The audit rate for 2011 tax returns, which was about 1.11% overall, shot to 3.93% for taxpayers with income of $200,000 or more. That’s almost one out of every 25 returns. The IRS tends to chase the “big money,” and while that’s no reason to earn less, you should realize that higher income exposes you to a greater audit risk.

Unreported income. The IRS computers match up the income listed on W-2 and 1099 forms with the income reported on individual returns. You’re likely to draw IRS scrutiny if you don’t report all of your taxable income or if you underreport the total, even if an omission is inadvertent. Check your tax forms to ensure the information is correct.

Large charitable gifts. Besides providing personal satisfaction, deductions for charitable gifts can offset highly taxed income on your return. But the IRS may become suspicious if the amount you deduct is disproportionate to your income. In particular, make sure that deductions for gifts of property are legitimate and include an independent appraisal when required.

Home office deductions. If you qualify, you can write off your direct costs of using part of your home as an office, plus a percentage of everyday living expenses such as property taxes, mortgage interest, utilities, phone bills, insurance, etc. But the basic rule is that you must use the office “regularly and exclusively” as your principal place of business. Simply doing work at home when your main office is elsewhere won’t cut it.

Rental real estate losses. Generally, “passive activity” rules prevent investors from deducting losses on rental real estate. But a special exception allows a loss deduction of up to $25,000 for “active participants,” subject to a phase-out between $100,000 and $150,000 of adjusted gross income (AGI). Another exception applies to qualified real estate professionals. The IRS may zero in on taxpayers claiming losses under either exception. This aspect of the tax law can get very technical so you should inquire with a tax professional to see if you qualify.

Travel and entertainment expenses. This is often a key audit target. IRS agents particularly look for self-employed individuals and other business owners who claim unusually large write-offs for travel and entertainment expenses and meals. Note that the tax law includes strict substantiation rules that must be followed in order to deduct any of these expenses.

Business use of cars. Another area ripe for abuse by taxpayers is the use of a vehicle for business purposes. The annual amount you can claim via depreciation deductions for the vehicle, based on percentage of business use, is limited by so-called “luxury car” rules. IRS agents have been trained to ferret out taxpayer records that don’t measure up. Another red flag is a claim for 100% business use of a vehicle, especially if another vehicle isn’t available for personal use.

Hobby losses. As a general rule, you can deduct expenses for a hobby only up to the amount of the income it produces. You normally can’t claim a loss for the activity, unless your involvement rises to a level of a bona fide business. Usually, an activity is presumed not to be a hobby if you show a profit in any three out of the past five years, but the IRS can refute this presumption.

Foreign bank accounts. The IRS has started clamping down on taxpayers with offshore accounts in “tax havens” in which banks do not disclose account information. Failure to report foreign income can trigger steep penalties and interest. If you have foreign bank accounts, make sure you properly report the income when you file your return.

Cash businesses. If you operate a small business in which you’re largely paid in cash—for example, if you own a car wash, restaurant or bar, or a hair or nail salon—the IRS is more likely to examine your return. Past history indicates that cash-heavy taxpayers may underreport their income or, in some cases, not report any income at all. Accordingly, the IRS remains on high alert.

Jeff states: These red flags don’t mean you should shy away from claiming the tax breaks you rightly deserve. But when the IRS knocks on your door you need to be prepared. Which is why …

PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.

Thanks Amy for calling into the show. Amy says Thanks for having me.

Stay tuned as we will be taking some of your questions. You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Windus A. Fernandez Brinkkord on Inside Advantage on ESPN.

BREAK

And Windus and I always pleased to make our offers to our listeners where… PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.

Windus states: Windus PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Windus A. Fernandez Brinkkord. The number to call is 858.314.5169. That is 858.314.5169. Or visit www.guideyourstory.com. NPC DOES NOT PROVIDE TAX NOR LEGAL ADVICE.

Jeff states: And again I would like to thank our special guest, Chuck Hunter, CEO at Multivariable Solutions for being on the show today. Chuck as our special guest you have the honors of drawing the questions from our listeners for us to answer. OK Chuck, what questions have you pulled for us to answer?

Question: What exactly are the pros and cons of leaving my 401(k) with my previous employer?

Windus answers.

Question: How accurate are the do-it-yourself type software that allow you to calculate and file your taxes after answering a few questions? Why is it more beneficial to have a tax professional prepare your taxes as oppose to said software?

Jeff answers.

Jeff states: Well we are reaching the end of our show.

Windus states: Have a great day everyone!

Jeffrey B. Kahn, Esq. and Gary Sussman Discusses Financial Planning, Undisclosed Foreign Accounts and the IRS On ESPN Radio Podcast

July 29, 2016/0 Comments/in Podcast/by Tax Attorney

Jeffrey B. Kahn, Esq. and Gary Sussman Discusses Financial Planning, Undisclosed Foreign Accounts and the IRS On ESPN Radio – July 29, 2016 Show

https://soundcloud.com/kahntaxlaw/undisclosed-foreign-accounts-and-the-irs

Topics Covered:

1. Special Guest Mark Schwartz, Owner at Mark Schwartz Realty
2. Financial Planning missteps that could ruin everything
3. FATCA Momentum Grows; If You Have Undisclosed Foreign Accounts You Have No Where To Hide
4. Questions from our listeners:
a. I am considering offering a 401k to my employees, is this a good idea?
b. What if a taxpayer has already filed amended returns reporting income from foreign assets without entering into the Offshore Voluntary Disclosure Program?

Jeff states: Good afternoon! Yes sometimes we just have to take the money and run!

Welcome to Inside Advantage – Your Financial And Tax Radio Show.
This is Board Certified Tax Attorney, Jeffrey B. Kahn, the principal attorney of the Law Offices Of Jeffrey B. Kahn, P.C. and head of the KahnTaxLaw team.
Gary states:
And this is Licensed Financial Planner, Gary Sussman, at Trilogy Financial Services.
You are listening to our weekly radio show where we talk everything about finances and taxes from the ESPN 1700 AM Studio in San Diego, California.
Jeff states:

When it comes to knowing tax laws and paying taxes, let’s face it — everyone in the U.S. is either in tax trouble, on their way to tax trouble, or trying to avoid tax trouble!

Gary states:

And whether you are on the rebound or flying high, we have the information you need to make sound financial decisions and map out your strategy for success.
Jeff states:
Our show is broadcasted each Friday at 2:00PM Pacific Time and replays are available on demand by logging into the KahnTaxLaw website at www.kahntaxlaw.com.
Jeff states:

For today’s show we have coming up:

Segment 2 material: Financial Planning missteps that could ruin everything

Gary states:

Also coming up is:
Segment 3 material: FATCA Momentum Grows; If You Have Undisclosed Foreign Accounts You Have No Where To Hide
And of course towards the end of our show, we will be answering some of your questions.

Jeff starts chit chat with Gary.

Jeff states: So let’s introduce you to today’s guest:

Please welcome Mark Schwartz, Owner and Agent at Mark Schwartz Realty 858-414-4602.

Questions:
1. So Mark, tell us how you got into Real Estate?
2. Why Real Estate?
3. How do you get your business?
4. How is the market right now and where are there good opportunities?
5. There is a lot of competition out there, what separates you from the rest?
6. Tell us about your coaching and mentoring program?

Well it’s time for a break but stay tuned because we are going to tell you about Financial Planning missteps that could ruin everything.

You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.

BREAK

And be aware of the special offer that Gary has for you: Gary states PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Gary Sussman. The number to call is 949.536.2030. That is 949.536.2030. Or visit www.yourfinancialstory.com.
Financial Planning missteps that could ruin everything

1. Investing is a complex and challenging issue. There are lots of experts who claim to know the best guaranteed investment strategy and the best way to structure investments for secure and optimal growth. However even the most sound investment strategy is not a guarantee of success especially when the one certainty that we know will hold true is that life is always going to get in the way of our “ideal future”
2. The first mistake is that people build their house before laying a foundation.
a. Can your current plans still complete if you are sued, you are unable to work due to sickness or injury, and could your family fulfil your current plans for them if you died?”

3. The second mistake is not having a clear vision for the future and knowing what our preferred future will look like.
a. How will we ever achieve our financial goals if we don’t even know what the finish line looks like.
b. Adjust to things when taken off course

4. The third mistake is that people are sold on a story versus a concrete strategy
5. The fourth mistake is not having a budget.
a. Budget is not a dirty word.
b. Knows what we can and afford
6. Fifth mistake is not planning for Longevity or costs associated with advanced medical care.

Stay tuned because after the break we are going to tell you about how the FATCA Momentum is Growing – If You Have Undisclosed Foreign Accounts You Have No Where To Hid.
You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.

BREAK

Calling into the studio from my Walnut Creek Office is my associate attorney, Amy Spivey.

Chit chat with Amy

FATCA Momentum Grows; If You Have Undisclosed Foreign Accounts You Have No Where To Hide
Jeff states: Nine months have passed since the Internal Revenue Service announced on October 2, 2015 the exchange of financial account information with certain foreign tax administrations, meeting a key September 30th milestone related to FATCA, the Foreign Account Tax Compliance Act.
Amy states: This information exchange is part of the IRS’s overall efforts to implement FATCA, enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts or foreign entities. FATCA generally requires withholding agents to withhold on certain payments made to foreign financial institutions (FFIs) unless such FFIs agree to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
Amy continues: To achieve this, the IRS successfully and timely developed the information system infrastructure, procedures, and data use and confidentiality safeguards to protect taxpayer data while facilitating reciprocal automatic exchange of tax information with certain foreign jurisdiction tax administrators as specified under the intergovernmental agreements (IGAs) implementing FATCA.
Gary asks: Amy, what is the reason behind the Federal government enacting FATCA into law?
Amy replies: Well for a long time the IRS felt that U.S. taxpayers were keeping money abroad to evade paying U.S. taxes. There are also many U.S. taxpayers who are still not aware that when they file their U.S. income tax returns, they must report their worldwide income. So by enacting FATCA, foreign banks would eventually be reporting the same level of financial information as domestic banks already do to the IRS which the IRS can then use to verify compliance of U.S. taxpayers in reporting their worldwide income on their U.S. income tax returns. IRS Commissioner John Koskinen has even said that “meeting the September 30th deadline is a major milestone in IRS efforts to combat offshore tax evasion through FATCA and the intergovernmental agreements and that FATCA is an important tool against offshore tax evasion.”
Jeff states: You know a lot of foreign countries are also looking to benefit from the enactment of FATCA by facilitating and participating in the exchange of financial account information so they can enforce their own tax laws on their citizens who may be evading that country’s tax laws.
Amy replies: That’s right. The U.S. government has entered into a number of bilateral IGAs that set the groundwork for cooperation between the jurisdictions in this area. Certain IGAs not only enable the IRS to receive this information from FFIs, but enable more efficient exchange by allowing a foreign jurisdiction tax administration to gather the specified information and provide it to the IRS. And some IGAs also require the IRS to reciprocally exchange certain information about accounts maintained by residents of foreign jurisdictions in U.S. financial institutions with their jurisdictions’ tax authorities. Under these reciprocal IGAs, the first exchange of information had to take place by September 30, 2015.
Jeff asks: So Amy what should one do if they have undisclosed foreign bank accounts and unreported foreign income?
Amy replies: You should see tax counsel as soon as possible. The tax law imposes penalties as high as $100,000 or 50% of the principal value of your foreign accounts per violation and you can be incarcerated for as long as 5 years if convicted by a Federal court. Since 2009, over 60,000 U.S. taxpayers have come forward voluntarily to disclose their foreign financial accounts, taking advantage of special opportunities to comply with the U.S. tax system and resolve their tax obligations. At the beginning of 2012, the IRS reopened the Offshore Voluntary Disclosure Program (OVDP), which is open until otherwise announced.
Gary asks: That is some serious punishment. Amy, what different programs are available to U.S. taxpayers?
Amy replies: The two main options are:
1. Offshore Voluntary Disclosure Program; and
2. Streamlined Filing Compliance Procedures.
Amy continues: The Offshore Voluntary Disclosure Program (OVDP) is a voluntary disclosure program specifically designed for taxpayers with exposure to potential criminal liability and/or substantial civil penalties due to a willful failure to report foreign financial assets and pay all tax due in respect of those assets. OVDP is designed to provide to taxpayers with such exposure (1) protection from criminal liability and (2) terms for resolving their civil tax and penalty obligations.
Amy continues: OVDP requires that taxpayers go back as far as eight years in amending income tax returns to report foreign source income and disclose foreign bank accounts. The taxpayers would include with their submission of these tax filings the payment of the back taxes, interest each year on the unpaid tax and a 20% accuracy-related penalty which is applied against the unpaid tax. In addition, the taxpayers would include payment of what we call the “OVDP penalty” which is 27.5% of the highest balance of the foreign bank account in the past eight years. The IRS in return will not pursue charges of criminal tax evasion which would have resulted in jail time or a felony on your record and the IRS will not pursue impose the other multitude of penalties the tax law otherwise provides.
Jeff asks: What about the other option you mentioned of Streamlined Filing Compliance Procedures?
Amy replies: The streamlined filing compliance procedures are available to taxpayers certifying that their failure to report foreign financial assets and pay all tax due in respect of those assets did not result from willful conduct on their part. The key factor to be eligible for the streamlined procedures is that a taxpayer must show that he is non-willful in failing to report worldwide income and disclose foreign accounts.
Gary asks: If the streamlined procedures require a taxpayer to prove he was non-willful in failing to report the foreign account and foreign income and the regular OVDP does not, why would it still be beneficial to pursue the streamlined procedures?
Amy replies: Well for one thing that penalty is a lot lower. Recall that under regular OVDP the penalty is 27.5% penalty based upon the highest balance of the account in the past eight years. Beginning August 4, 2014, this rate increases to 50% for U.S. accountholders of certain foreign banks. Under the streamlined procedures the penalty is 5% of the highest balance of the account in the past six years and if you are a foreign person, that penalty can be waived under the streamlined procedures.
Jeff states: So it appears that for the streamlined procedures, the effort that you must place the most emphasis on to have a successful result is not so much in the preparation of the amended tax returns but showing that a taxpayer is non-willful.
Amy replies: That is correct. Many people think just by stating to the IRS that they did not know the law requires that you must report foreign income on your U.S. income tax return and disclose foreign accounts on an FBAR will satisfy this non-willful standard. There is a lot more than that to meet this standard. In fact we have identified over 50 factors that we cover with our clients which we then address in the non-willful statements that get included with the packages submitted to IRS. A comprehensive non-willful statement is the key to a successful submission.
PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.

Thanks Amy for calling into the show. Amy says Thanks for having me.

Stay tuned as we will be taking some of your questions. You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Gary Sussman on Inside Advantage on ESPN.

BREAK

And Gary and I always pleased to make our offers to our listeners where… PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Jeffrey Kahn, right here in San Diego or at one of my other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.

Jeff states: If you would like to post a question for us to answer, you can go to my website at www.kahntaxlaw.com and click on “Radio Show”. You can then enter your question and maybe it will be selected for our show.

And again I want to introduce our quest, Mark Schwartz, Owner and Agent at Mark Schwartz Realty. So Mark as our guest, what questions have you pulled for us to answer?

Charles from San Diego asks: I am considering offering a 401k to my employees, is this a good idea?

Gary answers.

Stanley from Newport Beach asks: What if a taxpayer has already filed amended returns reporting income from foreign assets without entering into the Offshore Voluntary Disclosure Program?

Jeff replies: When a taxpayer bypasses the Offshore Voluntary Disclosure Program and instead files the delinquent FBAR’s and amends income tax returns to include foreign income, that we call is a “quiet disclosure”.

Jeff continues: The IRS is aware that some taxpayers have made “quiet disclosures” by filing amended returns, by filing delinquent FBARs, and paying any related tax and interest for previously unreported income from foreign assets without otherwise notifying the IRS. Because of this the IRS has put procedures in place whereby its computers can detect these filings and now open up examinations or investigations against these taxpayers. Our firm has already seen this happen.

Jeff continues: That is why taxpayers who have already made “quiet disclosures” are encouraged to participate in OVDP by submitting an application, along with copies of their previously filed returns (original and amended), and all other required documents and information to the IRS’s Voluntary Disclosure Unit. By doing this taxpayers are protected from criminal prosecution and obtain the favorable penalty structure offered under OVDP. Unlike a voluntary disclosure through OVDP, quiet disclosures provide no protection from criminal prosecution and may lead to civil examination and the imposition of all applicable penalties. And remember, once the IRS starts an examination or investigation, it is too late to enter into OVDP.

Jeff states: Well we are reaching the end of our show.

Remember you can send us your questions by visiting the kahntaxlaw website at www.kahntaxlaw.com.

Gary states: Have a great day everyone!

Tips If You Owe Taxes

July 27, 2016/0 Comments/in Featured/by Tax Attorney

Tips If You Owe Taxes

Mailed Tax Bills.If you owe taxes, you will first receive a bill in the U.S. mail from the IRS which tells you your balance owed through a certain date indicated on the bill. Don’t fall for those calls from people claiming to be the IRS threatening criminal action against you if you don’t pay the amount they are demanding. The IRS will never make an initial contact with you by telephone without first having sent you written notice that you owe the IRS or are under examination. Of course if you have the available funds, you should pay the balance no later than the date indicated in the bill to avoid any extra charges. If you can’t pay in full, keep in mind that interest and penalties continue to accrue on the balance so any payment made to IRS will result in lower accruals of interest and penalties for the future.

Full Payment Agreements of up to 120 days. If you owe more tax than you can pay, you may qualify for more time -up to 120 days- to pay in full. You do not have to pay a user fee to set up a short-term full payment agreement. However, the IRS will charge interest and penalties until you pay in full.

Apply for an installment agreement.If you’re financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement. Before applying for any payment agreement, you must file all required tax returns and if you are required to make estimated tax payments, you must be current in making those payments. The IRS calls this “being in current compliance”. By being in current compliance, the installment agreement can now cover all tax periods with outstanding balances.

“No Verification” Installment Agreements. For individuals who owe $50,000 or less in combined individual income tax, penalties and interest, OR businesses that owe $25,000 or less in payroll taxes, you can have an installment agreement set up with IRS without presenting any financial information.
“Full Verification” Installment Agreements. For individuals and businesses that exceed the thresholds of the No Verification Installment Agreements, the IRS will require that full financial disclosure be made with your payment plan proposal. Be careful though because the IRS does limit certain expenses and depending on the type of installment agreement entered, you may not be able to get full credit for your actual living expenses. So if you are in this situation, it is best to hire tax counsel to compile the proposal and financial disclosures. If you do it on your own first and fail, your representative will not be able to “undo” what was already disclosed by you to IRS and that could then limit the representative in getting the optimum result.

Understand Your Installment Agreement & Avoid Default. Keep in mind that your future refunds will be applied to your tax debt until it is paid in full. Pay at least your minimum monthly payment when it’s due and if paying by check include your name, address, SSN, daytime phone number, tax year and return type on your payment. Make sure the check is mailed to the right address for delivery no later than the payment due date. File all required tax returns on time & pay all taxes in-full and on time as any new liability will default your installment agreement. Make all scheduled payments even if the IRS applies your refund to your account balance.

If you don’t receive your statement from IRS, send your payment to the address listed in your installment agreement.
There may be a reinstatement fee if your agreement goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, it is a good idea to hire tax counsel who can seek reinstatement or even a medication where you can make lower monthly payments.

Check out an offer in compromise. An offer in compromiseor OIC may let you settle your tax debt for less than the full amount you owe. An OIC may also be helpful if full payment may cause you financial hardship. Not everyone qualifiesafter all, when you are looking for a discount on your IRS liability the government wants to make sure that collectability of the full liability plus interest and penalties is highly doubtful before granting a discount.
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.

The IRS will consider your unique set of facts and circumstances with a focus on your income and expenses to determine your ability to pay and your asset equity.
The IRS will generally approve an offer in compromise when the amount offered represents the most the IRS can expect to collect within a reasonable period of time.

Make sure you are eligible
Before the IRS can consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding and if you file for bankruptcy while your OIC is being evaluated, the IRS will stop evaluation and return the OIC.

Submit your offer
The form to use in filing an OIC is Form 656. You must include payment of an application fee of $186.00 and a deposit towards the amount offered. Additional you must include financial disclosures. The main forms to use are Form 433-A (OIC) (for individuals) or 433-B (OIC) (for businesses) and these forms list all required documentation that must be included. Like installment agreement requests, the IRS limits certain living expenses so it make sense to engage tax counsel to pursue this process.

Select a payment option
Your initial payment will vary based on your offer and the payment option you choose:
Lump Sum Cash: Submit an initial payment of 20% of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.

Understand the process. While your offer is being evaluated:
1. Your non-refundable payments and fees will be applied to the tax liability;
2. A Notice of Federal Tax Lien may be filed;
3. Other collection activities are suspended;
4. The legal assessment and collection period is extended;
5. Make all required payments associated with your offer;
6. You are not required to make payments on an existing installment agreement; and
7. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

If your offer is accepted you must meet all the Offer Terms listed in Section 8 of Form 656, including filing all required tax returns and making all payments for the next five years; Any refunds due within the calendar year in which your offer is accepted will be applied to your tax debt; and Federal tax liens are not released until your offer terms are satisfied.

If your offer is rejected you may appeal a rejection within 30 days after the determination letter has been issued by IRS. If though your offer is returned, you do not have this right of appeal and must start the OIC process all over again.

IRS getting more muscle in its fight against offshore tax evasion

July 27, 2016/0 Comments/in Featured/by Tax Attorney

IRS getting more muscle in its fight against offshore tax evasion

In a recent legal battle with UBS, the IRS has exerted its dominance once again by demanding transparency and exposure of international tax evasion and avoidance at some of the most powerful foreign financial institutions. The IRS previously reached an unprecedented settlement with UBS, one of the largest Swiss banks lauded for its powerful position in the foreign bank-secrecy landscape. Following that settlement UBS agreed to surrender client records for a U.S. citizen holding substantial assets in an account in Singapore. What happened in that case serves as a foreboding of what may be to come for many individuals with unreported foreign income or other offshore bank accounts.

With Thousands To Go, This Is Just The Tip Of The Iceberg

In the UBS case, authorities claimed rights to access this information as a means of appropriately addressing tax evasion by evaluating all relevant data. The client, Ching-Ye Hsiaw, had recently shifted assets from his UBS account in Switzerland to a new Singapore account in light of the increased focus of the IRS on the Swiss banking front. Indeed, the IRS has recently expanded efforts to detect, deter, and discipline instances of tax evasion in numerous international jurisdictions. In response to the Foreign Account Tax Compliance Act (FATCA), UBS turned over thousands of taxpayers’ records of accounts previously hidden from the IRS. In fact, UBS turned over nearly one-fifth of the American-sourced accounts held at the institution. These accounts represent many taxpayers who not only paid a premium for the secrecy they believed Swiss bank laws could protect, but also hoped that the IRS would not discover their willful efforts at tax evasion in the first place. Some taxpayers, whose accounts have been submitted to the IRS under these efforts to unveil both individual and corporate attempts at tax evasion, feared the discovery of their foreign bank accounts, but did not know how to properly bring these accounts back to the United States without facing steep civil penalties and even criminal persecution. These first few victories by the IRS under FATCA should alert individuals as cautionary tales of the importance of understanding the implications of holding assets in foreign financial institutions (FFIs).

One FAT check for FATCA

Upon the notable shift of American sourced income out of domestic financial institutions, the IRS sought out the money hidden in tax havens, tax shelters, and tax “nothings”. When Swiss bank-secrecy laws forbade FFIs from reporting American client’s account information without the client’s consent, the U.S. government passed the Foreign Account Tax Compliance Act or more commonly known as FATCA in 2010. The law presented a counter to bank-secrecy laws – if Switzerland would refuse to release information about income rightfully (or so the IRS believed) taxed by the U.S. government, the United States would implement a 30% withholding tax on American investments by other nations. The tax was, and still is, steep enough to prompt cooperation by FFIs if they want any access to the United States capital market. Effects on individuals with unreported foreign income represents only one facet of the effort; focus on multinational entities permeates the IRS agenda. FATCA mirrors other international efforts to eliminate international non-taxation of income, such as the Base Erosion And Profit Shifting (BEPS) project of the Organization for Economic Cooperation and Development. The BEPS project, much like FATCA, seeks transparency and full disclosure of the source and storage of monetary assets. With the spotlight on tax evasion constantly broadening and brightening, both American corporate entities with complex ownership structures and individuals with rather simple investments and income abroad must become and remain informed about similar IRS efforts.

Pay Up: Penalties and Fines for Tax Evasion

As the government becomes increasingly strapped for cash, the focus on derailing the effectiveness of foreign bank secrecy elevates. In order to place extreme emphasis on the priority the IRS has given FATCA enforcement, the government has placed steep civil and criminal penalties on those convicted of tax evasion, especially willful evasion. Tax evasion can result in prison sentences up to 5 years in duration as well as monetary fines of $250,000 for individuals and $500,000 for corporations. Failure to indicate on Schedule B of your Form 1040 that you hold assets in a foreign bank account, if discovered, may bear such repercussions.

The United States government acknowledges the difficulty of affording to bring assets back to the U.S. home soil, both from the perspective of facing an increased continuing tax rate on this income as well as facing steep civil and criminal charges. As such, the government has implemented occasional amnesties. An amnesty is somewhat comparable to forgiveness by the U.S. government, whereby a taxpayer can retrieve assets from foreign accounts and remit them to domestic banks while paying only a portion of usually assigned penalties or no penalties at all. However, these “Welcome Home!” gestures are not often as warm as they seem and often, not as frequent as tax evaders would hope. As referenced by many politicians and persecutors in Washington, there are many completely legal ways to participate in activities that avoid taxation either completely or to some smaller degree. However, as Mr. Hsiaw and UBS would likely agree, knowledge of the nature, legal landscape, and potential punishment for unreported foreign earnings and similar offshore bank accounts and investments are a necessity in the increasingly omniscient reach of the IRS.

How a Summer Wedding Can Affect Your Taxes

July 27, 2016/0 Comments/in Featured/by Tax Attorney

How a Summer Wedding Can Affect Your Taxes

With all the planning and preparation that goes into a wedding, taxes may not be high on your summer wedding checklist. However, you should be aware of the tax issues that come along with marriage.

Here are some basic tips that taxpayers should be aware of:

• Name change. The names and Social Security numbers on your tax return must match your Social Security Administration records. If you change your name, report it to the SSA. To do that, file Form SS-5, Application for a Social Security Card. You can get the form on SSA.gov, by calling 800-772-1213 or from your local SSA office.

• Change tax withholding. A change in your marital status means you must give your employer a new Form W-4, Employee’s Withholding Allowance Certificate. If you and your spouse both work, your combined incomes may move you into a higher tax bracket or you may be affected by the Additional Medicare Tax. Use the IRS Withholding Calculator tool at IRS.gov to help you complete a new Form W-4.

• Changes in circumstances. If you or your spouse purchased a Health Insurance Marketplace plan and receive advance payments of the premium tax credit in 2016, it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace when they happen. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance credit payments are paid directly to your insurance company on your behalf to lower the out-of-pocket cost you pay for your health insurance premiums. Reporting changes now will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance, which may affect your refund or balance due when you file your tax return.

• Address change. Let the IRS know if your address changes. To do that, send the IRS Form 8822, Change of Address. You should also notify the U.S. Postal Service. You can ask them online at USPS.com to forward your mail. You may also report the change at your local post office. You should also notify your Health Insurance Marketplace when you move out of the area covered by your current health care plan.

• Tax filing status. If you’re married as of December 31, that’s your marital status for the whole year for tax purposes. You and your spouse can choose to file your federal income tax return either jointly or separately each year. You may want to figure the tax both ways to find out which status results in the lowest tax.

Can you get a Tax Write-Off for your wedding?

Generally you cannot write-off a wedding but there are ways that newlyweds can spend for their weeding that can actually save money when it’s time to pay taxes at the end of the year.

While tax write-offs are usually the last thing a bride and groom think about when planning a wedding, when it comes to saving taxes you may want to consider these tips:

The Attire. Brides often wear their wedding dress only once. And while some opt to keep them for whatever reason, others have no idea how to discard them. For a tax write-off, consider donating the wedding gown to a nonprofit organization like Goodwill, MakingMemories.org or CinderellaProject.net. These organizations will take your dress and issue you a donation receipt for your good efforts. While you’re at it, consider donating the bridesmaids dresses, flower girl dress, ring bearer’s outfit and any nonperishable decorations.

The Venue. Believe it or not, some wedding venues are tax deductible. Choose a ceremony or reception venue located at a museum, public-owned park or even a historic house or building of some sort. These places are usually owned by nonprofit organizations who use the money they receive for upkeep purposes only. Speak with the head of the venue sight to make sure that it is a nonprofit organization and what portion of the cost you pay is in excess of the deemed value of the rental of the space (only the excess amount could be deductible as a charitable contribution).

Wedding Favors and Gifts. Charity donations can make thoughtful wedding gifts and favors. They also save you money during tax season. So instead of purchasing a trinket that your guests or attendants may discard later, opt for a donation to your favorite charity on behalf of all those who are a part of your wedding.

Flowers and Foods. You can also get a tax write-off for items that have a short life, such as leftover food and all those floral centerpieces. After the wedding is over, ask a friend or family member to bring the items to a local nursing home, homeless shelter or somewhere similar. You will get a tax deduction for the cost of the remaining food and flowers and you’ll put a few smiles on faces.

Documenting. Whether you have your taxes done by a professional accountant or take care of them yourself, it’s important to document each of these wedding tax write-offs. Keep all your receipts for any purchases you make and request a donation sheet (signed by the organization) that states how much you donated, what you donated and when. Save all your contracts for any wedding venues and, if possible, request that the venue organizer provide you with receipts for each of your payments.

Reporting Charitable Contributions. To claim charitable deductions, you must itemize them on Schedule A of Form 1040. The IRS will need any and all receipts and statements that support the fees, expenses and donations that you claim. If your total noncash contributions exceed $500, you must also fill out Form 8283, Noncash Charitable Contributions, and attach it to your tax return. If you donate a single item worth more than $5,000, you must add Form 8283, Section B, and obtain an appraisal.

It’s risky business to take a tax write-off for your wedding but if it is done right it should be respected by the IRS.

Jeffrey B. Kahn, Esq. and Windus Fernandez Brinkkord Discusses Brexit, Summer Wedding Tax Woes and the IRS On ESPN Radio – Podcast

July 22, 2016/0 Comments/in Podcast/by Tax Attorney

Jeffrey B. Kahn, Esq. and Windus Fernandez Brinkkord Discusses Brexit, Summer Wedding Tax Woes and the IRS On ESPN Radio – July 22, 2016 Show

Topics Covered:

1. Jonni Bailey with Ruff Haus Design, A business’ loyal marketing company!

2. As Brexit Unfolds…what we need to know.

3. Summer Wedding Tax Woes.

4. Questions from our listeners.

***********************************************************************

Windus states: Good afternoon! Yes sometimes we just have to take the money and run! Welcome to Inside Advantage – Your Financial And Tax Radio Show.

This is Licensed Financial Planner, Windus Fernandez Brinkkord, Senior Vice President Of Investments at Trilogy Financial Services.
My co-host Jeffrey B Kahn, board Certified Tax Attorney is out today. But Amy, his associate, will be calling in for our 3rd segment.
You are listening to our weekly radio show where we talk everything about finances and taxes from the ESPN 1700 AM Studio in San Diego, California.

When it comes to knowing tax laws and paying taxes, let’s face it — everyone in the U.S. is either in tax trouble, on their way to tax trouble, or trying to avoid tax trouble!

And whether you are on the rebound or flying high, we have the information you need to make sound financial decisions and map out your strategy for success.
Our show is broadcasted each Friday at 2:00PM Pacific Time and replays are available on demand by logging into the KahnTaxLaw website at www.kahntaxlaw.com or on my team’s website at www.guideyourstory.com.
For today’s show we have coming up:

Segment 2: As Brexit Unfolds…what we need to know.

Also coming up is:

Segment 3: Summer Wedding Tax Woes.

And of course towards the end of our show, we will be answering some of your questions.

Joining me today as a guest co-host and the star of our first segment is Jonni Bailey with Ruff Haus Design, A business’ loyal marketing company!

Chit chat with Jonni, pack leader

Windus states: Well it’s time for a break but stay tuned because we are going to tell you more about what Brexit really means.

You are listening to Licensed Financial Planner, Windus Fernandez Brinkkord and my co-host Jonni Bailey on Inside Advantage on ESPN.

Return from BREAK

Windus states: Welcome back. This is Inside Advantage – Your Financial And Tax Radio Show on ESPN and you are listening to Licensed Financial Planner, Windus Fernandez Brinkkord with my co-host today Jonni Bailey.

Let’s kick off this segment with my special offer: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Windus Fernandez Brinkkord. The number to call is 858-314-5169. That is 858-314-5169. Or visit www.guideyourstory.com.

Brexit: I read a few articles from the Wall St. Journal & Bloomberg to really wrap my head around this topic.

Jonni, so this term is being used quite a bit, but what does it mean to you?

Ultimately, not to beat the dead horse into the ground, Brexit is the United Kingdom leaving the European Union, which was more of a trade connection/agreement to them than anything else. But the EU is bigger than this and it has made a big impact on countries inside of the UK. I know I discussed on another show that the UK is made up of four countries: England, Wales, Ireland, and Scotland. The two countries likely hardest hit with England’s decision are Scotland and Ireland. Now Scotland voted to stay but what happened in Ireland is much more complicated and a little more difficult to navigate! Once upon a time, not long ago, even though it feels like it, Ireland was divided between the Northern Ireland and the Republic. With the largely Protestant Democratic Unionist Party backing leave and the Mainly Catholic Sinn Fein campaigning to remain. Jonni, so foreign to us to see religion tied into politics, right? Although we do see that here with some of our main issues dividing rights regarding abortion and marriage. Do you think religion plays a big role in politics here in the US?

Now, Ireland uses the Euro, not the pound, which I didn’t know and obviously ties it closely to the union even more. AND Ireland is one of the PIIGS (Portugal, Italy, Ireland, Greece, and Spain) countries that needed a bailout from the EU to get out of the last recession! Now England did contribute to that for Ireland despite not being a direct part of the currency. I know the term “bail-out” is used quite a bit. Here is what it meant for Ireland:

Ireland needed money to help shore up banks after it pumped money into the banks and essentially nationalized the bank system. Then the government got into trouble so the EU pumped into their economy $100 billion Euros. In exchange for this, the country had to agree to austerity. What does/did austerity mean? First austerity means: it is a set of economic policies implemented with the aim of reducing government budget deficits. In Ireland, that meant a huge cut in welfare spending and a rise in the VAT rate, which is a tax levied on most goods and services. Now in Ireland, welfare pertains to three things: social insurance payments, means tested payments, and universal payments. To break that down in the US terms: Social Security, Unemployment payments, Welfare (in the traditional US sense).

Jonni, what is your perspective on a country needing to be Bailed-out, do you agree or disagree with providing that kind of money to a country? Do you think austerity puts pressure on the population? If your company needed money to stay afloat, and you had to take it what austerity could you implement to keep going that wouldn’t impede your ability to be profitable?

Then for Ireland comes the issues of their already very instable economy. And with the austerity, they are just now becoming stable. The critical attraction to Ireland is the amazing corporate tax rate. Now they’ve had the ability to keep this and not assimilate to the rate of the UK because of their ties to the EU. Without membership in the EU, they may have to now increase this tax rate putting Ireland in a difficult position economically, again.

Now to turn to other interesting aspects of the bailout:
WizzAir Holding is cutting seats to and from the UK due to the weaker pound.
Appliance maker Electrolux AB & Groupe Eurotunnel SA both said the weaker pound will hurt earnings.
Concern and uncertainty for how the UK will unwind itself from the EU is creating a cloud over corporate forecasts, shaping how companies make decisions. This alone could cause pressure that could inadvertently trigger a recession in the UK.
Not all news is bad, many companies do stand to make money from this as well. British firms that make their money from outside of the UK are going to benefit from the lower currency!
I’ve even had many friends and clients tell me about how they are buying the pound now, at these rates, in advance for future vacations!

On the investment front, currency can be a huge risk and put pressure on your ability to earn money when you invest or diversify into international investments. You may want to inquire if your investments are “hedging” the currency right now to help reduce some of the issues. You should never remove 100% of investments in any one area, trying to time the market is a huge issue. That is a great time to stop and remind every one of our offer:

Windus states PLUG: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Windus. The number to call is 858-314-5169. That is 858-314-5169. Or visit www.guideyourstory.com.

Windus states: Stay tuned because after the break we are going to tell you about those summer wedding tax woes!

You are listening to Licensed Financial Planner, Windus Fernandez Brinkkord and my co-host Jonni Bailey on Inside Advantage on ESPN.

BREAK

Calling in today is Amy Spivey, Jeff’s associate at the Law Offices Of Jeffrey B Kahn, P.C. Amy, how are you doing today?

Chit chat with Amy

Windus states: And before we start our next segment, Amy would you please tell our listeners of your offer?

Amy states PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call our office to make an appointment to meet with Jeffrey Kahn, right here in San Diego or at one of our other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.

How a Summer Wedding Can Affect Your Taxes

Windus states: With all the planning and preparation that goes into a wedding, taxes may not be high on your summer wedding checklist. However, you should be aware of the tax issues that come along with marriage.

Windus asks: Amy what are some basic tips that taxpayers should be aware of?

[Amy responds with the following tips]

• Name change. The names and Social Security numbers on your tax return must match your Social Security Administration records. If you change your name, report it to the SSA. To do that, file Form SS-5, Application for a Social Security Card. You can get the form on SSA.gov, by calling 800-772-1213 or from your local SSA office.

• Change tax withholding. A change in your marital status means you must give your employer a new Form W-4, Employee’s Withholding Allowance Certificate. If you and your spouse both work, your combined incomes may move you into a higher tax bracket or you may be affected by the Additional Medicare Tax. Use the IRS Withholding Calculator tool at IRS.gov to help you complete a new Form W-4.

• Changes in circumstances. If you or your spouse purchased a Health Insurance Marketplace plan and receive advance payments of the premium tax credit in 2016, it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace when they happen. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance credit payments are paid directly to your insurance company on your behalf to lower the out-of-pocket cost you pay for your health insurance premiums. Reporting changes now will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance, which may affect your refund or balance due when you file your tax return.

• Address change. Let the IRS know if your address changes. To do that, send the IRS Form 8822, Change of Address. You should also notify the U.S. Postal Service. You can ask them online at USPS.com to forward your mail. You may also report the change at your local post office. You should also notify your Health Insurance Marketplace when you move out of the area covered by your current health care plan.

• Tax filing status. If you’re married as of December 31, that’s your marital status for the whole year for tax purposes. You and your spouse can choose to file your federal income tax return either jointly or separately each year. You may want to figure the tax both ways to find out which status results in the lowest tax.
Windus asks: Can you get a Tax Write-Off for your wedding?

Amy replies: Generally you cannot write-off a wedding but there are ways that newlyweds can spend for their weeding that can actually save money when it’s time to pay taxes at the end of the year.

Windus states: Well I am sure that tax write-offs are usually the last thing a bride and groom think about when planning a wedding but what tips so you have on this?

Amy replies: The Attire. Brides often wear their wedding dress only once. And while some opt to keep them for whatever reason, others have no idea how to discard them. For a tax write-off, consider donating the wedding gown to a nonprofit organization like Goodwill, MakingMemories.org or CinderellaProject.net. These organizations will take your dress and issue you a donation receipt for your good efforts. While you’re at it, consider donating the bridesmaids dresses, flower girl dress, ring bearer’s outfit and any nonperishable decorations.

Windus asks: What about the venue?

Amy replies: The Venue. Believe it or not, some wedding venues are tax deductible. Choose a ceremony or reception venue located at a museum, public-owned park or even a historic house or building of some sort. These places are usually owned by nonprofit organizations who use the money they receive for upkeep purposes only. Speak with the head of the venue sight to make sure that it is a nonprofit organization and what portion of the cost you pay is in excess of the deemed value of the rental of the space (only the excess amount could be deductible as a charitable contribution).

Windus asks: Can you think of anything else?

Amy replies: Wedding Favors and Gifts. Charity donations can make thoughtful wedding gifts and favors. They also save you money during tax season. So instead of purchasing a trinket that your guests or attendants may discard later, opt for a donation to your favorite charity on behalf of all those who are a part of your wedding.

Amy continues: Flowers and Foods. You can also get a tax write-off for items that have a short life, such as leftover food and all those floral centerpieces. After the wedding is over, ask a friend or family member to bring the items to a local nursing home, homeless shelter or somewhere similar. You will get a tax deduction for the cost of the remaining food and flowers and you’ll put a few smiles on faces.

Windus states: I would think that writing off anything associated with a wedding would be a red flag with IRS so how should a taxpayer document this?

Amy replies: Documenting. Whether you have your taxes done by a professional accountant or take care of them yourself, it’s important to document each of these wedding tax write-offs. Keep all your receipts for any purchases you make and request a donation sheet (signed by the organization) that states how much you donated, what you donated and when. Save all your contracts for any wedding venues and, if possible, request that the venue organizer provide you with receipts for each of your payments.

Windus states: So it seems that these write-offs are being structured as qualifying expenditures as charitable contributions.

Amy replies: That’s right. Reporting Charitable Contributions. To claim charitable deductions, you must itemize them on Schedule A of Form 1040. The IRS will need any and all receipts and statements that support the fees, expenses and donations that you claim. If your total noncash contributions exceed $500, you must also fill out Form 8283, Noncash Charitable Contributions, and attach it to your tax return. If you donate a single item worth more than $5,000, you must add Form 8283, Section B, and obtain an appraisal.

Windus asks: When could an Engagement Ring be tax deductible?

Amy replies: An engagement ring signifies a commitment between two partners and marks their intention to marry at a later date. Because engagement rings are typically made from precious metals and stones, the price can range from several hundred dollars to several thousand dollars. Whether you may claim an engagement ring as a tax deduction depends on individual circumstances. If you plan to propose and purchase an engagement ring to seal the deal, you may not deduct the cost of the ring from your taxes. An engagement ring is considered a capital gains item rather than a household item, making it ineligible for deduction purposes.

Windus asks: So let’s say the engagement falls apart and now you have this ring. Can you donate it and get a tax write-off?

Amy replies: Donating a Ring. You may donate an engagement ring to a charitable entity if, for instance, your engagement ended without marriage or if you divorced and no longer want to keep the ring. In most cases, the donation represents a charitable contribution that you can deduct from your tax liabilities for the year in which you donate the ring. However, to claim the ring as a tax deduction, the charitable organization must be able to use or sell the ring. Contributions that a charitable entity cannot use are not tax deductible. The amount you can deduct from your tax liability depends partially on the value of the ring. Obtaining a certified appraisal of the ring might help you maximize your tax deduction if the ring has increased in value since purchase. The cost of the appraisal is not included in the charitable contribution deduction; however, you may deduct the cost of the appraisal as a miscellaneous deduction.

Amy continues: It’s Risky Business To Take A Tax Write-Off For Your Wedding but if it is done right it should be respected by the IRS which is why …

Amy states: PLUG: The Law Offices Of Jeffrey B. Kahn, P.C. will provide you with a Tax Resolution Plan which is a $500.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call our office to make an appointment to meet with Jeffrey Kahn right here in San Diego or at one of our other offices close to you. The number to call is 866.494.6829. That is 866.494.6829.

Windus states: Thanks Amy for calling into the show. Amy says Thanks for having me.

Windus states: Stay tuned as we will be taking some of your questions. You are listening to Licensed Financial Planner, Windus A. Fernandez Brinkkord on Inside Advantage on ESPN.

BREAK

Jonni, how have you enjoyed the show so far today? Ready to answer some audience questions?

First, let’s highlight the Trilogy offer one more time today: Trilogy Financial Services will provide you with a retirement cash flow analysis which is a $600.00 value for free as long as you mention the Inside Advantage Radio Show when you call to make an appointment. Call my office to make an appointment to meet with me, Windus. The number to call is 858-314-5169. That is 858-314-5169. Or visit www.guideyourstory.com.

Windus states: If you would like to post a question for us to answer, you can go to Jeff’s website at www.kahntaxlaw.com and click on “Radio Show”. You can then enter your question and maybe it will be selected for our show.

OK Jonni, Now you get to ask me the questions.

Have a great day everyone!

Jeffrey B. Kahn, Esq. and Windus A. Fernandez Brinkkord Discusses The Markets, Tips If You Owe Taxes and the IRS On ESPN Radio – July 15, 2016 Show

July 15, 2016/0 Comments/in Podcast/by Tax Attorney

Jeffrey B. Kahn, Esq. and Windus A. Fernandez Brinkkord Discusses The Markets, Tips If You Owe Taxes and the IRS On ESPN Radio – July 15, 2016 Show

Topics Covered:

1. Special Guest: Chris Rupp, Franchise Owner; PrideStaff, PrideStaff Financial

2. Youth Optimism Powers U.S. Economy

3. Tips If You Owe Taxes

4. Call in Question:

a. I want to invest in an IRA but am not sure how to go about it. At what earnings point is it more beneficial to go the Traditional Retirement route and not the Roth Retirement route?

Jeff states: Good afternoon! Yes sometimes we just have to take the money and run!

Welcome to Inside Advantage – Your Financial And Tax Radio Show.
This is Board Certified Tax Attorney, Jeffrey B. Kahn, the principal attorney of the Law Offices Of Jeffrey B. Kahn, P.C. and head of the KahnTaxLaw team.
Windus states:
And this is Licensed Financial Planner, Windus A. Fernandez Brinkkord, Senior Vice President Of Investments at Trilogy Financial Services.
You are listening to our weekly radio show where we talk everything about finances and taxes from the ESPN 1700 AM Studio in San Diego, California.
Jeff states:

When it comes to knowing tax laws and paying taxes, let’s face it — everyone in the U.S. is either in tax trouble, on their way to tax trouble, or trying to avoid tax trouble!

Windus states:

For today’s show we have coming up:

Segment 2 material: Youth Optimism Powers U.S. Economy

Windus states:

Also coming up is:

Segment 3 material: Tips If You Owe Taxes

And of course towards the end of our show, we will be answering some of your questions.

Jeff starts chit chat with Windus.

Jeff states: At this time, we would like to introduce you to our special guest:

Chris Rupp, Franchise Owner; PrideStaff, PrideStaff Financial

1. Can you tell us a little bit about PrideStaff?
2. What is PrideStaff Financial?
3. What was the drive behind starting up your own staffing and recruiting enterprise?
4. About how many companies around the Greater San Diego area does your company provide temporary work for?
5. Would you be able to tell us off the top of your head, what percentage of your temporary associates go on to become direct hire employees?
6. Where do you advertise for new talent to fill future positions?
7. Does PrideStaff provide benefits for the employees being sourced for temporary positions? How does that work within PrideStaff?
8. Do you have a list of associates who match up to a specific positions criteria, or do you have a first call first serve basis for available assignments?
9. Have you ever considered another path for yourself outside staffing services?
10. What would be your most valuable bit of advice for anyone interested in owning their own business?

Well it’s time for a break but stay tuned because we are going to tell you Youth Optimism Powers U.S. Economy.

You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Windus A. Fernandez Brinkkord on Inside Advantage on ESPN.

BREAK

Youth Optimism Powers U.S. Economy

http://on.wsj.com/29HcJ9i

• Millennials and baby boomers seem to have different feelings about the Economy
–>This is a decades long generational issue. Often people in their 20’s & 30’s are more optimistic than those at the end or towards the end of their working careers. Chris, have you noticed this in your work place or between you & your daughters?
• Specifically, confidence among the 35 & below crowd is back at pre-recession levels where as those about 55 is far lower and even decreasing in the last year. From your experience, what would be contributing to this decrease? Do you think it is work place happiness? Or watching the investments not have a good year? Concern over the Presidential election?
• Older Americans pulled back in spending in the first quarter of 2016 while younger ones increased, according to Chase credit & debt cards. Honestly, if I didn’t have a lot of money invested, I may not have felt the pain of the first quarter in 2016 as much. Right? How connected would I be to the economy?
• Younger people feel that having to bid for a house is a sign of a strong economy. Some older people get worried it is a sign of a housing bubble.
• Now this is great but the youth cannot carry the economy:
–>Many youths are burdened with high student loans that will ultimately prevent them from buying a home. Especially without a parent co-signer on that house.
–>Millennials will not see pay raises at a rate in which can keep the economy going like baby boomers could.
• Businesses are shifting who they target:
–>they used to target retirees or people who had time and money to spend. They are now focusing on tired parents that are working OR “stressed-out young professionals”…Todd Leff, chief executive and Hand & Stone, a Pennsylvania based massage chain.
–>businesses are even moving to advertise on Facebook
• Readings on consumer confidence for these two groups has ultimately ebbed and flowed but in June it was nearing a record. In August of 2015, was when it created that record originally?
• Youth are benefiting from things like a raise in minimum wage whereas older individuals are being hurt by rising medical bills while on a fixed income. Chris, what do you think of this? Do you think this is a broad nationwide analysis or do you think this applies to your feelings?
• Some events that impacted confidence across the board:
–>Debt-ceiling fight of 2011
–>Federal government shutdown in 2013
One event that didn’t:
–>Brexit? At least here in the U.S. it didn’t impact our Millennials! Whereas retired individuals saw a huge impact, albeit a short one, on their investments. Making them feel more uneasy then they already do.

Jeff states: Stay tuned because after the break we are going to tell you some tips if you owe taxes.

You are listening to Board Certified Tax Attorney, Jeffrey B. Kahn, and Licensed Financial Planner, Windus A. Fernandez Brinkkord on Inside Advantage on ESPN.

BREAK

Calling into the studio from my Walnut Creek Office is my associate attorney, Amy Spivey.

Chit chat with Amy

Tips If You Owe Taxes.

Jeff asks: So what is the first step in the IRS Collection process where you owe money to the IRS?
Amy replies: Mailed Tax Bills. If you owe taxes, you will first receive a bill in the U.S. mail from the IRS which tells you your balance owed through a certain date indicated on the bill. Don’t fall for those calls from people claiming to be the IRS threatening criminal action against you if you don’t pay the amount they are demanding. The IRS will never make an initial contact with you by telephone without first having sent you written notice that you owe the IRS or are under examination. Of course if you have the available funds, you should pay the balance no later than the date indicated in the bill to avoid any extra charges. If you can’t pay in full, keep in mind that interest and penalties continue to accrue on the balance so any payment made to IRS will result in lower accruals of interest and penalties for the future.
Windus asks: Is there a preferred method to pay your bill to IRS?
Amy replies: Use IRS Direct Pay. When paying a balance from an IRS tax bill consider using IRS Direct Pay. It’s the safe, easy and free way to pay from your checking or savings account. You can pay your tax in just five simple steps in one online session. Just click on the “Payment” tab on IRS.gov.
Windus asks: What about a taxpayer who does not have the funds now but is expecting substantial funds soon like from a settlement or inheritance or maybe even getting a loan?
Amy replies: Full Payment Agreements of up to 120 days. If you owe more tax than you can pay, you may qualify for more time -up to 120 days- to pay in full. You do not have to pay a user fee to set up a short-term full payment agreement. However, the IRS will charge interest and penalties until you pay in full.
Jeff states: But let’s say you are a taxpayer who cannot full pay now or even in the next 120 days, what do you do?
Amy replies: Apply for an installment agreement. For one thing if you’re financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement. Before applying for any payment agreement, you must file all required tax returns and if you are required to make estimated tax payments, you must be current in making those payments. The IRS calls this “being in current compliance”. By being in current compliance, the installment agreement can now cover all tax periods with outstanding balances.
Windus asks: Is there only one type of installment agreement with IRS?
Amy replies: Actually Windus many people don’t know that there are different types of installment agreements in place with IRS.
Amy states: “No Verification” Installment Agreements. For individuals who owe $50,000 or less in combined individual income tax, penalties and interest, OR businesses that owe $25,000 or less in payroll taxes, you can have an installment agreement set up with IRS without presenting any financial information.
Jeff states: Under these agreements the IRS will usually rely on oral representations made and not require any proof of income or bank statements. Nevertheless, when calling the IRS you still must be prepared so that the request can be evaluated during that session with the agent. Having an incomplete session and then calling back the IRS with the missing information will only direct you to another agent who can have a totally different take than the first agent.
Amy states: “Full Verification” Installment Agreements. For individuals and businesses that exceed the thresholds of the No Verification Installment Agreements, the IRS will require that full financial disclosure be made with your payment plan proposal. Be careful though because the IRS does limit certain expenses and depending on the type of installment agreement entered, you may not be able to get full credit for your actual living expenses.
Jeff states: So if you are in this situation, it is best to hire tax counsel to compile the proposal and financial disclosures. If you do it on your own first and fail, your representative will not be able to “undo” what was already disclosed by you to IRS and that could then limit the representative in getting the optimum result.
Windus asks: So for someone who already has an installment agreement, what do you advise?
Amy replies: Understand Your Installment Agreement & Avoid Default. Keep in mind that your future refunds will be applied to your tax debt until it is paid in full. Pay at least your minimum monthly payment when it’s due and if paying by check include your name, address, SSN, daytime phone number, tax year and return type on your payment. Make sure the check is mailed to the right address for delivery no later than the payment due date. File all required tax returns on time & pay all taxes in-full and on time as any new liability will default your installment agreement. Make all scheduled payments even if the IRS applies your refund to your account balance. If you don’t receive your statement from IRS, send your payment to the address listed in your installment agreement.
Jeff states: There may be a reinstatement fee if your agreement goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, it is a good idea to hire tax counsel who can seek reinstatement or even a modification where you can make lower monthly payments.
Jeff continues: The IRS will generally not take enforced collection actions:
1. When an installment agreement is being considered;
2. While an agreement is in effect;
3. For 30 days after a request is rejected, or
4. During the period the IRS evaluates an appeal of a rejected or terminated agreement.
Windus states: I hear all the time that taxpayers can settle their IRS debt with an Offer In Compromise. What is that all about?
Amy replies: Check out an offer in compromise. An offer in compromise or OIC may let you settle your tax debt for less than the full amount you owe. An OIC may also be helpful if full payment may cause you financial hardship. Not everyone qualifies after all, when you are looking for a discount on your IRS liability the government wants to make sure that collectability of the full liability plus interest and penalties is highly doubtful before granting a discount.
Jeff states: An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.
Amy states: The IRS will consider your unique set of facts and circumstances with a focus on your income and expenses to determine your ability to pay and your asset equity.
Amy continues: The IRS will generally approve an offer in compromise when the amount offered represents the most the IRS can expect to collect within a reasonable period of time.
Windus asks: How do you know if you are eligible for an OIC?
Amy replies: Before the IRS can consider your offer, you must be current with all filing and payment requirements. You are not eligible if you are in an open bankruptcy proceeding and if you file for bankruptcy while your OIC is being evaluated, the IRS will stop evaluation and return the OIC.
Windus asks: What forms must you use to submit your offer?
Amy replies: The form to use in filing an OIC is Form 656. You must include payment of an application fee of $186.00 and a deposit towards the amount offered. Additional you must include financial disclosures. The main forms to use are Form 433-A (OIC) (for individuals) or 433-B (OIC) (for businesses) and these forms list all required documentation that must be included. Like installment agreement requests, the IRS limits certain living expenses so it make sense to engage tax counsel to pursue this process.
Windus asks: Are there any payment options available?
Amy replies: Your initial payment will vary based on your offer and the payment option you choose:

Lump Sum Cash: Submit an initial payment of 20% of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.

Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.

Windus asks: What happens while an offer is being evaluated?

Amy replies:
1. Your non-refundable payments and fees will be applied to the tax liability;
2. A Notice of Federal Tax Lien may be filed;
3. Other collection activities are suspended;
4. The legal assessment and collection period is extended;
5. Make all required payments associated with your offer;
6. You are not required to make payments on an existing installment agreement; and
7. Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

Jeff states: If your offer is accepted you must meet all the Offer Terms listed in Section 8 of Form 656, including filing all required tax returns and making all payments for the next five years; Any refunds due within the calendar year in which your offer is accepted will be applied to your tax debt; and Federal tax liens are not released until your offer terms are satisfied.

Jeff continues: If your offer is rejected you may appeal a rejection within 30 days after the determination letter has been issued by IRS. If though your offer is returned, you do not have this right of appeal and must start the OIC process all over again.

Thanks Amy for calling into the show. Amy says Thanks for having me.

BREAK

Jeff states: And in the studio with Windus and me is our special guest Chris Rupp, Franchise Owner; PrideStaff, PrideStaff Financial.

OK Chris, as our special guest what questions have you pulled for us to answer?

Tracy from Carlsbad asks: I want to invest in an IRA but am not sure how to go about it. At what earnings point is it more beneficial to go the Traditional Retirement route and not the Roth Retirement route?

Windus answers.

Jeff states: Well we are reaching the end of our show.

Remember you can send us your questions by visiting the kahntaxlaw website at www.kahntaxlaw.com.

Windus states: Have a great day everyone!

A Brilliant Lawyer-Benefit from His Expertise!

I had an issue which required both the expertise of a lawyer with a firm grasp of tax law---one that is always evolving---and that of a highly skilled accountant. And seeking for these qualifications in a single individual, I had the good fortune to discover Mr. Jeffrey Kahn, who indeed proved that a lawyer can be at the same time as an accountant. We worked together for over a year. Regardless of the complexity of the issues as they presented themselves, Mr. Kahn overcome each with admirable skill. At the conclusion of the matter that Mr. Kahn handled, I was utterly satisfied with the outcome, knowing that he had done his very best for me. I would recommend his services to family members, and friends, should they have a need for the rare expertise that Mr. Kahn has.

Richard

Incredibly friendly and extremely knowledgeable

Outstanding team and tax preparation service. I worked with Jeff and his team and this was hands down. Jeff helped me understand the complexities of my taxes. The staff is both incredibly friendly and extremely knowledgeable... Best tax preparation process I've ever dealt with. I can't recommend Jeff's office highly enough!

Mous

Jeff is awesome

We went through a very stressful experience when we came to know about FBAR and OVDI and it disturbed our peace of mind. I found about Jeff online and I was living in India at that time. Jeff was able to understand my situation in one phone call. Our OVDI process started and I was working with Jeff while I was in India. His team is splendid. They would update me on every small things and I couldn't have had a more professional team. They guided me throughout the process , answered every question that I had and I felt a lot better over time. Finally after 4 overs , Jeff was able to resolve my scenario and it was such a relief. I really thank Jeff and his team and would highly recommend his services for anyone going through nightmares with IRS and taxation issues.

Sundar

Detailed and professional

I was looking for an attorney to draw up multiple custom agreements which included a promissory note, security agreement and marketing and support agreement. Mr. Kahn was extremely professional and very detail oriented. He went above and beyond to ensure I was fully protected and suggested new ideas to further enhance the agreements.

Edmund

Extremely Pleased

I highly recommend Mr. Kahn for any legal issues. He was very professional and gave me many ideas on how to resolve my legal issues during our consultation. I hired him soon after and was extremely pleased with how he handled my case. I would recommend him to anyone with tax concerns.

Jackie

Jeff save my company hundreds of thousands of dollars

When it comes to representation in dealing with the IRS there is no better than Jeff Kahn period. Jeff knows his stuff and he knows exactly how to maneuver around and through the IRS. Jeff was relentless at breaking down the IRS and knows all the procedures and all the loopholes, you couldn't have a better attorney in your corner than Jeff Kahn. His team in Walnut Creek are lightning fast at getting things done are extremely professional, understanding and very friendly . Jeff Kahn, save my company literally hundreds of thousands of dollars in unpaid taxes. I can't thank Jeff enough he was absolutely amazing. Jeff Kahn has an excellent reputation here in Northern California and is well known for his ability to take on the IRS. I can't think Jeff and his crew in Walnut Creek enough. Job well done guys.

Eric

THANK YOU SO MUCH.

I have the most gratitude and appreciation for the work Jeffrey did for me to resolve my tax matter. To get to this point of conclusion, I cannot express in words how much this case got me in distress. And now I’m “free man”….literally. I thank you so much.

Yishak

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Jeffrey did exactly what he said he would do. He resolved my problem with the IRS quickly and to my complete satisfaction. I found him to be knowledgeable, experienced, and responsive.

Mike

Great Service!

I hired Mr. Kahn to help me with a tax issue that came about after I raised money on GoFundMe for a sick friend. The IRS sent a notice that I owed taxes on the funds collected because they considered the donations as income for me. Mr. Kahn helped me eliminate all taxes due.

Denise

Great Service!

I sincerely thank you for your very effective handling of this IRS issue that had beleaguered me for over 12 years. Having unsuccessfully attempted to have this matter resolved by other tax firms on 3 prior occasions, I now know the difference between mediocre and excellent tax law representation. And what a peace of mind it has brought me.

Al N.

I Am Now A Taxpayer In Good Standing!

I was very pleased when hearing back from the FTB and IRS. It made me feel that they accepted the voluntary disclosure and now consider me as a taxpayer in good standing. Thanks to your work.

Mike.

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A Brilliant Lawyer-Benefit from His Expertise!

Incredibly friendly and extremely knowledgeable

Jeff is awesome

Detailed and professional

Extremely Pleased

Jeff save my company hundreds of thousands of dollars

THANK YOU SO MUCH.

Great Service!

Great Service!

Great Service!

I Am Now A Taxpayer In Good Standing!

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