How An Heir Or Beneficiary Can Contest A Will In Probate Court

June 30, 2024/0 Comments/in Featured, Probate And Estates/by Tax Attorney

How An Heir Or Beneficiary Can Contest A Will In Probate Court

Probate is the field of law that determines how an estate must be divided. Each state has its own laws and statutes requirements to determine if and how an estate must be probated. The probate court will supervise the process when a deceased person (a decedent) leaves assets to distribute, such as bank accounts, real estate, and financial investments with or without a will. The probate court provides the final ruling on the division and distribution of assets to beneficiaries.

In many cases, the decedent has established documentation, which contains instructions on how their assets should be distributed after death and designates in such documents who oversees implementing this process. This involves collecting the deceased’s assets to pay any remaining liabilities on their estate and distributing the assets to beneficiaries. Where a decedent fails to establish such documents while alive, State law and the probate courts will dictate how the estate is administered and to whom assets get distributed to.

Probate With a Will

A deceased person with a Will is known as a testator and he or she is deemed to have died “testate.” When a testator dies, the person designated as the executor under the Will is responsible for initiating the probate process. The probate process for a testate estate includes distributing the decedent’s assets according to the Will.

Probate Without a Will

When a person dies without a Will, a person is to have died intestate. An intestate estate can also occur when a written Will is presented to the probate court and the probate court has been deemed the Will to be invalid. The probate process for an intestate estate includes distributing the decedent’s assets according to State law.

What Is The Probate Process?

A probate court proceeding begins with the appointment of an administrator or executor to oversee the estate of the deceased person. Such personal is typically called the “personal representative.” The personal representative receives all legal claims against the estate and paying off the outstanding debts. Also, the personal representative is tasked with locating any legal heirs of the deceased, including surviving spouses, children, and parents. Then the probate court will assess what assets need to be distributed among the legal heirs and how to distribute them.

The probate process can take a long time to finalize and can become costly, therefore it is important to know whether a probate is required following the death of an individual. The more complex or contested the estate is the more time it will take to settle and distribute the assets. Furthermore, the proceedings of probate court are publicly recorded so avoiding probate would ensure that all settlements are done privately.

When Can An Heir Or Beneficiary Contest the Will?

Once a Will is filed with the probate court, an heir of the filed Will or an heir listed in another version of a Will executed by the testator has the ability to file a dispute or as we call “contested”. They may do so if they believe the filed Will is not truthfully representative of the decedent’s wishes.

There are several instances where a filed Will can be contested, including:

Undue Influence: When a testator was incapacitated, elderly, or otherwise vulnerable, a beneficiary may have grounds to contest a Will. A Will may be contested if the beneficiary suspects the testator was taken advantage of while drafting the Will.
Mental Capacity: If a beneficiary believes the testator was not of sound mind due to illness, substance abuse, or a mental health disorder, they can contest a Will. Proof that the testator had the capacity to create a legally binding document must be provided for the Will to stand.
Provision Violation: In California, a Will must be signed by the testator in front of two witnesses who also sign the document. Neither witness is allowed to be named as a beneficiary in the Will. If any of these conditions are violated, the validity of a Will can be called into question.
Multiple Versions of a Will: There are cases when a testator has drafted more than one Will to update their estate plan. Most often, the probate court considers the new document as the legal document, and the old document is deemed invalid.
Non-compliance with legal formalities: In California a Will must be in writing, signed by the testator, and signed by two witnesses. Failure to meet all of these requirements can lead to legal issues during the probate process.
Beneficiaries who may be missing or uncooperative: California has specific notice procedures that must be followed for beneficiaries who are missing or are uncooperative in the probate process.

Depending on what has taken place already with the probate court will dictate how much time an heir or beneficiary has to contest a Will. If this is something you are considering, you should reach out to counsel as soon as possible to make sure you do not miss any deadline to file a Will contest.

What Should You Do?

Consider reaching out to a Trusts and Estates and/or Probate Attorney such as those at the Law Offices Of Jeffrey B. Kahn, P.C. We are always thinking of ways that our clients can save on taxes, trusts and estates planning, and probate matters. The tax attorneys at the Law Offices Of Jeffrey B. Kahn, P.C. located in Orange County (Irvine), Los Angeles and elsewhere in California are highly skilled in handling tax and probate matters and can effectively represent at all levels with the IRS and State Tax Agencies including criminal tax investigations and attempted prosecutions, undisclosed foreign bank accounts and other foreign assets, and unreported foreign income. Also, if you are involved in cannabis, check out what our cannabis tax attorney can do for you. Additionally, if you are involved in cryptocurrency, check out what a bitcoin tax attorney can do for you.

Mississippi taxpayers impacted by April 2024 severe storms, straight-line winds, tornadoes, and flooding qualify for tax relief

June 27, 2024/0 Comments/in Featured, IRS Operations & Procedures, Tax Preparation/by Tax Attorney

Mississippi taxpayers impacted by April 2024 severe storms, straight-line winds, tornadoes, and flooding qualify for tax relief

On June 27, 2024 the Internal Revenue Service (IRS) announced tax relief for individuals and businesses affected by severe storms, straight-line winds, tornadoes and flooding that began on April 8, 2024 in Mississippi. These taxpayers now have until November 1, 2024, to file various federal individual and business tax returns and make tax payments.

The November 1, 2024, deadline will now apply to:

Individual income tax returns and payments normally due on April 15, 2024.
2023 contributions to IRAs and health savings accounts for eligible taxpayers.

Quarterly estimated income tax payments normally due on April 15, 2024, June 17, 2024 and September 16, 2024.

Quarterly payroll and excise tax returns normally due on April 30, 2024, July 31, 2024 and October 31, 2024.

Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.

Calendar-year tax-exempt organization returns normally due on May 15, 2024.

In addition, penalties for failing to make payroll and excise tax deposits due on or after April 8, 2024, and before April 23, 2024, will be abated as long as the deposits are made by April 23, 2024.

Other Areas Having Extended Deadlines:

The IRS announced on May 16, 2024 that individuals and businesses affected by tornadoes that began on March 14, 2024 in Ohio now have until September 3, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS announced on May 31, 2024 that individuals and businesses affected by severe storms and flooding that began on September 11, 2023 in Massachusetts now have until July 31, 2024, to file various federal individual and business tax returns and make tax payments.

IRS Tax Relief Details

The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA), as qualifying for individual assistance.

For Mississippi – Currently, relief is available to affected taxpayers who live or have a business in Hancock, Hinds, Humphreys, Madison, Neshoba and Scott counties.

For Massachusetts – Currently, relief is available to affected taxpayers who live or have a business in Bristol and Worcester counties.

For Ohio – Currently, relief is available to affected taxpayers who live or have a business in Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland and Union counties.

The current list of eligible localities is always available on the disaster relief page on IRS.gov. The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area.

Tax Planning Tip

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2024 return normally filed next year), or the return for the current year (2023).

Be sure to write the FEMA declaration number on any return claiming a loss. That number being: “4777-DR” for Ohio or “4780-DR” for Massachusetts or “4790-DR” for Mississippi.

Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents.

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.

Importance To Preserve Records

Keep in mind that the IRS has up to three years to select a tax return for audit. The FTB has up to four years to select a tax return for audit. In some cases this period is extended to six years. When a taxpayer is selected for audit, the taxpayer has the burden of proof to show that expenses claimed are properly deductible. Having the evidence handy and organized makes meeting this burden of proof much easier.

Essential Records to Have for a Tax Audit

If you are getting ready for a tax audit, one of the most important things to do is gather and organize your tax records and receipts. There’s a good chance that you have a large amount of documents and receipts in your possession. No matter how organized you are, it can be a daunting task to collect the right pieces and make sure that you have them organized and handy for the audit conference.

We have seen many tax audits that hinge on whether or not the taxpayer can provide proper documentation for their previous tax filings. A tax lawyer in Orange County or elsewhere can make sure that the documentation is complete and proper. By submitting this to your tax attorney in advance of the audit, your tax attorney can review your documentation and determine if there are any gaps that need to be addressed before starting the dialogue with the IRS agent.

So what are the most essential tax records to have ahead of your audit? Here are a few must-have items:

Any W-2 forms from the previous year. This can include documents from full-time and part-time work, large casino and lottery winnings and more.
Form 1098 records from your bank or lender on mortgage interest paid from the previous year.
Records of any miscellaneous money you earned and reported to the IRS including work done as an independent contractor or freelancer, interest from savings accounts and stock dividends.
Written letters from charities confirming your monetary donations from the previous year.
Receipts for business expenses you claimed.
Mileage Logs for business use of vehicle.
Entertainment and Travel Logs for business

Tips On Reconstructing Records

Reconstructing records after a disaster is important for several reasons including insurance reimbursement and taxes. Most importantly, records can help people prove their disaster-related losses. More accurately estimated losses can help people get more recovery assistance like loans or grants.

Whether it’s personal or business property that has been lost or destroyed, here are some steps that can help people reconstruct important records.

Tax records

Get free tax return transcripts immediately using the Get Transcript on IRS.gov or through the IRS2Go app. Tax return transcripts show line-by-line the entries made on your Federal income tax returns. The most three recent tax years are available.

Financial statements

People can gather past statements from their credit card company or bank. These records may be available online. People can also contact their bank to get paper copies of these statements.

Property records

To get documents related to property, homeowners can contact the title company, escrow company or bank that handled the purchase of their home or other property.
Taxpayers who made home improvements can get in touch with the contractors who did the work and ask for statements to verify the work and cost. They can also get written descriptions from friends and relatives who saw the house before and after any improvements.
For inherited property, taxpayers can check court records for probate values. If a trust or estate existed, taxpayers can contact the attorney who handled the trust.
When no other records are available, people should check the county assessor’s office for old records that might address the value of the property.
Car owners can research the current fair-market value for most vehicles. Resources are available online and at most libraries. These include Kelley’s Blue Book, the National Automobile Dealers Association and Edmunds.

Develop And Implement Your Backup Plan

Do not wait for the next disaster to come for then it may be too late to retrieve your important records for a tax audit or for that matter any legal or business matter. And if you do get selected for audit and do not have all the records to support what was claimed on your tax returns, you should contact an experienced tax attorney who can argue the application of your facts and circumstances to pursue the least possible changes in an audit.

The tax attorneys at the Law Offices Of Jeffrey B. Kahn, P.C. located in Orange County (Irvine), Los Angeles and elsewhere in California are highly skilled in handling tax matters and can effectively represent at all levels with the IRS and State Tax Agencies including criminal tax investigations and attempted prosecutions, undisclosed foreign bank accounts and other foreign assets, and unreported foreign income. Also if you are involved in cannabis, check out what a cannabis tax attorney can do for you. And if you are involved in cryptocurrency, check out what a bitcoin tax attorney can do for you.

Facing An Appearance In U.S. Tax Court For Your Trial? Here Are Some Tips To Consider.

June 23, 2024/0 Comments/in Featured, Tax Court Litigation – Notice Of Deficiency/by Tax Attorney

Facing An Appearance In U.S. Tax Court For Your Trial? Here Are Some Tips To Consider.

The U.S. Tax Court allows individual taxpayers to represent themselves without an attorney. But don’t think that because you did not hire an experienced tax trial attorney that the Tax Court judge will give you much leeway. Although you have the facts down cold and may have met with an auditor, the auditor’s manager, the appeals officer, and the IRS trial lawyer, the actual trial of your case in U.S. Tax Court is a whole new ball game. Keep in mind that the judge knows very little about your case and will have no patience nor is the judge able to educate you on how to present your case.

Actions that must happen in the weeks leading up to trial

The U.S. Tax Court will issue a Standing Pretrial Order in a regular case or a Standing Pretrial Order For Small Tax Cases. Read this order or notice from the Tax Court carefully and keep a copy. The Standing Pretrial Order or Notice has very specific instructions about getting ready for trial. One of the provisions of the Standing Pretrial Order (sent to petitioners in regular cases) is that you must file a pretrial memorandum. The Standing Pretrial Notice (sent to petitioners in S cases) states that you should submit a pretrial memorandum. The Tax Court encourages all parties to submit a pretrial memorandum. You should look at the Standing Pretrial Order or Notice and the form attached, which shows what a pretrial memorandum looks like. The pretrial memorandum can be very helpful in organizing and preparing your case. The pretrial memorandum may also help the judge to understand your position. Send your pretrial memorandum to the Tax Court, and send a copy to the IRS attorney. The Standing Pretrial Notice also tells you what you need to do to settle your case and how to stipulate facts if you do not settle.

During this period of time you should provide to the IRS copies of documents that you intend to use at trial, agree in writing to facts and documents that are not in dispute and consider whether you need any witnesses to support your case.

Things to expect during the trial

Before you come to Tax Court for the trial you will want to –

Think about what facts you want to tell the judge.
Organize any documents you have to support your case. If the IRS will not agree (stipulate) to your documents, bring three copies of each document to court.
Organize your facts and arguments so you can present your case clearly.

Come to court early so you will be ready when your case is called at the calendar call which starts at 10:00 a.m. You may receive a notice from the Tax Court recommending that you arrive at the Court by 9:00 a.m. to have the opportunity to meet with clinical and calendar call attorneys.

Actions that must happen after trial

After the trial is concluded, the judge usually will direct the parties to file briefs with the Court under the format of seriatim briefs (one after another) or simultaneous briefs.

If seriatim (non-simultaneous) briefs are ordered, you as the petitioner must file your “Opening Brief” first which is due 75 days after the trial has concluded. The IRS thereafter responds to your Opening Brief with an “Answering Brief” which must it must file 45 days thereafter. You can then respond to the Answering Brief with a “Reply Brief.”

If simultaneous briefs are ordered, the you and the IRS will have a deadline set by the judge to submit each of your Opening Briefs and then each side will have the opportunity to file their Answering Brief by the deadline set by the judge.

These briefs are extremely important in assisting the judge to resolve your tax case and after the briefing process is complete, the ball is now with the Court to decide your case. The failure to file a brief in following specific Tax Court Rules can result in the dismissal of all issues on which you have the burden of proof (which unless the IRS is alleging fraud, will be all issues).

Are you facing an imminent trial in U.S. Tax Court?

While there is no rule forcing the IRS counsel to settle cases and the burden of proof is always on the taxpayer (unless the IRS alleges fraud), there may still be an opportunity to settle the case, limit the disputed issues or get a continuance that an experienced tax trial attorney can get for you. But if this is something you are looking to do, you need to act quickly as the Tax Court values its trial time as a precious commodity and the last thing you want to do is to disrupt a judge’s schedule and tie up court resources.

What Should You Do?

Succeeding in a Tax Court case is all about organization and early preparation. Even if you believe that you are prepared to litigate your case before the Tax Court, litigating a tax controversy before the Tax Court is no simple task. You are facing an IRS trial attorney that does this every day before a judge who will provide you no leeway in adhering to court procedure just because you are not an experienced tax attorney. Consider contacting an experienced tax attorney who can argue the application of your facts and circumstances and seek the best possible resolution for your trial. The tax attorneys at the Law Offices Of Jeffrey B. Kahn, P.C. located in Orange County (Irvine), Los Angeles and elsewhere in California are highly skilled in handling tax matters and can effectively represent at all levels with the IRS and State Tax Agencies including criminal tax investigations and attempted prosecutions, undisclosed foreign bank accounts and other foreign assets, and unreported foreign income. Also, if you are involved in cannabis, check out what a cannabis tax attorney can do for you. And if you are involved in cryptocurrency, check out what a bitcoin tax attorney can do for you.

Kentucky And West Virginia taxpayers impacted by April 2024 severe storms and flooding qualify for tax relief

June 10, 2024/0 Comments/in Featured, Tax Treaties/by Tax Attorney

Kentucky And West Virginia taxpayers impacted by April 2024 severe storms and flooding qualify for tax relief

On May 31, 2024 the Internal Revenue Service (IRS) announced (Kentucky) announced (West Virginia) tax relief for individuals and businesses affected by severe storms, straight-line winds, tornadoes, flooding, landslides and mudslides that began on April 2, 2024 in Kentucky and West Virginia. These taxpayers now have until November 1, 2024, to file various federal individual and business tax returns and make tax payments.

The November 1, 2024, deadline will now apply to:

Individual income tax returns and payments normally due on April 15, 2024.
2023 contributions to IRAs and health savings accounts for eligible taxpayers.

Quarterly estimated income tax payments normally due on April 15, 2024, June 17, 2024 and September 16, 2024.

Quarterly payroll and excise tax returns normally due on April 30, 2024, July 31, 2024 and October 31, 2024.

Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.

Calendar-year tax-exempt organization returns normally due on May 15, 2024.

In addition, penalties for failing to make payroll and excise tax deposits due on or after April 2, 2024, and before April 17, 2024, will be abated as long as the deposits are made by April 17, 2024.

Other Areas Having Extended Deadlines:

The IRS announced on December 22, 2023 that individuals and businesses affected by severe storms and tornadoes that began on December 9 in parts of Tennessee now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS announced on January 22, 2024 that individuals and businesses affected by severe storms, flooding and a potential dam breach that began on January 10, 2024 in parts of Connecticut now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS announced on January 30, 2024 that individuals and businesses affected by severe storms, flooding and tornadoes that began on September 10, 2023 in parts of Rhode Island now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS announced on February 5, 2024 that individuals and businesses affected by severe storms and flooding that began on December 17, 2023 in parts of Maine now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS announced on February 15, 2024 that individuals and businesses affected by severe storms, tornadoes and flooding that began on August 24, 2023 in parts of Michigan now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS announced and the FTB announced on February 27, 2024 that individuals and businesses affected by severe storms and flooding that began on January 21, 2024 in parts of California now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS announced on February 28, 2024 that individuals and businesses affected by wildfires that began on August 18, 2023 in parts of Washington State now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS announced on March 25, 2024 that individuals and businesses affected by severe storms, landslides and mudslides that began on November 20, 2023 in parts of Alaska now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS announced on May 16, 2024 that individuals and businesses affected by tornadoes that began on March 14, 2024 in Ohio now have until September 3, 2024, to file various federal individual and business tax returns and make tax payments.

The IRS announced on May 31, 2024 that individuals and businesses affected by severe storms and flooding that began on September 11, 2023 now have until July 31, 2024, to file various federal individual and business tax returns and make tax payments.

IRS Tax Relief Details

The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA), as qualifying for individual assistance.

For Kentucky – Currently, relief is available to affected taxpayers who live or have a business in Boyd, Carter, Fayette, Greenup, Henry, Jefferson, Jessamine, Mason, Oldham, Union and Whitley counties.

For West Virginia – Currently, relief is available to affected taxpayers who live or have a business in Boone, Brooke, Cabell, Fayette, Hancock, Kanawha, Lincoln, Marshall, Nicholas, Ohio, Preston, Putnam, Tyler, Wayne and Wetzel counties.

For Massachusetts – Currently, relief is available to affected taxpayers who live or have a business in Bristol and Worcester counties.

For Ohio – Currently, relief is available to affected taxpayers who live or have a business in Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland and Union counties.

For Alaska – Currently, relief is available to affected taxpayers who live or have a business in the Wrangell Cooperative Association of Alaska Tribal Nation.

For Washington State – Currently, relief is available to affected taxpayers who live or have a business in Spokane County.

For California – Currently, relief is available to affected taxpayers who live or have a business in San Diego County.

For Michigan – Currently, relief is available to affected taxpayers who live or have a business in Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland and Wayne counties.

For Maine – Currently, relief is available to affected taxpayers who live or have a business in Androscoggin, Franklin, Hancock, Kennebec, Oxford, Penobscot, Piscataquis, Somerset, Waldo and Washington Counties.

For Rhode Island – Currently, relief is available to affected taxpayers who live or have a business in Providence County.

For Connecticut – Currently, relief is available to affected taxpayers who live or have a business in New London County, including the Mohegan Tribal Nation and Mashantucket Pequot Tribal Nation.

For Tennessee – Currently, relief is available to affected taxpayers who live or have a business in Davidson, Dickson, Montgomery and Sumner counties.

The current list of eligible localities is always available on the disaster relief page on IRS.gov. The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area.

Tax Planning Tip

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2024 return normally filed next year), or the return for the current year (2023).

Be sure to write the FEMA declaration number on any return claiming a loss. That number being: “4751-DR” for Tennessee or “3604-EM’ for Connecticut or “4753-DR” for Rhode Island or “4754-DR” for Maine or “4758-DR” for California or “4759-DR” for Washington State or “4763-DR” for Alaska or “4777-DR” for Ohio or “ 4780-DR“ for Massachusetts or “ 4782-DR“ for Kentucky or “4783-DR” for West Virginia.

Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents.

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.

Importance To Preserve Records

Keep in mind that the IRS has up to three years to select a tax return for audit. The FTB has up to four years to select a tax return for audit. In some cases this period is extended to six years. When a taxpayer is selected for audit, the taxpayer has the burden of proof to show that expenses claimed are properly deductible. Having the evidence handy and organized makes meeting this burden of proof much easier.

Essential Records to Have for a Tax Audit

If you are getting ready for a tax audit, one of the most important things to do is gather and organize your tax records and receipts. There’s a good chance that you have a large amount of documents and receipts in your possession. No matter how organized you are, it can be a daunting task to collect the right pieces and make sure that you have them organized and handy for the audit conference.

We have seen many tax audits that hinge on whether or not the taxpayer can provide proper documentation for their previous tax filings. A tax lawyer in Orange County or elsewhere can make sure that the documentation is complete and proper. By submitting this to your tax attorney in advance of the audit, your tax attorney can review your documentation and determine if there are any gaps that need to be addressed before starting the dialogue with the IRS agent.

So what are the most essential tax records to have ahead of your audit? Here are a few must-have items:

Any W-2 forms from the previous year. This can include documents from full-time and part-time work, large casino and lottery winnings and more.
Form 1098 records from your bank or lender on mortgage interest paid from the previous year.
Records of any miscellaneous money you earned and reported to the IRS including work done as an independent contractor or freelancer, interest from savings accounts and stock dividends.
Written letters from charities confirming your monetary donations from the previous year.
Receipts for business expenses you claimed.
Mileage Logs for business use of vehicle.
Entertainment and Travel Logs for business

Tips On Reconstructing Records

Reconstructing records after a disaster is important for several reasons including insurance reimbursement and taxes. Most importantly, records can help people prove their disaster-related losses. More accurately estimated losses can help people get more recovery assistance like loans or grants.

Whether it’s personal or business property that has been lost or destroyed, here are some steps that can help people reconstruct important records.

Tax records

Get free tax return transcripts immediately using the Get Transcript on IRS.gov or through the IRS2Go app. Tax return transcripts show line-by-line the entries made on your Federal income tax returns. The most three recent tax years are available.

Financial statements

People can gather past statements from their credit card company or bank. These records may be available online. People can also contact their bank to get paper copies of these statements.

Property records

To get documents related to property, homeowners can contact the title company, escrow company or bank that handled the purchase of their home or other property.
Taxpayers who made home improvements can get in touch with the contractors who did the work and ask for statements to verify the work and cost. They can also get written descriptions from friends and relatives who saw the house before and after any improvements.
For inherited property, taxpayers can check court records for probate values. If a trust or estate existed, taxpayers can contact the attorney who handled the trust.
When no other records are available, people should check the county assessor’s office for old records that might address the value of the property.
Car owners can research the current fair-market value for most vehicles. Resources are available online and at most libraries. These include Kelley’s Blue Book, the National Automobile Dealers Association and Edmunds.

Develop And Implement Your Backup Plan

Do not wait for the next disaster to come for then it may be too late to retrieve your important records for a tax audit or for that matter any legal or business matter. And if you do get selected for audit and do not have all the records to support what was claimed on your tax returns, you should contact an experienced tax attorney who can argue the application of your facts and circumstances to pursue the least possible changes in an audit.

The tax attorneys at the Law Offices Of Jeffrey B. Kahn, P.C. located in Orange County (Irvine), Los Angeles and elsewhere in California are highly skilled in handling tax matters and can effectively represent at all levels with the IRS and State Tax Agencies including criminal tax investigations and attempted prosecutions, undisclosed foreign bank accounts and other foreign assets, and unreported foreign income. Also if you are involved in cannabis, check out what a cannabis tax attorney can do for you. And if you are involved in cryptocurrency, check out what a bitcoin tax attorney can do for you.

Massachusetts taxpayers impacted by September 2023 severe storms and flooding qualify for tax relief

June 2, 2024/0 Comments/in Featured, IRS Operations & Procedures, Tax Preparation/by Tax Attorney

Massachusetts taxpayers impacted by September 2023 severe storms and flooding qualify for tax relief

On May 31, 2024 the Internal Revenue Service (IRS) announced tax relief for individuals and businesses affected by severe storms and flooding that began on September 11, 2023 in Massachusetts. These taxpayers now have until July 31, 2024, to file various federal individual and business tax returns and make tax payments.

The July 31, 2024, deadline will now apply to:

Individual income tax returns and payments normally due on April 15, 2024. Anyone who needs an additional tax-filing extension beyond July 31 for their 2023 federal income tax return if you have not already filed an extension, should request it by filing a paper copy by July 31. Whether requested electronically or on paper, you will then have until October 15, 2024, to file, though payments are still due on July 31, 2024.

2023 contributions to IRAs and health savings accounts for eligible taxpayers.

Quarterly estimated income tax payments normally due on Sept. 15, 2023, Jan. 16, 2024, April 15, 2024 and June 17, 2024.

Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, 2024 and April 30, 2024.

Calendar-year partnership and S corporation returns normally due on March 15, 2024.

Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.

Calendar-year tax-exempt organization returns normally due on May 15, 2024.

Individuals who had an extension to file their 2022 return will also have until July 31, 2024, to file, though payments on these returns are not eligible for the extra time because they were due before the disaster occurred.

In addition, penalties for failing to make payroll and excise tax deposits due on or after September 11, 2023, and before September 26, 2023, will be abated as long as the deposits are made by September 26, 2023.