Category Archives: Tax Services

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Legal Update: New Maryland Law Mandates Private-Sector Retirement Program for All Maryland Employees

The National Institute on Retirement Security estimates that about 45% of private-sector workers are not offered a retirement savings plan by their employer. Moreover, 57% of American workers currently have less than $25,000 in savings. And in Maryland, a bipartisan task force found that one million working residents of the state have virtually no retirement…READ MORE

Author: Cathy LaRue 06/07/2016

Required Updates to Your Partnership and Operating Agreements

Few of us still remember the acronym “TEFRA.”  It stands for the Tax Equity and Fiscal Responsibility Act of 1982.  TEFRA focused on standardizing audit procedures and closing tax loopholes. It is back in the news. The Bipartisan Budget Act of 2015 (the “Act”), which was signed into law last November, repeals the TEFRA audit rules and…READ MORE

Author: Ronald E. Lyons 05/25/2016

MD Business Owners: April 15th Is Personal Property Tax Day, Too!

A change in Maryland policy in 2016 may put you at risk of missing an important tax deadline. As you know, if you own a business in Maryland (whether it’s an LLC or a corporation) or your business is registered to conduct business in Maryland, you must file Personal Property Tax Returns each year with…READ MORE

Author: Jeremy Hesselbein 03/17/2016

Think Twice Before Rolling Over Your TSP

If you or anyone in your household is a Federal employee, you know that TSP is shorthand for your Thrift Savings Plan – a retirement savings plan that many people outside the government truly envy. As I help clients with their estate plans, a TSP is often one of their biggest assets. Among other things,…READ MORE

Author: Lawrence S. Jacobs 08/18/2014

Litigation Round Two: Collecting on Your Judgment

Congratulations on winning your lawsuit.  You now have an official piece of paper from a court that says you are owed a lot of money.  But your frustration may just be beginning because judgments do not enforce themselves. The same company you had to drag to the courthouse will probably drag its heels in paying.  Those who…READ MORE

Author: hedwards 06/19/2014

Big Issue, Short Take – March 2014

COMING SOON — MARYLAND ESTATE TAX RELIEF:   Last week, the Maryland General Assembly passed a law raising the estate tax exemption.  The Maryland estate tax exemption has been pegged at $1.0 million dollars for years.  With many other states having higher (or unlimited) exemptions, Maryland residents were incentivized to move out of State as…READ MORE

Author: Ronald E. Lyons 03/25/2014

Monthly Tax Tip: Don’t Be Afraid of the IRS

Collection notices from the IRS are daunting, but addressing them quickly can prevent bank and wage attachments. The Taxpayer Bill of Rights is designed to protect taxpayers. However, you must timely respond to the IRS to take advantage of these protections. If the IRS violates your rights, you may be entitled to recover damages from…READ MORE

Author: Robb A. Longman 03/01/2013

Real Property Taxes – APPEAL NOW!

Owners of both residential and commercial real property in Maryland recently received notices from the State Department of Assessments and Taxation (“SDAT”) indicating the newly assessed values of their real properties. These notices are generated by the SDAT every three years. For many, the assessed property values have increased since the last assessment date. Therefore,…READ MORE

Author: Robb A. Longman 01/21/2013

Monthly Tax Tip: D.C. “Use” Tax and Hot Audit Topics

New D.C. Use Tax The District of Columbia is now attempting to make certain that every sale of goods is subject to tax in D.C., if not paid elsewhere. The “use tax” will now be enforced for D.C. businesses on purchases that are not otherwise subject to sales tax. All items purchased by a business…READ MORE

Author: Robb A. Longman 10/31/2012

Monthly Tax Tip: More Tax Planning Considerations

2012 will be coming to an end before you know it, along with the expiration of numerous tax savings provisions. It is important to review the current benefits under the tax code to maximize your savings. This Tax Tip provides guidance on what to expect in 2013 and what you might do about it in…READ MORE

Author: Robb A. Longman 09/28/2012

Monthly Tax Tip: 2012 Tax Planning Considerations

With 2012 nearly half over, now is a perfect time to start tax planning for 2013. At the end of 2012, two very important acts from the “Bush-era” tax cuts expire: the Economic Growth Tax Relief Reconciliation Act of 2001 (“EGTRRA”) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (“JGTRRA”). It is…READ MORE

Author: Robb A. Longman 05/31/2012

Monthly Tax Tip: Worker Classification Disclosure

The IRS recently announced a new voluntary settlement program for employers that have misclassified their employees as independent contractors or other nonemployees. The Voluntary Classification Settlement Program (VCSP) offers employers a significantly reduced penalty framework, as well as audit protection for previous years, in exchange for agreeing to prospectively treat any and all misclassified workers…READ MORE

Author: Robb A. Longman 10/31/2011

Monthly Tax Tip: Innocent Spouse Relief

Individual taxpayers filing joint returns with their spouse have always been entitled to relief, individually, when a joint liability has accrued and the cause of the liability is the fault of the other spouse. This is based upon what is commonly known as innocent spouse relief. Regardless of whether the parties are still married and…READ MORE

Author: Robb A. Longman 08/17/2011

How to Recognize and Respond to Identity Theft

Identity theft is a growing problem nationwide and its effect on victims can be devastating. Identity thieves often use a stolen identity to open accounts, including credit cards and utility accounts, to ruin one’s credit history. On occasion, identity thieves do not stop there. They may also use their victim’s tax-related information, causing significant problems…READ MORE

Author: Robb A. Longman 07/27/2011

Monthly Tax Tip: Payment of Payroll Taxes

Many businesses use a payroll service to file and remit their payroll tax payments. The use of a payroll service simplifies business’ payroll responsibilities because the business itself does not have to worry about the weekly or bi-weekly deposits or calculating employee withholdings. When using a payroll service, business owners need to be aware that…READ MORE

Author: Robb A. Longman 07/27/2011

2011 Tax Law Changes in Maryland

Tax laws change all the time. Seven recent changes in the law are discussed below so that taxpayers are aware of the changes and have the opportunity to take full advantage of the law to maximize their deductions or to resolve outstanding issues with the IRS. Bonus Depreciation In an effort to assist business, the…READ MORE

Author: Robb A. Longman 05/27/2011

Annual Report Nightmares: Forfeitures and Deficiencies

To maintain good standing, entities formed in Maryland, Virginia and the District of Columbia, such as corporations, limited liability partnerships, limited liability companies (and the list goes on…) must file annual (Maryland or Virginia) or biennial (District of Columbia) reports (annual reports for cooperatives/associations), pay fees and in some states taxes, based on the report…READ MORE

Author: A. Howard Metro 03/08/2011

Year-End Estate Tax Planning

A full year ago, estate planning attorneys were assuring clients that Congress would never allow the federal estate tax to lapse. There was near universal belief that Congress would either implement a permanent “fix” by establishing an exemption in the range of $3.5 – $5 million or, at a minimum, extend the 2009 exemption of…READ MORE

Author: Ronald E. Lyons 12/07/2010

Six Weeks Left for Tax Amnesty in D.C.!

Via recent legislation, and in an effort to raise revenues, the District of Columbia is offering tax amnesty for submissions made between August 2 and September 30, 2010. All civil penalties and collection fees will be waived upon payment of overdue DC taxes and interest. For taxpayers who are behind with their D.C. taxes and…READ MORE

Author: David W.Hotes 08/25/2010

Gifts of LLC Interest Not Qualifying for Annual Exclusion

The gift tax annual exclusion allows an individual to gift $13,000.00 (as indexed for 2010) to an unlimited number of donees each year without paying gift tax. In order to qualify for the annual exclusion, however, a gift must be of a “present interest” in accordance with IRC 2503(b). To qualify as a present interest…READ MORE

Author: Ronald E. Lyons 06/29/2010

The Federal “HIRE” Act Gives Employers Substantial Incentives to Hire the Unemployed

The “Hiring Incentives to Restore Employment Act of 2010” (the HIRE Act, P.L. 111-147) can provide a substantial benefit for private-sector employers (including employers that are non-governmental nonprofit organizations) who are beginning to expand their businesses through the hiring of new employees. To provide employers with an incentive to hire unemployed individuals, the HIRE Act…READ MORE

Author: Lona L. Feldman 04/25/2010

Major Changes in Health Insurance Coverage

There are a number of important changes for both employers and individuals included in the new 2010 Health Care Act (as amended by the Health Care Reconciliation Act) that are effective immediately. These changes confer a real benefit on small businesses as well as individuals with young adult children. Individuals with children who have not…READ MORE

Author: McMillan Metro Editor 04/13/2010

Repeal of the Federal Estate Tax Can Hurt Smaller Estates

Under the federal estate tax rules as they existed prior to January 1, 2010, the basis of property, whether real or personal, acquired from a decedent by reason of his or her death, was its fair market value on the date of death (or 6 months later, if the later if the alternate valuation date…READ MORE

Author: Lona L. Feldman 03/23/2010

2009 Year-End Tax Alert

Summary Despite the economy remaining largely in the doldrums, there were a variety of benefits which should not be overlooked by taxpayers who are able to take advantage of them. Keying on those which would have the most likely application for the small, medium and large local businesses which comprise the majority of the Firm’s…READ MORE

Author: David W.Hotes 12/21/2009

Upcoming Tax Reprieve from Interest and Penalties in Virginia!

Following on the heels of the current tax amnesty program in the State of Maryland, and in its own effort to raise revenues, the Commonwealth of Virginia will be offering tax amnesty under its recently announced “Get Square VA” campaign for submissions made between October 7, 2009 and December 5, 2009. All civil penalties and…READ MORE

Author: David W.Hotes 10/02/2009

Seven Weeks Left for Tax Amnesty in Maryland!

Via recent legislation, and in an effort to raise revenues, the State of Maryland is offering tax amnesty for submissions made between September 1 and October 30, 2009. All civil penalties and one-half of accrued interest will be waived. For taxpayers who are behind with their Maryland taxes, this is a no-brainer. Who is an eligible…READ MORE

Author: David W.Hotes 09/11/2009

Employment Tax Issues – New Forms for Making Corrections to The Employer’s Quarterly Tax Return

The IRS has issued a new Form 941-X and its instructions to be used for making corrections to previously-filed Forms 941, Employer’s Quarterly Tax Return, and replaces Form 941c, Supporting Statement to Correct Information. Form 941-X also replaces Form 843, Claim for Refund or Request for Abatement, for refund or abatement requests of over reported…READ MORE

Author: Lona L. Feldman 01/15/2009

The Pension Act

Late on December 11, the Senate approved H.R. 7327, the “Worker, Retiree and Employer Recovery Act” (the Pension Act) by unanimous consent. The bill was passed by the House on December 10 by unanimous consent, so the measure is cleared for the President’s signature. The Pension Act suspends the need to take required minimum distributions…READ MORE

Author: Lona L. Feldman 12/12/2008

Year End Acquisitions for Year End Deductions

With all of the turmoil in our economy, it would be easy to just hunker down and tighten the belt. There are, however, some real economic incentives to purchase certain machinery and equipment that will substantially boost your 2008 deductions. Under the Economic Stimulus Act of 2008 (the “Act”), there is a 50% bonus first…READ MORE

Author: Ronald E. Lyons 12/05/2008

Thoughts on the Federal Estate Tax – Part I

During all of the pre-election discussions about taxes, one type of tax has failed to generate much interest in the media: the federal estate tax. However, this is of intense interest to any number of people in this area. The federal estate tax is now an irrational amalgam of competing interests. Currently, each individual has…READ MORE

Author: Lona L. Feldman 10/17/2008

The New Economic Stabilization Act

On October 3, 2008, President Bush signed into law the Emergency Economic Stabilization Act of 2008 (H.R. 1424) (“EESA”). EESA provides a significant financial bailout to many financial institutions. However, it has also changed many different tax provisions. The following is a brief discussion of the highlights of the tax changes which may be of…READ MORE

Author: Lona L. Feldman 10/06/2008