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: 06/07/2016
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: 05/25/2016
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: 03/17/2016
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: 08/18/2014
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: 06/19/2014
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: 03/25/2014
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: 03/01/2013
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: 01/21/2013
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: 10/31/2012
The Maryland Homestead Tax Credit protects homeowners when their home’s assessment value increases more than 10% in any given year. The credit is applied to all taxes due on the amount of the increase that exceeds 10%; in effect, the increase in value is capped at 10%. In recent years, this has not been an…READ MORE
Author: 10/01/2012
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: 09/28/2012
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: 05/31/2012
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: 10/31/2011
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: 08/17/2011
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: 07/27/2011
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: 07/27/2011
A new law was enacted in the District of Columbia at the end of June that will require non-exempt remote vendors to collect and remit to the District sales tax on sales made via the internet to buyers located in the District. The new law, approved on June 29, 2011, will become effective after a…READ MORE
Author: 07/27/2011
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: 05/27/2011
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: 03/08/2011
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: 12/07/2010
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: 08/25/2010
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: 06/29/2010
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: 04/25/2010
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: 04/13/2010
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: 03/23/2010
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: 12/21/2009
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: 10/02/2009
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: 09/11/2009
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: 01/15/2009
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: 12/12/2008
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: 12/05/2008
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: 10/17/2008
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: 10/06/2008
