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Gift Tax Return

It may be in your best interest to file a gift tax return If you’ve given a significant financial gift to a family member, you may wonder whether you’re required to file a gift tax return. Even if no tax is due, filing Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, can be a smart decision. Indeed, a timely filed gift tax return that meets the IRS’s adequate disclosure requirements starts the clock on the statute of limitations. This year, the deadline to file a 2024 gift tax return is April 15 (October 15 if you file for an extension). Three-year time limit Generally, the IRS has three years to challenge the value of a transaction for gift tax purposes or to assert that a nongift was, in fact, a partial gift. But unless the transaction is adequately disclosed, there’s no time limit for reviewing it and assessing additional gift tax. That means the IRS can collect unpaid gift taxes — plus penalties and interest — years or even decades later. Some may hesitat...
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  Why you should exercise caution when investing in crypto Driven by an increased interest in cryptocurrency, little regulatory oversight and the constant introduction of new coins, cryptocurrency fraud could reach unprecedented levels in 2025. Fraud perpetrators no longer need to rely only on phishing attacks or counterfeit coins — they’re now using artificial intelligence to scam crypto investors. Unfortunately, many law enforcement agencies don’t have the resources to keep up with the latest fraud schemes. it’s up to crypto investors to be on the lookout for potential fraud. AI enters the equation The first crypto scams involved Ponzi schemes and rug pulls, where promoters abandoned coins they introduced and disappeared with investors’ funds. Now, AI-powered frauds involving deepfake influencers have become almost run-of-the-mill. For example, “pig butchering,” where criminals build long-term relationships with their victims to foster trust and entice them to invest in fict...
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Revocable Trust

A revocable trust can be a versatile tool in your estate plan A revocable trust (sometimes referred to as a “living trust”) is a popular estate planning tool that allows you to manage your assets during your lifetime and ensure a smooth transfer of those assets to your family after your death. Plus, trust assets bypass the probate process, which can save time, reduce costs and maintain privacy. However, like any legal instrument, a revocable trust has certain disadvantages. A revocable trust in action A revocable trust’s premise is relatively simple. You establish the trust, transfer assets to it (essentially funding it) and name a trustee to handle administrative matters. You can name yourself as trustee or choose a professional to handle the job. Regardless of who you choose, name a successor trustee who can take over the reins if required. If you designate yourself as the trust’s initial beneficiary, you’re entitled to receive income from the trust for your lifetime. You should ...
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  Undoing an irrevocable life insurance trust is possible Life insurance can be a powerful estate planning tool. Indeed, it creates an instant source of wealth and liquidity to meet your family’s financial needs after you’re gone. And to shield the proceeds from potential estate taxes, thus ensuring more money for your loved ones, many people transfer their policies to irrevocable life insurance trusts (ILITs). But what if you have an ILIT that you no longer need? Does its irrevocable nature mean you’re stuck with it forever? Not necessarily. You may have options for pulling a life insurance policy out of an ILIT or even unwinding the ILIT entirely. Benefits of an ILIT An ILIT shields life insurance proceeds from estate tax because the trust, rather than the insured, owns the policy. Note, however, that under the “three-year rule,” if you transfer an existing policy to an ILIT and then die within three years, the proceeds remain taxable. That’s why it’s preferable to have the ILIT ...
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Location: Chickamauga, GA 30707, USA
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Cash or accrual accounting: What’s best for tax purposes? Your businesses may have a choice between using the cash or accrual method of accounting for tax purposes. The cash method often provides significant tax benefits for those that qualify. However, some businesses may be better off using the accrual method. Therefore, you need to evaluate the tax accounting method for your business to ensure that it’s the most beneficial approach. The current situation “Small businesses,” as defined by the tax code, are generally eligible to use either cash or accrual accounting for tax purposes. (Some businesses may also be eligible to use various hybrid approaches.) Before the Tax Cuts and Jobs Act (TCJA) took effect, the gross receipts threshold for classification as a small business varied from $1 million to $10 million depending on how a business was structured, its industry and whether inventory was a material income-producing factor. The TCJA simplified the definition of a small bu...
Location: Chickamauga, GA 30707, USA
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If you’ve inherited an IRA, you need to know about these new final IRS regulations

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  A tax law change in 2019 essentially ended “stretch IRAs” by requiring most beneficiaries of inherited IRAs (other than a spouse) to withdraw all of the funds within 10 years. Since then, there’s been confusion surrounding inherited IRAs and the so called “10-year rule” for required minimum distributions (RMDs). That is, until now. The IRS has issued final regulations relevant to taxpayers who are subject to the “10-year rule” for RMDs from inherited IRAs or defined contribution plans, such as 401(k) plans. In a nutshell, the final regs largely adopt proposed regs issued in 2022. 2022 proposed regs sowed confusion Under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, signed into law in 2019, most heirs other than surviving spouses must withdraw the entire balance of an inherited IRA or defined contribution plan within 10 years of the original account owner’s death. In February 2022, the IRS issued proposed regs that came with an unwelcome surprise for many...
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Fraud - Office supply fraud

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  Office supply fraud is sneaky, but preventable Office supply scams are a tricky type of vendor fraud that generally use behavioral psychology and often depend on poor intraoffice communications for their “success.” Although they may not result in huge financial losses for defrauded companies, falsified invoices can add up to many thousands of dollars. Fortunately, you can help prevent them. How scams are perpetrated Office supply schemes typically begin as telemarketing fraud, with someone calling your business to obtain your street address and the name of an employee. Callers may: Ask for the “person in charge,” Claim to need information to complete an order, or Pretend to verify an office machine’s serial number. The goal is to get a name that will lend legitimacy to bogus shipments and invoices. For example, a supplier might ship boxes of poor quality gel pens and then, a week or two later, send you a pricey invoice. The delay is intentional: The fraudster hopes you won’t noti...
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