Taxpayers who have failed to file their taxes thus far may have good reasons for doing so. Perhaps they are still waiting on certain tax forms of information or for clarification on a particular tax issue. Other taxpayers in and around Roseville and Sacramento may have simply procrastinated due to busy schedules and multiple demands of their time. Consequently, most excuses that you may have for not filing your taxes are unlikely to be sufficient. While it is true that in som

For many Americans, filing taxes is both a matter of duty and a function of fearing the consequences of what will happen should he or she fail to file. The fact of the matter is that most Americans have a duty to file taxes because the income threshold that triggers a filing obligation is rather modest. In any case, for the people who are unsure if they have an obligation to file taxes, it is probably better to take the conservative approach and file taxes. For one, the only

It is quite common for a rental property to generate a loss for tax purposes, particularly where there are significant improvements made on a property, or where a property is unoccupied for a period of time. However, there may be some limitations on the amount of rental losses that are deductible in a given year, known as the “at-risk rules” and “passive activity limits” in the real estate world. At-Risk Rules for Real Property and Real Estate The at-risk rules can be very te

In our previous blog post we discussed the first six tax scams. In this post, we will take a brief look at the additional scams identified by the agency and some steps taxpayers can take to avoid falling victim to these scams. After all, taxpayers have more than enough on their plates considering their need to maintain accuracy in all filings, and to make timely tax filings and payments. Many individuals may also have offshore account compliance obligations to satisfy. Concer

For some taxpayers it may seem that they have an ever-expanding collection of 1099s. 1099 income is simply a fact of life for many Americans due to various jobs held. investments and savings they had, and other sources of income they received. Unfortunately, no person is perfect, and in some cases the number of 1099s received can become overwhelming. Other times, income received from sporadic work that ceased early in the tax year may result in the taxpayer forgetting about t

A common issue that comes up in trust administration matters is whether a successor trustee will be paid for serving as the successor trustee, and if so, how much? As with most trust administration issues, the answer lies in the trust document itself. Most trusts contain language which specifically authorizes payment to a successor trustee for performing services as trustee. However, we have seen some trusts where the trustee is not authorized to be compensated. Again, look t

A majority of people do not have sufficient assets to warrant the time and expense of filing a probate petition. For estates where there is no real property, assets are usually limited to funds in bank accounts, vehicles, and non-titled personal property, i.e., the contents of the home. If you are a son or daughter or other relative of a deceased person, what can you do to access assets of the decedent? If you have further questions on these legal concerns, contact a Rosevill

In February 2015, the IRS released a list of the top twelve illegal tax scams for which people must watch out. Included on the list are scams that target unsuspecting taxpayers, as well as scams committed by taxpayers that the IRS is investigating. Concerned about your taxes for this year? Contact a Roseville tax lawyer of NewPoint Law Group, LLP. Tax Scams to Be on the Look-out for Phone Scams: There’s a chance you may receive threatening phone calls made by criminals claimi

As discussed in our blog on Heggstad petitions, revocable living trusts may be funded from property that is not identified by deed or otherwise titled as assets of the trust by filing a petition with the Probate Court, which seeks an order declaring that the unidentified property shall be assets of the trust. With the court order in hand, the lending institution will allow the transfer of the funds into the trust. Alternatively, if the asset is real property, the court order

There are two categories of powers of attorney: (1) durable power of attorney and (2) advance health care directive. Questions about this legal information? Contact a Roseville estate planning attorney. Durable Power of Attorney A “durable power of attorney” is a legal document where the owner of property nominates some other person(s) to have legal authority over his or her accounts and other assets. It takes effect immediately upon being signed. The purpose of the Durable P

A life estate may be an effective estate planning tool when the goals are to preserve a home for elderly parent(s) for Medi-Cal planning purposes, and to allow the elderly parent(s) to retain possession. In the absence of proper Medi-Cal planning, the family home may have to be sold to pay for nursing home care incurred by an elderly parent who receives just a few months of nursing home care. A life estate is one of several options to consider in efforts to preserve the famil

The reason most people use revocable living trusts is to avoid probate. However, if the trust is not properly funded, a probate may be necessary under the terms of the pour-over will. Is a probate required when assets like real property or bank accounts are not funded into the trust? It depends. Unsure about trusts and estate planning? Contact a Roseville estate planning attorney of NewPoint Law Group, LLP. How the Revocable Living Trust Works Most revocable living trusts hav

When purchasing a home, married couples and domestic partners need to decide how they wish to hold title on their deeds. In 2001, the California legislature created a new form of title referred to as Community Property with Right of Survivorship. This form of ownership has characteristics of both a joint tenancy deed and a community property deed. Like a joint tenancy deed, the Community Property with Right of Survivorship Deed has a “right of survivorship” component. This me

Failing to file an FBAR carries a steep penalty—$10,000 per account per year in most instances, or the greater of $100,000 or 50% of the account balance for violations that are deemed willful. A willful failure to file an FBAR may also result in criminal prosecution, which carries a penalty of up to $250,000 and five years in prison. Do you have questions about filing an FBAR? Contact a Roseville tax lawyer of NewPoint Law Group, LLP for more insight on your legal matter. Wha

Many people interpret the statute of limitations on the assessment of tax as the statute of limitations for an audit. However, there is not actually a statute of limitations for an audit, although it may appear that way in practice. After all, if the government does not have the ability to assess tax, it generally has no incentive to go through the audit process. Concerned about being audited by the IRS? Contact a Roseville tax lawyer of NewPoint Law Group, LLP. Usually, the

A married couple buys their first house, and perhaps over the years, bigger houses with all the trimmings suitable for raising a family. What is the significance of how they hold title on their grant deeds? The short answer is that there are estate planning and tax consequences in how title is held. If the couple (or an individual for that matter) has a revocable living trust, they want title to vest in their names as trustees of the trust. This will ensure that the real prop

The IRS recently announced the Early Interaction Initiative (EII) in attempts to prevent payroll tax delinquencies before they start. Currently, the IRS Collection division is notified whenever an employer’s federal tax deposits decrease from historical deposit amounts, known as Federal Tax Deposit Alerts (FTD Alerts). When this occurs, an IRS field staff member meets with the employer to determine if there is a delinquency, and if so, to work with the employer to resolve the

In general, the IRS has ten years to collect any unpaid tax, with the ten-year period commencing from the date that tax is assessed. For the purpose of determining the Collection Expiration Statute Date (CSED), it is necessary to determine the date on which the tax was assessed. Note that the statute does not begin to run until an assessment of tax is made, so it doesn’t do any good to miss a filing deadline in hopes of waiting it out for ten years. The IRS only becomes more

Most accounts, i.e., savings, checking, brokerage, etc., authorize the designation of one or more payable on death beneficiaries. This means that upon the death of the owner of the account(s), the designated beneficiaries receive direct payment of the account balance after a brief waiting period by the financial institution without the need to obtain a probate court order or any other process that might involve having to hire a Roseville estate planning attorney. Thus, people

Many business entities in California are formed with the expectation of generating a profit, but things do not necessarily go as planned. For various reasons, business tax returns are not always filed on time, the annual franchise tax is not always paid, and/or the business entity is not always formally dissolved with the Secretary of State. This may seem like a minor problem to some; however, it can quickly turn into a very large tax bill from the Franchise Tax Board (FTB).

If you owe back taxes to the Internal Revenue Service (IRS), you will want to do everything that you can to eliminate that debt as soon as possible. If the IRS believes that you are not making a sincere attempt to manage your tax liability, you could end up with a lien on your property that will make it easier to seize your property if you continue to neglect your tax debt. If you or a family member need legal assistance negotiating tax debt with the IRS, contact an experienc

Developing an estate plan can feel strange as you must determine what property you want to pass on to others when your time comes. However, an estate plan is a vital step in ensuring that your family is well taken care of in your absence. If you or a family member require legal assistance to develop an estate plan, contact an experienced Sacramento estate planning attorney today. At the NewPoint Law Group, LLP, we are dedicated to helping our clients develop a unique estate p

The years 2020 and 2021 were very unusual, to say the least. Because of the COVID-19 pandemic, many Americans lost their jobs. Many people made up their lost income with new jobs, unemployment, or public assistance. Tax situations for many people filing in 2021 are going to be unusual. Because of these unique circumstances, the IRS will be examining your taxes especially closely this year. For people filing their taxes in 2021, the IRS will harshly scrutinize any suspicious a

Every American citizen is required by law to pay their taxes. The amount of money in taxes you owe will depend on many different factors related to your annual income and may not be the same every year. Sometimes, people neglect or forget to pay their taxes, but they are still on the hook for the money they owe the government. If you have not paid your taxes from any previous year, you may owe back taxes. Exactly how long you have to pay your back taxes will depend on who you