Federal Taxes

What We Do.

Posted by on Oct 28, 2015 in Business General Counsel, Business Planning, Estate Planning, Federal Taxes, Litigation, Probate, Tax | 0 comments

We are Ready to Help We are not like the “TV commercial attorneys”.  This is not meant to disparage the personal injury, disability or workers’ compensation attorneys who advertise on television, but we are in a completely different business than those lawyers.  By all means, if you are hurt in an automobile accident, give us a call.  We would be happy to refer you to an attorney who handles those matters.  We, however, will not be the attorneys representing you in those cases. Our Practice Areas So, if we are not suing for injuries, what is it we do as attorneys?  The simple answer is that...

Read More

Hanging 5 x 5 Powers

Posted by on Feb 5, 2014 in Estate Planning, Estate Tax, Federal Taxes | 0 comments

A common term thrown around in the world of federal Estate and Gift Taxes is “Hanging 5 x 5 Powers” or “Hanging Withdrawal Rights”.   This concept exists in trust planning to balance two concepts of tax law when making gifts to an irrevocable trust:  In order for a gift to qualify for the annual gift tax exclusion of $14,000 per recipient (as of 2014), the gift must be a gift of a present interest (not a gift of a right to receive something in the future).  When a trust beneficiary allows a general power of appointment to lapse, the beneficiary is deemed to have made a gift to the other...

Read More

Favorable Ruling from the U.S. Tax Court in 2013 Unpaid Payroll Tax Case

Posted by on Jan 8, 2014 in Federal Taxes, Tax | 0 comments

During 2013, Penzien & McBride, PLLC obtained a favorable ruling from the United States Tax Court related to the requirement of the IRS to properly notify a taxpayer of his rights to appeal a proposed assessment of a Trust Fund Recovery Penalty (an assessment against a business owner or other responsible person for the business failing to remit payroll tax to the IRS). In a Memorandum of Fact and Opinion issued on May 30, 2013, the U.S. Tax Court, for the first time, ruled that actual receipt of a Letter 1153 is required before the IRS can move to levy or lien a taxpayer’s...

Read More

Estate Tax Likely to Remain (Mostly) Unchanged

Posted by on Jan 2, 2013 in Estate Planning, Estate Tax, Federal Taxes | 0 comments

January 2, 2013 – With the “fiscal cliff” looming, estate planners and tax attorneys were left wondering what to do to take advantage of historically tax-friendly Estate Tax laws.  The answer may have been to do nothing different. Under 2012 tax law, the Estate Tax only applied to individuals dying with more than $5 million of net worth ($10 million for married couples).  As with many tax laws, the rules were set to drastically change on January 1, 2013.  Without an act of Congress, the Estate Tax exemption was set to go from $5 million to $1 million and the top Estate Tax...

Read More

Deducting Business Start-Up Expenses for Federal Taxes

Posted by on Dec 10, 2012 in Business General Counsel, Business Planning, Federal Taxes, Tax | 0 comments

While the decision of the U.S. Tax Court in McPartland v. Commissioner is not groundbreaking or surprising, it is a reminder to business start ups. Without going into a great deal of detail, what led to the controversy in McPartland involved a rental real estate business.  The Taxpayer purchased a property in 2007 for $10,000.  That property, as you would imagine, needed a great deal of work before it could be rented as a residence.  The Taxpayer incurred nearly $62,000 of expenses associated with renovating the home in 2007 but did not rent the home until 2010. The Taxpayer deducted the...

Read More

Why did the Supreme Court Need to Frame the ‘Obamacare’ Individual Mandate as a Tax?

Posted by on Oct 8, 2012 in Federal Taxes, News | 0 comments

I intentionally waited for some of the political debate to die before writing about the Supreme Court ruling on the constitutionality of the Patient Protection and Affordable Care Act of 2010 (the real name of “Obamacare” for those who have never heard it called by its real name).  I do not intend to delve into any of the political aspect of the law or the policy issues involved; the purpose of this article is merely to explain why it was so important for Justice Roberts’ opinion to conclude that the individual mandate was a tax for “Obamacare” to survive SCOTUS scrutiny. It seems that...

Read More