The U.S. Court of Appeals, Third Circuit, has ruled against a Medicaid applicant who requested a “credit” towards her Medicaid ineligibility penalty period after receiving returned countable assets that she previously gifted to family members.
The Tax Court has held that a home occupied by an individual at her death was includible in the value of her estate even though the home was previously purchased and owned by her daughter and son-in-law at the time of the decedent’s death.
Health reform law effective January 1, 2011 includes added benefit of free preventive care for Medicare recipients.
Appeals court reverses trial court decision that disallowed discounts for gifts of family limited liability company membership interests.
There are two federal tax credits available to help taxpayers offset the cost of higher education for themselves and their dependents. These are the American Opportunity Credit and the Lifetime Learning Credit.
Watson, P.C. v. U.S., (DC IA 12/23/10) An Iowa district court has concluded that an S corporation shareholder-employee’s $24,000 salary in 2002 and 2003 was unreasonably low, and allowed the IRS to reclassify over $134,000 of dividend payments to the shareholder-employee as salary. As a result, the corporation now owes employment taxes, penalties and interest … Continued
Medical Residents now required to pay FICA tax on thier wages.
The IRS announced on January 13, 2011, that it has raised the annual gross receipts threshold at which tax-exempt organizations must file Form 990 from $25,000 to $50,000, for tax years beginning on or after January 1, 2010. Under this new rule, qualifying tax-exempt organizations whose gross annual receipts are normally $50,000 or less can … Continued
The 2010 Tax Relief Act provides significant estate, gift and generation skipping transfer (“GST”) tax relief for 2011 and 2012, at which time, the new laws will sunset.
On January 5, 2011, National Taxpayer Advocate released her annual report to Congress, identifying the need for tax reform, expressing concern over the IRS’s increasing use of hard-core enforcement actions, and highlighting the challenges the IRS faces in implementing the new health care law.