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Walt Dallas
Flowood, Ms
Helping clients reduce taxes
Interests: family, reading, fitness, golf
Recent Activity
WASHINGTON (Reuters) - A legal challenge to the U.S. Internal Revenue Service’s power to pry information from uncooperative taxpayers did not appear to gain much traction among the justices of the Supreme Court on Wednesday. Continue reading
Posted Apr 24, 2014 at Estate Plannning
The Associated Press reported Monday that your chances of getting audited are the lowest in years. "This year, the IRS will have fewer agents auditing returns than at any time since at least the 1980s," the report says. Noting that less than one percent of individual returns were audited last year, the story quotes IRS Commissioner John Koskinen as saying that the audit rate will be even lower this year. Continue reading
In a Notice, IRS has provided guidance on the application (including retroactive application) of the Supreme Court'sWindsordecision and on the application of IRS's previous holdings in Rev Rul 2013-17, 2013-38 IRB 201, to qualified retirement plans under Code Sec. 401(a).InWindsor,the Court struck down a key provision in the Defense of Marriage Act that had required same-sex married couples to be treated as unmarried for Federal law Purposes.In Rev Rul 2013-17, IRS adopted a "state of celebration rule" in recognizing same-sex marriages. Continue reading
Posted Apr 8, 2014 at Estate Plannning
IRAs and Roth IRAs give taxpayers a great deal of flexibility in tax-sheltered retirement planning, but along with flexibility comes complexity.Taxpayers can make annual contributions to traditional or Roth IRAs, make rollovers as well as trustee-to-trustee transfers, convert traditional IRAs into Roth IRAs, and recharacterize contributions or conversions to Roth IRAs.Even a conversion that is reversed by way of a recharacterization can later be reconverted.The permutations are enough to make your head spin, particularly when it comes to figuring out what can be done, and by when.To complicate matters, a more restrictive one-year wait period between rollovers will apply beginning next year. Continue reading
Posted Apr 7, 2014 at Estate Plannning
IRS has privately ruled that no gain or loss will be recognized on a proposed transaction by two siblings to divide their existing corporation into two corporations. Each corporation will operate one of the two businesses currently being run by the existing company. Continue reading
Posted Mar 29, 2014 at Estate Plannning
In a unanimous decision (with Justice Kagan recused), the Supreme Court, reversing the Sixth Circuit Court of Appeals, has held that severance payments that were made to involuntarily terminated employees and that weren't tied to the receipt of State unemployment insurance, are subject to tax under the Federal Insurance Contributions Act (FICA). The Court easily concluded that the severance payments at issue fell within Code Sec. 3121's broad definition of "wages" for FICA tax purposes and rejected the taxpayer's argument that the payments' tax treatment was altered by a special withholding provision in Code Sec. 3402. Continue reading
Posted Mar 29, 2014 at Estate Plannning
The Tax Court has concluded that a corporation and its subsidiaries improperly deducted capital losses on stock, the basis of which was artificially inflated in a transaction that lacked economic substance. Under the scheme, the taxpayers contributed paired options to a partnership to generate an artificially high basis in property that the partnership later distributed, creating a large artificial capital loss. Continue reading
IRS has released the 2014 maximum fair market values (FMVs) for employer-provided autos, trucks and vans, the personal use of which can be valued for fringe benefit purposes at the mileage allowance rate (56¢ per mile for 2014). It also has released the 2014 maximum fleet-average vehicle FMVs for autos, trucks and vans for purposes of the annual lease value (ALV) fringe benefit valuation method. Continue reading
Posted Mar 26, 2014 at Estate Plannning
WASHINGTON (Reuters) - Wading into a murky tax question for the digital age, the U.S. Internal Revenue Service said on Tuesday that virtual currencies such as bitcoin are to be treated, for tax purposes, as property and not as currency. Putting bitcoin and other virtual currencies in the same category as stocks or bonds in some instances, the IRS said in a statement: "General tax principles that apply to property transactions apply to transactions using virtual currency." Continue reading
Posted Mar 26, 2014 at Estate Plannning
Estate Tax Marital Deduction A deduction is provided from a decedent’s gross estate for the value of certain property interests passing from the decedent to a surviving spouse. The estate tax marital deduction is equal to the value of property interests which: (1) are included in the decedent’s gross estate,... Continue reading
Posted Mar 25, 2014 at Estate Plannning
IRS has privately ruled that no gain or loss will be recognized on a proposed transaction by two siblings to divide their existing corporation into two corporations. Each corporation will operate one of the two businesses currently being run by the existing company. Continue reading
Posted Mar 25, 2014 at Estate Plannning
IRS has issued its annual data book, which provides statistical data on activities conducted by IRS from Oct. 1, 2012, to Sept. 30, 2013, and includes information about returns filed, taxes collected, enforcement, taxpayer assistance and IRS's budget and workforce. Continue reading
Posted Mar 24, 2014 at Estate Plannning
The U.S. Internal Revenue Service said on Friday that it audited fewer high-income Americans in 2013 than it did in 2012 or 2011, while it conducted more audits of people with no income. Continue reading
Posted Mar 24, 2014 at Estate Plannning
Home Improvements May Be Deducible as Medical Expenses Continue reading
Posted Aug 26, 2013 at Estate Plannning
Lodging on medical trips is dedutible but is at a reduced rate. For income tax planning see: http://www.estateplanning123.com/Mississippi-Income-Tax-Planning.php Continue reading
Posted Aug 22, 2013 at Estate Plannning
Travel to and from the doctor, hospital or other medical appointments are deductible. for information about income tax planning: http://www.estateplanning123.com/Mississippi-Income-Tax-Planning.php Continue reading
Posted Aug 21, 2013 at Estate Plannning
Equipment purchased to treat medical conditions is deductible under a Section 105 Plan. For Income Tax Planning: http://www.estateplanning123.com/Mississippi-Income-Tax-Planning.php Continue reading
Posted Aug 21, 2013 at Estate Plannning
Equipment purchased to treat medical conditions is deductible under a Section 105 Plan. For Income Tax Planning: http://www.estateplanning123.com/Mississippi-Income-Tax-Planning.php Continue reading
Posted Aug 19, 2013 at Estate Plannning
Medical expenses, over the counter drugs, medicines, are deductible under a Section 105 plan, but nondeductible on your 1040. Continue reading
Posted Aug 15, 2013 at Estate Plannning
Even though you may loose the deduction on your 1040, long term care insurance is deductible in a Section 105 Plan. Continue reading
Posted Aug 13, 2013 at Estate Plannning
Section 105 Medical Insurance Premiums Deductible for Family Continue reading
Posted Aug 10, 2013 at Estate Plannning
The Section 105 plan benefits, if fair compensation, can be the sole source of remuneration to your spouse. In a husband-and-wife operation, this eliminates the need for a payroll which means no payroll tax payments or filings. http://www.estateplanning123.com/Mississippi-Income-Tax-Planning.php Continue reading
Posted Aug 9, 2013 at Estate Plannning
Obamacare uses the income Tax Code to determine the number of employees for the employer mandate. These are the same rules to determine when businesses with retirement and other employee benefit plans must be combined. By breaking up a business into parts, the 50 employee rule may be avoided. Please be aware these rules are dee p and complicated so caution is advised. But on the positive side, these rules are clear and if followed can result an awesome result. Continue reading
Posted Aug 7, 2013 at Estate Plannning
Section 105 Plan What is Deductible? Continue reading
Posted Aug 5, 2013 at Estate Plannning
We can usually cut someone's taxes in half using tried and true strategies. We are the next step beyond a good CPA as we implement strategies a CPA is unable for due to limitations relating to the drafting of documents and the practice of law. Also strategic planning takes a special set of skills. Continue reading
Posted Aug 5, 2013 at Estate Plannning