On June 18, 2019, Virginia Governor Northam and the Virginia Department of Taxation released an important reminder to taxpayers, who still haven't filed individual income taxes, that returns must filed by midnight on July 1, 2019, to qualify for the Tax Relief Refund. Virginia implemented the Tax Relief Refund in response to the federal Tax Cuts and Jobs Act. Per the Tax Relief Refund, individual filers could receive up to $110, while married couples filing joint returns could receive up to $220. The release emphasized that the refund must not exceed the taxpayer's liability, and checks must be mailed out by Oct. 15, 2019. Finally, the release indicated some factors that can reduce the tax relief refund, including: (1) the Virginia Department of Taxation will withhold all or part of the refund and apply it to the taxpayer's outstanding Virginia state tax liabilities, and (2) the Virginia Department of Taxation will withhold all or part of the refund to help pay a taxpayer's delinquent liabilities with the Virginia local governments, courts or other state agencies, or the IRS.
The United States tax code requires those who pay tax obligations to report all assets, including those held overseas. The government has passed recent laws that are intended to encourage foreign financial institutions to aid in finding U.S. taxpayers that are attempting to avoid reporting these assets.
On April 30, 2019, Maryland Governor Larry Hogan signed a law providing that certain tax liens on certain real or personal property terminates 20 years from the date of assessment. Previously, a tax judgment lien in Maryland never expired. Indeed, in 2015, the Court of Special Appeals clarified in Comptroller of Maryland v. Shipe,1 that "[t]he language in Tax-Gen. §13-806 does not waive the State's immunity and clearly indicates that a tax lien 'continues to the date on which the lien is: (1) satisfied; or (2) released by the tax collector. . ..'" The new law changes this long-standing rule and creates a 20-year statute of limitations for Maryland tax judgment liens (unless another date is specified by law or the lien is for unpaid inheritance tax). Significantly, this means that even income tax liens will terminate 20 years from the date of assessment.
The Internal Revenue Service (IRS) along with the United States Department of Treasury recently issued regulations addressing state agency attempts to thwart the state and local tax deduction (SALT) limitation on federal tax returns.
As tax filing season ends, taxpayers throughout the country begin to realize the reality of tax audits. Tax experts predict tax audits by state agencies to go up this year. The main reason: the new tax law.
United States citizens living outside of the United States may still owe taxes to the Internal Revenue Service (IRS). The IRS has strict and far reaching tax laws. Tax laws that often extend beyond the borders of the country. As a result, anyone with citizenship will likely need to file with the IRS.
Recently, the IRS has confirmed that it will expand the scope of its private debt collection program initiated in 2017. On May 24, 2019, Bloomberg BNA relayed content of an IRS email wherein the IRS stated that, beginning in June of 2019, it will refer a small number of delinquent business accounts to private collection agencies. Via two anonymous sources reportedly "familiar with the discussions," Bloomberg BNA further clarified that the IRS intends to assign 200 business accounts per week--at least initially.
Frost & Associates, LLC was pleased to be among the sponsors for this year's Annual Irving Shulbank Memorial Dinner and Program. Highlights of the program included announcing the recipients of the 2019 Tax Excellence Award and The J. Ronald Shiff Memorial Pro Bono Award, as well as a presentation by keynote speaker, IRS Commissioner Charles Rettig.