Tax

Beat the summer heat and shop Maryland Tax-Free Week

Just in time for back to school shopping, Maryland apparel retailers are beginning a week of tax-free sales. The second Sunday of August to the following Saturday is designated as Shop Maryland Tax-Free Week each year. That means qualifying apparel and footwear $100 or less, per item, are exempt from the state sales tax. Accessory items are generally…

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New changes to Maryland Section 529 investment plans

If saving for college is on your list of New Year’s resolutions, new laws in Maryland will make 2017 a great year to start. Two new changes to Maryland Section 529 investment plans will make them even more attractive vehicles to save for college expenses. A Section 529 plan is created by making contributions to…

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IRS Takes Aim at Valuation Discounts for Family Controlled Entities

For years, the transfer of family-owned entities and the use of valuation discounts such as those for lack of control and marketability have been a staple of the estate planning process. These discounts allow value to be transferred from one individual to another with a reduction from the pro-rata value of up to 40% in…

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IRS Extends Deadline for WOTC Filings (Again)

Employers who wish to increase workforce diversity and benefit disadvantaged workers can get a significant tax credit for their efforts. The work opportunity tax credit (WOTC) is a credit that is available to businesses that hire members of “targeted groups,” generally employees with economic or physical disadvantages. The following are targeted groups: Unemployed veterans, recipients…

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Foreign Compliance – June 30 Deadline for FBAR

With June filing deadlines approaching for Americans living abroad, the IRS has been reminding taxpayers to consider their U.S. filing requirements. U.S. citizens or nonresident aliens who are living or traveling abroad must generally file tax returns in the same manner as those living in the U.S. The U.S. assesses taxes on worldwide income of…

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Last Minute IRA Contributions to Reduce Income Tax

Did you think that the window of opportunity was closed for 2015 tax planning? It’s not too late! If you have not already done so, making a 2015 contribution to your retirement account is an excellent way to reduce your income tax. Contributions must be made by April 18, 2016, in order to receive a…

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Extension for MD Fourth Quarter Withholding

Comptroller Peter Franchot announced on January 29th that the deadline for the Maryland quarterly withholding for the fourth quarter of 2015, has been extended to February 12th in an effort to alleviate pressure from small businesses that experience setbacks in their operations due to the blizzard. Please note this extension is applicable to Maryland filings…

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IRS Issues Update on Identity Theft PINs

The IRS has recently started to mail taxpayers who are victims of identity theft their Identity Theft PINs for use when filing their 2015 tax returns.  The IRS posted an alert on their website that states the CP 01A Notice (dated January 4, 2016) mailed to taxpayers with their PINs provides the wrong tax year.…

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Covering Children Tuition Costs with Capital Gains

Many parents may find themselves in a position where they must sell investments to pay for a child’s college tuition. These investments could have appreciated over the years, generating capital gains tax in the year that the investments are sold. However, if these funds are shifted to a child attending college, there is a tax…

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