An individual may find tax charges a burden. This burden is not limited to the amount that one owed the IRS, this extends to the whole filing process that even a veteran tax payer may encounter some difficulties.
Bakersfield, CA -- (SBWIRE) -- 09/02/2014 -- The reason behind this is that there are a lot of factors that involve the some sort of alterations in the taxpayer’s status, figures or any essential kind of tax information, as well as changes in the complex strands of tax laws.
Also for this reason, some fail to file and pay their taxes. Little do they know, without the proper filing and payment of tax can get them in a more complicated predicament. They can never escape their taxes not even if they are buried six feet under. This is when the need for a Phoenix tax attorney comes in.
It may be hard for some to comprehend or to clarify, but the truth is, one’s tax liabilities do not end when he dies. IRS takes one last in depth review at the assets that the deceased has left through the estate tax. Those that lived in California can be considered lucky for the state has not approved its own estate or inheritance tax.
At the end of 2012, one may remember that the estate tax was part of the deliberation about the so-called fiscal cliff. If by chance, the Congress had failed to act, the individual exemption would have fallen down from $5 million to $1 million. That would have meant that a lot of smaller and less complicated estates would be taxed just as the economic recovery was taking hold.
The outcome of the deliberation is that, the tax stayed, and the $5 million exemption stayed, with adjustments for price hikes. Presently, an estate worth more than $5.3 million - expenses deducted – will be charged with a 40 percent tax. An estate worth less than $5.3 million is exempted from tax.
Democrats are in favor in maintaining and/or giving the current law a twist. Republicans and other fiscal conservatives on the other hand, have put a lot of time and effort into revoking the tax altogether. Before the Congress takes its summer break, it has been concluded, the House has a sufficient number of votes to pass a law that will do all that.
The law would revoke the generation-skipping transfer tax as well. It would also set the gift tax at 35 percent with a $5 million lifetime exemption with no definite adjustments for inflation whatsoever.
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