The numbers of confirmed cases of U.S. citizens with COVID and of those who die from COVID related symptoms are continuing to rise.  COVID-19 has caused life-threating respiratory conditions, extended hospitalizations, and a resulting strain on our healthcare system.  Because COVID-19 is so contagious, the loved ones and family members of sick patients are not able to accompany them to the hospital.  Consequently, the virus underscores for all of us the importance of healthcare planning, particularly by having an advance directive or living will.

Advance directives are legal documents that specify healthcare treatment preferences (the “living will” portion) and designate a “healthcare proxy.” The proxy, also known as a healthcare agent, is a person you designate to make decisions for you in case you become unable to make them for yourself.  The directive

At this point you’ve probably cleaned out your closets and garage or tackled that home improvement project you’ve been wanting to do since you moved into your home.  Maybe you’ve even made banana bread, Dalgona whipped coffee or watched Tiger King and all three seasons of Ozark.  But what have you done to ensure your personal and family organization? One of the most important DIY projects that has been overlooked is the compilation, organization and maintenance of your important documents and records.

There is no better time than now to get your financial and estate planning documents in order!

Some of the information you should organize and compile is:

Contact Information: Create a list of all of the important people in your life (including their contact information). This list can include people like your attorney, your CPA, your named Executors and Trustees,

As an update to our earlier blog posted, U.S. Treasury Secretary Steven Mnuchin announced this morning that the U.S.is extending the April 15th tax-filing deadline to July 15th.  This extension is in addition to the earlier announced tax payment extension.

Tax payers now will have until July 15th to not only file their federal income tax forms but also make tax payments.  While it is still suggested to file and make payments as early as possible, individuals can defer up to $1 Million.  This encompasses self-employed individuals, and all entities (other than C corporations), such as trust or estates. C corporations get an extension up to $10 million.  While states are encouraged to follow suit, it is important to remember that this tax filing/payment period extension only applies to federal income tax returns.

Another important note is that this relief also applies to estimated tax payments for 2020 that are

As a strategy to help combat the economic effects of COVID-19, the U.S. Secretary of the Treasury Steven Mnuchin announced on Monday, March 16th, that taxpayers are getting a 90-day extension for paying their 2019 income taxes.  The goal is to free up $300 billion in liquidity and to lessen the cash-flow burdens facing the country as businesses are temporarily forced to close or slash their workforce.

What does this mean?

While the deadline to file your taxes is still April 15th, 2020, tax payments that are made by July 15th will have no interest or penalty.  As of today, individuals can defer up to $1 Million, while C corporations get an extension up to $10 million.  The $1 million deferral for individuals is to help

The Treasury Department issued final regulations on  November 26, 2019 (Treasury Decision 9884) confirming that taxpayers will not be subject to “clawback” of the value of their pre-2026 gifts of the temporarily increased gift and estate tax exemption.

Pursuant to the final regulations, taxpayers will be able to use (prior to 2026) the full increased gift and estate tax exclusion that became available beginning in 2018 under the citing the Tax Cuts and Jobs Act (TCJA) without concern that the IRS may attempt to include gifts that exceed the post-2025 exclusion amount in the taxpayer’s taxable estate at death.  This concern that lifetime gifts in excess of the exclusion amount at death might be included in the taxable estate of the decedent has come to be known as “clawback.”  The TCJA itself directed the IRS to publish regulations clarifying the clawback question and

The 7520 rate for September 2019 decreased to 2.2%.

The September 2019 Applicable Federal Interest Rates can be found here.

The 7520 rate for July 2019 decreased to 2.6%.

The July 2019 Applicable Federal Interest Rates can be found here.

The IRS announced on March 27, 2019 that in an effort to enhance security and improve transparency, the “responsible party” on applications for an employer identification number (EIN) must now be a natural person.

An EIN is the tax identification number assigned to entities such as trusts, estates, retirement plans, LLCs, partnerships, and corporations.  An entity obtains such a number by completing the IRS Form SS-4 or an online application.  One question in the application process asks the applicant to identify the “responsible party,” which the IRS defines as “the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity.” In deciding who to list as the responsible party, the IRS encourages applicants to consider whether the party has “a level of control over,

The 7520 rate for April 2019 has decreased to 3.0%.

The April 2019 Applicable Federal Interest Rates can be found here.

The 7520 rate for January 2019 has decreased to 3.4%.

The January 2019 Applicable Federal Interest Rates can be found here.