Defense of Marriage Act (DOMA)

UPDATE
 
On August 29, 2013, the Internal Revenue Service (IRS) issued Revenue Ruling 2013-17, which provides that same-sex couples who were legally married in a jurisdiction that recognizes such marriages will be treated as married for federal tax purposes - even if they live in a state that does not recognize same-sex marriage.

Any same-sex marriage legally entered into in one of the 50 states, the District of Columbia, a U.S. territory or a foreign country will be covered by the ruling. However, for federal tax purposes, the term "marriage" does not include registered domestic partnerships, civil unions or similar formal relationships recognized under state law that are not actually denominated as a marriage. As of August 2013, the states of California, Connecticut, Delaware, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Rhode Island, Vermont, and Washington, as well as the District of Columbia, recognize same-sex marriage. | Read More

2013 Year-End Tax Planning

Now that Labor Day is behind us, we are in the home stretch of 2013 and time to start thinking about year-end planning. In fact, year-end tax planning has become around-the-year tax planning because of tax legislation (or the lack of tax legislation), new IRS rules and regulations and personal and business considerations. Looking ahead to year-end 2013, there are many tax planning strategies to explore and evaluate. | Read More

Reminders

October 15, 2013
Final deadline to file individual tax returns (with extension). (Forms 1040, 1040A, 1040EZ.) Last day the IRS will accept an electronically filed tax return for the year 2012. If filing after October 15th, you'll need to mail in your tax return for processing.

Final deadline to fund a SEP-IRA or solo 401(k) for tax year 2012 if you requested an automatic extension of time to file.

Foreign Bank Account Reporting

Beanie Babies creator (and billionaire) Ty Warren agreed to pay a $53.5M civil penalty for failure to report a foreign account that produced less than a million dollars in unreported income tax. Mr. Warren was likely discovered as a result of the bank's agreement to disclose the identity of its account holders.

The publicity alone is a huge feather in the government's cap. The threat of a disproportionate penalty will encourage more taxpayers to enter the Offshore Voluntary Disclosure Program. The clear message from the IRS remains: "contact us before we contact you."

If you have a foreign bank account, don't bury your head in the sand. Banks are now reporting to the IRS. Utilize the available disclosure programs to avoid these harsh penalties and potential criminal penalties.

Our Firm is Proud to Support the NYSSCPAs-Nassau Chapter's
Blood Drive

Monday, Nov. 11, 2013
Margolin, Winer & Evens
Busmobile *- 400 Garden City Plaza, Garden City
10:45 am - 4:45 pm

Your donation will help to save up to THREE lives. Our community hospitals need your help. Please share this lifesaving gift! Thank you for caring! | Read More

Click on one of the following for additional updated information:
• 2013 Tax Law Summary
• Client Line October 2013 Newsletter
• Tax Report September 2013 Newsletter

To learn more about Sanders Thaler Viola Katz, LLP, visit www.st-cpas.com.