Same-sex Marriage and Federal Income Tax Returns
Posted on July 21st, 2011 by bunilaw
Section 3 of the Defense of Marriage Act (DOMA, codified as 1 USC sec. 7), prevents the federal government from treating any union of same-sex persons as a marriage, regardless of its status under state law. That means IRS cannot accept jointly filed returns from same-sex couples, even if those couples are married under state [...]
IRS Renews Offshore Voluntary Disclosure Initiative on Tougher Terms
Posted on February 9th, 2011 by bunilaw
The cost of delay On February 8, 2011, IRS announced a renewed initiative for resolving unreported income held in offshore accounts or assets. The renewed initiative has an 8 year look-back period (instead of the 6 year look-back of the 2009 initiative). A new penalty rate of 25% replaces the prior 20% penalty rate. There [...]
IRS is Wrong on Standard Deduction
Posted on March 4th, 2010 by bunilaw
Dual status aliens in New York or Vermont get the standard deduction despite what IRS says. If you are a non-resident alien for part of the tax year and a resident alien for the other part, the IRS tells you you can’t take the standard deduction (see, e.g., Pub 519, p33 rev. Apr14/09). Don’t listen [...]
New York state income tax audit Q&A
Posted on January 28th, 2010 by bunilaw
If you’re a salaried employee and perform any work in New York state you are subject to New York state income tax. Executives and other highly compensated individuals are common targets for audit. If you move in or out of New York state in conjunction with the sale of a business or a contract to [...]
Last Chance: IRS Extends Deadline for Undisclosed Offshore Accounts
Posted on September 28th, 2009 by bunilaw
On September 21, 2009 the IRS announced a one-time extension of the deadline for voluntary disclosures for unreported income from offshore accounts. The deadline has been extended to October 15, 2009. Please note this is not an amnesty program, as it has commonly been referred to in various press. Taxpayers utilizing the program should consult with an attorney.