Estate Tax What It Is And How It Is Filed

    




    

According to the Internal Revenue Service (IRS), an Estate Tax is a tax that is imposed on your right to transfer your property and belongings after your death. The individual who is in charge of handing and filing an Estate Tax return is often the estate representative. An estate representative can be a family attorney or a family member who was declared the executor of an estate in a will. When dealing with an Estate Tax, there are number of things that an individual or family must do when preparing to deal with the Internal Revenue Service (IRS).
There are certain restrictions for estates that are subject to the Estate Tax. Each year tax laws are updated or completely changed; therefore, estate representatives or family members are encouraged to review the new Estate Tax laws. At the current time, the majority of estates are not subject to an Estate Tax if they are valued at less than one million fifty thousand dollars. The Estate Tax value is expected to increase up to two million dollars for the 2006 year. In addition to meeting a certain esta te value, it is also likely that the majority of properties that are jointly owned will not be taxed if at least one property owner is still living. http://www.taxhelpdirectory.com/taxlaw/.
An Estate Tax return is due to be submitted to the Internal Revenue Service (IRS) nine months after the estate owner passed away. As with regular tax returns, it is possible for estate representatives or family members to obtain a deadline extension. If tax is owed on the estate, it still needs to be paid before the nine months arrives even if an Estate Tax return deadline was granted. Not paying the estimated amount of estate taxes due can result in late fees or additional penalties.
The Internal Revenue Service (IRS) will determine the amount of Estate Tax owed by taking the fair market value of all property items that were previously owned by the estate owner before he or she passed away. Fair market value takes into account when an item was purchased and exactly how much it is worth today. When all of those items are added up the total is referred to as the Gross Estate. As with traditional tax returns, estate taxes are allowed tax credits and tax deductions. When all of these it ems are computed together the amount of tax owed will be determined.
When an Estate Tax return is being filed with the Internal Revenue Service (IRS) there are a number of other important documents that must be sent along with the return. These items include a copy of a death certificate, copies of property appraisals, copies of litigation documents that may apply to the estate property, and a copy of the deceased?s will. As previously mentioned, an Estate Tax return can be filed by a lawyer, an estate representative, or a family member. Individuals can acquire the Form 706: United States Estate (and Generation - Skipping Transfer) Tax Return by contacting the Internal Revenue Service (IRS) or by downloading the form online.
Only a small percentage of Americans are required to file for an Estate Tax return; however, that does not mean that taxpayers do not need to know and understand what an Estate Tax is. A taxpayer may not own a high valued property; however, that does not mean that they cannot inherit one or be named an estate representative by a friend or family member who has passed on.

About The Author

Gray Rollins is a featured writer for the Tax Help Directory. To learn more about the estate tax, visit http://www.taxhelpdirectory.com/estatetax/ and for info about tax lawyers, visit http://www.taxhelpdirectory.com/taxlawyer/.


    

    

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Enabling Sarbanes Oxley Compliance

    




    

Sarbanes Oxley compliance is not a one-day, a one-month, or even a one-year project; instead, Sarbanes Oxley compliance should be built into your corporate infrastructure as early as possible when you begin making changes. The more quickly you transition your business into long-term strategy change, the better you're going to be able to control Sarbanes Oxley compliance issues.
There are a number of issues you can expect to impede this process:
Project mindset - Your managers will probably look at Sarbanes Oxley compliance as a project with a clearly definable endpoint. This is not at all the case. The more quickly you can move to change their attitude, the more likely you'll have a clear and simple transition into the new way of doing business. You can use such items as continual education and newsletter updates as ways to show your managers that you expect Sarbanes Oxley to change the way they do business forever.
Manpower issues - Sarbanes Oxley compliance is not friendly to businesses who are trying to streamline their workforce. Though you may have to increase the size of your employee pool at the beginning of your Sarbanes Oxley compliance process, you can expect this pool to decrease as you gradually fold Sarbanes Oxley compliance methodologies into your normal way of doing business.
Poorly-defined roles in internal control - if you don't clearly lay out responsibilities such as auditing, accountability, and project management, your Sarbanes Oxley compliance]tasks are going to be needlessly complicated. You should also make it very clear whose roles it will be to see to the Sarbanes Oxley rollout and to whom these people will be ultimately answerable.
Improvisational approaches - Jumping into Sarbanes Oxley compliance will simply not work. You need to step back and plan how you're going to be incorporating the structures and requirements of Sarbanes Oxley into your daily work routines. And once a plan has been defined, you must follow the plan, and ensure everyone else is also following it.
Underestimating the Impact to Technology - Sarbanes Oxley would simply not have been possible twenty years ago. Technology is critical for your compliance with this act. You can expect to make significant technology investments as you procede to implement Sarbanes Oxley compliance. Investments will cover such things as sustainable compliance with repository, work flow, and audit trail functionality. In addition, your internal control monitoring and reporting will depend heavily on technology. At some la rge corporations, it might be worth looking into hiring another full-time IT person who has been specifically trained in implementing and maintaining Sarbanes Oxley technological infrastructure.
Ignored Risks - Risk assessment is vital in Sarbanes Oxley compliance. One of the first meetings you should have as you implement Sarbanes Oxley compliance is one on risk management. Inadequately assessing risk can lead to serious financial reporting errors that can render your investment in training and compliance useless.
Successful Sarbanes Oxley compliance
Your framework for sustained Sarbanes Oxley compliance should include the following:
* Effective, efficent evaluation of testing, remediating, monitoring, and reporting controls
* Integration of financial and internal control processes
* Proper use of technology to comply with Sarbanes Oxley requirements
* Clear roles and responsibilities, a solid chain of command, and assigned accountability
* Continual education and training in Sarbanes Oxley compliance
* Adaptability and flexibility to respond to Sarbanes Oxley compliance-induced changes

About The Author

Earl Powers, US Lawyer and Segregation Of Duties expert at Aquest Group LLC ( http://www.compliance-sarbanes-oxley.info ) publishes other articles related to Segregation Of Duties at http://www.sarbanes-oxley-section-404.info and http://www.404-sarbanes-oxley.info.
    

    

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Do I Need A DUI Lawyer

    




    

You?ve been arrested on a DUI charge. Now what do you do? Although most people will recommend that you hire a lawyer to represent your best interests many people do not do so, often because of shame and embarrassment. Whether or not you hire a lawyer can have a big impact on your case so you may want to think carefully before making a decision. If you do decide to hire a DUI lawyer there are several things to consider so that you find the best lawyer possible to represent you.
Because DUI laws vary among each state (www.duislawyer.com/stateduilaws), hire a lawyer that has expertise with the laws in the state where you were arrested. Also, hire a lawyer that specializes in DUI cases. Depending on where you live you may not be able to find a good lawyer that practices DUI law exclusively, but look for a lawyer who spends at least half of his or her time handling DUI cases. It may be tempting to hire your local lawy er who deals with a veritable buffet of issues such as DUI?s, divorce, wills, and bankruptcy, etc. but DUI law is extensive and continually changing so you will likely be much better hiring a specialist in DUI.
Before you hire a DUI lawyer, or any other type of lawyer, meet with him or her first. Most lawyers will not charge you to meet with them while you?re looking for someone to handle your case. Having a face to face meeting with your lawyer before hiring him or her is good for both the client and the attorney. You?ll want to hire someone you feel comfortable working with. A face to face meeting helps you determine whether or not you feel comfortable. It also helps the lawyer decide if he or she feels comf ortable working with you and wants to take on your case.
Before going to any consultations with lawyers (and you should consult with at least two lawyers before making a decision) do some research. The yellow pages is a good place to look for a lawyer but remember that the DUI lawyer with the biggest ad is not necessarily the best lawyer for you to hire. He or she is just the person with the biggest ad. You want a lawyer with DUI expertise and experience.
The library is another good place to do research. Your local library should have a copy of the Martindale Hubbell law directory. The directory does its best to list every lawyer in the United States along with his or her area(s) of speciality. You can search the directory by either location or area of law each lawyer deals with. The directory is also available online. People you know can also be a good source of information regarding a good lawyer.
Create a list of questions you want to ask each lawyer during the consultation so you can compare each lawyer equally before deciding who you would like to hire to represent you.
A few questions you may want to have on the list you make are:
1) What percent of the cases you handle are DUI or impaired driver? (Remember that you want someone who is very familiar with the current laws in your state.)
2) What do you charge and what is your fee structure? (You?ll want to know the most you?ll have to pay as well as how much you have to pay upfront. Many DUI lawyers charge a flat fee, which is a set amount for your case whether or not it goes to trial. Some lawyers charge an hourly fee. Others have staggered fee structures that break things into phases. They may charge a flat fee up until trial. If the case goes to trial then there?s another fee to pay. If the entire fee is required upfront but you are financially unable to pay it all upfront ask if a payment arrangement can be worked out. It can?t hurt to ask. The worst answer you can get is ?no.?)
3) What costs besides attorney fees will I be responsible for? (In addition to lawyer fees you may be responsible for things like court costs and filing fees).
4) Will you be the lawyer handling my case or will someone else in the firm be the primary lawyer on my case? (This question is especially important if you are consulting at a firm with several lawyers. Some people have been very frustrated when they found out the lawyer they consulted with wasn?t the lawyer who handled the majority of their case.)
These are just a few of the questions you?ll likely want to ask before deciding which DUI lawyer you want to hire.

About The Author

D Ruplinger is a featured writer for http://www.duislawyer.com. For more information about DUI Lawyers, DUI Penalties and DUI statistics visit: http://www.duislawyer.com/duistatistics.

    

    

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Divorce Taxes and the IRS

    




    


In Divorce, potential tax liability can frequently become the tool for one spouse to use against the other spouse. If improperly used, this tool can destroy all of the marital assets. In the worst case, tax liability can seriously impact the future financial security of either spouse and subject them to criminal sanctions.
Situation 1 - Your Spouse Owns a Business
The most common situation where taxes become an issue in a divorce is they there is a family business. The owner - spouse may have hidden cash receipts or engage in a practice of recording inflated expenses. This common practice by many business owners is a fraudulent attempt to minimize taxes. The other spouse is often aware of and approves of this practice. During the marriage, minimization of taxes results in higher household income and a better lifestyle for the couple.
This practice is illegal or borders on illegal. During the marriage it is a secret between the married couple. But during a divorce each spouse may try to use past tax behavior to gain an advantage. The owner - spouse wants to minimize past income in an effort to lower child support, alimony, or division of marital property. Of course the other spouse wants to prove the opposite.
The result is a game of chicken - with one spouse threatening to turn the other spouse in to the IRS. This is a dangerous game for all involved. Do it yourselfers will find the situation blowing up in their face. People with attorneys may find the attorney reluctant to deal with the situation.
The Potential Problems:
? Your Attorney cannot assist the owner/spouse commit the crime of tax evasion.
? The non-owner spouse may end up liable for half of the back taxes, penalties, and fines.
? The divorce court Judge may decide to turn everyone in.
? In an extreme situation, everyone can go to jail.
Situation 2 - You Make a Surprise Discovery: Your Spouse is a Tax Cheat
Another common situation in divorce: the sudden realization that a spouse is a tax cheat ? and you were completely unaware until the divorce.
The Potential Problems:
? You may end up owing the IRS half the overdue taxes.
? You may end up owing the IRS the ENTIRE tax bill.
? The overdue tax bill may be double the actual unpaid taxes, due to penalties, fines, and interest.
The Potential Solution:
The IRS has a provision called Innocent Spouse Relief. This provision gives complete or partial tax forgiveness to an innocent spouse. But be aware - the definition of "innocent" is technical, elusive, and difficult to understand.
Two available forms of tax relief:
? Innocent Spouse Relief - Discharge of Liability
? Separate Tax Liability for Each Spouse
The first form of relief wipes out your tax debt in part or full. You must have not had any knowledge of the incorrect or fraudulently prepared tax returns. That means you cannot look like you were aware of any part of the return. Also, you must not have benefited from the hidden income. That means you cannot be driving a Mercedes and at the same time signing a tax return that show $200/week in income.
The second form of relief is slightly easier to get. If you qualify, the IRS will separate out the tax liability of your income from your spouse's hidden income. This type of relief may have the effect of wiping out extreme tax bills and penalties.
The Bottom Line: Always be aware of these types of tax situations. The financial effect can be far worse than the divorce. If you believe this type of problem is in your future, start preparing immediately. Do not sign a joint tax return for your upcoming tax filing. File married-filing-separately. The moment you suspect a potential tax liability, begin to separate your financial life from your spouse's financial life and then promptly file for divorce.
Copyright 2006 The Divorce Center P.A.

About The Author

Divorce Attorney Howard Iken has a rapidly growing divorce practice in the Tampa Bay area of Florida. He can be reached at 727-844-7676. More information on divorce can be found at http://www.18884mydivorce.com. More information on Divorce Attorney Howard Iken can be found at http://www.18884mydivorce.com/pub/Aboutus/aboutus.htm


    

    

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Divorce Lower Cost Alternatives to an Attorney

    




    


Many years ago hiring a divorce attorney was financially devastating for many people. Divorce was for the wealthy. The rest of us had no options. We had to beg, borrow, or steal to find the money for an attorney. But now there are more options than ever before for anyone facing a divorce.
Do Everything Yourself
?Doing everything yourself? has become an option in many states with the advent of approved self-help forms. For example, the state of Florida has produced a complete set of Family Law Self-Help forms. These forms have been carefully reviewed by the state Bar association and subsequently approved by the Florida Supreme Court. Each form is accompanied by instructions on proper use. Because Florida Statutes reference those self-help forms, they are accepted by all Florida courts. Many if not all states ha ve adopted some type of self-help forms. You can usually download the forms from your state court website or purchase an inexpensive pack of forms at your local courthouse. The advantage: the forms are free and you do not need a lawyer to file them. The disadvantage: the instructions can be confusing, complex, and difficult to follow. And you may be sacrificing some serious legal rights without realizing you are doing so.
Online Forms Preparation Service
The internet has brought major changes to the delivery of legal services. One recent change is universal availability of online forms services. For a fee usually ranging around two hundred dollars these services will conduct an online interview and generate a custom set of forms, ready to file with the court in your area. These services are easy, quick, and as convenient as the nearest computer. The better services keep track of changes in each state and adjust their forms accordingly. The advantage: th e forms are accurately and neatly filled out at an affordable cost. The disadvantage: same as ?do-it-yourself ? you are on your own during the divorce. There is no advice or help if something goes wrong.
Attorney ? Forms Only Service
Florida and many other states have adopted a concept called ?Unbundled Services.? This concept is an official recognition that many people want to hire an attorney for one small part of their case. They have access to expert advice at an affordable price. Many attorneys offer a form preparation service similar to the online services. The key difference is the forms are prepared or supervised by an attorney. The advantage: the security of knowing the forms are done correctly by a local expert. The disadv antage: you are still on your own during the divorce. However, because you established a relationship with an attorney, you may have access to the attorney for occasional advice if you run into difficulty.
So Which Option Should You Use?
Divorce can affect your relationship with your children, your present finances, and your finances during the next 30 years. What you do now can affect your life for many years. The simple answer: take the best option you can afford. If you can afford full representation from an attorney ? that is best. If you cannot afford anything ? the do-it-yourself method is best. But whichever route you take: educate yourself, proceed carefully, and educate yourself some more. Remember, knowledge is power. The pers on with the most knowledge always comes out ahead.
Copyright 2006 The Divorce Center P.A.

About The Author

Howard Iken is an attorney in the Tampa Florida area. He practices exclusively in family and divorce law. You can find out more about his law practice, The Divorce Center P.A. by logging into his website http://www.18884MyDivorce.com. An explanation of fees for a Florida divorce can be found at http://www.18884mydivorce.com/pub/Fees/fees.htm.
    

    

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