Sep 252012
 
Overview Of The 5 Tax Amendments On The 2012 Florida Ballot

Included among the eleven measures which are set to appear on the November 6 ballot are five that will give Florida voters the opportunity to put more tax breaks into the Florida Constitution.    Here is a brief overview of each amendment: Amendment 2 – also known as the Florida Veterans Property Tax Amendment would amend Article VII Section 6 (Homestead exemptions) of the Florida Constitution to expand property tax discounts for disabled veterans.  As written now, the Constitution only provides a deduction if the disabled veteran was a resident of the state at the time of entering the military service.  More…

Sep 202012
 
IRS Treatment Of Forgiven Student Loan Debt Causing Concerns

In the wake of the housing market collapse, many people have become familiar with the concept of cancellation of debt (COD) income.  The basis for COD income is found in IRC § 61(a)(12) which states that gross income includes “income from the discharge of indebtedness.”  Understanding the logic of this provision can be tricky.  When a loan is given, neither the lender nor the borrower have any gain or loss.  The lender has no loss because it expects to be repaid and the borrower has no gain because it expects to have to repay loan.  Thus, at this point, there More…

Jul 132012
 
IRS Details Special Tax Benefits For Armed Forces

It is no secret that military personnel and their families face unique life challenges with their duties, expenses and transitions.  The IRS has announced that it wants active members of the U.S. Armed Forces to be aware of all of the special tax benefits which are available to them. Moving Expenses – If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you may be able to deduct some of your unreimbursed moving expenses. Combat Pay – If you serve in a combat zone as an enlisted person More…

Jun 132012
 
IRS Warns Of New Scam Targeting DOD Employees

The IRS is warning taxpayers to be cautious of a new, email-based phishing scam that targets Department of Defense military members, retirees and civilian employees.  According to the IRS, the email appears to come from Defense Finance and Accounting Services (DFAS) and displays a .mil email address.  The email states that those receiving disability compensation from the Department of Veterans Affairs (VA) may be able to obtain additional funds from the IRS. Email recipients are then asked to send various VA and IRS documents containing their personal and financial information, such as copies of VA award letters or their income More…

Apr 182012
 
Keeping Up With Tax Obligations Can Present Special Problems For Active Duty Military

Frequent overseas deployment, constant address changes, the added complexity of military tax returns, and confusion over complicated tax provisions such as the combat tax exclusion, are just a few of reasons why active duty military members may have a difficult time maintaining their tax obligations.   Attesting to this fact, recent IRS data shows that approximately 60,000 active duty service members owe a collective $390 million in back taxes. Compounding the issue, many service members do not receive the notices that the IRS sends out in order to alert them to the fact that there is an issue.  The IRS is More…